Delaware | 001-38856 | 27-2793871 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
||||||
600 Townsend St., Suite 200
San Francisco, California
|
94103 | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock, $0.000005 par value | PD | New York Stock Exchange (NYSE) |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
PagerDuty, Inc. | ||||||||||||||
Dated: December 1, 2022 | By: | /s/ Shelley Webb | ||||||||||||
Shelley Webb | ||||||||||||||
Senior Vice President, Legal, General Counsel, and Secretary |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | 94,203 | $ | 71,760 | $ | 269,827 | $ | 202,887 | |||||||||||||||
Cost of revenue(1) |
18,007 | 12,039 | 52,090 | 34,433 | |||||||||||||||||||
Gross profit | 76,196 | 59,721 | 217,737 | 168,454 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development(1) |
35,004 | 24,554 | 100,307 | 68,062 | |||||||||||||||||||
Sales and marketing(1) |
47,118 | 40,176 | 143,001 | 118,224 | |||||||||||||||||||
General and administrative(1) |
26,616 | 19,808 | 77,316 | 56,680 | |||||||||||||||||||
Total operating expenses | 108,738 | 84,538 | 320,624 | 242,966 | |||||||||||||||||||
Loss from operations | (32,542) | (24,817) | (102,887) | (74,512) | |||||||||||||||||||
Interest income | 1,382 | 705 | 2,760 | 2,306 | |||||||||||||||||||
Interest expense | (1,360) | (1,350) | (4,072) | (4,045) | |||||||||||||||||||
Other expense, net | (172) | (729) | (1,326) | (1,931) | |||||||||||||||||||
Loss before (provision for) benefit from income taxes | (32,692) | (26,191) | (105,525) | (78,182) | |||||||||||||||||||
(Provision for) benefit from income taxes | (112) | (150) | 1,302 | (378) | |||||||||||||||||||
Net loss | $ | (32,804) | $ | (26,341) | $ | (104,223) | $ | (78,560) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest | (262) | — | (362) | — | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (32,542) | $ | (26,341) | $ | (103,861) | $ | (78,560) | |||||||||||||||
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. | $ | (0.36) | $ | (0.31) | $ | (1.18) | $ | (0.94) | |||||||||||||||
Weighted-average shares used in calculating net loss per share, basic and diluted | 89,285 | 85,092 | 88,200 | 83,979 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenue | $ | 1,937 | $ | 861 | $ | 4,948 | $ | 2,560 | |||||||||||||||
Research and development | 10,824 | 6,183 | 30,066 | 16,230 | |||||||||||||||||||
Sales and marketing | 8,004 | 4,606 | 22,533 | 12,961 | |||||||||||||||||||
General and administrative | 10,679 | 6,128 | 28,931 | 16,115 | |||||||||||||||||||
Total | $ | 31,444 | $ | 17,778 | $ | 86,478 | $ | 47,866 |
As of October 31, 2022 | As of January 31, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 262,333 | $ | 349,785 | |||||||
Investments | 197,104 | 193,571 | |||||||||
Accounts receivable, net of allowance for credit losses of $1,515 and $1,809 as of October 31, 2022 and January 31, 2022, respectively |
72,628 | 75,279 | |||||||||
Deferred contract costs, current | 18,007 | 16,672 | |||||||||
Prepaid expenses and other current assets | 13,545 | 9,777 | |||||||||
Total current assets | 563,617 | 645,084 | |||||||||
Property and equipment, net | 18,339 | 18,229 | |||||||||
Deferred contract costs, non-current | 26,968 | 26,159 | |||||||||
Lease right-of-use assets | 15,141 | 20,227 | |||||||||
Goodwill | 118,862 | 72,126 | |||||||||
Intangible assets, net | 40,029 | 23,133 | |||||||||
Other assets | 1,054 | 1,490 | |||||||||
Total assets | $ | 784,010 | $ | 806,448 | |||||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 7,692 | $ | 9,505 | |||||||
