Pagerduty’s Upcoming Earnings Call in Q1 2023: What to Expect?

🌥️Pagerduty, a leading digital operations management platform provider, is set to report its Q1 earnings results on June 1st, 2023, at 5:00 PM EST. With the Q1 earnings call just around the corner, investors and analysts are eager to gain insights into the company’s financial performance and growth trajectory.

In this article, we will delve into Pagerduty’s past financials, recent price performance, analyst estimates, and historical guidance to provide an in-depth analysis of what investors and other stakeholders can expect from the upcoming earnings call.

Fundamental Analysis

Pagerduty has been experiencing a slowdown in its revenue growth rate over the past few quarters. According to the company’s past year financials, its Q4 2023 revenue stood at $101 million, down from $94.2 million in Q3 2022. Its net income also decreased from -$32.5 million in Q3 2022 to -$24.6 million in Q4 2023.

The company’s Q1 revenue of $85.4 million was a small percent increase from $78.5 million in Q4 2022. However, the net loss improved to -$32.8 million as compared to -$38.5 million in Q2, attributable to cost-cutting measures that the company undertook in the previous quarter.

Pagerduty operates in a highly competitive and rapidly evolving market, which means that it needs to continually invest in research and development, sales, and marketing to sustain its leadership position. Investors will be looking for signals that Pagerduty is investing for growth while balancing out profitability and managing costs effectively.

Technical Analysis

When looking at Pagerduty’s recent price performance, we see that the stock has been under pressure over the past few weeks. Its one-day percent change as of May 24th was -2.2%, with a 5-day change of -6.0% and a one-month change of -10.7%.

The stock has gone down to its lows in the past three months, with its low of $26.6 on February 21st, 2023, increasing to $28.1 on May 24th, 2023. However, the stock’s downtrend since its peak of $35.3 on February 21st is a concern for investors as it implies that the market is expecting the earnings results to be weaker than anticipated.

Historical Guidance

Pagerduty has a track record of beating its earnings estimates in the past, but the market has been pricing in low expectations for the upcoming earnings call. In Q4 2023, Pagerduty’s actual EPS was -$0.27 as compared to an estimated EPS of -$0.29, implying a 7% positive surprise margin.

However, in the previous quarter, which was Q3 2022, Pagerduty missed EPS estimates by 16.1%, reporting an actual EPS of -$0.36 as compared to an estimated EPS of -$0.31. Investors will be keen to watch if the company can return to beating expectations in the upcoming earnings call.

Analysts Estimates

Before heading into the earnings call, let’s take a look at analysts’ expectations for Pagerduty‘s Q1 earnings results:

• Revenue: Analysts estimate Pagerduty‘s Q1 revenue to be $87.77 million, representing a year-over-year (YoY) growth rate of 2.85%.

• Earnings per Share (EPS): The consensus EPS estimate is -$0.27, which is the same as the actual EPS reported in Q4 2023.

Investors should keep an eye out for any potential guidance revisions for Pagerduty‘s upcoming quarters. Any positive revisions to guidance can signal that the company is seeing a steady recovery in its growth profile.

Final Thoughts

Pagerduty’s upcoming earnings call presents an opportunity for the company to share insights into its business performance and growth prospects. While the company has been experiencing a slowdown in revenue growth rate over the past few quarters, it has also been focused on cutting costs and balancing out profitability. Investors will be looking for signals that the company is investing in growth while keeping its expenses in check.

In addition, the stock’s price performance over the past few weeks has been under pressure, implying that investors may have low expectations for the upcoming earnings call. However, investors should keep in mind Pagerduty’s track record of beating earnings estimates in the past and also pay attention to any guidance revisions that the company may provide.

With all of this information in mind, it will be interesting to see what insights Pagerduty provides during its earnings call and how investors respond to the news. Stay tuned for more updates on Pagerduty’s earnings call.