PagerDuty Announces Third Quarter Fiscal 2022 Financial Results

December 7, 2021 4:05 PM EST

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

Third quarter revenue increased 33% year-over-year to $72 million

Third quarter GAAP operating loss of $24.8 million, non-GAAP operating loss of $5.0 million

SAN FRANCISCO--(BUSINESS WIRE)-- PagerDuty, Inc. (NYSE: PD), a leader in digital operations management, today announced financial results for the third quarter of fiscal 2022, ended October 31, 2021.

"Q3 was an outstanding quarter for PagerDuty as we delivered record revenue of $72 million and grew 33% year over year. Our product innovation continues to accelerate across use cases and departments as we empower enterprises to mature their digital operations and deliver superior customer experiences," said Jennifer Tejada, Chairperson and CEO at PagerDuty. "PagerDuty's platform converges Incident Response, AIOps, Automation and now Customer Service Operations to deliver rapid ROI and customer trust, building on a strong foundation of digital infrastructure to become the Operations Cloud for the modern enterprise.”

Third Quarter Fiscal 2022 Financial Highlights

  • Revenue was $71.8 million, an increase of 33.5% year over year.
  • GAAP operating loss was $24.8 million; GAAP operating margin of negative 34.6%.
  • Non-GAAP operating loss was $5.0 million; non-GAAP operating margin of negative 7.0%.
  • GAAP net loss per share was $0.31; non-GAAP net loss per share was $0.07.
  • Operating cash flow was $2.7 million, with free cash flow of $1.8 million.
  • Cash, cash equivalents and current investments were $545.3 million as of October 31, 2021.

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.

Third Quarter and Recent Highlights

  • Total paid customers of 14,486 as of October 31, 2021, compared to 13,725 in the year ago period.
  • Customers with annual recurring revenue (“ARR”) over $100,000 was 543 as of October 31, 2021, compared to 401 in the year ago period.
  • Land and Expand: PagerDuty’s go to market engine continues to bring in new customers and expand with current customers including Albertsons, Cox Automotive, Cuscal (the largest independent provider of payments solutions for the Australian financial services sector), Guidewire, Hopin, Lululemon Athletica, Saviynt, Shopify, and Truist Financial.
  • Dollar-based net retention rate of 124% as of October 31, 2021, compared to 119% in the year ago period.
  • International revenue of 24% of revenue as of October 31, 2021, consistent with the year ago period.
  • Announced a series of fall product releases to enhance the PagerDuty Operations Cloud.
  • Announced an update to PagerDuty for Salesforce Service Cloud.
  • Announced new integrations to Datadog: Status Dashboard by Pager Duty and Incidents by PagerDuty.
  • Announced plans to establish a cross-functional hub of innovation and development in Lisbon, Portugal.
  • Featured case studies: Guidewire and SPS Commerce.

Financial Outlook

For the fourth quarter of fiscal 2022, PagerDuty currently expects:

  • Total revenue of $75.5 million - $76.5 million, representing a growth rate of 27% - 29% year over year
  • Non-GAAP net loss per share of $0.06 - $0.05 assuming approximately 86 million shares

For the full fiscal year 2022, PagerDuty currently expects:

  • Total revenue of $278.5 million - $279.5 million, representing a growth rate of 30% - 31% year over year
  • Non-GAAP net loss per share of $0.34 - $0.33 assuming approximately 84 million shares

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 to GAAP net loss per share 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 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 December 7, 2021. 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 should monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s 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 operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, 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:

Share-based Compensation: PagerDuty utilizes share-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, share-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 and acquisition-related retention payments, 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: For the three and nine months ended October 31, 2021, 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. For the three and nine months ended October 31, 2020, the imputed interest rate of the Notes was approximately 7.88%. This was a result of the debt discount and debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt issuance costs and debt discount are amortized as interest expense. The expense for the amortization of the debt issuance costs and the debt discount 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 (which is used in calculating non-GAAP net loss per share) as GAAP net loss 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,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “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 Form 10-K filed with the Securities and Exchange Commission (SEC) on March 19, 2021 and our Quarterly Reports on Form 10-Qs filed with the SEC on June 4, 2021 and September 3, 2021. Additional information will be made available in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2021 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 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, Genentech, Electronic Arts, Cox Automotive, Shopify, Zoom, DoorDash, Lululemon 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 and Comprehensive Loss

