Delaware | 001-38856 | 27-2793871 | ||||||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
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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 | |||||||
Press Release Issued by PagerDuty, Inc. dated August 31, 2023 |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
PagerDuty, Inc. | ||||||||||||||
Dated: August 31, 2023 |
By: | /s/ Shelley Webb | ||||||||||||
Shelley Webb | ||||||||||||||
Senior Vice President, Legal, General Counsel, and Secretary |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | 107,616 | $ | 90,253 | $ | 210,862 | $ | 175,624 | |||||||||||||||
Cost of revenue(1) |
19,833 | 18,367 | 37,769 | 34,083 | |||||||||||||||||||
Gross profit | 87,783 | 71,886 | 173,093 | 141,541 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development(1) |
36,441 | 34,014 | 69,949 | 65,303 | |||||||||||||||||||
Sales and marketing(1) |
49,724 | 50,331 | 93,525 | 95,883 | |||||||||||||||||||
General and administrative(1) |
27,791 | 25,429 | 51,592 | 50,700 | |||||||||||||||||||
Total operating expenses | 113,956 | 109,774 | 215,066 | 211,886 | |||||||||||||||||||
Loss from operations | (26,173) | (37,888) | (41,973) | (70,345) | |||||||||||||||||||
Interest income | 3,655 | 830 | 6,778 | 1,378 | |||||||||||||||||||
Interest expense | (1,396) | (1,387) | (2,730) | (2,712) | |||||||||||||||||||
Other income (expense), net | 1,242 | (364) | 2,309 | (1,154) | |||||||||||||||||||
Loss before benefit from income taxes | (22,672) | (38,809) | (35,616) | (72,833) | |||||||||||||||||||
Benefit from income taxes | 50 | 210 | 156 | 1,414 | |||||||||||||||||||
Net loss | $ | (22,622) | $ | (38,599) | $ | (35,460) | $ | (71,419) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest | (569) | (100) | (1,189) | (100) | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (22,053) | $ | (38,499) | $ | (34,271) | $ | (71,319) | |||||||||||||||
Adjustment attributable to redeemable non-controlling interest | 1,729 | — | 1,729 | — | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (23,782) | $ | (38,499) | $ | (36,000) | $ | (71,319) | |||||||||||||||
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.26) | $ | (0.44) | $ | (0.39) | $ | (0.81) | |||||||||||||||
Weighted-average shares used in calculating net loss per share, basic and diluted | 92,542 | 88,153 | 92,041 | 87,648 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cost of revenue | $ | 2,164 | $ | 1,787 | $ | 4,040 | $ | 3,011 | |||||||||||||||
Research and development | 12,773 | 10,567 | 22,874 | 19,242 | |||||||||||||||||||
Sales and marketing | 8,317 | 8,148 | 14,268 | 14,529 | |||||||||||||||||||
General and administrative | 12,283 | 9,623 | 21,900 | 18,252 | |||||||||||||||||||
Total | $ | 35,537 | $ | 30,125 | $ | 63,082 | $ | 55,034 |
As of July 31, 2023 | As of January 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 298,558 | $ | 274,019 | |||||||
Investments | 205,919 | 202,948 | |||||||||
Accounts receivable, net of allowance for credit losses of $2,485 and $2,014 as of July 31, 2023 and January 31, 2023, respectively |
65,633 | 91,345 | |||||||||
Deferred contract costs, current | 18,442 | 18,674 | |||||||||
Prepaid expenses and other current assets | 14,336 | 13,350 | |||||||||
Total current assets | 602,888 | 600,336 | |||||||||
Property and equipment, net | 17,894 | 18,390 | |||||||||
Deferred contract costs, non-current | 24,549 | 27,715 | |||||||||
Lease right-of-use assets | 11,225 | 13,982 | |||||||||
Goodwill | 118,862 | 118,862 | |||||||||
Intangible assets, net | 31,612 | 37,224 | |||||||||
Other assets | 4,868 | 1,364 | |||||||||
Total assets | $ | 811,898 | $ | 817,873 | |||||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 7,145 | $ | 7,398 | |||||||
