PagerDuty Announces Fourth Quarter and Full Year Fiscal 2024 Financial Results
Fourth quarter revenue increased 10.1% year over year to
Fourth quarter GAAP operating loss of
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“PagerDuty delivered year-over-year revenue growth of 16% and operating margin expansion of more than 1,200 basis points to complete a second consecutive year of growing non-GAAP profitability,” said
Fourth Quarter Fiscal 2024 Financial Highlights
-
Revenue was
$111.1 million , an increase of 10.1% year over year. -
GAAP operating loss was
$33.4 million ; GAAP operating margin of (30.1)%. -
Non-GAAP operating income was
$11.0 million ; non-GAAP operating margin of 9.9%. -
GAAP net loss per share attributable to
PagerDuty, Inc. common stockholders was$0.33 . -
Non-GAAP net income per diluted share attributable to
PagerDuty, Inc. common stockholders was$0.17 . -
Operating cash flow was
$22.2 million , with free cash flow of$19.6 million . -
Cash, cash equivalents and current investments were
$571.2 million as ofJanuary 31, 2024 .
Full Year Fiscal 2024 Financial Highlights
-
Revenue was
$430.7 million , an increase of 16.2% year over year. -
GAAP operating loss was
$96.2 million ; GAAP operating margin of (22.3)%. -
Non-GAAP operating income was
$56.4 million ; non-GAAP operating margin of 13.1%. -
GAAP net loss per share attributable to
PagerDuty, Inc. was$0.89 . -
Non-GAAP net income per diluted share attributable to
PagerDuty, Inc. was$0.74 . -
Operating cash flow was
$72.0 million , with free cash flow of$64.4 million .
The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between historical GAAP and non-GAAP information.
Fourth Quarter and Recent Highlights
-
Annual recurring revenue (ARR) grew 10% year over year to
$451.9 million . -
Dollar-based net retention rate of 107% as of
January 31, 2024 , compared to 120% in the year ago period. -
Reported 804 customers with ARR over
$100,000 as ofJanuary 31, 2024 , compared to 752 in the year ago period. -
Reported 58 customers with ARR over
$1,000,000 as ofJanuary 31, 2024 , compared to 50 in the year ago period. -
ARR from customers using two or more paid products grew to 62% as of
January 31, 2024 , compared to 58% in the year ago period. -
Total paid customers of 15,039 as of
January 31, 2024 , compared to 15,244 in the year ago period. -
Total free and paid customers of more than 28,000 as of
January 31, 2024 representing approximately 17% growth year over year. - Released 2024 State of Digital Operations study, finds 16% increase in Enterprise incidents amid race to AI adoption.
-
Joined BSA |
The Software Alliance , the leading advocate for the enterprise software industry before governments and in the international marketplace. -
Closed on the acquisition of
Jeli, Inc. onNovember 15, 2023 to transform operations with an enterprise-grade, all-in-one incident management solution. -
Appointed
Jeff Hausman as Chief Product Development Officer. -
Appointed
Teresa Carlson to Board of Directors. -
Lands and expands include: DaVita, Docusign,
JR East Information Systems Company , Netflix, Nvidia, Palo Alto Networks, and Workday.
Financial Outlook
For the first quarter of fiscal 2025,
-
Total revenue of
$110.5 million -$112.5 million , representing a growth rate of 7% - 9% year over year -
Non-GAAP net income per diluted share attributable to
PagerDuty, Inc. common stockholders of$0.12 -$0.13 assuming approximately 96 million diluted shares and a non-GAAP tax rate of 23%
For the full fiscal year 2025,
-
Total revenue of
$470.0 million -$478.0 million , representing a growth rate of 9% - 11% year over year -
Non-GAAP net income per diluted share attributable to
PagerDuty, Inc. common stockholders of$0.65 -$0.70 assuming approximately 97 million diluted shares and a non-GAAP tax rate of 23%
These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.
Conference Call Information:
Supplemental Financial and Other Information:
Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com.
Non-GAAP Financial Measures:
This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development, non-GAAP sales and marketing, non-GAAP general and administrative, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP net income (loss) attributable to
The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.
