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PagerDuty (PD) to Report Q4 Earnings: What's in the Cards?

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PagerDuty (PD - Free Report) is set to release fourth-quarter fiscal 2021 results on Mar 17.

For the quarter, the company expects total revenues between $57 million and $58 million, indicating growth rate of 24%-26% year over year. On a non-GAAP basis, loss is expected between 11 cents and 12 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $57.3 million, suggesting growth of 24.8% from the figure reported in the year-ago quarter.

The consensus mark for loss stayed at 12 cents per share over the past 30 days. PagerDuty had reported a loss of 3 cents in the year-ago quarter.
 
Let’s see how things have shaped up for this announcement.

PagerDuty Inc. Price and EPS Surprise

PagerDuty Inc. Price and EPS Surprise

PagerDuty Inc. price-eps-surprise | PagerDuty Inc. Quote

Factors to Watch

PagerDuty’s fiscal fourth-quarter results are expected to benefit from the ongoing digital transformation accelerated by the coronavirus pandemic. The company’s clientele expanded to 13,725 at the end of the fiscal third quarter. The momentum is likely to have continued in the to-be-reported quarter.

PagerDuty’s ability to resolve outages and incidents within a short span of time has been a major catalyst. The company is also gaining traction from expanding digital-use cases including cloud adoption, DevOps, security, distributed architecture and remote working.

Moreover, enhanced automation and intelligence capabilities of Dynamic Service Directory, Business Response and Intelligent Triage solutions are expected to increase demand for PagerDuty’s solutions.

Additionally, integration with the likes of Zoom and Microsoft Teams is expected to have aided top-line growth in the to-be-reported quarter.

During the fiscal fourth quarter, PagerDuty announced a product collaboration with Amazon DevOps Guru, an operational insight service powered by machine learning from Amazon Web Services.

Further, this Zacks Rank #3 (Hold) company earns majority of its revenues from subscriptions, much similar to its Zacks Internet Software peers like Anaplan , Nice (NICE - Free Report) and Workday (WDAY - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PagerDuty’s subscription-based business is expected to have remained resilient to the disruption and economic downturn caused by the pandemic in the to-be-reported quarter.

Markedly, Anaplan’s fourth-quarter fiscal 2021 subscription revenues (91.9% of total revenues) rallied 25.7% year over year to $112.6 million. NICE’s fourth-quarter 2020 cloud revenues (50.4% of revenues) rose 31.2% year over year to $219 million. Workday reported fourth-quarter fiscal 2021 subscription revenues (88.9% of total revenues) of $1.01 billion, up 19.8% year over year.

Key Q4 Development

During fiscal fourth quarter, PagerDuty announced a global alliance with Tata Consulting Services (TCS), a leading global IT services, consulting, and business solutions organization, to develop a new generation of IT solutions grounded in AI and automation and designed to accelerate digital transformation initiatives and modernize operations across key verticals.

TCS and PagerDuty will help transform customers’ digital operations by bringing PagerDuty’s Digital Operations Management platform to enterprises worldwide, providing new capabilities for event management, incident response, and AIOps, as well as advanced insights and analytics.

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