Three Months Ended April 30, | |||||||||||
2023 | 2022 | ||||||||||
Revenue | $ | 103,246 | $ | 85,371 | |||||||
Cost of revenue(1) |
17,936 | 15,716 | |||||||||
Gross profit | 85,310 | 69,655 | |||||||||
Operating expenses: | |||||||||||
Research and development(1) |
33,508 | 31,289 | |||||||||
Sales and marketing(1) |
43,801 | 45,552 | |||||||||
General and administrative(1) |
23,801 | 25,271 | |||||||||
Total operating expenses | 101,110 | 102,112 | |||||||||
Loss from operations | (15,800) | (32,457) | |||||||||
Interest income | 3,123 | 548 | |||||||||
Interest expense | (1,334) | (1,325) | |||||||||
Other income (expense), net | 1,067 | (790) | |||||||||
Loss before benefit from income taxes | (12,944) | (34,024) | |||||||||
Benefit from income taxes | 106 | 1,204 | |||||||||
Net loss | $ | (12,838) | $ | (32,820) | |||||||
Net loss attributable to redeemable non-controlling interest | (620) | — | |||||||||
Net loss attributable to PagerDuty, Inc. | $ | (12,218) | $ | (32,820) | |||||||
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. | $ | (0.13) | $ | (0.38) | |||||||
Weighted-average shares used in calculating net loss per share, basic and diluted | 91,522 | 87,127 |
Three Months Ended April 30, | |||||||||||
2023 | 2022 | ||||||||||
Cost of revenue | $ | 1,876 | $ | 1,224 | |||||||
Research and development | 10,101 | 8,675 | |||||||||
Sales and marketing | 5,951 | 6,381 | |||||||||
General and administrative | 9,617 | 8,629 | |||||||||
Total | $ | 27,545 | $ | 24,909 |
As of April 30, 2023 | As of January 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 300,605 | $ | 274,019 | |||||||
Investments | 194,527 | 202,948 | |||||||||
Accounts receivable, net of allowance for credit losses of $1,787 and $2,014 as of April 30, 2023 and January 31, 2023, respectively |
61,125 | 91,345 | |||||||||
Deferred contract costs, current | 18,582 | 18,674 | |||||||||
Prepaid expenses and other current assets | 15,387 | 13,350 | |||||||||
Total current assets | 590,226 | 600,336 | |||||||||
Property and equipment, net | 18,335 | 18,390 | |||||||||
Deferred contract costs, non-current | 26,189 | 27,715 | |||||||||
Lease right-of-use assets | 12,806 | 13,982 | |||||||||
Goodwill | 118,862 | 118,862 | |||||||||
Intangible assets, net | 34,418 | 37,224 | |||||||||
Other assets | 995 | 1,364 | |||||||||
Total assets | $ | 801,831 | $ | 817,873 | |||||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 6,124 | $ | 7,398 | |||||||
Accrued expenses and other current liabilities | 11,320 | 11,804 | |||||||||
Accrued compensation | 24,609 | 41,834 | |||||||||
Deferred revenue, current | 197,383 | 204,137 | |||||||||
Lease liabilities, current | 5,892 | 5,904 | |||||||||
Total current liabilities | 245,328 | 271,077 | |||||||||
Convertible senior notes, net | 283,363 | 282,908 | |||||||||
Deferred revenue, non-current | 4,422 | 4,914 | |||||||||
Lease liabilities, non-current | 11,226 | 12,704 | |||||||||
Other liabilities | 4,524 | 4,184 | |||||||||
Total liabilities | 548,863 | 575,787 | |||||||||
Redeemable non-controlling interest | 492 | 1,108 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock |
— | — | |||||||||
Additional paid-in-capital | 743,218 | 719,816 | |||||||||
Accumulated other comprehensive loss | (1,278) | (1,592) | |||||||||
Accumulated deficit | (489,464) | (477,246) | |||||||||
Total stockholders’ equity | 252,476 | 240,978 | |||||||||
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 801,831 | $ | 817,873 |
Three Months Ended April 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (12,218) | $ | (32,820) | |||||||