Specifically,
Stock-based Compensation:
Employer Taxes Related to Employee Stock Transactions:
Amortization of Acquired Intangible Assets:
Acquisition-Related Expenses:
Amortization of Debt Issuance Costs: The imputed interest rates of the Convertible Senior Notes (the "Notes") was approximately 1.91% for the 2025 Notes and 2.13% for the 2028 Notes. This is a result of the debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs are amortized as interest expense. The expense for the amortization of the debt issuance costs is a non-cash item, and we believe the exclusion of this interest expense will provide for a more useful comparison of our operational performance in different periods.
Restructuring Costs:
Gains (or losses) on partial extinguishment of convertible senior notes:
Adjustment Attributable to Redeemable Non-Controlling Interest:
Income Tax Effects and Adjustments: Based on
There are a number of limitations related to the use of free cash flow as compared to net cash provided by (used in) operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.
Forward-Looking Statements:
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial performance and outlook and market positioning. Words such as “expect,” “extend,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “accelerate,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
About
Consolidated Statements of Operations (in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
111,117 |
|
|
$ |
100,966 |
|
|
$ |
430,699 |
|
|
$ |
370,793 |
|
Cost of revenue(1) |
|
20,358 |
|
|
|
18,344 |
|
|
|
77,832 |
|
|
|
70,434 |
|
Gross profit |
|
90,759 |
|
|
|
82,622 |
|
|
|
352,867 |
|
|
|
300,359 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development(1) |
|
35,548 |
|
|
|
34,569 |
|
|
|
139,769 |
|
|
|
134,876 |
|
Sales and marketing(1) |
|
53,614 |
|
|
|
52,621 |
|
|
|
196,769 |
|
|
|
195,622 |
|
General and administrative(1) |
|
35,028 |
|
|
|
21,922 |
|
|
|
112,575 |
|
|
|
99,238 |
|
Total operating expenses |
|
124,190 |
|
|
|
109,112 |
|
|
|
449,113 |
|
|
|
429,736 |
|
Loss from operations |
|
(33,431 |
) |
|
|
(26,490 |
) |
|
|
(96,246 |
) |
|
|
(129,377 |
) |
Interest income |
|
10,801 |
|
|
|
2,005 |
|
|
|
22,101 |
|
|
|
5,383 |
|
Interest expense |
|
(2,316 |
) |
|
|
(1,361 |
) |
|
|
(6,500 |
) |
|
|
(5,433 |
) |
Gain on partial extinguishment of convertible senior notes |
|
(271 |
) |
|
|
— |
|
|
|
3,699 |
|
|
|
— |
|
Other expense, net |
|
(3,415 |
) |
|
|
1,307 |
|
|
|
(433 |
) |
|
|
(637 |
) |
Loss before benefit from (provision for) income taxes |
|
(28,632 |
) |
|
|
(24,539 |
) |
|
|
(77,379 |
) |
|
|
(130,064 |
) |
Benefit from (provision for) income taxes |
|
(185 |
) |
|
|
(463 |
) |
|
|
12 |
|
|
|
839 |
|
Net loss |
$ |
(28,817 |
) |
|
$ |
(25,002 |
) |
|
$ |
(77,367 |
) |
|
$ |
(129,225 |
) |
Net loss attributable to redeemable non-controlling interest |
|
(665 |
) |
|
|
(440 |
) |
|
|
(2,178 |
) |
|
|
(802 |
) |
Net loss attributable to |
$ |
(28,152 |
) |
|
$ |
(24,562 |
) |
|
$ |
(75,189 |
) |
|
$ |
(128,423 |
) |