Accrued expenses and other current liabilities | 10,982 | 11,804 | |||||||||
Accrued compensation | 23,125 | 41,834 | |||||||||
Deferred revenue, current | 192,302 | 204,137 | |||||||||
Lease liabilities, current | 6,021 | 5,904 | |||||||||
Total current liabilities | 239,575 | 271,077 | |||||||||
Convertible senior notes, net | 283,841 | 282,908 | |||||||||
Deferred revenue, non-current | 4,303 | 4,914 | |||||||||
Lease liabilities, non-current | 9,944 | 12,704 | |||||||||
Other liabilities | 4,917 | 4,184 | |||||||||
Total liabilities | 542,580 | 575,787 | |||||||||
Redeemable non-controlling interest | 3,431 | 1,108 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock |
— | — | |||||||||
Additional paid-in-capital | 779,192 | 719,816 | |||||||||
Accumulated other comprehensive loss | (1,788) | (1,592) | |||||||||
Accumulated deficit | (511,517) | (477,246) | |||||||||
Total stockholders’ equity | 265,887 | 240,978 | |||||||||
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 811,898 | $ | 817,873 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (23,782) | $ | (38,499) | $ | (36,000) | $ | (71,319) | |||||||||||||||
Net loss and adjustment attributable to redeemable non-controlling interest | 1,160 | (100) | 540 | (100) | |||||||||||||||||||
Net loss | (22,622) | (38,599) | (35,460) | (71,419) | |||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 5,266 | 4,689 | 9,991 | 8,280 | |||||||||||||||||||
Amortization of deferred contract costs | 5,173 | 4,791 | 10,163 | 9,256 | |||||||||||||||||||
Amortization of debt issuance costs | 478 | 468 | 933 | 915 | |||||||||||||||||||
Stock-based compensation | 35,537 | 30,125 | 63,082 | 55,034 | |||||||||||||||||||
Non-cash lease expense | 1,143 | 1,157 | 2,319 | 2,302 | |||||||||||||||||||
Tax benefit related to release of valuation allowance | — | — | — | (1,330) | |||||||||||||||||||
Other | 950 | 56 | 98 | 1,810 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (5,599) | 1,259 | 24,404 | 16,521 | |||||||||||||||||||
Deferred contract costs | (3,393) | (5,035) | (6,765) | (10,033) | |||||||||||||||||||
Prepaid expenses and other assets | 822 | 481 | (1,385) | (1,510) | |||||||||||||||||||
Accounts payable | 961 | (2,283) | (245) | (2,226) | |||||||||||||||||||
Accrued expenses and other liabilities | 229 | 3,877 | (15) | 3,243 | |||||||||||||||||||
Accrued compensation | (1,506) | 1,020 | (18,792) | (6,658) | |||||||||||||||||||
Deferred revenue | (5,182) | 2,225 | (12,428) | (1,546) | |||||||||||||||||||
Lease liabilities | (1,507) | (1,390) | (2,998) | (2,783) | |||||||||||||||||||
Net cash provided by (used in) operating activities | 10,750 | 2,841 | 32,902 | (144) | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchases of property and equipment | (713) | (862) | (948) | (2,940) | |||||||||||||||||||
Capitalization of internal-use software costs | (1,299) | (965) | (2,371) | (1,737) | |||||||||||||||||||
Business acquisition, net of cash acquired | — | — | — | (66,262) | |||||||||||||||||||
Asset acquisition | — | (1,845) | — | (1,845) | |||||||||||||||||||
Purchases of available-for-sale investments | (68,972) | (53,783) | (108,057) | (95,468) | |||||||||||||||||||
Proceeds from maturities of available-for-sale investments | 58,609 | 54,760 | 107,564 | 95,200 | |||||||||||||||||||
Purchases of non-marketable equity investments | (200) | — | (200) | — | |||||||||||||||||||
Net cash used in investing activities | (12,575) | (2,695) | (4,012) | (73,052) | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Investment from redeemable non-controlling interest holder | 1,781 | 1,908 | 1,781 | 1,908 | |||||||||||||||||||
