Positioning

PagerDuty Announces Second Quarter Fiscal 2023 Financial Results – Business Wire





Second quarter revenue increased 34% year over year to $90.3 million
Second quarter GAAP operating loss of $37.9 million, non-GAAP operating loss of $3.4 million
SAN FRANCISCO–()–PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced financial results for the second quarter of fiscal 2023, ended July 31, 2022.

“In the second quarter, we again exceeded our guidance ranges while extending our lead through innovations across PagerDuty’s Operations Cloud,” said Jennifer Tejada, Chairperson and CEO at PagerDuty. “We continued to see strong demand across regions and verticals, where our immediate, high ROI is welcome by customers seeking to improve productivity and efficiency. As essential infrastructure for modern enterprises, trusted by developers and leadership alike to orchestrate and drive digital acceleration, cloud adoption, and DevOps transformation, we are especially well positioned in an uncertain macro environment. We remain confident in our ability to continue to execute well as we progress towards profitability.”
Second Quarter Fiscal 2023 Financial Highlights
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.
Second Quarter and Recent Highlights
Financial Outlook
For the third quarter of fiscal 2023, PagerDuty currently expects:
For the full fiscal year 2023, PagerDuty currently expects:
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.
PagerDuty has not reconciled its expectations as to non-GAAP net loss per share attributable to PagerDuty, Inc. to GAAP net loss per share attributable to PagerDuty, Inc. because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net loss per share attributable to PagerDuty, Inc. is not available without unreasonable effort.
Conference Call Information:
PagerDuty will host a conference call and live webcast for analysts and investors at 2:00 p.m. Pacific Time on September 1, 2022. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.
Supplemental Financial and Other Information:
Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s LinkedIn account (https://www.linkedin.com/company/482819), Twitter account (twitter.com/pagerduty), the Twitter account @jenntejada and Facebook page (facebook.com/pagerduty), and public conference calls and webcasts.
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 loss, non-GAAP operating margin, non-GAAP net loss attributable to PagerDuty, Inc., non-GAAP net loss per share attributable to PagerDuty, Inc., and free cash flow.
PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.
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, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:
Stock-based Compensation: PagerDuty utilizes stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Employer Taxes Related to Employee Stock Transactions: PagerDuty views the amount of employer taxes related to its employee stock transactions as an expense that is dependent on its stock price, employee exercise and other award disposition activity, and other factors that are beyond PagerDuty’s control. As a result, employer taxes related to employee stock transactions vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of Acquired Intangible Assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.
Acquisition-Related Expenses: PagerDuty views acquisition-related expenses, such as transaction costs, acquisition-related retention payments, and acquisition-related asset impairment, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.
Amortization of Debt Issuance Costs: The imputed interest rate of the Convertible Senior Notes (the “Notes”) was approximately 1.93%. 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.
Acquisition-Related Income Tax Benefit: PagerDuty views acquisition-related income tax benefits as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such benefits can assist in the comparison of operational performance in different periods which may or may not include such benefits.
PagerDuty defines non-GAAP operating loss as GAAP loss from operations excluding stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, and acquisition-related expenses. PagerDuty defines non-GAAP net loss attributable to PagerDuty, Inc. (which is used in calculating non-GAAP net loss per share attributable to PagerDuty, Inc.) as GAAP net loss attributable to PagerDuty, Inc. excluding amortization of debt issuance costs and debt discount, stock-based compensation expense, employer taxes related to employee stock transactions, amortization of acquired intangible assets, acquisition-related expenses, and acquisition-related income tax benefits. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in PagerDuty’s business and an important part of its compensation strategy.
PagerDuty defines free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software. In addition to the reasons stated above, PagerDuty believes that free cash flow is useful to investors as a liquidity measure because it measures PagerDuty’s ability to generate or use cash in excess of its capital investments in property and equipment to strengthen its balance sheet and further invest in its business and potential strategic initiatives. PagerDuty uses free cash flow in conjunction with traditional GAAP measures as part of its overall assessment of its liquidity, including the preparation of PagerDuty’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies, and to assess its liquidity.
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.
PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business.
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 Securities and Exchange Commission (SEC) on March 17, 2022. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended July 31, 2022 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the effect of uncertainties related to the COVID-19 pandemic on U.S. and global markets, our business, operations, revenue results, cash flow, operating expenses, demand for our solutions, sales cycles, customer retention and our customers’ businesses; our ability to achieve and maintain future profitability; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to sustain and manage our growth; our dependence on revenue from a single product; our ability to compete effectively in an increasingly competitive market; and general global market, political, economic, and business conditions.
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 PagerDuty
PagerDuty, Inc. (NYSE:PD) is a leader in digital operations management. In an always-on world, organizations of all sizes trust PagerDuty to help them deliver a perfect digital experience to their customers, every time. Teams use PagerDuty to identify issues and opportunities in real time and bring together the right people to fix problems faster and prevent them in the future. Notable customers include Cisco, DocuSign, DoorDash, Electronic Arts, Genentech, Shopify, Zoom and more. To learn more and try PagerDuty for free, visit www.pagerduty.com. Follow our blog and connect with us on Twitter, LinkedIn, YouTube and Facebook. We’re also hiring, visit https://www.pagerduty.com/careers/ to learn more.
PagerDuty, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2022
 
