PagerDuty (PD) 30 May 242025 Q1 Earnings call transcript

Good afternoon, and thank you for joining us to discuss PagerDuty's First Quarter Fiscal Year 2025 Results.

With me on today's call are Jennifer Tejada, PagerDuty's Chairperson and Chief Executive Officer; and Howard Wilson, our Chief Financial Officer.

Before we begin, let me remind everyone that statements made on this call include forward-looking statements based on the environment as we currently see it, which involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These forward-looking statements include our growth prospects, future revenue, operating margins, net income, cash balance and total addressable market, among others, and represent our management's belief and assumptions only as of the date such statements are made, and we undertake no obligation to update these.

During today's call, we will discuss non-GAAP financial measures, which are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. and measures GAAP our available between release. earnings reconciliation non-GAAP is financial in A these factors as SEC. included and the on recently with and information Further other the our including our results make the most differ subsequent Exchange we made Commission, company's Form that to materially as filings are XX-K in filed with Securities well financial cause could filings

over to With Jennifer. the that, I will call turn

quarter, with Good X%, delivered profitability. first our afternoon, non-GAAP X of and a of range midpoint was us for and the consecutive XX%. at margin of growth PagerDuty today. revenue our thanks joining operating points range the above quarter seventh This near solid guidance non-GAAP

ARR strengthened at consecutive growth a second annual improving by for stabilized $XX increased We revenue million, by XX% quarter, recurring and approximately expansion new ARR. $XXX million to

in grew contracts both X%, to multiyear, million $X more continue customers We spending teens. growing customers large momentum $XXX,XXX more while spending in high see the and than $XXX,XXX multiproduct with than

impact to be retention retention the gross in in on -- pressure on due gross The environment constraints, seen macro SMB. particularly capital can of

fit quarter However, both embrace the this in enterprise product as customers the continued Cloud for again to large improvement Operations upside potential deal execution and market as improves. the demonstrated macro

at second the the above QX retention that in year both confident this remain Based Dollar-based ARR ARR in on will to current of expected strengthen business net we retention, momentum the year, XXX%. DBNR as came our levels. and exit net new half growth enabling and

customers incident as more products customers XX% quarter is teams in ARR composed in Ops. go-to-market in of by Customer AIOps, of our addition for multiproduct than new providing to of to Service and such success large the solutions Automation management, The our investing net evidenced

creation operations. confidence supporting business fit both pipeline their in modernize strong enabled growth and to management in automate multiproduct and the QX, standardize our remainder transform and enterprises culture, technology year. and solution enables the platform to productivity throughout This automation practices, processes incident Our market improving of

plan incorporates a management. opportunity introduced a features incident we Slack solution and incident for response new This deep offering. March, end-to-end and market-leading into In integration analysis enterprise single offering, select Jeli's AIOps our

to previous future enables The solution resilience and and builds resulting impact and learning, apply cost to Jeli automation, future to issues. diagnosis, and while incidents assess response immediately of incident automatically insights guide remediation for efforts outcomes. an teams artificial the intelligence reducing improve current detection, integrated preparedness improving

applicability and acquisition for only SKU. Completing few Jeli's exceeding our point displacing ago, demonstrated ARR a the contribution our solutions have by months target quickly teams new this

A effective multibillion-dollar PagerDuty's of a cost-efficient expansion as The incident integrated and less SaaS point alternative more productivity by measurable to justified led improvements. enterprise customer a scalable X-figure solutions. plan management feature set a combination to chose

more enterprise customers continue favorably. continues improve We and over support to velocity enterprise effectively multiyear, innovation mix protect from their half align with operating to Today, the to ARR objectives increase of the trend to executives and is revenue, efficiency.

that models seat-based through from Operations expand pricing the use contracting their customers to of this achieved have pure friction reduce flexible We and shifting for licensing and Cloud.

