PagerDuty (PD) Management Meeting Takeaways Reveal Inflection - William Blair

William Blair analyst Bhavan Suri reiterated an Outperform rating on PagerDuty (NYSE: PD) after hosting virtual investor meetings with CEO Jennifer Tejada and CFO Howard Wilson. The meetings revealed continued steady improvement in PagerDuty’s underlying business environment and the large and underpenetrated market opportunity ahead of the company following the COVID-19 pandemic.

The analyst stated "We believe that PagerDuty reached an inflection point in its business in the second quarter of 2021 due to macro trends in the market that continue to serve as tailwinds for increased adoption and the company’s ability to execute on its strategy and go-to-market initiatives. Management noted that PagerDuty is especially focused on traction in enterprise business, as large companies continue to increase investments in digital transformation initiatives to support more unstructured, unpredictable, and mission critical work as a result of the pandemic. Penetration levels in the enterprise market remain relatively low, and we believe PagerDuty is well-positioned to capture a large portion of this market. Management noted during the event that the company’s dollar-based net retention rate has remained above 120% for the past three quarters, including 126% in the second quarter of 2021, and while we see potential room for this metric to tick up in the coming quarters, we believe the metric will naturally fall in the 120% range going forward."

For an analyst ratings summary and ratings history on PagerDuty click here. For more ratings news on PagerDuty click here.

Shares of PagerDuty closed at $46.86 yesterday.

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