IT incident response platform PagerDuty (NYSE:PD) will be reporting results tomorrow after market close. Here’s what to look for.
PagerDuty met analysts’ revenue expectations last quarter, reporting revenues of $115.9 million, up 7.7% year on year. It was a softer quarter for the company, with revenue and EPS guidance for next quarter missing analysts’ expectations significantly. It lost 76 customers and ended up with a total of 15,044.
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 7.1% year on year to $116.4 million, slowing from the 15.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 per share.
Analysts covering the company have generally 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 twice over the last two years.
Looking at PagerDuty’s peers in the software development segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Dynatrace delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 2.9%, and Datadog reported revenues up 26%, topping estimates by 3.8%. Dynatrace traded down 6.4% following the results while Datadog was also down 3.1%.
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 18.1% on average over the last month. PagerDuty is up 14.8% during the same time and is heading into earnings with an average analyst price target of $21.82 (compared to the current share price of $20.98).
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