Proceeds from employee stock purchase plan | 6,292 | 5,736 | 6,292 | 5,736 | |||||||||||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 2,666 | 2,974 | 7,417 | 6,560 | |||||||||||||||||||
Employee payroll taxes paid related to net share settlement of restricted stock units | (7,166) | (6,153) | (15,986) | (12,323) | |||||||||||||||||||
Net cash provided by (used in) financing activities | 3,573 | 4,465 | (496) | 1,881 | |||||||||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (214) | (139) | (274) | (139) | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 1,534 | 4,472 | 28,120 | (71,454) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 300,605 | 273,859 | 274,019 | 349,785 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 302,139 | $ | 278,331 | $ | 302,139 | $ | 278,331 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Reconciliation of gross profit and gross margin | |||||||||||||||||||||||
GAAP gross profit | $ | 87,783 | $ | 71,886 | $ | 173,093 | $ | 141,541 | |||||||||||||||
Plus: Stock-based compensation | 2,164 | 1,787 | 4,040 | 3,011 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 45 | 34 | 117 | 41 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,086 | 2,156 | 4,173 | 3,365 | |||||||||||||||||||
Plus: Restructuring costs | — | — | 137 | — | |||||||||||||||||||
Non-GAAP gross profit | $ | 92,078 | $ | 75,863 | $ | 181,560 | $ | 147,958 | |||||||||||||||
GAAP gross margin | 81.6 | % | 79.6 | % | 82.1 | % | 80.6 | % | |||||||||||||||
Non-GAAP adjustments | 4.0 | % | 4.5 | % | 4.0 | % | 3.6 | % | |||||||||||||||
Non-GAAP gross margin | 85.6 | % | 84.1 | % | 86.1 | % | 84.2 | % | |||||||||||||||
Reconciliation of operating expenses | |||||||||||||||||||||||
GAAP research and development | $ | 36,441 | $ | 34,014 | $ | 69,949 | $ | 65,303 | |||||||||||||||
Less: Stock-based compensation | (12,773) | (10,567) | (22,874) | (19,242) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (203) | (176) | (720) | (357) | |||||||||||||||||||
Less: Acquisition-related expenses | (162) | (891) | (323) | (2,362) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (87) | (116) | (174) | (116) | |||||||||||||||||||
Less: Restructuring costs | 2 | — | 5 | — | |||||||||||||||||||
Non-GAAP research and development | $ | 23,218 | $ | 22,264 | $ | 45,863 | $ | 43,226 | |||||||||||||||
GAAP sales and marketing | $ | 49,724 | $ | 50,331 | $ | 93,525 | $ | 95,883 | |||||||||||||||
Less: Stock-based compensation | (8,317) | (8,148) | (14,268) | (14,529) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (283) | (145) | (550) | (320) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (610) | (660) | (1,220) | (1,293) | |||||||||||||||||||
Less: Restructuring costs | (56) | — | 48 | — | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 40,458 | $ | 41,378 | $ | 77,535 | $ | 79,741 | |||||||||||||||
GAAP general and administrative | $ | 27,791 | $ | 25,429 | $ | 51,592 | $ | 50,700 | |||||||||||||||
Less: Stock-based compensation | (12,283) | (9,623) | (21,900) | (18,252) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (172) | (166) | (513) | (455) | |||||||||||||||||||
Less: Acquisition-related expenses | — | (8) | — | (1,290) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (22) | (29) | (44) | (29) | |||||||||||||||||||
Less: Restructuring costs | (1,204) | — | (1,318) | — | |||||||||||||||||||
Non-GAAP general and administrative | $ | 14,110 | $ | 15,603 | $ | 27,817 | $ | 30,674 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Reconciliation of operating income (loss) and operating margin | |||||||||||||||||||||||
GAAP operating loss | $ | (26,173) | $ | (37,888) | $ | (41,973) | $ | (70,345) | |||||||||||||||