Adjustment attributable to redeemable non-controlling interest |
|
2,480 |
|
|
|
— |
|
|
|
6,568 |
|
|
|
— |
|
Net loss attributable to |
$ |
(30,632 |
) |
|
$ |
(24,562 |
) |
|
$ |
(81,757 |
) |
|
$ |
(128,423 |
) |
Net loss per share, basic and diluted, attributable to |
$ |
(0.33 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.89 |
) |
|
$ |
(1.45 |
) |
Weighted average shares used in calculating net loss per share, basic and diluted |
|
92,168 |
|
|
|
90,269 |
|
|
|
92,341 |
|
|
|
88,721 |
|
(1) Includes stock-based compensation expense as follows: |
|||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Cost of revenue |
$ |
1,726 |
|
$ |
1,879 |
|
$ |
7,586 |
|
$ |
6,827 |
Research and development |
|
10,798 |
|
|
8,946 |
|
|
44,800 |
|
|
39,012 |
Sales and marketing |
|
7,983 |
|
|
7,271 |
|
|
30,345 |
|
|
29,804 |
General and administrative |
|
117,735 |
|
|
5,333 |
|
|
44,421 |
|
|
34,264 |
Total |
$ |
32,242 |
|
$ |
23,429 |
|
$ |
127,152 |
|
$ |
109,907 |
Consolidated Balance Sheets (in thousands) |
|||||||
|
As of |
||||||
|
|
2024 |
|
|
|
2023 |
|
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
363,011 |
|
|
$ |
274,019 |
|
Investments |
|
208,178 |
|
|
|
202,948 |
|
Accounts receivable, net of allowance for credit losses of |
|
100,413 |
|
|
|
91,345 |
|
Deferred contract costs, current |
|
19,502 |
|
|
|
18,674 |
|
Prepaid expenses and other current assets |
|
12,094 |
|
|
|
13,350 |
|
Total current assets |
|
703,198 |
|
|
|
600,336 |
|
Property and equipment, net |
|
17,632 |
|
|
|
18,390 |
|
Deferred contract costs, non-current |
|
25,118 |
|
|
|
27,715 |
|
Lease right-of-use assets |
|
3,789 |
|
|
|
13,982 |
|
|
|
137,401 |
|
|
|
118,862 |
|
Intangible assets, net |
|
32,616 |
|
|
|
37,224 |
|
Other assets |
|
5,552 |
|
|
|
1,364 |
|
Total assets |
$ |
925,306 |
|
|
$ |
817,873 |
|
Liabilities, redeemable non-controlling interest, and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
6,242 |
|
|
$ |
7,398 |
|
Accrued expenses and other current liabilities |
|
15,472 |
|
|
|
11,804 |
|
Accrued compensation |
|
30,239 |
|
|
|
41,834 |
|
Deferred revenue, current |
|
223,522 |
|
|
|
204,137 |
|
Lease liabilities, current |
|
6,180 |
|
|
|
5,904 |
|
Total current liabilities |
|
281,655 |
|
|
|
271,077 |
|
Convertible senior notes, net |
|
448,030 |
|
|
|
282,908 |
|
Deferred revenue, non-current |
|
4,639 |
|
|
|
4,914 |
|
Lease liabilities, non-current |
|
6,809 |
|
|
|
12,704 |
|
Other liabilities |
|
5,280 |
|
|
|
4,184 |
|
Total liabilities |
|
746,413 |
|
|
|
575,787 |
|
Commitments and contingencies |
|
|
|
||||
Redeemable non-controlling interest |
|
7,293 |
|
|
|
1,108 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
774,768 |
|
|
|
719,816 |
|
Accumulated other comprehensive loss |
|
(733 |
) |
|
|
(1,592 |
) |
Accumulated deficit |
|
(552,435 |
) |
|
|
(477,246 |
) |
|
|
(50,000 |
) |
|
|
— |
|
Total stockholders’ equity |
|
171,600 |
|
|
|
240,978 |
|
Total liabilities, redeemable non-controlling interest, and stockholders’ equity |
$ |
925,306 |
|
|
$ |
817,873 |
|