partner. expenses. customer consolidated services. resilience. in operations manual leading handling for decade unfiltered the the effort and more which opportunity annually For a solution, their mandate an for had been to $X We our and than point than solution, a AIOps IT improving a manual the for use supported professional customer arrangement flexible by an This example, of million proposed more automated displaced reduce spend customer to pricing third-party athletic which save required who included a a our the events, identified apparel company PagerDuty global operating corporate were has by Teams outsourcing overwhelmed

platform strategic PagerDuty the selected as thousands a initiative to underpin of to store retailer improvement home work multinational locations. Cloud quarter an A across automate Operations this

reliability were platform, Our concept. a collaboration and the compelling ability X-year million. proof and scalability over The automation of led improve $X seamless commitment broad during our valued to integration to measurably of consideration productivity event-driven ecosystem and

in largest with One incident to transform is $X U.S. partnered operational million. increase the standardization their health valued Operations the the of insurance with to X-year Cloud health in resilience. largest over providers our drive processes care us This of one agreement and management sector lands a

business, of enterprise automation contracts Europe, a a America, EMEA estimate We X-figure through the Outside and improve reduction of efficiency across showing increase APJ. of and volume telecommunications of stabilization scaling in usage signs we their its leading company of efficient their North of are with incident AIOps to also architecture the and process our In quarter. will Operations ROI several Cloud deliver annually in XXX% the more incident management, routing. incident operations during the an in

of result firm's of one Japan's This a resilience and delivered to logistics in they look of quarter, their logistics outsourcing central deployment operational was using dollar and million business platform. top decision the reduce the the automate single ROI compelling as to processes PagerDuty During their now manual incident as management. year of this companies is XXX% expanded AIOps scales. more

new executing of our in this and month. strong regional capitalize a strategies. building on go-to-market has greater To integrated record successful appointed track teams we international Eduardo drive EMEA and Crespo our Eduardo growth, leader momentum as earlier

the announced which the product week, a several spring across capabilities we highlighted release perspective, of the Operations platform. last new From Cloud

cases. Our new AI many addresses now use assistant

data a more to rich, and and We industry our customer's design to over leverage in resolution. to insights to contextual, XX leader years from are issue able generate diagnosis expedite that automate incident management an experience as actionable own insights than offerings utilize

labor up details, customer case, AI-assisted during executives moment. auto me use incident, responders utilizing significant simple by major newest company's saves front. automations cost leverages summarizing to impact catch attempted in a helping speed Our incident come messages, or summarization, and This a a up

consumption-based will assistant with general AI for release pricing. summer Our later be available this

operations of Operations the control support release Cloud spring center. includes the and the visibility from highlight unified Another modern to

as for can the live truth single of a a of source serve created Our AIOps now and incidents newly operational provides shared view product health.

better delivered the noise. decision-making reduce we ever-increasing able are collectively, new noise and enhancements they distill better tickets, this automation. improve with to And event to from report AIOps additional to console, issues, deflect our of volume using customers automatically combination operations signals In

tools, automating systems automation automation a Our risk. release of offering and help across customers scale inefficiency in PagerDuty disparate the spring of digital automation Many navigating Automation teams teams. find designed standardize gives themselves large and across common for framework and operations. customers to islands their flexible and customers perpetuating across our

automation to improve the and investments. spans on wider workflow no full adoption offering investment the to Our drive pro breadth of existing return automation on code code

In Veteran to addition, public sponsor. sector we our from business, ATO Department continue of obtaining to Authority or agency U.S. the Affairs, advance our U.S. Operate

in On signal ATO, an obtaining opportunity of is back our which exciting our vertical. the closed first we ever of sector, early public deal X-figure the that in

team the business experienced ensure in PagerDuty federal, we're by who later the to our an long of Teresa history state, positioned hired FedRAMP, up including has March, quarter. opportunity this a to we've nonprofit Board maximize public will added unlocked agencies. and serving sector, sector the Carlson leader To of public join Directors head we've our local and to

impact continue to progress Relations fourth nonprofit website. empower our customers, and teams public report, social our is and encourage In we everyone we about learn released Investor a efforts. on vision impact addition mission-driven sustainable our which April, I In to to annual more sector available servicing to future. our

remain momentum, we've bookings are our building am I progress new business accelerating FY on the focused the improvement. strong in in Given multi-quarter achieved margin expanding and XXXX, 'XX our expansion growth Global long-term the and into pipeline ARR we confident

for to mission I want thank employees shareholders our vision. trust, to support their our for our our and their and for customers commitment our their

over your the questions. call turn look to I'll and to that, Howard With forward

our otherwise Thank progress on a afternoon's references a everyone visibility lands before large enterprise a build and the expenses the the as results Jen, all good our earnings posted multi-quarter was reconciled making on results expansions, in quarter. new are you, and improved joining high the level, highlights to non-GAAP to closing day basis strong for were and the multiproduct we and are operating Unless deals, this release we're in pipeline stated, call. both that call. At and GAAP to us