Accrued expenses and other current liabilities | 12,884 | 13,640 | |||||||||
Accrued compensation | 34,955 | 35,327 | |||||||||
Deferred revenue, current | 175,380 | 162,881 | |||||||||
Lease liabilities, current | 6,438 | 5,637 | |||||||||
Total current liabilities | 237,349 | 226,990 | |||||||||
Convertible senior notes, net | 282,445 | 281,069 | |||||||||
Deferred revenue, non-current | 4,335 | 7,343 | |||||||||
Lease liabilities, non-current | 14,155 | 20,912 | |||||||||
Other liabilities | 3,826 | 3,159 | |||||||||
Total liabilities | 542,110 | 539,473 | |||||||||
Redeemable non-controlling interest | 1,551 | — | |||||||||
Stockholders’ equity: | |||||||||||
Common stock |
— | — | |||||||||
Additional paid-in-capital | 696,169 | 616,467 | |||||||||
Accumulated other comprehensive loss | (3,136) | (669) | |||||||||
Accumulated deficit | (452,684) | (348,823) | |||||||||
Total stockholders’ equity | 240,349 | 266,975 | |||||||||
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 784,010 | $ | 806,448 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (32,542) | $ | (26,341) | $ | (103,861) | $ | (78,560) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest | (262) | — | (362) | — | |||||||||||||||||||
Net loss | (32,804) | (26,341) | (104,223) | (78,560) | |||||||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 4,498 | 2,133 | 12,778 | 6,160 | |||||||||||||||||||
Amortization of deferred contract costs | 4,922 | 3,839 | 14,178 | 10,651 | |||||||||||||||||||
Amortization of debt issuance costs | 461 | 452 | 1,376 | 1,350 | |||||||||||||||||||
Stock-based compensation | 31,444 | 17,778 | 86,478 | 47,866 | |||||||||||||||||||
Non-cash lease expense | 611 | 1,122 | 2,913 | 3,331 | |||||||||||||||||||
Tax benefit related to release of valuation allowance | — | — | (1,330) | — | |||||||||||||||||||
Other | (124) | 897 | 1,686 | 2,592 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (13,473) | (6,113) | 3,048 | 360 | |||||||||||||||||||
Deferred contract costs | (6,290) | (7,357) | (16,323) | (16,842) | |||||||||||||||||||
Prepaid expenses and other assets | (1,424) | 1,905 | (2,934) | (857) | |||||||||||||||||||
Accounts payable | 1,109 | 2,657 | (1,117) | 3,836 | |||||||||||||||||||
Accrued expenses and other liabilities | (4,593) | (3,452) | (1,350) | (79) | |||||||||||||||||||
Accrued compensation | 6,034 | 7,590 | (624) | 3,760 | |||||||||||||||||||
Deferred revenue | 10,181 | 8,848 | 8,635 | 12,878 | |||||||||||||||||||
Lease liabilities | (1,000) | (1,308) | (3,783) | (3,812) | |||||||||||||||||||
Net cash (used in) provided by operating activities | (448) | 2,650 | (592) | (7,366) | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchases of property and equipment | (815) | (85) | (3,755) | (1,376) | |||||||||||||||||||
Capitalization of internal-use software costs | (988) | (784) | (2,725) | (2,701) | |||||||||||||||||||
Business acquisition, net of cash acquired | — | — | (66,262) | (160) | |||||||||||||||||||
Asset acquisition | — | — | (1,845) | — | |||||||||||||||||||
Purchases of available-for-sale investments | (59,842) | (34,505) | (155,310) | (150,608) | |||||||||||||||||||
Proceeds from maturities of available-for-sale investments | 54,425 | 40,466 | 149,625 | 156,616 | |||||||||||||||||||
Proceeds from sales of available-for-sale investments | — | — | — | 27,380 | |||||||||||||||||||