2021
 
2022
 
2021
Revenue
$
90,253
 
 
$
67,536
 
 
$
175,624
 
 
$
131,127
 
Cost of revenue(1)
 
18,367
 
 
 
11,976
 
 
 
34,083
 
 
 
22,394
 
Gross profit
 
71,886
 
 
 
55,560
 
 
 
141,541
 
 
 
108,733
 
Operating expenses:
 
 
 
 
 
 
 
Research and development(1)
 
34,014
 
 
 
22,909
 
 
 
65,303
 
 
 
43,508
 
Sales and marketing(1)
 
50,331
 
 
 
40,814
 
 
 
95,883
 
 
 
78,048
 
General and administrative(1)
 
25,429
 
 
 
20,294
 
 
 
50,700
 
 
 
36,872
 
Total operating expenses
 
109,774
 
 
 
84,017
 
 
 
211,886
 
 
 
158,428
 
Loss from operations
 
(37,888
)
 
 
(28,457
)
 
 
(70,345
)
 
 
(49,695
)
Interest income
 
830
 
 
 
783
 
 
 
1,378
 
 
 
1,601
 
Interest expense
 
(1,387
)
 
 
(1,378
)
 
 
(2,712
)
 
 
(2,695
)
Other expense, net
 
(364
)
 
 
(586
)
 
 
(1,154
)
 
 
(1,202
)
Loss before benefit from (provision for) income taxes
 
(38,809
)
 
 
(29,638
)
 
 
(72,833
)
 
 
(51,991
)
Benefit from (provision for) income taxes
 
210
 
 
 
(23
)
 
 
1,414
 
 
 
(228
)
Net loss
$
(38,599
)
 
$
(29,661
)
 
$
(71,419
)
 
$
(52,219
)
Net loss attributable to redeemable non-controlling interest
 
(100
)
 
 

 
 
 
(100
)
 
 

 
Net loss attributable to PagerDuty, Inc.
$
(38,499
)
 
$
(29,661
)
 
$
(71,319
)
 
$
(52,219
)
Net loss per share, basic and diluted, attributable to PagerDuty, Inc.
$
(0.44
)
 
$
(0.35
)
 
$
(0.81
)
 
$
(0.63
)
Weighted-average shares used in calculating net loss per share, basic and diluted
 
88,153
 
 
 
83,895
 
 
 
87,648
 
 
 
83,413
 
(1) Includes stock-based compensation expense as follows:
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
 
2022
 
 
2021
 
 
2022
 
 
2021
Cost of revenue
$
1,787
 
$
1,023
 
$
3,011
 
$
1,699
Research and development
 
10,567
 
 
5,607
 
 
19,242
 
 
10,047
Sales and marketing
 
8,148
 
 
4,401
 
 
14,529
 
 
8,355
General and administrative
 
9,623
 
 
5,445
 
 
18,252
 
 
9,987
Total
$
30,125
 
$
16,476
 
$
55,034
 
$
30,088
 
PagerDuty, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
As of July 31, 2022
 