to with for large APJ a churn to represented and headwind International with And stabilizing growth Europe levels customers. the signs EMEA in capitalize be of issuing high momentum. recent However, us and of new deals enterprise allow downgrades. appointment leader SMB by a continues to our on several X-figure of will

up our revenues, QX seen within range from guidance million, International of $XXX from year-over-year. modest at of Revenue total was The in quarter XX% the XX% change contribution X% for year. a last was the

offset QX our some SMB million. $XXX dollar-based of exiting in were macro a line key XX% continued larger XXX% downgrades QX constrained with symptomatic with with expectations. select in grew to Annual cautious net challenges recurring by Successful in revenue customers somewhat volatility. spending customers, We consistent the number retention or delivered expansions year-over-year and

for is 'XX. half higher second of DBNR FY XXX%, the Our in QX this metric remain flat to expectation at with moving

Customers to recurring X% spending over $XXX,XXX XXX, a ago. year up grew annual in revenue from

XX,XXX ago companies period. year. addition, compared increase Total the approximately increased platform In last QX XX% the high over paid the customers XX,XXX in an of year to paid cohorts to at XX,XXX, teens. Free mark compared our million $XXX,XXX $X each and grew to on grew in of and to

XX% our XX% QX at range. XX% to high of target end gross margin was the

a capacity As growing reminder, anticipate base. our services our enterprise during FY support to increasing we 'XX

in closer to the this fourth margin We to result expect quarter. trending by gross XX%

$XX capitalizable with the $XX last over of outperformance quarter plan revenue guidance aligns ARR new was becoming now more in was million of year. our and Solutions compared Customer to income same targets. or group paid or result to the compared partly amortized of months. our XX% compensation XX to commissions closely Operating revenue net The XX% million The

QX of flow flow of $XX or year year cash for operations cash seasonality flow at revenue, working expected XX% our or our better revenue. to a margin QX and terms than free in from be margin. million remain the our to $XX is capital free was performance the flow percentage a cash of strong points of and lowest quarter, On cash couple XX% least billings. the is In expected the given of quarter full free of basis, was cash million operating

and equivalents On in cash the basis, an year Turning quarter to billings $XXX XX-month the ended balance million ago. compared trailing We were to a X% increase investments. of $XXX with a cash, million, sheet.

to we our disclosure remaining an to methodology less of change than within for performance decided months. note, Please obligations now include XX contracts the term original

QX, months. trailing recognized of to QX, respect over anticipate X%. to was growth approximately the XX% or months With we amount, RPO Of to XX million the expected At be is billings approximately $XXX $XXX total this end approximately be million. next XX

Turning guidance. to our

of an range to million, the million in net $X.XX. revenue expect rate share growth we range to a XXXX, income of fiscal $XXX.X $X.XX $XXX.X X%, in operating X% to the PagerDuty This of quarter implies attributable second to of and of margin XX%. diluted the For representing Inc. per

For representing now expect a updated million, the $XXX diluted the $X.XX to year expectations maintaining $X.XX. attributable revenue This fiscal to our growth and implies margin rate net to XXXX, we share are operating range an to XX% XX%, XX%. million income PagerDuty increasing midpoint of with X% for $XXX per and an of to full of Inc.

And meaningful as that stock. positioned intent generate for that up $XXX is for share of to business free our program so we our value. dilution authorized cash program well have growth, announced we Board shareholder Directors manage common million and to repurchase Today, continue flow. reflects of believe our a increase will to this We to

The time. expanding second in to the and operating ARR confidence seen accelerating we half, committed over have in in us gives we continued momentum growth margins QX remain

With I call Q&A. up that, open will for the

Jennifer. Thank to and raise Team, you, Howard, questions. and go hand your ahead submit

We're going Hedberg first with Matthew to to RBC. turn

Simran on from on Congrats is Matt. quarter. the This

me. for one Just

that little in second a backdrop? confidence that Can have a on in talked And You these macro you drivers what half are reacceleration. click the you you difficult see bit on double this? your thoughts about acceleration of

Yes.

