Pagerduty Stock Earnings Reports

PagerDuty reported a solid Q3 FY25 with revenue of $119M (up 9% YoY) and ARR of $483M (up 10% YoY). Net new ARR was $9M (up 21% YoY) and dollar-based net retention was 107%. Non-GAAP operating income expanded to $25M (21% of revenue), driven by operating leverage and timing benefits; Q3 gross margin was 86%. Management highlighted improvement and stabilization across segments (Enterprise strength, Commercial stabilization) and that accounts >$500K ARR grew ~20% year-over-year. Product mix continues to shift toward multi-product adoption — AIOps, Automation and Customer Service Ops contributed >40% of incremental ARR in Q3 — and PagerDuty has begun monetizing PagerDuty Advance (generative AI) with its first paid customers. Key balance sheet and cash metrics: $542M in cash, cash equivalents and investments; repurchased 3.8M shares under a $100M plan; trailing-12-month billings $478M (+9%); total RPO ~$405M. Guidance: Q4 revenue $118.5M–$120.5M (growth 7–8%); full-year FY25 revenue range raised to $464.5M–$466.5M (midpoint up modestly) and EPS raised to $0.78–$0.79 (implied ~16% operating margin for FY). Management called out a strong pipeline entering Q4 and FY26 but noted that an unusual number of very large opportunities deferred in Q3 (not lost), which will likely delay ARR reacceleration into FY26. Investor takeaways: stabilization and margin expansion provide a cleaner base (10% ARR growth exiting year) and growing enterprise traction and multi-product adoption create upside, but ARR reacceleration depends on converting deferred large deals and continued execution on pipeline conversion and monetization (notably PagerDuty Advance and multi-product contracts). Monitor Q4 net-new ARR, large-deal conversion cadence, dollar-based net retention, and any cadence changes in large-enterprise procurement/contract timing.