NYSE$PD

PagerDuty Inc · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

PagerDuty reported a solid second quarter with revenue growth within guidance and non-GAAP profitability for the eighth consecutive quarter.

PagerDuty's second quarter fiscal year 2025 showed revenue growth of 8% year-over-year, reaching $116 million. The company achieved non-GAAP profitability for the eighth consecutive quarter. Ending ARR grew 10% year-over-year to $474 million.

  • Revenue increased by 7.7% year-over-year, amounting to $115.9 million.
  • Loss from operations was $16.0 million, with an operating margin of negative 13.8%.
  • Non-GAAP operating income reached $20.1 million, resulting in a non-GAAP operating margin of 17.3%.
  • Free and paid customers totaled more than 29,000, representing approximately 12% growth year over year.

Headline financials

Total Revenue

$116M

Previous: $108M+7.7%
EPS

-$0.14

Previous: $0.20-170.0%
Customers w/ ARR > $100K

820

No prior period
Net Retention Rate

106.0%

No prior period
Paid Customers

15.0K

Previous: 15.1K-0.7%
Capital Expenditures

-$1.09M

Previous: -$948K-15.4%
Free Cash Flow

-$12M

Previous: -$23M+47.8%
Net Income

-$10.9M

Previous: -$22.1M+50.5%
Operating Income

-$16M

Previous: -$26.2M+38.8%
Gross Profit

$95.9M

Previous: $87.8M+9.2%
Cash & Equivalents

$386M

Previous: $299M+29.2%
Total Assets

$916M

Previous: $812M+12.8%
R&D Expense

$34.9M

No prior period
Stock-Based Comp

$32.4M

Previous: $35.5M-8.9%

Revenue & EPS history

PagerDuty · Revenue · Quarterly

$116M

Q2 2025+7.7%vs Q2 2024
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

For the third quarter of fiscal 2025, PagerDuty expects total revenue of $115.5 million - $117.5 million, representing a growth rate of 6% - 8% year over year. Non-GAAP net income per diluted share is expected to be $0.16 - $0.17. For the full fiscal year 2025, PagerDuty expects total revenue of $463.0 million - $467.0 million, representing a growth rate of 7% - 8% year over year and Non-GAAP net income per diluted share of $0.67 - $0.72.

Tailwinds

  • Revenue growth rate of 6% - 8% year over year in Q3 2025.
  • Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.16 - $0.17 in Q3 2025.
  • Revenue growth rate of 7% - 8% year over year for fiscal year 2025.
  • Non-GAAP net income per diluted share attributable to PagerDuty, Inc. common stockholders of $0.67 - $0.72 for fiscal year 2025.
  • Assuming approximately 96 million diluted shares and a non-GAAP tax rate of 23%.

Headwinds

  • Total revenue of $115.5 million - $117.5 million in Q3 2025.
  • Total revenue of $463.0 million - $467.0 million for the full fiscal year 2025 (down from $471.0 million - $477.0 million).
  • These statements are forward-looking and actual results may differ materially.
  • PagerDuty has not reconciled forward-looking net loss per share attributable to PagerDuty, Inc. common stock holders to forward-looking non-GAAP net income per share attributable to PagerDuty, Inc. common stockholders because certain items are out of PagerDuty's control or cannot be reasonably predicted.
  • Accordingly, such reconciliation is not available without unreasonable effort.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-1.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.1%

Avg return

30 days after

43%

12 / 28 earnings

Positive

+30.9%

Q4 2022

Best reaction

-29.1%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027
Q4 2026-3.0%-4.1%-21.2%
Q3 2026-23.5%-22.1%-13.3%
Q2 2026+6.2%+6.7%+2.8%
Q1 2026-11.3%-5.6%-5.4%
Q4 2025+17.7%+20.7%-0.9%
Q3 2025+1.7%+2.9%-11.3%
Q2 2025-8.6%-10.1%-10.9%
Q1 2025-2.4%-0.4%+18.0%
Q4 2024-9.1%-5.3%-5.4%
Q3 2024-1.2%-1.3%+5.2%
Q2 2024-7.3%-6.6%-12.3%
Q1 2024-15.5%-15.8%-17.4%
Q4 2023+14.7%+12.3%+19.4%
Q3 2023+6.4%+0.3%+19.4%
Q2 2023-9.7%-11.4%-11.4%
Q1 2023+2.4%+9.8%+0.1%
Q4 2022+30.9%+41.4%+31.6%
Q3 2022+17.9%+9.1%+0.1%
Q2 2022+8.2%+7.5%-3.4%
Q1 2022-15.9%-7.4%+0.4%
Q4 2021-8.3%+3.0%+3.2%
Q3 2021+19.1%+19.7%+21.6%
Q2 2021-29.1%-31.4%-24.6%
Q1 2021-7.2%-5.6%+6.0%
Q4 2020+23.4%+19.1%+40.0%
Q3 2020-15.0%-12.1%-5.0%
Q2 2020-14.6%-27.8%-27.2%
Q1 2020+2.8%+5.6%+0.2%
Q4 2019
Q3 2018
Q2 2018
Q1 2018
Q4 2017

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