PagerDuty beats Q2 estimates; stock falls on mixed Q3 outlook

PagerDuty’s (NYSE: PD) bottom line and topline results for the second quarter of fiscal 2020 surpassed the market’s views. However, PagerDuty stock, which ended down 3.79% at $36.60 when the market closed today, dropped about 7% in the extended trading session as the company provided mixed outlook for the third quarter of 2020. 

For the second quarter ending July 2019, PagerDuty reported non-GAAP net loss per share of $0.07 compared to a loss of $0.18 per share in the second quarter of fiscal 2019. Revenue jumped 45% to $40.4 million. Analysts had predicted the company to post a loss of 10 cents per share on revenue of $39.12 million.

On a GAAP basis, net loss was $12.6 million or $0.17 per share compared to a loss of $12.6 million or $0.59 in the second quarter of fiscal 2019.

For the third quarter of fiscal 2020, PagerDuty expects revenue to grow 33-36% year-over-year to a range of $41.5 million to $42.5 million. Non-GAAP net loss per share is expected to be in the range of $0.09 – $0.10 compared to the market’s expectations of 8 cents loss per share.

Read: Okta tops Q2 2020 estimates; stock drops on weak Q3 outlook

The San Francisco-based firm lifted its outlook for fiscal 2020. The company now expects revenue to be in the range of $162 million to $164 million, representing a growth rate of 37-39% versus the previous estimate of $161 million to $163 million. Non-GAAP net loss per share is pegged to be $0.36 – $0.37 compared to the previous loss per share outlook of $0.37 – $0.38.

PagerDuty, which went public in April this year,  had over 12,000 customers as of July 31, 2019. New and expansion customers include Marks and Spencer, Vanguard, WooliesX (Woolworths), Stripe, IHS Markit, Monzo, DoorDash, and Clover Health.

PagerDuty stock, which hit a new high of $59.82 on June 17, had dropped 23% in the last three months.

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