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: March 14, 2024 | By: | /s/ Shelley Webb | ||||||||||||
Shelley Webb | ||||||||||||||
Senior Vice President and Chief Legal Officer |
Three Months Ended January 31, | Year Ended January 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | $ | 111,117 | $ | 100,966 | $ | 430,699 | $ | 370,793 | |||||||||||||||
Cost of revenue(1) |
20,358 | 18,344 | 77,832 | 70,434 | |||||||||||||||||||
Gross profit | 90,759 | 82,622 | 352,867 | 300,359 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development(1) |
35,548 | 34,569 | 139,769 | 134,876 | |||||||||||||||||||
Sales and marketing(1) |
53,614 | 52,621 | 196,769 | 195,622 | |||||||||||||||||||
General and administrative(1) |
35,028 | 21,922 | 112,575 | 99,238 | |||||||||||||||||||
Total operating expenses | 124,190 | 109,112 | 449,113 | 429,736 | |||||||||||||||||||
Loss from operations | (33,431) | (26,490) | (96,246) | (129,377) | |||||||||||||||||||
Interest income | 10,801 | 2,005 | 22,101 | 5,383 | |||||||||||||||||||
Interest expense | (2,316) | (1,361) | (6,500) | (5,433) | |||||||||||||||||||
Gain on partial extinguishment of convertible senior notes | (271) | — | 3,699 | — | |||||||||||||||||||
Other expense, net | (3,415) | 1,307 | (433) | (637) | |||||||||||||||||||
Loss before benefit from (provision for) income taxes | (28,632) | (24,539) | (77,379) | (130,064) | |||||||||||||||||||
Benefit from (provision for) income taxes | (185) | (463) | 12 | 839 | |||||||||||||||||||
Net loss | $ | (28,817) | $ | (25,002) | $ | (77,367) | $ | (129,225) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest | (665) | (440) | (2,178) | (802) | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (28,152) | $ | (24,562) | $ | (75,189) | $ | (128,423) | |||||||||||||||
Adjustment attributable to redeemable non-controlling interest | 2,480 | — | 6,568 | — | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (30,632) | $ | (24,562) | $ | (81,757) | $ | (128,423) | |||||||||||||||
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.33) | $ | (0.27) | $ | (0.89) | $ | (1.45) | |||||||||||||||
Weighted average shares used in calculating net loss per share, basic and diluted | 92,168 | 90,269 | 92,341 | 88,721 |
Three Months Ended January 31, | Year Ended January 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of revenue | $ | 1,726 | $ | 1,879 | $ | 7,586 | $ | 6,827 | |||||||||||||||
Research and development | 10,798 | 8,946 | 44,800 | 39,012 | |||||||||||||||||||
Sales and marketing | 7,983 | 7,271 | 30,345 | 29,804 | |||||||||||||||||||
General and administrative | 117,735 | 5,333 | 44,421 | 34,264 | |||||||||||||||||||
Total | $ | 32,242 | $ | 23,429 | $ | 127,152 | $ | 109,907 |
As of January 31, | |||||||||||
2024 | 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 363,011 | $ | 274,019 | |||||||
Investments | 208,178 | 202,948 | |||||||||
Accounts receivable, net of allowance for credit losses of $1,382 and $2,014 as of January 31, 2024 and January 31, 2023, respectively | 100,413 | 91,345 | |||||||||
Deferred contract costs, current | 19,502 | 18,674 | |||||||||
Prepaid expenses and other current assets | 12,094 | 13,350 | |||||||||
Total current assets | 703,198 | 600,336 | |||||||||
Property and equipment, net | 17,632 | 18,390 | |||||||||
Deferred contract costs, non-current | 25,118 | 27,715 | |||||||||
Lease right-of-use assets | 3,789 | 13,982 | |||||||||
Goodwill | 137,401 | 118,862 | |||||||||
Intangible assets, net | 32,616 | 37,224 | |||||||||
Other assets | 5,552 | 1,364 | |||||||||
Total assets | $ | 925,306 | $ | 817,873 | |||||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 6,242 | $ | 7,398 | |||||||
Accrued expenses and other current liabilities | 15,472 | 11,804 | |||||||||
Accrued compensation | 30,239 | 41,834 | |||||||||
Deferred revenue, current | 223,522 | 204,137 | |||||||||
Lease liabilities, current | 6,180 | 5,904 | |||||||||
Total current liabilities | 281,655 | 271,077 | |||||||||
Convertible senior notes, net | 448,030 | 282,908 | |||||||||