As of January 31, 2022
 
(unaudited)
 
 
Assets
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
278,331
 
 
$
349,785
 
Investments
 
192,464
 
 
 
193,571
 
Accounts receivable, net of allowance for credit losses of $1,727 and $1,809 as of July 31, 2022 and January 31, 2022, respectively
 
59,305
 
 
 
75,279
 
Deferred contract costs, current
 
17,397
 
 
 
16,672
 
Prepaid expenses and other current assets
 
12,087
 
 
 
9,777
 
Total current assets
 
559,584
 
 
 
645,084
 
Property and equipment, net
 
18,502
 
 
 
18,229
 
Deferred contract costs, non-current
 
26,211
 
 
 
26,159
 
Lease right-of-use assets
 
17,925
 
 
 
20,227
 
Goodwill
 
118,862
 
 
 
72,126
 
Intangible assets, net
 
42,658
 
 
 
23,133
 
Other assets
 
1,021
 
 
 
1,490
 
Total assets
$
784,763
 
 
$
806,448
 
Liabilities, redeemable non-controlling interest, and stockholders’ equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
6,600
 
 
$
9,505
 
Accrued expenses and other current liabilities
 
18,268
 
 
 
13,640
 
Accrued compensation
 
28,857
 
 
 
35,327
 
Deferred revenue, current
 
166,501
 
 
 
162,881
 
Lease liabilities, current
 
5,838
 
 
 
5,637
 
Total current liabilities
 
226,064
 
 
 
226,990
 
Convertible senior notes, net
 
281,984
 
 
 
281,069
 
Deferred revenue, non-current
 
3,033
 
 
 
7,343
 
Lease liabilities, non-current
 
17,928
 
 
 
20,912
 
Other liabilities
 
3,671
 
 
 
3,159
 
Total liabilities
 
532,680
 
 
 
539,473
 
Redeemable non-controlling interest
 
1,811
 
 
 

 
Stockholders’ equity:
 
 
 
Common stock
 

 
 
 

 
Additional paid-in-capital
 
672,126
 
 
 
616,467
 
Accumulated other comprehensive loss
 
(1,712
)
 
 
(669
)
Accumulated deficit
 
(420,142
)
 
 
(348,823
)
Total stockholders’ equity
 
250,272
 
 
 
266,975
 
Total liabilities, redeemable non-controlling interest, and stockholders’ equity
$
784,763
 
 
$
806,448
 
PagerDuty, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2022
 
2021
 
2022
 
2021
Cash flows from operating activities
 
 
 
 
 
 
 
Net loss attributable to PagerDuty, Inc.
$
(38,499
)
 
$
(29,661
)
 
$
(71,319
)
 
$
(52,219
)
Net loss attributable to redeemable non-controlling interest
 
(100
)
 
 

 
 
 
(100
)
 
 

 
Net loss
 
(38,599
)
 
 
(29,661
)
 
 
(71,419
)
 
 
(52,219
)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
Depreciation and amortization
 
4,689
 
 
 
2,055
 
 
 
8,280
 
 
 
4,027
 
Amortization of deferred contract costs
 
4,791
 
 
 
3,562
 
 
 
9,256
 
 
 
6,812
 
Amortization of debt issuance costs
 
468
 
 
 
460
 
 
 
915
 
 
 
898
 
Stock-based compensation
 
30,125
 
 
 
16,476
 
 
 
55,034
 
 
 
30,088
 
Non-cash lease expense
 
1,157
 
 
 
1,112
 
 
 
2,302
 
 
 
2,209
 
Tax benefit related to release of valuation allowance
 

 
 
 

 
 
 
(1,330
)
 
 

 
Other
 
56
 
 
 
892
 
 
 
1,810
 
 
 
1,695
 
Changes in operating assets and liabilities:
 