We And That new the the highest has are to nice hear on several And question, for focus controlling see and macro pipeline. includes multiyear for largest contract multiquarter our continuing us. you. thanks results. controllables. the we enterprise, quarters spend our kind see efforts over fact, difficult are stronger last of our have So paying from focused which really in off. normal the become growing. and multiproduct to cohorts on We stronger The

and is grew with complexity driving bigger while is with, million a even increasing. technology Our last AI. scale on all customer that teens or the the actually is on spending anticipating We associated the reliance high macro increase $X.X to $X debt and of this perspective, million that not have problems to leveraging problems drive businesses mention of the some in and to to solve we AI uncertainty this contend believe solve. are about the the our harder And Tech revenue. quarter. From more is that getting responsibility in incidents concerned fact to all drive platform. they're their going happening customers

that the multiproduct, pipeline, And see meeting so when our stronger multiyear at ability we market we fact building been and perspective. demand to a look the from us execute have we

Yes. is more referenced It's operational. think, probably I multiproduct Jen, Jen thing And would I the which just has one bit a also little pipeline. add, multiquarter.

this that the adjusted to So economic take longer. changes that we've in do of one environment, deals

is us we now to placed quarters see out. many pipeline that encouraging very what's so And

for QX business change the highly high visibility transactional, only for year. growing In velocity, that's often a was of that out quarter. from next fact, have been with a pipeline X business And being we pipeline

have now out further. we stretching much Well, visibility pipeline

Our business fact take team is that adjusting larger is important. justification to more deals the longer,

And the that to setting back the so to confident see half we're growth far will have confidence. into we stage and ARR we're that us look accelerate. better of gives for we the be When visibility, able year, us

Next, we're at hear from Baird. to going Rob Oliver

new One solution guys are different Jen, question, going solution bundling for are you my in response relatively space, the the like pricing. competitive the through but the seems you via because, So new, have a on another is you helping is enterprise on incident and for which it here, things attack market few a AIOps which way. a is obviously,

you past, deal that's bit more because Salesforce hoping those a maybe So on color does in appear different. was give I could with us little both it the the obviously,

love both extent think to have I'm a to correct if wrong, or get appear that X I but things momentum kind those more was I'd which color renewal bit here, you they're of the on to guys me as a well and and drivers.

question. Sure. the for Thanks

years. I people the just think efficacy and And have reminding foundational several our that in and time. learning platform market the something that that machine AI been worth the right? it transits the and that are us the has we it's of the fine-tuning mentioning and product platform been over to for other the And so gets event product time been means market AIOps that's have at positioned to now scale. the Every an incident enter differently or entering market the very small better trying learns, and a on better. players from an or platform, just

bridge apply from I The deeply management ability the only learn customer they second in issues now is or thing say that automation, a the along we're a that event avoid with with to And the of insight the integrates immediately addition the run to AIOps would process to Jeli, events teams. connection after and into future. platform that that

often are effort, their return tons to These ways their OpEx, of in manual where environment of outsourcing, people an investment that, looking very historically, is their improve things for constrained. been increase have are require on and third-party capital, require and disconnected, use all efficiency which in

more I think this has more and important. become

I've mentioned automation, them calls our an for about headcount, automation, also were when seeing are budgets. year AIOps a we're talking previous increased of and protecting ago, customers that in protecting show where some we appetite

the or to same asked with being do more they're Now less.

in it's couple for say of that AIOps means for developers to The over teams, Central where last to feature I years, kind enough thing into you also Centralized a enabled us and our and X of these large, environment, Ops serve is offering SREs, move teams different the communities. enterprise, any flexible support production would that further but use both expanded last we've to large which have Ops developer sets that's to scalable and

Got it.

really more if That's squeeze helpful, Jen. one Okay. And I can in.

And and not exciting. said, bit in -- And anything I That the have been guys of big this numbers free tempered the are I you Fed first run. little congrats just having take that's expecting on time. going tried for excitement we're win, to opportunity now major it's that a Just to year. guys around because know know you my to

maybe So because how that D.C., PagerDuty seems should like Fed there for think can just out at the from just it dollars would now, tremendous of all are lay certainly like you for fit we of flowing. given in spending transformation, time what you success be down the about there guys down do a right digital mayhem

somewhat Federal got like else or you -- it sounds we a can you'd close through So to just Anything working expect add? hired. be partner? you've hired Should

to FedRAMP am the the really Sure. in also about actually sponsor. of granddaughter the as a get a lot really I Veteran of of excited multiple from And our X And years very as our pleased Thanks Department place. for And a veteran veterans, to have work question. opportunity pleased daughter over hard it's the market. Affairs this team and Federal the to and