(in thousands, except per share data)

(unaudited)

 

Three Months Ended
October 31,

 

Nine Months Ended
October 31,

 

2021

 

2020

 

2021

 

2020

Revenue

$

71,760

 

 

$

53,772

 

 

$

202,887

 

 

$

154,272

 

Cost of revenue(1)

12,039

 

 

7,685

 

 

34,433

 

 

21,285

 

Gross profit

59,721

 

 

46,087

 

 

168,454

 

 

132,987

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

24,554

 

 

16,156

 

 

68,062

 

 

46,705

 

Sales and marketing(1)

40,176

 

 

34,024

 

 

118,224

 

 

88,271

 

General and administrative(1)

19,808

 

 

17,746

 

 

56,680

 

 

45,899

 

Total operating expenses

84,538

 

 

67,926

 

 

242,966

 

 

180,875

 

Loss from operations

(24,817

)

 

(21,839

)

 

(74,512

)

 

(47,888

)

Interest income

705

 

 

974

 

 

2,306

 

 

3,375

 

Interest expense

(1,350

)

 

(4,133

)

 

(4,045

)

 

(5,741

)

Other expense, net

(729

)

 

(449

)

 

(1,931

)

 

(861

)

Loss before (provision for) benefit from income taxes

(26,191

)

 

(25,447

)

 

(78,182

)

 

(51,115

)

(Provision for) benefit from income taxes

(150

)

 

4,839

 

 

(378

)

 

4,360

 

Net loss

$

(26,341

)

 

$

(20,608

)

 

$

(78,560

)

 

$

(46,755

)

Other comprehensive (loss) income

 

 

 

 

 

 

 

Unrealized (loss) gain on investments

(222

)

 

(422

)

 

(534

)

 

497

 

Total comprehensive loss

$

(26,563

)

 

$

(21,030

)

 

$

(79,094

)

 

$

(46,258

)

Net loss per share, basic and diluted

$

(0.31

)

 

$

(0.26

)

 

$

(0.94

)

 

$

(0.59

)

Weighted-average shares used in calculating net loss per share, basic and diluted

85,092

 

 

79,937

 

 

83,979

 

 

78,835

 

(1) Includes stock-based compensation expense as follows:

 

Three Months Ended
October 31,

 

Nine Months Ended
October 31,

 

2021

 

2020

 

2021

 

2020

Cost of revenue

$

861

 

 

$

488

 

 

$

2,560

 

 

$

1,095

 

Research and development

6,183

 

 

2,807

 

 

16,230

 

 

7,459

 

Sales and marketing

4,606

 

 

6,254

 

 

12,961

 

 

11,409

 

General and administrative

6,128

 

 

3,910

 

 

16,115

 

 

11,772

 

Total

$

17,778

 

 

$

13,459

 

 

$

47,866

 

 

$

31,735

 

PagerDuty, Inc.

 

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

As of October 31, 2021

 

As of January 31, 2021

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

359,738

 

 

$

339,166

 

Investments

185,545

 

 

221,112

 

Accounts receivable, net of allowance for doubtful accounts of $1,218 and $1,188 as of October 31, 2021 and January 31, 2021, respectively

53,965

 

 

55,119

 

Deferred contract costs, current

15,075

 

 

12,330

 

Prepaid expenses and other current assets

11,833

 

 

10,587

 

Total current assets

626,156

 

 

638,314

 

Property and equipment, net

14,625

 

 

12,639

 

Deferred contract costs, non-current

22,703

 

 

19,257

 

Lease right-of-use assets

21,360

 

 

24,691

 

Goodwill

72,126

 

 

72,126

 

Intangible assets, net

24,008

 

 

26,633

 

Other assets

1,108

 

 

1,783

 

Total assets

$

782,086

 

 

$

795,443

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

9,564

 