Consolidated Statements of Cash Flows (in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities |
|
|
|
|
|
|
|
||||||||
Net loss attributable to |
$ |
(30,632 |
) |
|
$ |
(24,562 |
) |
|
$ |
(81,757 |
) |
|
$ |
(128,423 |
) |
Net loss and adjustment attributable to redeemable non-controlling interest |
|
1,815 |
|
|
|
(440 |
) |
|
|
4,390 |
|
|
|
(802 |
) |
Net loss |
|
(28,817 |
) |
|
|
(25,002 |
) |
|
|
(77,367 |
) |
|
|
(129,225 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
5,137 |
|
|
|
4,651 |
|
|
|
20,153 |
|
|
|
17,429 |
|
Amortization of deferred contract costs |
|
5,282 |
|
|
|
5,069 |
|
|
|
20,568 |
|
|
|
19,247 |
|
Gain on partial extinguishment of convertible senior notes |
|
271 |
|
|
|
— |
|
|
|
(3,699 |
) |
|
|
— |
|
Stock-based compensation |
|
32,242 |
|
|
|
23,429 |
|
|
|
127,152 |
|
|
|
109,907 |
|
Amortization of debt issuance costs |
|
622 |
|
|
|
463 |
|
|
|
2,078 |
|
|
|
1,839 |
|
Non-cash lease expense |
|
1,014 |
|
|
|
1,160 |
|
|
|
4,439 |
|
|
|
4,073 |
|
Impairment of property and equipment, net and lease right-of-use assets, net |
|
7,164 |
|
|
|
— |
|
|
|
8,368 |
|
|
|
— |
|
Tax benefit related to release of valuation allowance |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,330 |
) |
Other |
|
(593 |
) |
|
|
155 |
|
|
|
(3,223 |
) |
|
|
1,841 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(29,645 |
) |
|
|
(19,634 |
) |
|
|
(10,662 |
) |
|
|
(16,586 |
) |
Deferred contract costs |
|
(6,514 |
) |
|
|
(6,482 |
) |
|
|
(18,799 |
) |
|
|
(22,805 |
) |
Prepaid expenses and other assets |
|
2,674 |
|
|
|
91 |
|
|
|
— |
|
|
|
(2,843 |
) |
Accounts payable |
|
(451 |
) |
|
|
(356 |
) |
|
|
(1,453 |
) |
|
|
(1,473 |
) |
Accrued expenses and other liabilities |
|
3,378 |
|
|
|
(94 |
) |
|
|
4,145 |
|
|
|
(1,444 |
) |
Accrued compensation |
|
1,261 |
|
|
|
6,771 |
|
|
|
(11,825 |
) |
|
|
6,147 |
|
Deferred revenue |
|
30,620 |
|
|
|
29,336 |
|
|
|
18,073 |
|
|
|
37,971 |
|
Lease liabilities |
|
(1,490 |
) |
|
|
(1,985 |
) |
|
|
(5,974 |
) |
|
|
(5,768 |
) |
Net cash provided by operating activities |
|
22,155 |
|
|
|
17,572 |
|
|
|
71,974 |
|
|
|
16,980 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(971 |
) |
|
|
(882 |
) |
|
|
(2,164 |
) |
|
|
(4,637 |
) |
Capitalized internal-use software costs |
|
(1,572 |
) |
|
|
(1,111 |
) |
|
|
(5,384 |
) |
|
|
(3,836 |
) |
Business acquisition, net of cash acquired |
|
(24,071 |
) |
|
|
— |
|
|
|
(24,071 |
) |
|
|
(66,262 |
) |
Asset acquisition |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,845 |
) |
Purchases of available-for-sale investments |
|
(64,986 |
) |
|
|
(56,900 |
) |
|
|
(216,970 |
) |
|
|
(212,210 |
) |
Proceeds from maturities of available-for-sale investments |
|
54,200 |
|
|
|
53,000 |
|
|
|
218,264 |
|
|
|
202,625 |
|
Purchases of non-marketable equity investments |
|
— |
|
|
|
— |
|
|
|
(200 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
(37,400 |
) |
|
|
(5,893 |
) |
|
|
(30,525 |
) |
|
|
(86,165 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs |
|
(712 |
) |
|
|
— |
|
|
|
390,831 |
|
|
|
— |
|