So it. just of piece is a ATO

think bigger and at the in just with I huge a of same a offerings serve. requirement the that if constituencies modernize issue the way time, you look significant the is technical service to infrastructure, particular, digitize and in is these aging government they federal opportunity you government the departments see operate at and not debt but what the

similar And problem there. of problem see so see to a we the the there in is Federal, urgency that sense is real in very we enterprise metaphorically and

you that, we're very nailed said it, Having early.

in new the a I Carlson the the such that course, is our under bring space the of sector, of person investment -- of or yet. which Head Teresa pro to but someone we've making segment Public We overstates in Board. Board, underpins announce And kind can't on to that hired on think of who market a we have we're brought to the

local from and and already. of have from sector state also customers a We public government number

So the made been sector to small from what market. learn of a is able percentage looking public this they're Only forecast we've about for. up year's

would year. expect to play see I So that come really next into

we're going Jacob William Next, to [indiscernible], Blair.

for the Jacob is Congrats on quarter. Roberge. [indiscernible] This on Jacob

the Can follow-up. got there, sequential improvement. with additions you then driving So especially a quarter, on customer SMBs? about there in strength given one nice was And I weakness talk the what's the

technology competitive really efficiency Yes. operating proficiency is deliver now we've over And to Frankly, customers' is and ways with What capital. customers to right several a our rather automate, ways on worked technology. focus. great and quarters their it's focus. finding finding focusing technical than returns last us. the refine Well, our on narrative privilege It's advantage to for and greater

not to but an some justify just And relative so year time and longer bigger take that value communicate our on product that our the to really after have ROI year, rationalize efforts have time to to deliver, both much make larger and they that through focusing investments they're that in to the less short the investment. investment on to with return customers might pay that articulate compelling on and enable them even way take very much a platforms engagement we returns in getting proven back

bit really think automation, we're amongst gives enterprise finding you very -- the I for in the and users. little features front. speaking also SKU And incident some important response, I few that It customers the is So a our benefit very of a popular which Jeli's has AIOps is customers. set, to incident feature both from some more language accessible on management of our efficiency been think

think also some pricing demonstrating flexibility around I too. has been Altogether, important,

add I think, would And that. I just Yes. Jacob, to

free, product-led often tends which appeal multiple today, segments falls up dedicated works the but and have the a motion. space. that's acquisition side effort small that primarily SMB we all harmony motion, is companies where motions around of a in there, growth across around into available customer And with product-led we to very things have but to that acquisition team our end land a enterprise growth in We seeing focused with

we it's look the we all when -- we segments, internally, free customer drive we're more the then growth, but and us, paid. to it we total, look for incremental at at But So see keen across out those getting we've just, of this it the the at value a from we're increased we with can have look that enterprise progress making that accounts enterprise are focus because had.

the terms ARR ranks seeing the the of As out that growth seeing matriculated Jen have in we're teens growth to cohorts million count, of and those have actually upper XXX,XXX X but cohorts. above -- in we're referenced, XX%

indication So in strength good of enterprise. that a the is

Got it. that. follow-up just on And a quick

see nice about So to as versus percentage of ARR. expansions? the lands a think increase the new between drivers How existing deals multiyear we customer in should

Yes.

So problem where does sales their been on solution commitment. engaging it time largest that the think think expansion. longer-term team our of And a Often an around we -- or us, at way the increase have exist for either customer customers multiyear. within rather is to opportunity with to often I simply I is our multiyear with with a a product footprint we've about when goes looking that's would in opportunity the new around customer's engage renewal,

But So out out those the now with deals new customers, enterprise engagement, I'd growth that's activities. certainly say for will the and we're of gate, positioning fruit. bulk of multiyear multiyear that bearing even the the of come

multiyear relationship begun. examples with a health One of large their out how care us This as was a provider. that It has that's large land. referenced and the was a started Jen

team. Okay,

to going from Andrew TD we're Next, hear Cowen. at Sherman

wanted quarter. some angst I of results the about seat-based comments a ask, lot from companies. been on other to investor models given and Congrats there's

at on Anything are growing they ways and you just what are if can of you can to seeing say be? even not yes, about as you're as seeing kind how that of customers and used has expand the what seat But side business? trended you growth seats fast

in the say been would thing long industry all to and Great thing, Andrew. Sure. software and created I equally. question, that is time, you, One is not nice one see a I've software

be one manage helps our less a And software value of an case, of services. mission-critical And lot than in tight another where budgets of software, type other. So determined the to and those and their infrastructure of say, a we're versus the services, seat-based more from discretionary infrastructure our ways customers systems type even in for most that license are application software perception be mission-critical. become environment frankly, providing software may

part under of pressure will downward and is pressure. the certain customers of case see sometimes usage that is In we there's protect do so when budget because still exist, constraints they or to customers out for would pay capital what to how we and availability with our we'll even essential find there's And feel level no us trying it the maintain a coverage can that software. they're where work us figure expect