Deferred revenue, non-current | 4,639 | 4,914 | |||||||||
Lease liabilities, non-current | 6,809 | 12,704 | |||||||||
Other liabilities | 5,280 | 4,184 | |||||||||
Total liabilities | 746,413 | 575,787 | |||||||||
Commitments and contingencies | |||||||||||
Redeemable non-controlling interest | 7,293 | 1,108 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.000005 par value per share: 1,000,000,000 shares authorized as of January 31, 2024 and 2023; 95,068,187 and 91,178,671 shares issued as of January 31, 2024 and 2023, respectively, and 92,737,185 and 91,178,671 shares outstanding as of January 31, 2024 and 2023, respectively | — | — | |||||||||
Additional paid-in capital | 774,768 | 719,816 | |||||||||
Accumulated other comprehensive loss | (733) | (1,592) | |||||||||
Accumulated deficit | (552,435) | (477,246) | |||||||||
Treasury stock at cost, 2,331,002 and — shares as of January 31, 2024 and 2023, respectively | (50,000) | — | |||||||||
Total stockholders’ equity | 171,600 | 240,978 | |||||||||
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 925,306 | $ | 817,873 |
Three Months Ended January 31, | Year Ended January 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (30,632) | $ | (24,562) | $ | (81,757) | $ | (128,423) | |||||||||||||||
Net loss and adjustment attributable to redeemable non-controlling interest | 1,815 | (440) | 4,390 | (802) | |||||||||||||||||||
Net loss | (28,817) | (25,002) | (77,367) | (129,225) | |||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 5,137 | 4,651 | 20,153 | 17,429 | |||||||||||||||||||
Amortization of deferred contract costs | 5,282 | 5,069 | 20,568 | 19,247 | |||||||||||||||||||
Gain on partial extinguishment of convertible senior notes | 271 | — | (3,699) | — | |||||||||||||||||||
Stock-based compensation | 32,242 | 23,429 | 127,152 | 109,907 | |||||||||||||||||||
Amortization of debt issuance costs | 622 | 463 | 2,078 | 1,839 | |||||||||||||||||||
Non-cash lease expense | 1,014 | 1,160 | 4,439 | 4,073 | |||||||||||||||||||
Impairment of property and equipment, net and lease right-of-use assets, net | 7,164 | — | 8,368 | — | |||||||||||||||||||
Tax benefit related to release of valuation allowance | — | — | — | (1,330) | |||||||||||||||||||
Other | (593) | 155 | (3,223) | 1,841 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (29,645) | (19,634) | (10,662) | (16,586) | |||||||||||||||||||
Deferred contract costs | (6,514) | (6,482) | (18,799) | (22,805) | |||||||||||||||||||
Prepaid expenses and other assets | 2,674 | 91 | — | (2,843) | |||||||||||||||||||
Accounts payable | (451) | (356) | (1,453) | (1,473) | |||||||||||||||||||
Accrued expenses and other liabilities | 3,378 | (94) | 4,145 | (1,444) | |||||||||||||||||||
Accrued compensation | 1,261 | 6,771 | (11,825) | 6,147 | |||||||||||||||||||
Deferred revenue | 30,620 | 29,336 | 18,073 | 37,971 | |||||||||||||||||||
Lease liabilities | (1,490) | (1,985) | (5,974) | (5,768) | |||||||||||||||||||
Net cash provided by operating activities | 22,155 | 17,572 | 71,974 | 16,980 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchases of property and equipment | (971) | (882) | (2,164) | (4,637) | |||||||||||||||||||
Capitalized internal-use software costs | (1,572) | (1,111) | (5,384) | (3,836) | |||||||||||||||||||
Business acquisition, net of cash acquired | (24,071) | — | (24,071) | (66,262) | |||||||||||||||||||
Asset acquisition | — | — | — | (1,845) | |||||||||||||||||||
Purchases of available-for-sale investments | (64,986) | (56,900) | (216,970) | (212,210) | |||||||||||||||||||
Proceeds from maturities of available-for-sale investments | 54,200 | 53,000 | 218,264 | 202,625 | |||||||||||||||||||
Purchases of non-marketable equity investments | — | — | (200) | — | |||||||||||||||||||
Net cash (used in) provided by investing activities | (37,400) | (5,893) | (30,525) | (86,165) | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs | (712) | — | 390,831 | — | |||||||||||||||||||
Purchases of capped calls related to convertible senior notes | — | (55,102) | — | ||||||||||||||||||||
