PagerDuty (PD) Q2 Earnings: What To Expect

Digital operations platform PagerDuty (NYSE:PD) will be reporting earnings this Thursday after market hours. Here’s what to expect.

PagerDuty beat analysts’ revenue expectations last quarter, reporting revenues of $121 million, flat year on year. It was a strong quarter for the company, with accelerating customer growth and a solid beat of analysts’ adjusted operating income estimates. It added 29 customers to reach a total of 15,380.

Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting PagerDuty’s revenue to be flat year on year, slowing from the 6.4% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PagerDuty has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at PagerDuty’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 3.9%, and Dynatrace reported revenues up 16.2%, topping estimates by 0.9%. Datadog traded down 17.4% following the results while Dynatrace was up 6.9%.

Read our full analysis of Datadog’s results here and Dynatrace’s results here.

There has been positive sentiment among investors in the software development segment, with share prices up 14.3% on average over the last month. PagerDuty is up 25.5% during the same time and is heading into earnings with an average analyst price target of $10.14 (compared to the current share price of $12.25).

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