 

$

5,747

 

Accrued expenses and other current liabilities

11,167

 

 

9,627

 

Accrued compensation

32,253

 

 

28,372

 

Deferred revenue, current

137,353

 

 

123,686

 

Lease liabilities, current

5,554

 

 

5,262

 

Total current liabilities

195,891

 

 

172,694

 

Convertible senior notes, net

280,615

 

 

217,528

 

Deferred revenue, non-current

5,497

 

 

6,286

 

Lease liabilities, non-current

22,438

 

 

26,542

 

Other liabilities

4,256

 

 

5,666

 

Total liabilities

508,697

 

 

428,716

 

Stockholders’ equity:

 

 

 

Common stock

 

 

 

Additional paid-in-capital

593,508

 

 

614,494

 

Accumulated other comprehensive income

(191

)

 

343

 

Accumulated deficit

(319,928

)

 

(248,110

)

Total stockholders’ equity

273,389

 

 

366,727

 

Total liabilities and stockholders’ equity

$

782,086

 

 

$

795,443

 

 

PagerDuty, Inc.

 

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Three Months Ended
October 31,

 

Nine Months Ended
October 31,

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(26,341

)

 

$

(20,608

)

 

$

(78,560

)

 

$

(46,755

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

2,133

 

 

1,313

 

 

6,160

 

 

3,352

 

Amortization of deferred contract costs

3,839

 

 

2,830

 

 

10,651

 

 

7,894

 

Amortization of debt discount and issuance costs (1)

452

 

 

3,235

 

 

1,350

 

 

4,493

 

Stock-based compensation

17,778

 

 

13,459

 

 

47,866

 

 

31,735

 

Non-cash lease expense

1,122

 

 

1,095

 

 

3,331

 

 

3,299

 

Other

897

 

 

471

 

 

2,592

 

 

1,897

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

(6,113

)

 

(2,586

)

 

360

 

 

(3,879

)

Deferred contract costs

(7,357

)

 

(4,745

)

 

(16,842

)

 

(10,944

)

Prepaid expenses and other assets

1,905

 

 

1,384

 

 

(857

)

 

(3,605

)

Accounts payable

2,657

 

 

1,339

 

 

3,836

 

 

(210

)

Accrued expenses and other liabilities

(3,452

)

 

(1,394

)

 

(79

)

 

2,224

 

Accrued compensation

7,590

 

 

6,402

 

 

3,760

 

 

7,689

 

Deferred revenue

8,848

 

 

3,864

 

 

12,878

 

 

12,475

 

Lease liabilities

(1,308

)

 

(1,215

)

 

(3,812

)

 

(2,959

)

Net cash provided by (used in) operating activities

2,650

 

 

4,844

 

 

(7,366

)

 

6,706

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

(85

)

 

(110

)

 

(1,376

)

 

(3,402

)

Capitalization of internal-use software costs

(784

)

 

(217

)

 

(2,701

)

 

(328

)

Business acquisitions, net of cash acquired

 

 

(49,656

)

 

(160

)

 

(49,656

)

Proceeds from maturities of held-to-maturity of investments

 

 

4,000

 

 

 

 

28,040

 

Purchases of available-for-sale investments

(34,505

)

 

(53,225

)

 

(150,608

)

 

(153,254

)

Proceeds from maturities of available-for-sale investments

40,466

 

 

51,720

 

 

156,616

 

 

123,352

 

Proceeds from sales of available-for-sale investments

 

 

2,000

 

 

27,380

 

 

9,285

 

Net cash provided by (used in) investing activities

5,092

 

 

(45,488

)

 

29,151

 

 

(45,963

)

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs paid of $8,835

 

 

(684

)

 

 

 

278,665

 

Purchase of capped call related to convertible senior notes

 

 

 

 

 

 

(35,708

)

Proceeds from employee stock purchase plan

 

 

 

 

4,889

 

 

3,558

 

Proceeds from issuance of common stock upon exercise of stock options

5,087

 

 

3,938

 

 

12,517

 

 

9,709

 

Employee payroll taxes paid related to net share settlement of restricted stock units