Repurchases of convertible senior notes | (204) | — | (223,675) | — | |||||||||||||||||||
Investment from redeemable non-controlling interest holder | — | 1,781 | 1,908 | ||||||||||||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 1,481 | 2,022 | 9,871 | 10,481 | |||||||||||||||||||
Proceeds from Employee Stock Purchase Plan | 4,002 | 4,139 | 10,294 | 9,875 | |||||||||||||||||||
Employee payroll taxes paid related to net share settlement of restricted stock units | (6,628) | (6,490) | (32,400) | (28,677) | |||||||||||||||||||
Repurchase of common stock | — | — | (50,000) | — | |||||||||||||||||||
Net cash provided by (used in) financing activities | (2,061) | (329) | 51,600 | (6,413) | |||||||||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | 50 | 336 | (401) | (168) | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (17,256) | 11,686 | 92,648 | (75,766) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 383,923 | 262,333 | 274,019 | 349,785 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 366,667 | $ | 274,019 | $ | 366,667 | $ | 274,019 |
Three Months Ended January 31, | Year Ended January 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Reconciliation of gross profit and gross margin | |||||||||||||||||||||||
GAAP gross profit | $ | 90,759 | $ | 82,622 | $ | 352,867 | $ | 300,359 | |||||||||||||||
Plus: Stock-based compensation | 1,726 | 1,879 | 7,586 | 6,827 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 61 | 84 | 199 | 163 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,354 | 2,087 | 8,614 | 7,401 | |||||||||||||||||||
Plus: Restructuring costs | — | 357 | 137 | 357 | |||||||||||||||||||
Non-GAAP gross profit | $ | 94,900 | $ | 87,029 | $ | 369,403 | $ | 315,107 | |||||||||||||||
GAAP gross margin | 81.7 | % | 81.8 | % | 81.9 | % | 81.0 | % | |||||||||||||||
Non-GAAP adjustments | 3.7 | % | 4.4 | % | 3.9 | % | 3.9 | % | |||||||||||||||
Non-GAAP gross margin | 85.4 | % | 86.2 | % | 85.8 | % | 85.0 | % | |||||||||||||||
Reconciliation of operating expenses | |||||||||||||||||||||||
GAAP research and development | $ | 35,548 | $ | 34,569 | $ | 139,769 | $ | 134,876 | |||||||||||||||
Less: Stock-based compensation | (10,798) | (8,946) | (44,800) | (39,012) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (468) | (383) | (1,398) | (942) | |||||||||||||||||||
Less: Acquisition-related expenses | (354) | (5) | (838) | (3,105) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (88) | (87) | (350) | (232) | |||||||||||||||||||
Less: Restructuring costs | 21 | (2,004) | 26 | (2,004) | |||||||||||||||||||
Non-GAAP research and development | $ | 23,861 | $ | 23,144 | $ | 92,409 | $ | 89,581 | |||||||||||||||
GAAP sales and marketing | $ | 53,614 | $ | 52,621 | $ | 196,769 | $ | 195,622 | |||||||||||||||
Less: Stock-based compensation | (7,983) | (7,271) | (30,345) | (29,804) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (330) | (424) | (919) | (892) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (629) | (610) | (2,459) | (2,546) | |||||||||||||||||||
Less: Restructuring costs | — | (2,200) | 49 | (2,200) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 44,672 | $ | 42,116 | $ | 163,095 | $ | 160,180 | |||||||||||||||
GAAP general and administrative | $ | 35,028 | $ | 21,922 | $ | 112,575 | $ | 99,238 | |||||||||||||||
Less: Stock-based compensation | (11,735) | (5,333) | (44,421) | (34,264) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (324) | (449) | (982) | (1,099) | |||||||||||||||||||
Less: Acquisition-related expenses | (432) | — | (962) | (1,454) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (22) | (22) | (87) | (58) | |||||||||||||||||||
Less: Restructuring costs | (7,164) | (474) | (8,615) | (474) | |||||||||||||||||||
Non-GAAP general and administrative | $ | 15,351 | $ | 15,644 | $ | 57,508 | $ | 61,889 |
Three Months Ended January 31, | Year Ended January 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Reconciliation of operating income (loss) and operating margin | |||||||||||||||||||||||
