Summary
PagerDuty closed fiscal 2024 with fourth-quarter revenue of $111.1 million, up 10.1% from the prior-year quarter. Full-year revenue reached $430.7 million, up 16.2% year over year. Gross profit was $90.76 million in the quarter, up 9.8%, and $352.87 million for the full year, up 17.5%. Gross margin was 81.7% in the quarter, down 0.2 percentage points from the prior-year quarter, while full-year gross margin was 81.9%, up 0.9 percentage points.
The company still posted a GAAP operating loss of $33.4 million in the quarter, and that loss widened by $6.94 million, or 26.2%, from the prior-year quarter. GAAP operating margin was -30.1%, down 3.8 percentage points. Full-year GAAP operating loss was $96.25 million, a narrowing of $33.13 million, or 25.6%, and full-year operating margin was -22.3%, up 12.5 percentage points. Quarterly GAAP net loss attributable to PagerDuty was $28.15 million, and the loss widened by $3.59 million, or 14.6%, from the prior-year quarter. For the full year, GAAP net loss attributable to PagerDuty was $75.19 million, a narrowing of $53.23 million, or 41.5%. GAAP diluted net loss per share for the full year was $0.89, a narrowing of $0.56, or 38.6% from the prior year.
Operating cash flow was $22.16 million in the quarter, up 26.1% year over year. Full-year operating cash flow was $71.97 million, up 323.9%. Capital expenditures were $0.97 million in the quarter, up 10.1%, and $2.16 million for the full year, down 53.3%. Deferred revenue was $228.16 million as of January 31, 2024, up 9.1% from a year earlier. Remaining performance obligations were $247.0 million, up 31.4%.
Non-GAAP results show a different profitability picture. Non-GAAP operating income was $11.0 million in the quarter, a 9.9% non-GAAP operating margin, and $56.4 million for the full year, a 13.1% non-GAAP operating margin. Non-GAAP net income per diluted share was $0.17 in the quarter and $0.74 for the full year. Free cash flow, which deducts property and equipment purchases and capitalized internal-use software costs from operating cash flow, was $19.6 million in the quarter and $64.4 million for the full year.
Operationally, annual recurring revenue grew 10% to $451.9 million. The dollar-based net retention rate was 107% as of January 31, 2024, down from 120% a year earlier. PagerDuty reported 804 customers with ARR over $100,000, up from 752, and 58 customers with ARR over $1,000,000, up from 50. ARR from customers using two or more paid products reached 62%, up from 58%. Total paid customers were 15,039, down from 15,244, while total free and paid customers were more than 28,000, representing approximately 17% growth. The company closed the acquisition of Jeli on November 15, 2023. Management highlighted lands and expands with DaVita, Docusign, JR East Information Systems Company, Netflix, Nvidia, Palo Alto Networks, and Workday.
Guidance for the first quarter of fiscal 2025 calls for revenue growth of 7% to 9% year over year and non-GAAP net income per diluted share of $0.12 to $0.13. For the full fiscal year 2025, the company guides to revenue growth of 9% to 11% and non-GAAP net income per diluted share of $0.65 to $0.70. The outlook assumes approximately 96 million diluted shares for the first quarter and 97 million for the full year, plus a non-GAAP tax rate of 23%. The first-quarter growth target sits below the 10.1% just reported, and the full-year target is below the 16.2% fiscal 2024 growth rate.