(7,616

)

 

(2,591

)

 

(18,619

)

 

(4,334

)

Net cash (used in) provided by financing activities

(2,529

)

 

663

 

 

(1,213

)

 

251,890

 

Net increase in cash, cash equivalents, and restricted cash

5,213

 

 

(39,981

)

 

20,572

 

 

212,633

 

Cash, cash equivalents, and restricted cash at beginning of period

354,525

 

 

376,638

 

 

339,166

 

 

124,024

 

Cash, cash equivalents, and restricted cash at end of period

$

359,738

 

 

$

336,657

 

 

$

359,738

 

 

$

336,657

 

(1) During the first quarter of fiscal 2022, the Company early adopted ASU 2020-06 which resulted in the elimination of amortization of the debt discount on the convertible senior notes from February 1, 2021.

PagerDuty, Inc.

 

Reconciliation of GAAP to Non-GAAP Data

(in thousands, except percentages and per share data)

(unaudited)

 

Three Months Ended
October 31,

 

Nine Months Ended
October 31,

 

2021

 

2020

 

2021

 

2020

Reconciliation of gross profit and gross margin

 

 

 

 

 

 

 

GAAP gross profit

$

59,721

 

 

$

46,087

 

 

$

168,454

 

 

$

132,987

 

Plus: Share-based compensation

861

 

 

488

 

 

2,560

 

 

1,095

 

Plus: Employer taxes related to employee stock transactions

22

 

 

14

 

 

78

 

 

23

 

Plus: Amortization of acquired intangible assets

280

 

 

93

 

 

840

 

 

93

 

Non-GAAP gross profit

$

60,884

 

 

$

46,682

 

 

$

171,932

 

 

$

134,198

 

GAAP gross margin

83.2

%

 

85.7

%

 

83.0

%

 

86.2

%

Non-GAAP adjustments

1.6

%

 

1.1

%

 

1.7

%

 

0.8

%

Non-GAAP gross margin

84.8

%

 

86.8

%

 

84.7

%

 

87.0

%

 

 

 

 

 

 

 

 

Reconciliation of operating expenses

 

 

 

 

 

 

 

GAAP research and development

$

24,554

 

 

$

16,156

 

 

$

68,062

 

 

$

46,705

 

Less: Share-based compensation

(6,183

)

 

(2,807

)

 

(16,230

)

 

(7,459

)

Less: Employer taxes related to employee stock transactions

(212

)

 

(81

)

 

(618

)

 

(202

)

Less: Acquisition-related expenses

(442

)

 

(154

)

 

(1,348

)

 

(154

)

Non-GAAP research and development

$

17,717

 

 

$

13,114

 

 

$

49,866

 

 

$

38,890

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

40,176

 

 

$

34,024

 

 

$

118,224

 

 

$

88,271

 

Less: Share-based compensation

(4,606

)

 

(6,254

)

 

(12,961

)

 

(11,409

)

Less: Employer taxes related to employee stock transactions

(175

)

 

(157

)

 

(533

)

 

(345

)

Less: Amortization of acquired intangible assets

(595

)

 

(199

)

 

(1,785

)

 

(199

)

Non-GAAP sales and marketing

$

34,800

 

 

$

27,414

 

 

$

102,945

 

 

$

76,318

 

 

 

 

 

 

 

 

 

GAAP general and administrative

$

19,808

 

 

$

17,746

 

 

$

56,680

 

 

$

45,899

 

Less: Share-based compensation

(6,128

)

 

(3,910

)

 

(16,115

)

 

(11,772

)

Less: Employer taxes related to employee stock transactions

(286

)

 

(131

)

 

(857

)

 

(217

)

Less: Acquisition-related expenses

 

 

(1,632

)

 

(8

)

 

(1,632

)

Non-GAAP general and administrative

$

13,394

 

 

$

12,073

 

 

$

39,700

 

 

$

32,278

 

 

 

 

 

 

 

 

 

Reconciliation of operating loss and operating margin

 

 

 

 

 

 

 

GAAP operating loss

$

(24,817

)

 