GAAP operating loss | $ | (33,431) | $ | (26,490) | $ | (96,246) | $ | (129,377) | |||||||||||||||
Plus: Stock-based compensation | 32,242 | 23,429 | 127,152 | 109,907 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 1,183 | 1,340 | 3,498 | 3,096 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 3,093 | 2,806 | 11,510 | 10,237 | |||||||||||||||||||
Plus: Acquisition-related expenses | 786 | 5 | 1,800 | 4,559 | |||||||||||||||||||
Plus: Restructuring costs | 7,143 | 5,035 | 8,677 | 5,035 | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | 11,016 | $ | 6,125 | $ | 56,391 | $ | 3,457 | |||||||||||||||
GAAP operating margin | (30.1) | % | (26.2) | % | (22.3) | % | (34.9) | % | |||||||||||||||
Non-GAAP adjustments | 40.0 | % | 32.3 | % | 35.4 | % | 35.8 | % | |||||||||||||||
Non-GAAP operating margin | 9.9 | % | 6.1 | % | 13.1 | % | 0.9 | % | |||||||||||||||
Reconciliation of net income (loss) | |||||||||||||||||||||||
GAAP net loss attributable to PagerDuty, Inc. common stockholders | $ | (30,632) | $ | (24,562) | $ | (81,757) | $ | (128,423) | |||||||||||||||
Plus: Stock-based compensation | 32,242 | 23,429 | 127,152 | 109,907 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 1,183 | 1,340 | 3,498 | 3,096 | |||||||||||||||||||
Plus: Amortization of debt issuance costs | 622 | 463 | 2,078 | 1,839 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 3,093 | 2,806 | 11,510 | 10,237 | |||||||||||||||||||
Plus: Acquisition-related expenses | 786 | 5 | 1,800 | 4,559 | |||||||||||||||||||
Plus: Restructuring costs | 7,143 | 5,035 | 8,677 | 5,035 | |||||||||||||||||||
Plus: Adjustment attributable to redeemable non-controlling interest | 2,480 | — | 6,568 | — | |||||||||||||||||||
Less: Gain on partial extinguishment of convertible senior notes | 271 | — | (3,699) | — | |||||||||||||||||||
Less: Income tax effects and adjustments |
(1,353) | (1,226) | (3,273) | (2,556) | |||||||||||||||||||
Non-GAAP net income (loss) attributable to PagerDuty, Inc. common stockholders | $ | 15,835 | $ | 7,290 | $ | 72,554 | $ | 3,694 | |||||||||||||||
Reconciliation of net income (loss) per share, basic | |||||||||||||||||||||||
GAAP net loss per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | (0.33) | $ | (0.27) | $ | (0.89) | $ | (1.45) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.50 | 0.35 | 1.68 | 1.49 | |||||||||||||||||||
Non-GAAP net income (loss) per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | 0.17 | $ | 0.08 | $ | 0.79 | $ | 0.04 | |||||||||||||||
Reconciliation of net income (loss) per share, diluted(1) |
|||||||||||||||||||||||
GAAP net loss per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.33) | $ | (0.27) | $ | (0.89) | $ | (1.45) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.50 | 0.34 | 1.63 | 1.52 | |||||||||||||||||||
Non-GAAP net income (loss) per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | 0.17 | $ | 0.07 | $ | 0.74 | $ | 0.04 | |||||||||||||||
Weighted-average shares used in calculating GAAP net loss per share, basic and diluted | 92,168 | 90,269 | 92,341 | 88,721 | |||||||||||||||||||
Weighted-average shares used in calculating non-GAAP net income (loss) per share | |||||||||||||||||||||||
Basic | 92,168 | 90,269 | 92,341 | 88,721 | |||||||||||||||||||
Diluted | 95,192 | 101,747 | 100,941 | 100,862 |
Three Months Ended January 31, | Year Ended January 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 22,155 | $ | 17,572 | $ | 71,974 | $ | 16,980 | |||||||||||||||
Less: | |||||||||||||||||||||||
Purchases of property and equipment | (971) | (882) | (2,164) | (4,637) | |||||||||||||||||||
Capitalization of internal-use software costs | (1,572) | (1,111) | (5,384) | (3,836) | |||||||||||||||||||
Free cash flow | $ | 19,612 | $ | 15,579 | $ | 64,426 | $ | 8,507 | |||||||||||||||
Net cash used in investing activities | $ | (37,400) | $ | (5,893) | $ | (30,525) | $ | (86,165) | |||||||||||||||
Net cash provided by (used in) financing activities | $ | (2,061) | $ | (329) | $ | 51,600 | $ | (6,413) | |||||||||||||||
Free cash flow margin | 17.6% | 15.4% | 15.0% | 2.3% |