Purchases of capped calls related to convertible senior notes |
|
|
|
— |
|
|
|
(55,102 |
) |
|
|
— |
|
||
Repurchases of convertible senior notes |
|
(204 |
) |
|
|
— |
|
|
|
(223,675 |
) |
|
|
— |
|
Investment from redeemable non-controlling interest holder |
|
|
|
— |
|
|
|
1,781 |
|
|
|
1,908 |
|
||
Proceeds from issuance of common stock upon exercise of stock options |
|
1,481 |
|
|
|
2,022 |
|
|
|
9,871 |
|
|
|
10,481 |
|
Proceeds from Employee Stock Purchase Plan |
|
4,002 |
|
|
|
4,139 |
|
|
|
10,294 |
|
|
|
9,875 |
|
Employee payroll taxes paid related to net share settlement of restricted stock units |
|
(6,628 |
) |
|
|
(6,490 |
) |
|
|
(32,400 |
) |
|
|
(28,677 |
) |
Repurchase of common stock |
|
— |
|
|
|
— |
|
|
|
(50,000 |
) |
|
|
— |
|
Net cash provided by (used in) financing activities |
|
(2,061 |
) |
|
|
(329 |
) |
|
|
51,600 |
|
|
|
(6,413 |
) |
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash |
|
50 |
|
|
|
336 |
|
|
|
(401 |
) |
|
|
(168 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(17,256 |
) |
|
|
11,686 |
|
|
|
92,648 |
|
|
|
(75,766 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
383,923 |
|
|
|
262,333 |
|
|
|
274,019 |
|
|
|
349,785 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
366,667 |
|
|
$ |
274,019 |
|
|
$ |
366,667 |
|
|
$ |
274,019 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of gross profit and gross margin |
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
90,759 |
|
|
$ |
82,622 |
|
|
$ |
352,867 |
|
|
$ |
300,359 |
|
Plus: Stock-based compensation |
|
1,726 |
|
|
|
1,879 |
|
|
|
7,586 |
|
|
|
6,827 |
|
Plus: Employer taxes related to employee stock transactions |
|
61 |
|
|
|
84 |
|
|
|
199 |
|
|
|
163 |
|
Plus: Amortization of acquired intangible assets |
|
2,354 |
|
|
|
2,087 |
|
|
|
8,614 |
|
|
|
7,401 |
|
Plus: Restructuring costs |
|
— |
|
|
|
357 |
|
|
|
137 |
|
|
|
357 |
|
Non-GAAP gross profit |
$ |
94,900 |
|
|
$ |
87,029 |
|
|
$ |
369,403 |
|
|
$ |
315,107 |
|
GAAP gross margin |
|
81.7 |
% |
|
|
81.8 |
% |
|
|
81.9 |
% |
|
|
81.0 |
% |
Non-GAAP adjustments |
|
3.7 |
% |
|
|
4.4 |
% |
|
|
3.9 |
% |
|
|
3.9 |
% |
Non-GAAP gross margin |
|
85.4 |
% |
|
|
86.2 |
% |
|
|
85.8 |
% |
|
|
85.0 |
% |
|
|
|
|
|
|
|
|
||||||||
Reconciliation of operating expenses |
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
35,548 |
|
|
$ |
34,569 |
|
|
$ |
139,769 |
|
|
$ |
134,876 |
|
Less: Stock-based compensation |
|
(10,798 |
) |
|
|
(8,946 |
) |
|
|
(44,800 |
) |
|
|
(39,012 |
) |
Less: Employer taxes related to employee stock transactions |
|
(468 |
) |
|
|
(383 |
) |
|
|
(1,398 |
) |
|
|
(942 |
) |
Less: Acquisition-related expenses |
|
(354 |
) |
|
|
(5 |
) |
|
|
(838 |
) |
|
|
(3,105 |
) |
Less: Amortization of acquired intangible assets |
|
(88 |
) |
|
|
(87 |
) |
|
|
(350 |
) |
|
|
(232 |
) |
Less: Restructuring costs |
|
21 |
|
|
|
(2,004 |
) |
|
|
26 |
|
|
|
(2,004 |
) |
Non-GAAP research and development |
$ |
23,861 |
|
|
$ |
23,144 |
|
|
$ |
92,409 |
|
|
$ |
89,581 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing |
$ |
53,614 |
|
|
$ |
52,621 |