And grow which bigger as they unit going across that bigger environment how services more customers their so return and their like, many like on getting how license and doing different have things coverage such and on right? many are help We'll do based you saying, value infrastructure. included and business create more about people, they going environment change need learned are setup, based it, we've the investment That's to their call get us people how infrastructure pricing are is more to seats aligned they and flexible on think have? we're value to is worry a about they needs price just to those very the assessments less them their them all try about and that, closely the to charging than

really having become leader to care about demonstrate we conversations it's finance more is about value through savvy product much procurement fit insights process. think I We're just who and a the and how doesn't and give realization the of also through trying and with to economic envelope. product, in into about technology an both the So doesn't -- us having analytics the

there anybody else. trip we sometimes And up like

help coming value a for getting actually, They of instance, meet sold continue management have not customer head AIOps with expanded But using. incident the large their a of PagerDuty. from quarter, number beyond year to SaaS they we're result example enterprise of customers support the products, solutions a they actually at leading mechanisms we to because think as to in their I less previous in But reduced and were a that needs down have count. and that only investment better and their flexible previous point scalable this investments an plan, other their reduce our adding

So onto opposed nice cross-sell we're also new simply blend simply sort the us to seeing platform us product for on-call as or get customers for of of helping using a using us that's to see is agreements are And engaging probably we're Operations proud response. where starting this multiproduct, favorable of most with trend multiyear customers the thing ongoing incident of, really Cloud. the

what would from And seeing that customers. how of I metrics Andrew, a think add up, tactically shows that like I now we're with is blend just

be and we portion with have started, proving arrangements customers same the an of the then base And a without would we're as offering, a user allow with obviously, that up metric large the use to constraints previously ability we under more flexible deals, but for were will where restrictions which that, we we we licensing is model. enterprise using coming products with have consumption that on our together And So now large them associated our AIOps user-based model. increasing of pure applied and multiple is that's the also, metrics, contemplate consumption those Generative popular. which introduction our AI offerings,

Koji from Next BofA, Ikeda.

me for couple A here.

what quarter? segment So I the just wanted of was real remains was demand XX%, challenged. ask I it to in like SMB mix ARR sounded quick, but think quarter this last this

Yes.

mark. that's around the XX% Koji, still So

some then kind wins. land noticing the picture press a And or you, release, Jennifer, question reading expand of I and it. Howard either was customer Got of for bigger fine. either the one's When Okay. here,

are. something those of PagerDuty could here being But we've up of heard do like release these if checks, there, in we've They customers. in end when vendors they they from press customers done users maybe some Some our wanted just your showed to. out your that there

thought I interesting. was that so super And

looks I $X me years, every it It wealthy. that Look, said be [indiscernible]. over is. easier someone if XX than we've had time would the last for to incredibly

is specifically about hard your vendor that adjacent try for like it PagerDuty an enter maybe to What and category? it makes what looks

launched we PagerDuty, I years think you what. our XX the one, describes I mean, name, tell that product really I'll ago. first

platform We incredibly have multiproduct, manage and that helps resilient secure the brands grown for a in automate and enterprise-grade, the operations world. to largest now

very recognition a the it's So product, first different But we was brand where right? which product on-call, often started. starts with than

on-call automation and hard managing that Even requires to of a achieve. very level fidelity resilience scalability is and

that build of the were difficult to it's the We're architecture maintenance with no would maintenance this mentioned you service events company require telling XXX, try and billions It do deal XX-year-old had found have window. resilient you you going never because they a to like players to a with emergency some off very attempts that's to take made Sunday And and of windows. very be room a the ambulance maintenance. and "adjacent"

We running be at the incredibly and percent do XX-plus have up margins. gross That is difficult time. all to to

over a data So barriers we've product. popular multiple a integrate bridged technical time of the build architectural CRM there the and Ops number serves our use on core used experience that AIOps into entry to that Customer cases. solutions. and built just most applications leveraged we've add that But over we've an the offering, and and automation solution then robust to are collected time We Service

do can the there look that So it. at isn't when a platform, you whole competitor actually

time compelling is and different, is ROI short What most though, our to the value.