Net loss attributable to redeemable non-controlling interest | (620) | — | |||||||||
Net loss | (12,838) | (32,820) | |||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 4,725 | 3,591 | |||||||||
Amortization of deferred contract costs | 4,990 | 4,465 | |||||||||
Amortization of debt issuance costs | 455 | 447 | |||||||||
Stock-based compensation | 27,545 | 24,909 | |||||||||
Non-cash lease expense | 1,176 | 1,145 | |||||||||
Tax benefit related to release of valuation allowance | — | (1,330) | |||||||||
Other | (852) | 1,754 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 30,003 | 15,262 | |||||||||
Deferred contract costs | (3,372) | (4,998) | |||||||||
Prepaid expenses and other assets | (2,207) | (1,991) | |||||||||
Accounts payable | (1,206) | 57 | |||||||||
Accrued expenses and other liabilities | (244) | (634) | |||||||||
Accrued compensation | (17,286) | (7,678) | |||||||||
Deferred revenue | (7,246) | (3,771) | |||||||||
Lease liabilities | (1,491) | (1,393) | |||||||||
Net cash provided by (used in) operating activities | 22,152 | (2,985) | |||||||||
Cash flows from investing activities | |||||||||||
Purchases of property and equipment | (235) | (2,078) | |||||||||
Capitalization of internal-use software costs | (1,072) | (772) | |||||||||
Business acquisition, net of cash acquired | — | (66,262) | |||||||||
Purchases of available-for-sale investments | (39,085) | (41,685) | |||||||||
Proceeds from maturities of available-for-sale investments | 48,955 | 40,440 | |||||||||
Net cash provided by (used in) investing activities | 8,563 | (70,357) | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 4,751 | 3,586 | |||||||||
Employee payroll taxes paid related to net share settlement of restricted stock units | (8,820) | (6,170) | |||||||||
Net cash used in financing activities | (4,069) | (2,584) | |||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (60) | — | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 26,586 | (75,926) | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 274,019 | 349,785 | |||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 300,605 | $ | 273,859 |
Three Months Ended April 30, | |||||||||||
2023 | 2022 | ||||||||||
Reconciliation of gross profit and gross margin | |||||||||||
GAAP gross profit | $ | 85,310 | $ | 69,655 | |||||||
Plus: Stock-based compensation | 1,876 | 1,224 | |||||||||
Plus: Employer taxes related to employee stock transactions | 72 | 7 | |||||||||
Plus: Amortization of acquired intangible assets | 2,087 | 1,209 | |||||||||
Plus: Restructuring costs | 137 | — | |||||||||
Non-GAAP gross profit | $ | 89,482 | $ | 72,095 | |||||||
GAAP gross margin | 82.6 | % | 81.6 | % | |||||||
Non-GAAP adjustments | 4.1 | % | 2.8 | % | |||||||
Non-GAAP gross margin | 86.7 | % | 84.4 | % | |||||||
Reconciliation of operating expenses | |||||||||||
GAAP research and development | $ | 33,508 | $ | 31,289 | |||||||
Less: Stock-based compensation | (10,101) | (8,675) | |||||||||
Less: Employer taxes related to employee stock transactions | (517) | (181) | |||||||||
Less: Acquisition-related expenses | (161) | (1,471) | |||||||||
Less: Amortization of acquired intangible assets | (87) | — | |||||||||
Less: Restructuring costs | 3 | — | |||||||||
Non-GAAP research and development | $ | 22,645 | $ | 20,962 | |||||||
GAAP sales and marketing | $ | 43,801 | $ | 45,552 | |||||||
Less: Stock-based compensation | (5,951) | (6,381) | |||||||||
Less: Employer taxes related to employee stock transactions | (267) | (175) | |||||||||
Less: Amortization of acquired intangible assets | (610) | (633) | |||||||||