|
|
$ |
196,769 |
|
|
$ |
195,622 |
|
Less: Stock-based compensation |
|
(7,983 |
) |
|
|
(7,271 |
) |
|
|
(30,345 |
) |
|
|
(29,804 |
) |
Less: Employer taxes related to employee stock transactions |
|
(330 |
) |
|
|
(424 |
) |
|
|
(919 |
) |
|
|
(892 |
) |
Less: Amortization of acquired intangible assets |
|
(629 |
) |
|
|
(610 |
) |
|
|
(2,459 |
) |
|
|
(2,546 |
) |
Less: Restructuring costs |
|
— |
|
|
|
(2,200 |
) |
|
|
49 |
|
|
|
(2,200 |
) |
Non-GAAP sales and marketing |
$ |
44,672 |
|
|
$ |
42,116 |
|
|
$ |
163,095 |
|
|
$ |
160,180 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
$ |
35,028 |
|
|
$ |
21,922 |
|
|
$ |
112,575 |
|
|
$ |
99,238 |
|
Less: Stock-based compensation |
|
(11,735 |
) |
|
|
(5,333 |
) |
|
|
(44,421 |
) |
|
|
(34,264 |
) |
Less: Employer taxes related to employee stock transactions |
|
(324 |
) |
|
|
(449 |
) |
|
|
(982 |
) |
|
|
(1,099 |
) |
Less: Acquisition-related expenses |
|
(432 |
) |
|
|
— |
|
|
|
(962 |
) |
|
|
(1,454 |
) |
Less: Amortization of acquired intangible assets |
|
(22 |
) |
|
|
(22 |
) |
|
|
(87 |
) |
|
|
(58 |
) |
Less: Restructuring costs |
|
(7,164 |
) |
|
|
(474 |
) |
|
|
(8,615 |
) |
|
|
(474 |
) |
Non-GAAP general and administrative |
$ |
15,351 |
|
|
$ |
15,644 |
|
|
$ |
57,508 |
|
|
$ |
61,889 |
|
Note: Certain figures may not sum due to rounding. |
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages and per share data) (unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of operating income (loss) and operating margin |
|
|
|
|
|
|
|
||||||||
GAAP operating loss |
$ |
(33,431 |
) |
|
$ |
(26,490 |
) |
|
$ |
(96,246 |
) |
|
$ |
(129,377 |
) |
Plus: Stock-based compensation |
|
32,242 |
|
|
|
23,429 |
|
|
|
127,152 |
|
|
|
109,907 |
|
Plus: Employer taxes related to employee stock transactions |
|
1,183 |
|
|
|
1,340 |
|
|
|
3,498 |
|
|
|
3,096 |
|
Plus: Amortization of acquired intangible assets |
|
3,093 |
|
|
|
2,806 |
|
|
|
11,510 |
|
|
|
10,237 |
|
Plus: Acquisition-related expenses |
|
786 |
|
|
|
5 |
|
|
|
1,800 |
|
|
|
4,559 |
|
Plus: Restructuring costs |
|
7,143 |
|
|
|
5,035 |
|
|
|
8,677 |
|
|
|
5,035 |
|
Non-GAAP operating income (loss) |
$ |
11,016 |
|
|
$ |
6,125 |
|
|
$ |
56,391 |
|
|
$ |
3,457 |
|
GAAP operating margin |
|
(30.1 |
) % |
|
|
(26.2 |
) % |
|
|
(22.3 |
) % |
|
|
(34.9 |
) % |
Non-GAAP adjustments |
|
40.0 |
% |
|
|
32.3 |
% |
|
|
35.4 |
% |
|
|
35.8 |
% |
Non-GAAP operating margin |
|
9.9 |
% |
|
|
6.1 |
% |
|
|
13.1 |
% |
|
|
0.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) |
|
|
|
|
|
|
|
||||||||
GAAP net loss attributable to |
$ |
(30,632 |
) |
|
$ |
(24,562 |
) |
|
$ |
(81,757 |
) |
|
$ |
(128,423 |
) |
Plus: Stock-based compensation |
|
32,242 |
|
|
|
23,429 |
|
|
|
127,152 |
|
|
|
109,907 |
|
Plus: Employer taxes related to employee stock transactions |
|
1,183 |
|
|
|
1,340 |
|
|
|
3,498 |
|
|
|
3,096 |
|
Plus: Amortization of debt issuance costs |
|
622 |
|
|
|
463 |
|
|
|
2,078 |
|
|
|
1,839 |
|
Plus: Amortization of acquired intangible assets |
|
3,093 |
|
|
|
2,806 |
|
|
|
11,510 |
|
|
|
10,237 |