Risks remain visible. Macroeconomic conditions, global inflation, interest rates, recession, foreign currency volatility, and geopolitical conflicts, including Russia-Ukraine and Israel and the surrounding areas, could affect demand. PagerDuty depends on a single product for a significant majority of revenue, faces an increasingly competitive market, and must attract new customers and retain and expand existing accounts. The decline in dollar-based net retention to 107% from 120% and the year-over-year drop in total paid customers to 15,039 from 15,244 show the expansion engine is slowing even as enterprise customer counts rise. The full-year GAAP net loss and operating loss also keep profitability dependent on non-GAAP adjustments and stock-based compensation.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $111.1M | $108.7M | +2.2% | $101.0M | +10.1% |
| Gross profit | $90.8M | $89.0M | +2.0% | $82.6M | +9.8% |
| Gross margin | 81.7% | 81.9% | -0.2 pp | 81.8% | -0.1 pp |
| Research & development | $35.5M | $34.3M | +3.7% | $34.6M | +2.8% |
| Sales & marketing | $53.6M | $49.6M | +8.0% | $52.6M | +1.9% |
| General & administrative | $35.0M | $26.0M | +35.0% | $21.9M | +59.8% |
| Total operating expenses | $124.2M | $109.9M | +13.0% | $109.1M | +13.8% |
| Operating income (loss) | -$33.4M | -$20.8M | -60.4% | -$26.5M | -26.2% |
| Operating margin | -30.1% | -19.2% | -10.9 pp | -26.2% | -3.9 pp |
| Net income (loss) | -$28.8M | -$13.1M | -120.1% | -$25.0M | -15.3% |
| Net margin | -25.9% | -12.0% | -13.9 pp | -24.8% | -1.2 pp |
| Diluted EPS | -$0.33 | -$0.16 | -$0.17 | -$0.28 | -$0.05 |
| Net retention rate | 107.0% | 110.0% | -3.0 pp | 120.0% | -13.0 pp |
Risks
Dollar-based net retention rate was 107% for FY2024, compared to 120% for FY2023 and 124% for FY2022, and if renewal or expansion rates fall below market expectations the trading price of common stock would likely decline.
Sales of subscriptions to incident management offerings account for a significant majority of revenue, so any decline in demand for that product or failure of the broader platform to gain market acceptance could harm operating results.
The digital operations market is highly fragmented and competitive, with competitors such as ServiceNow, Atlassian, and Splunk (which has announced an agreement to be acquired by Cisco), and some larger competitors have flexibility to bundle competing solutions at lower prices.
Paying customers decreased to 15,039 as of January 31, 2024 from 15,244 as of January 31, 2023, and the company must attract new customers to increase revenue.
Advancements in AI and machine learning are changing the technology landscape, and if the company is unable to enhance its digital operations platform or deliver new products that keep pace, or if new AI technologies deliver competitive value at lower prices, business and results of operations would be adversely affected.
Worldwide macroeconomic conditions including global inflation, rising interest rates, recession or economic downturn, and bank failures could reduce information technology spending and customers' ability to fulfill payment obligations.
The company has undertaken restructuring efforts to drive efficient growth, and may not realize anticipated savings or operational efficiencies; restructuring costs were $8.7 million in FY2024, and headcount reductions could cause attrition beyond planned reductions and harm ability to attract and retain personnel.
In Q4 FY2024 the company acquired Jeli, a provider of incident analysis for enterprises, and has limited experience making acquisitions; integration may divert management attention, disrupt business, or result in goodwill impairment.
The company issued $402.5 million aggregate principal amount of 2028 Notes in October 2023 and repurchased $230.0 million aggregate principal of 2025 Notes; conditional conversion features or counterparty risk on capped calls may adversely affect liquidity or dilute stockholders.
As the company targets new and existing mid-market and enterprise customers, sales cycles, forecasting, and deployment processes may become more unpredictable and require greater time and expense.
Although revenue increased 16.2% year to date for FY2024 per reported figures, the company expects its revenue growth rate will decline in the future as its business matures.
SaaS KPIs
All quarters →Free Cash Flow Margin
Non-GAAP Operating Margin
Free Cash Flow
Dollar-Based Net Retention Rate
Total Paid Customers
Non-GAAP Gross Margin
Annual Recurring Revenue (ARR)
Customers > $100K ARR
Total Free and Paid Customers
Summary, forecast, risks and KPIs are extracted from PagerDuty, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.