Less: Restructuring costs | 104 | — | |||||||||
Non-GAAP sales and marketing | $ | 37,077 | $ | 38,363 | |||||||
GAAP general and administrative | $ | 23,801 | $ | 25,271 | |||||||
Less: Stock-based compensation | (9,617) | (8,629) | |||||||||
Less: Employer taxes related to employee stock transactions | (341) | (289) | |||||||||
Less: Acquisition-related expenses | — | (1,282) | |||||||||
Less: Amortization of acquired intangible assets | (22) | — | |||||||||
Less: Restructuring costs | (114) | — | |||||||||
Non-GAAP general and administrative | $ | 13,707 | $ | 15,071 |
Three Months Ended April 30, | |||||||||||
2023 | 2022 | ||||||||||
Reconciliation of operating income (loss) and operating margin | |||||||||||
GAAP operating loss | $ | (15,800) | $ | (32,457) | |||||||
Plus: Stock-based compensation | 27,545 | 24,909 | |||||||||
Plus: Employer taxes related to employee stock transactions | 1,197 | 652 | |||||||||
Plus: Amortization of acquired intangible assets | 2,806 | 1,842 | |||||||||
Plus: Acquisition-related expenses | 161 | 2,753 | |||||||||
Plus: Restructuring costs | 144 | — | |||||||||
Non-GAAP operating income (loss) | $ | 16,053 | $ | (2,301) | |||||||
GAAP operating margin | (15.3) | % | (38.0) | % | |||||||
Non-GAAP adjustments | 30.8 | % | 35.3 | % | |||||||
Non-GAAP operating margin | 15.5 | % | (2.7) | % | |||||||
Reconciliation of net income (loss) | |||||||||||
GAAP net loss attributable to PagerDuty, Inc. | $ | (12,218) | $ | (32,820) | |||||||
Plus: Stock-based compensation | 27,545 | 24,909 | |||||||||
Plus: Employer taxes related to employee stock transactions | 1,197 | 652 | |||||||||
Plus: Amortization of debt discount | 455 | 447 | |||||||||
Plus: Amortization of acquired intangible assets | 2,806 | 1,842 | |||||||||
Plus: Acquisition-related expenses | 161 | 2,753 | |||||||||
Plus: Restructuring costs | 144 | — | |||||||||
Less: Income tax effect of non-GAAP adjustments |
(792) | (1,330) | |||||||||
Non-GAAP net income (loss) attributable to PagerDuty, Inc. | $ | 19,298 | $ | (3,547) | |||||||
Reconciliation of net income (loss) per share, basic | |||||||||||
GAAP net loss per share, basic, attributable to PagerDuty, Inc. | $ | (0.13) | $ | (0.38) | |||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. | 0.34 | 0.34 | |||||||||
Non-GAAP net income (loss) per share, basic, attributable to PagerDuty, Inc. | $ | 0.21 | $ | (0.04) | |||||||
Reconciliation of net income (loss) per share, diluted(1) |
|||||||||||
GAAP net loss per share, diluted, attributable to PagerDuty, Inc. | $ | (0.13) | $ | (0.38) | |||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. | 0.33 | 0.34 | |||||||||
Non-GAAP net income (loss) per share, diluted, attributable to PagerDuty, Inc. | $ | 0.20 | $ | (0.04) | |||||||
Weighted-average shares used in calculating GAAP net loss per share, basic and diluted | 91,522 | 87,127 | |||||||||
Weighted-average shares used in calculating non-GAAP net income (loss) per share | |||||||||||
Basic | 91,522 | 87,127 | |||||||||
Diluted | 103,431 | 87,127 |
Three Months Ended April 30, | |||||||||||
2023 | 2022 | ||||||||||
Net cash provided by (used in) operating activities | $ | 22,152 | $ | (2,985) | |||||||
Less: | |||||||||||
Purchases of property and equipment | (235) | (2,078) | |||||||||
Capitalization of internal-use software costs | (1,072) | (772) | |||||||||
Free cash flow | $ | 20,845 | $ | (5,835) | |||||||
Net cash provided by (used in) investing activities | $ | 8,563 | $ | (70,357) | |||||||
Net cash used in financing activities | $ | (4,069) | $ | (2,584) | |||||||
Free cash flow margin | 20.2% | (6.8)% |