third to end over cost building think they that that lower maintaining some they custom to time. total and touch may ownership requiring costly solution more So and go solution, spending them parties integrations support far in could less a in in customers while up of

the ticketing over integrate We environments of to box. cyber out systems, XXX applications,

company really position we're as a hard a to notifications opposed in the perception that And perspective. that to we're working you native from technology different of purely that just very change technology in brand sort modernizing operations to of so And a does platform robust you a the offers your from customers. way help can we're operate chasm modernizing service cross your a that company that cloud

Okay, last to group, questions. queued. be Please if hand one raise you'd for call your like

Oscar to coming [indiscernible] with Morgan we're Stanley, you.

Jen is to see Howard. Excellent. This not Oscar. Great you, and

like, you noticed I have Oscar, changed.

maybe on growing has net of of sort net your This was ARR, was kind good Sanjit to driving I of equation kind sitting term. a the is Singh. confidence Keith the hoping like summarize growth again. And new a QX in to what but get season, see view And in long to so in what's which ARR of great call see kind still this return of I'm your print both It's really, the to also it's actually with earnings solid the in been literal minefield. new for Weiss.

lot seems still we the about Macro macro to interest get view in the lot Like really resonate. starting I'd hear a automation. interest to like products this on is It much how maybe sounds shaky. the like of definitely AIOps, And hear But stabilizing? about your in are a you it.

equation. sounds it out part being product there is the So like of

also big model equation at. sounds You like pricing right? now It a part to is just matching rhythms looking are better. The the execution, customers better is have your what of better the

you're what the of just but was, equation parts your and multiple in And various the rest love also you going how there's equation elements of So I'd like weigh what the year? those for on. view quarter on for, we expecting the to saw get should the what

can the what appreciate this in new quite normal, bit this away magic, investment is quarters a way. have magical we the from controllables and all tried opposed done that for strong focus perspective, leadership we the approachable really I with a to macro you our that team, a be to really expertise difficult as noise on things. focused last improve. I can proud that, of quite to Keith. just One, space, a do ignore team really stay we've couple a customers. AI of way to embrace Like command, of return from the of Yes. and an articulating customers our we super helping on think I focused have a automation financial in trying on need stay that and auto X job of problems control, have and can the things am change, I use we bit of the tenure our can of controlling would and mean, I say hype really for good saying big are generative cases solved sort that a and expensive on who

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getting the better the did, through would growth So we're the year. company, going in it course continue that the on long Federal the If not that we it playing anticipating does, Most are anticipating back balanced big not We're of and all, try a year. growth to macro term. accelerating half to focused a If just would of be upside. in continuing profitability be build and our to upside. the over expand role

in The actually Yes. of focus line well I dividing be this tight to combination If ROI it. ROI. define like winning define is solution an not. well environment Like of between is and who and to the had will the seems like Got doing a the who one on ability ROI this in show to environment.

for A you, question Howard.

we too terms about there that As should and our we we're sort to add models on types probably these the will? the a mix, basis types thinking it's be if you go-forward revenue dynamics of of anything but and of new models start as licensing is of we in elements, aware how early, our seasonality then add consumption

and a of in of don't find deals, I year. that difference. certain more that deals But seasonality. Yes. to quarter end our the the think the are of themselves is towards end from a larger entered difference or a more business making as coming types that drift creates the revenue you Like the enterprise

So making of operate these to making purchases. urgency Often to a they're they we're when see when that starting longer different customers, with larger they with level purchases, cycles. sales shorter are

little seeing think we're bit a happened. I So of that already

reasonably were still we the quarter the within a heavier early the month revenue whereas getting reasonable. that lighter, would that means less to later. the that a quarter. coming then that have means X bit on you're quarters in flowing tends be first to but little see Normally, so months We tends out And quarter. even often, And third that be

that pronounced So bit happening. lag, the there's certainly it's a not but now, revenue little of

the congratulations Again, a on really solid year. it. to Got start

any closing over All right. it again. for please. turn done you to team. comments, it Jennifer, We've I'll

for as to great I deliver look employees a just customers, want to forward a especially and really the Have your you thank time Yes. Well, our you who partners to during interest. well. PagerDuty you to hard say and worked Thank seeing solid and quarter. the quarter day. who to attended everybody have shareholders our and our quarter today next We