$

(21,839

)

 

$

(74,512

)

 

$

(47,888

)

Plus: Share-based compensation

17,778

 

 

13,459

 

 

47,866

 

 

31,735

 

Plus: Employer taxes related to employee stock transactions

695

 

 

383

 

 

2,086

 

 

787

 

Plus: Amortization of acquired intangible assets

875

 

 

292

 

 

2,625

 

 

292

 

Plus: Acquisition-related expenses

442

 

 

1,786

 

 

1,356

 

 

1,786

 

Non-GAAP operating loss

$

(5,027

)

 

$

(5,919

)

 

$

(20,579

)

 

$

(13,288

)

GAAP operating margin

(34.6

)%

 

(40.6

)%

 

(36.7

)%

 

(31.0

)%

Non-GAAP adjustments

27.6

%

 

29.6

%

 

26.6

%

 

22.4

%

Non-GAAP operating margin

(7.0

)%

 

(11.0

)%

 

(10.1

)%

 

(8.6

)%

 

 

 

 

 

 

 

 

Reconciliation of net loss

 

 

 

 

 

 

 

GAAP net loss

$

(26,341

)

 

$

(20,608

)

 

$

(78,560

)

 

$

(46,755

)

Plus: Share-based compensation

17,778

 

 

13,459

 

 

47,866

 

 

31,735

 

Plus: Employer taxes related to employee stock transactions

695

 

 

383

 

 

2,086

 

 

787

 

Plus: Amortization of debt discount and issuance costs (1)

452

 

 

3,235

 

 

1,350

 

 

4,493

 

Plus: Amortization of acquired intangible assets

875

 

 

292

 

 

2,625

 

 

292

 

Plus: Acquisition-related expenses

442

 

 

1,786

 

 

1,356

 

 

1,786

 

Plus: Tax benefit associated with acquisition

$

 

 

$

(5,058

)

 

$

 

 

$

(5,058

)

Non-GAAP net loss

$

(6,099

)

 

$

(6,511

)

 

$

(23,277

)

 

$

(12,720

)

 

 

 

 

 

 

 

 

Reconciliation of net loss per share, basic and diluted

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

$

(0.31

)

 

$

(0.26

)

 

$

(0.94

)

 

$

(0.59

)

Non-GAAP adjustments to net loss

0.24

 

 

0.18

 

 

0.66

 

 

0.44

 

Non-GAAP net loss per share, basic and diluted

$

(0.07

)

 

$

(0.08

)

 

$

(0.28

)

 

$

(0.16

)

 

 

 

 

 

 

 

 

Weighted-average shares used in calculating net loss per share, basic and diluted

85,092

 

 

79,937

 

 

83,979

 

 

78,835

 

Note: Certain figures may not sum due to rounding.

(1) During the first quarter of fiscal 2022, the Company early adopted ASU 2020-06 which resulted in the elimination of amortization of debt discount on the convertible senior notes from February 1, 2021.

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
October 31,

 

Nine Months Ended
October 31,

 

2021

 

2020

 

2021

 

2020

Net cash provided by (used in) operating activities

$

2,650

 

 

$

4,844

 

 

$

(7,366

)

 

$

6,706

 

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

(85

)

 

(110

)

 

(1,376

)

 

(3,402

)

Capitalization of internal-use software costs

(784

)

 

(217

)

 

(2,701

)

 

(328

)

Free cash flow

$

1,781

 

 

$

4,517

 

 

$

(11,443

)

 

$

2,976

 

Net cash provided by (used in) investing activities

$

5,092

 

 

$

(45,488

)

 

$

29,151

 

 

$

(45,963

)

Net cash (used in) provided by financing activities

$

(2,529

)

 

$

663

 

 

$

(1,213

)

 

$

251,890

 

Free cash flow margin

2.5

%

 

8.4

%

 

(5.6

)%

 

1.9

%

 

Investor Relations Contact:
Tony Righetti
investor@pagerduty.com

SOURCE PagerDuty

Source: PagerDuty



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Business Wire, Press Releases

Related Entities

Twitter, Earnings, Definitive Agreement