 
 
 
 
 
 
Accounts receivable
 
1,259
 
 
 
(10,892
)
 
 
16,521
 
 
 
6,473
 
Deferred contract costs
 
(5,035
)
 
 
(5,753
)
 
 
(10,033
)
 
 
(9,485
)
Prepaid expenses and other assets
 
481
 
 
 
(1,189
)
 
 
(1,510
)
 
 
(2,762
)
Accounts payable
 
(2,283
)
 
 
2,743
 
 
 
(2,226
)
 
 
1,179
 
Accrued expenses and other liabilities
 
3,877
 
 
 
1,441
 
 
 
3,243
 
 
 
3,373
 
Accrued compensation
 
1,020
 
 
 
581
 
 
 
(6,658
)
 
 
(3,830
)
Deferred revenue
 
2,225
 
 
 
7,946
 
 
 
(1,546
)
 
 
4,030
 
Lease liabilities
 
(1,390
)
 
 
(1,368
)
 
 
(2,783
)
 
 
(2,504
)
Net cash provided by (used in) operating activities
 
2,841
 
 
 
(11,595
)
 
 
(144
)
 
 
(10,016
)
Cash flows from investing activities
 
 
 
 
 
 
 
Purchases of property and equipment
 
(862
)
 
 
(364
)
 
 
(2,940
)
 
 
(1,291
)
Capitalization of internal-use software costs
 
(965
)
 
 
(915
)
 
 
(1,737
)
 
 
(1,917
)
Business acquisition, net of cash acquired
 

 
 
 

 
 
 
(66,262
)
 
 
(160
)
Asset acquisition
 
(1,845
)
 
 

 
 
 
(1,845
)
 
 

 
Purchases of available-for-sale investments
 
(53,783
)
 
 
(38,572
)
 
 
(95,468
)
 
 
(116,103
)
Proceeds from maturities of available-for-sale investments
 
54,760
 
 
 
49,146
 
 
 
95,200
 
 
 
116,150
 
Proceeds from sales of available-for-sale investments
 

 
 
 
27,380
 
 
 

 
 
 
27,380
 
Net cash (used in) provided by investing activities
 
(2,695
)
 
 
36,675
 
 
 
(73,052
)
 
 
24,059
 
Cash flows from financing activities
 
 
 
 
 
 
 
Investment from redeemable non-controlling interest holder
 
1,908
 
 
 

 
 
 
1,908
 
 
 

 
Proceeds from employee stock purchase plan
 
5,736
 
 
 
4,889
 
 
 
5,736
 
 
 
4,889
 
Proceeds from issuance of common stock upon exercise of stock options
 
2,974
 
 
 
4,596
 
 
 
6,560
 
 
 
7,430
 
Employee payroll taxes paid related to net share settlement of restricted stock units
 
(6,153
)
 
 
(6,073
)
 
 
(12,323
)
 
 
(11,003
)
Net cash provided by financing activities
 
4,465
 
 
 
3,412
 
 
 
1,881
 
 
 
1,316
 
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash
 
(139
)
 
 

 
 
 
(139
)
 
 

 
Net increase (decrease) in cash, cash equivalents, and restricted cash
 
4,472
 
 
 
28,492
 
 
 
(71,454
)
 
 
15,359
 
Cash, cash equivalents, and restricted cash at beginning of period
 
273,859
 
 
 
326,033
 
 
 
349,785
 
 
 
339,166
 
Cash, cash equivalents, and restricted cash at end of period
$
278,331
 
 
$
354,525
 
 
$
278,331
 
 
$
354,525
 
PagerDuty, Inc.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages and per share data)
(unaudited)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2022
 
2021
 
2022
 
2021
Reconciliation of gross profit and gross margin
 
 
 
 
 
 
 
GAAP gross profit
$
71,886
 
 
$
55,560
 
 
$
141,541
 
 
$
108,733
 
Plus: Stock-based compensation
 
1,787
 
 
 
1,023
 
 
 
3,011
 
 
 