Net cash (used in) provided by investing activities | (7,220) | 5,092 | (80,272) | 29,151 | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Investment from redeemable non-controlling interest holder | — | — | 1,908 | — | |||||||||||||||||||
Proceeds from employee stock purchase plan | — | — | 5,736 | 4,889 | |||||||||||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 1,899 | 5,087 | 8,459 | 12,517 | |||||||||||||||||||
Employee payroll taxes paid related to net share settlement of restricted stock units | (9,864) | (7,616) | (22,187) | (18,619) | |||||||||||||||||||
Net cash used in financing activities | (7,965) | (2,529) | (6,084) | (1,213) | |||||||||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (365) | — | (504) | — | |||||||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (15,998) | 5,213 | (87,452) | 20,572 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 278,331 | 354,525 | 349,785 | 339,166 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 262,333 | $ | 359,738 | $ | 262,333 | $ | 359,738 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of gross profit and gross margin | |||||||||||||||||||||||
GAAP gross profit | $ | 76,196 | $ | 59,721 | $ | 217,737 | $ | 168,454 | |||||||||||||||
Plus: Stock-based compensation | 1,937 | 861 | 4,948 | 2,560 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 38 | 22 | 79 | 78 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 1,949 | 280 | 5,314 | 840 | |||||||||||||||||||
Non-GAAP gross profit | $ | 80,120 | $ | 60,884 | $ | 228,078 | $ | 171,932 | |||||||||||||||
GAAP gross margin | 80.9 | % | 83.2 | % | 80.7 | % | 83.0 | % | |||||||||||||||
Non-GAAP adjustments | 4.2 | % | 1.6 | % | 3.8 | % | 1.7 | % | |||||||||||||||
Non-GAAP gross margin | 85.1 | % | 84.8 | % | 84.5 | % | 84.7 | % | |||||||||||||||
Reconciliation of operating expenses | |||||||||||||||||||||||
GAAP research and development | $ | 35,004 | $ | 24,554 | $ | 100,307 | $ | 68,062 | |||||||||||||||
Less: Stock-based compensation | (10,824) | (6,183) | (30,066) | (16,230) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (202) | (212) | (559) | (618) | |||||||||||||||||||
Less: Acquisition-related expenses | (738) | (442) | (3,100) | (1,348) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (29) | — | (145) | — | |||||||||||||||||||
Non-GAAP research and development | $ | 23,211 | $ | 17,717 | $ | 66,437 | $ | 49,866 | |||||||||||||||
GAAP sales and marketing | $ | 47,118 | $ | 40,176 | $ | 143,001 | $ | 118,224 | |||||||||||||||
Less: Stock-based compensation | (8,004) | (4,606) | (22,533) | (12,961) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (148) | (175) | (468) | (533) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (643) | (595) | (1,936) | (1,785) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 38,323 | $ | 34,800 | $ | 118,064 | $ | 102,945 | |||||||||||||||
GAAP general and administrative | $ | 26,616 | $ | 19,808 | $ | 77,316 | $ | 56,680 | |||||||||||||||
Less: Stock-based compensation | (10,679) | (6,128) | (28,931) | (16,115) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (195) | (286) | (650) | (857) | |||||||||||||||||||
Less: Acquisition-related expenses | (164) | — | (1,454) | (8) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (7) | — | (36) | — | |||||||||||||||||||
Non-GAAP general and administrative | $ | 15,571 | $ | 13,394 | $ | 46,245 | $ | 39,700 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Reconciliation of operating income (loss) and operating margin | |||||||||||||||||||||||
GAAP operating loss | $ | (32,542) | $ | (24,817) | $ | (102,887) | $ | (74,512) | |||||||||||||||