|
Plus: Acquisition-related expenses |
|
786 |
|
|
|
5 |
|
|
|
1,800 |
|
|
|
4,559 |
|
Plus: Restructuring costs |
|
7,143 |
|
|
|
5,035 |
|
|
|
8,677 |
|
|
|
5,035 |
|
Plus: Adjustment attributable to redeemable non-controlling interest |
|
2,480 |
|
|
|
— |
|
|
|
6,568 |
|
|
|
— |
|
Less: Gain on partial extinguishment of convertible senior notes |
|
271 |
|
|
|
— |
|
|
|
(3,699 |
) |
|
|
— |
|
Less: Income tax effects and adjustments |
|
(1,353 |
) |
|
|
(1,226 |
) |
|
|
(3,273 |
) |
|
|
(2,556 |
) |
Non-GAAP net income (loss) attributable to |
$ |
15,835 |
|
|
$ |
7,290 |
|
|
$ |
72,554 |
|
|
$ |
3,694 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) per share, basic |
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, basic, attributable to |
$ |
(0.33 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.89 |
) |
|
$ |
(1.45 |
) |
Non-GAAP adjustments to net loss attributable to |
|
0.50 |
|
|
|
0.35 |
|
|
|
1.68 |
|
|
|
1.49 |
|
Non-GAAP net income (loss) per share, basic, attributable to |
$ |
0.17 |
|
|
$ |
0.08 |
|
|
$ |
0.79 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) per share, diluted(1) |
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, diluted, attributable to |
$ |
(0.33 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.89 |
) |
|
$ |
(1.45 |
) |
Non-GAAP adjustments to net loss attributable to |
|
0.50 |
|
|
|
0.34 |
|
|
|
1.63 |
|
|
|
1.52 |
|
Non-GAAP net income (loss) per share, diluted, attributable to |
$ |
0.17 |
|
|
$ |
0.07 |
|
|
$ |
0.74 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in calculating GAAP net loss per share, basic and diluted |
|
92,168 |
|
|
|
90,269 |
|
|
|
92,341 |
|
|
|
88,721 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares used in calculating non-GAAP net income (loss) per share |
|
|
|
|
|
|
|
||||||||
Basic |
|
92,168 |
|
|
|
90,269 |
|
|
|
92,341 |
|
|
|
88,721 |
|
Diluted |
|
95,192 |
|
|
|
101,747 |
|
|
|
100,941 |
|
|
|
100,862 |
|
Note: Certain figures may not sum due to rounding. |
|||||||||||||||
(1) On |
Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except percentages) (unaudited) |
|||||||||||||||
Free Cash Flow |
|||||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by (used in) operating activities |
$ |
22,155 |
|
|
$ |
17,572 |
|
|
$ |
71,974 |
|
|
$ |
16,980 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment |
|
(971 |
) |
|
|
(882 |
) |
|
|
(2,164 |
) |
|
|
(4,637 |
) |
Capitalization of internal-use software costs |
|
(1,572 |
) |
|
|
(1,111 |
) |
|
|
(5,384 |
) |
|
|
(3,836 |
) |
Free cash flow |
$ |
19,612 |
|
|
$ |
15,579 |
|
|
$ |
64,426 |
|
|
$ |
8,507 |
|
Net cash used in investing activities |
$ |
(37,400 |
) |
|
$ |
(5,893 |
) |
|
$ |
(30,525 |
) |
|
$ |
(86,165 |
) |
Net cash provided by (used in) financing activities |
$ |
(2,061 |
) |
|
$ |
(329 |
) |
|
$ |
51,600 |
|
|
$ |
(6,413 |
) |
Free cash flow margin |
|
17.6 |
% |
|
|
15.4 |
% |
|
|
15.0 |
% |
|
|
2.3 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240314083746/en/
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