1,699
 
Plus: Employer taxes related to employee stock transactions
 
34
 
 
 
30
 
 
 
41
 
 
 
56
 
Plus: Amortization of acquired intangible assets
 
2,156
 
 
 
280
 
 
 
3,365
 
 
 
560
 
Non-GAAP gross profit
$
75,863
 
 
$
56,893
 
 
$
147,958
 
 
$
111,048
 
GAAP gross margin
 
79.6
%
 
 
82.3
%
 
 
80.6
%
 
 
82.9
%
Non-GAAP adjustments
 
4.5
%
 
 
1.9
%
 
 
3.6
%
 
 
1.8
%
Non-GAAP gross margin
 
84.1
%
 
 
84.2
%
 
 
84.2
%
 
 
84.7
%
 
 
 
 
 
 
 
 
Reconciliation of operating expenses
 
 
 
 
 
 
 
GAAP research and development
$
34,014
 
 
$
22,909
 
 
$
65,303
 
 
$
43,508
 
Less: Stock-based compensation
 
(10,567
)
 
 
(5,607
)
 
 
(19,242
)
 
 
(10,047
)
Less: Employer taxes related to employee stock transactions
 
(176
)
 
 
(208
)
 
 
(357
)
 
 
(406
)
Less: Acquisition-related expenses
 
(891
)
 
 
(457
)
 
 
(2,362
)
 
 
(906
)
Less: Amortization of acquired intangible assets
 
(116
)
 
 

 
 
 
(116
)
 
 

 
Non-GAAP research and development
$
22,264
 
 
$
16,637
 
 
$
43,226
 
 
$
32,149
 
 
 
 
 
 
 
 
 
GAAP sales and marketing
$
50,331
 
 
$
40,814
 
 
$
95,883
 
 
$
78,048
 
Less: Stock-based compensation
 
(8,148
)
 
 
(4,401
)
 
 
(14,529
)
 
 
(8,355
)
Less: Employer taxes related to employee stock transactions
 
(145
)
 
 
(157
)
 
 
(320
)
 
 
(358
)
Less: Amortization of acquired intangible assets
 
(660
)
 
 
(595
)
 
 
(1,293
)
 
 
(1,190
)
Non-GAAP sales and marketing
$
41,378
 
 
$
35,661
 
 
$
79,741
 
 
$
68,145
 
 
 
 
 
 
 
 
 
GAAP general and administrative
$
25,429
 
 
$
20,294
 
 
$
50,700
 
 
$
36,872
 
Less: Stock-based compensation
 
(9,623
)
 
 
(5,445
)
 
 
(18,252
)
 
 
(9,987
)
Less: Employer taxes related to employee stock transactions
 
(166
)
 
 
(315
)
 
 
(455
)
 
 
(571
)
Less: Acquisition-related expenses
 
(8
)
 
 
2
 
 
 
(1,290
)
 
 
(8
)
Less: Amortization of acquired intangible assets
 
(29
)
 
 

 
 
 
(29
)
 
 

 
Non-GAAP general and administrative
$
15,603
 
 
$
14,536
 
 
$
30,674
 
 
$
26,306
 
Note: Certain figures may not sum due to rounding.
PagerDuty, Inc.
Reconciliation of GAAP to Non-GAAP Data
(in thousands, except percentages and per share data)
(unaudited)
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2022
 
2021
 
2022
 
2021
Reconciliation of operating loss and operating margin
 
 
 
 
 
 
 
GAAP operating loss
$
(37,888
)
 
$
(28,457
)
 
$
(70,345
)
 
$
(49,695
)
Plus: Stock-based compensation
 
30,125
 
 
 
16,476
 
 
 
55,034
 
 
 
30,088
 
Plus: Employer taxes related to employee stock transactions
 
521
 
 
 
710
 
 
 
1,173
 
 
 
1,391
 
Plus: Amortization of acquired intangible assets
 
2,961
 
 
 
875
 
 
 
4,803
 
 
 
1,750
 
Plus: Acquisition-related expenses
 
899
 
 
 
455
 
 
 
