Digital operations platform PagerDuty (NYSE: PD) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
PagerDuty met analysts’ revenue expectations last quarter, reporting revenues of $119.8 million, up 7.8% year on year. It was a mixed quarter for the company, with accelerating customer growth but EPS guidance for next quarter missing analysts’ expectations significantly. It added 133 customers to reach a total of 15,247.
Is PagerDuty a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting PagerDuty’s revenue to grow 6.7% year on year to $123.7 million, slowing from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PagerDuty has missed Wall Street’s revenue estimates three 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. Dynatrace delivered year-on-year revenue growth of 19.6%, beating analysts’ expectations by 2.1%, and Datadog reported revenues up 28.1%, topping estimates by 4.5%. Dynatrace traded down 7.2% following the results while Datadog was also down 4.4%.
Read our full analysis of Dynatrace’s results here and Datadog’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 3.2% on average over the last month. PagerDuty is up 6.9% during the same time and is heading into earnings with an average analyst price target of $19.63 (compared to the current share price of $16.79).
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