Plus: Stock-based compensation | 31,444 | 17,778 | 86,478 | 47,866 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 583 | 695 | 1,756 | 2,086 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,628 | 875 | 7,431 | 2,625 | |||||||||||||||||||
Plus: Acquisition-related expenses | 902 | 442 | 4,554 | 1,356 | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | 3,015 | $ | (5,027) | $ | (2,668) | $ | (20,579) | |||||||||||||||
GAAP operating margin | (34.5) | % | (34.6) | % | (38.1) | % | (36.7) | % | |||||||||||||||
Non-GAAP adjustments | 37.7 | % | 27.6 | % | 37.1 | % | 26.6 | % | |||||||||||||||
Non-GAAP operating margin | 3.2 | % | (7.0) | % | (1.0) | % | (10.1) | % | |||||||||||||||
Reconciliation of net income (loss) | |||||||||||||||||||||||
GAAP net loss attributable to PagerDuty, Inc. | $ | (32,542) | $ | (26,341) | $ | (103,861) | $ | (78,560) | |||||||||||||||
Plus: Stock-based compensation | 31,444 | 17,778 | 86,478 | 47,866 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 583 | 695 | 1,756 | 2,086 | |||||||||||||||||||
Plus: Amortization of debt discount | 461 | 452 | 1,376 | 1,350 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,628 | 875 | 7,431 | 2,625 | |||||||||||||||||||
Plus: Acquisition-related expenses | 902 | 442 | 4,554 | 1,356 | |||||||||||||||||||
Less: Income tax effect of non-GAAP adjustments |
— | — | (1,330) | — | |||||||||||||||||||
Non-GAAP net income (loss) attributable to PagerDuty, Inc. | $ | 3,476 | $ | (6,099) | $ | (3,596) | $ | (23,277) | |||||||||||||||
Reconciliation of net income (loss) per share, basic | |||||||||||||||||||||||
GAAP net loss per share, basic, attributable to PagerDuty, Inc. | $ | (0.36) | $ | (0.31) | $ | (1.18) | $ | (0.94) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. | 0.40 | 0.24 | 1.14 | 0.66 | |||||||||||||||||||
Non-GAAP net income (loss) per share, basic, attributable to PagerDuty, Inc. | $ | 0.04 | $ | (0.07) | $ | (0.04) | $ | (0.28) | |||||||||||||||
Reconciliation of net income (loss) per share, diluted(1) |
|||||||||||||||||||||||
GAAP net loss per share, diluted, attributable to PagerDuty, Inc. | $ | (0.36) | $ | (0.31) | $ | (1.18) | $ | (0.94) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. | 0.40 | 0.24 | 1.14 | 0.66 | |||||||||||||||||||
Non-GAAP net income (loss) per share, diluted, attributable to PagerDuty, Inc. | $ | 0.04 | $ | (0.07) | $ | (0.04) | $ | (0.28) | |||||||||||||||
Weighted-average shares used in calculating GAAP net loss per share, basic and diluted | 89,285 | 85,092 | 88,200 | 83,979 | |||||||||||||||||||
Weighted-average shares used in calculating non-GAAP net income (loss) per share | |||||||||||||||||||||||
Basic | 89,285 | 85,092 | 88,200 | 83,979 | |||||||||||||||||||
Diluted | 100,941 | 85,092 | 88,200 | 83,979 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (448) | $ | 2,650 | $ | (592) | $ | (7,366) | |||||||||||||||
Less: | |||||||||||||||||||||||
Purchases of property and equipment | (815) | (85) | (3,755) | (1,376) | |||||||||||||||||||
Capitalization of internal-use software costs | (988) | (784) | (2,725) | (2,701) | |||||||||||||||||||
Free cash flow | $ | (2,251) | $ | 1,781 | $ | (7,072) | $ | (11,443) | |||||||||||||||
Net cash (used in) provided by investing activities | $ | (7,220) | $ | 5,092 | $ | (80,272) | $ | 29,151 | |||||||||||||||
Net cash used in financing activities | $ | (7,965) | $ | (2,529) | $ | (6,084) | $ | (1,213) | |||||||||||||||
Free cash flow margin | (2.4)% | 2.5% | (2.6)% | (5.6)% |