3,652
 
 
 
914
 
Non-GAAP operating loss
$
(3,382
)
 
$
(9,941
)
 
$
(5,683
)
 
$
(15,552
)
GAAP operating margin
 
(42.0
) %
 
 
(42.1
) %
 
 
(40.1
) %
 
 
(37.9
) %
Non-GAAP adjustments
 
38.3
%
 
 
27.4
%
 
 
36.9
%
 
 
26.0
%
Non-GAAP operating margin
 
(3.7
) %
 
 
(14.7
) %
 
 
(3.2
) %
 
 
(11.9
) %
 
 
 
 
 
 
 
 
Reconciliation of net loss
 
 
 
 
 
 
 
GAAP net loss attributable to PagerDuty, Inc.
$
(38,499
)
 
$
(29,661
)
 
$
(71,319
)
 
$
(52,219
)
Plus: Stock-based compensation
 
30,125
 
 
 
16,476
 
 
 
55,034
 
 
 
30,088
 
Plus: Employer taxes related to employee stock transactions
 
521
 
 
 
710
 
 
 
1,173
 
 
 
1,391
 
Plus: Amortization of debt discount
 
468
 
 
 
460
 
 
 
915
 
 
 
898
 
Plus: Amortization of acquired intangible assets
 
2,961
 
 
 
875
 
 
 
4,803
 
 
 
1,750
 
Plus: Acquisition-related expenses
 
899
 
 
 
455
 
 
 
3,652
 
 
 
914
 
Less: Tax benefit associated with acquisition
 

 
 
 

 
 
 
(1,330
)
 
 

 
Non-GAAP net loss attributable to PagerDuty, Inc.
$
(3,525
)
 
$
(10,685
)
 
$
(7,072
)
 
$
(17,178
)
 
 
 
 
 
 
 
 
Reconciliation of net loss per share, basic and diluted
 
 
 
 
 
 
 
GAAP net loss per share, basic and diluted, attributable to PagerDuty, Inc.
$
(0.44
)
 
$
(0.35
)
 
$
(0.81
)
 
$
(0.63
)
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc.
 
0.40
 
 
 
0.23
 
 
 
0.73
 
 
 
0.42
 
Non-GAAP net loss per share, basic and diluted, attributable to PagerDuty, Inc.
$
(0.04
)
 
$
(0.13
)
 
$
(0.08
)
 
$
(0.21
)
 
 
 
 
 
 
 
 
Weighted-average shares used in calculating net loss per share, basic and diluted
 
88,153
 
 
 
83,895
 
 
 
87,648
 
 
 
83,413
 
Note: Certain figures may not sum due to rounding.
PagerDuty, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except percentages and per share data)
(unaudited)
Free Cash Flow
 
Three Months Ended July 31,
 
Six Months Ended July 31,
 
2022
 
2021
 
2022
 
2021
Net cash provided by (used in) operating activities
$
2,841
 
 
$
(11,595
)
 
$
(144
)
 
$
(10,016
)
Less:
 
 
 
 
 
 
 
Purchases of property and equipment
 
(862
)
 
 
(364
)
 
 
(2,940
)
 
 
(1,291
)
Capitalization of internal-use software costs
 
(965
)
 
 
(915
)
 
 
(1,737
)
 
 
(1,917
)
Free cash flow
$
1,014
 
 
$
(12,874
)
 
$
(4,821
)
 
$
(13,224
)
Net cash (used in) provided by investing activities
$
(2,695
)
 
$
36,675
 
 
$
(73,052
)
 
$
24,059
 
Net cash provided by financing activities
$
4,465
 
 
$
3,412
 
 
$
1,881
 
 
$
1,316
 
Free cash flow margin
 
1.1
%
 
 
(19.1
) %
 
 
(2.7
) %
 
 
(10.1
) %
 
Investor Relations Contact:
Tony Righetti
investor@pagerduty.com
SOURCE PagerDuty 
Investor Relations Contact:
Tony Righetti
investor@pagerduty.com
SOURCE PagerDuty 

source



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