Plus: Stock-based compensation | 35,537 | 30,125 | 63,082 | 55,034 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 703 | 521 | 1,900 | 1,173 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,805 | 2,961 | 5,611 | 4,803 | |||||||||||||||||||
Plus: Acquisition-related expenses | 162 | 899 | 323 | 3,652 | |||||||||||||||||||
Plus: Restructuring costs | 1,258 | — | 1,402 | — | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | 14,292 | $ | (3,382) | $ | 30,345 | $ | (5,683) | |||||||||||||||
GAAP operating margin | (24.3) | % | (42.0) | % | (19.9) | % | (40.1) | % | |||||||||||||||
Non-GAAP adjustments | 37.6 | % | 38.3 | % | 34.3 | % | 36.9 | % | |||||||||||||||
Non-GAAP operating margin | 13.3 | % | (3.7) | % | 14.4 | % | (3.2) | % | |||||||||||||||
Reconciliation of net income (loss) | |||||||||||||||||||||||
GAAP net loss attributable to PagerDuty, Inc. common stockholders | $ | (23,782) | $ | (38,499) | $ | (36,000) | $ | (71,319) | |||||||||||||||
Plus: Stock-based compensation | 35,537 | 30,125 | 63,082 | 55,034 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 703 | 521 | 1,900 | 1,173 | |||||||||||||||||||
Plus: Amortization of debt issuance costs | 478 | 468 | 933 | 915 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,805 | 2,961 | 5,611 | 4,803 | |||||||||||||||||||
Plus: Acquisition-related expenses | 162 | 899 | 323 | 3,652 | |||||||||||||||||||
Plus: Restructuring costs | 1,258 | — | 1,402 | — | |||||||||||||||||||
Plus: Adjustment attributable to redeemable non-controlling interest | 1,729 | — | 1,729 | — | |||||||||||||||||||
Less: Income tax effect of non-GAAP adjustments |
(662) | — | (1,454) | (1,330) | |||||||||||||||||||
Non-GAAP net income (loss) attributable to PagerDuty, Inc. common stockholders | $ | 18,228 | $ | (3,525) | $ | 37,526 | $ | (7,072) | |||||||||||||||
Reconciliation of net income (loss) per share, basic | |||||||||||||||||||||||
GAAP net loss per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | (0.26) | $ | (0.44) | $ | (0.39) | $ | (0.81) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.46 | 0.40 | 0.80 | 0.73 | |||||||||||||||||||
Non-GAAP net income (loss) per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | 0.20 | $ | (0.04) | $ | 0.41 | $ | (0.08) | |||||||||||||||
Reconciliation of net income (loss) per share, diluted(1) |
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GAAP net loss per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.26) | $ | (0.44) | $ | (0.39) | $ | (0.81) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.45 | 0.40 | 0.77 | 0.73 | |||||||||||||||||||
Non-GAAP net income (loss) per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | 0.19 | $ | (0.04) | $ | 0.38 | $ | (0.08) | |||||||||||||||
Weighted-average shares used in calculating GAAP net loss per share, basic and diluted | 92,542 | 88,153 | 92,041 | 87,648 | |||||||||||||||||||
Weighted-average shares used in calculating non-GAAP net income (loss) per share | |||||||||||||||||||||||
Basic | 92,542 | 88,153 | 92,041 | 87,648 | |||||||||||||||||||
Diluted | 103,235 | 88,153 | 103,342 | 87,648 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 10,750 | $ | 2,841 | $ | 32,902 | $ | (144) | |||||||||||||||
Less: | |||||||||||||||||||||||
Purchases of property and equipment | (713) | (862) | (948) | (2,940) | |||||||||||||||||||
Capitalization of internal-use software costs | (1,299) | (965) | (2,371) | (1,737) | |||||||||||||||||||
Free cash flow | $ | 8,738 | $ | 1,014 | $ | 29,583 | $ | (4,821) | |||||||||||||||
Net cash used in investing activities | $ | (12,575) | $ | (2,695) | $ | (4,012) | $ | (73,052) | |||||||||||||||
Net cash provided by (used in) financing activities | $ | 3,573 | $ | 4,465 | $ | (496) | $ | 1,881 | |||||||||||||||
Free cash flow margin | 8.1% | 1.1% | 14.0% | (2.7)% |