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 per share | PD | New York Stock Exchange (NYSE) |
Exhibit No. | Description | |||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
PagerDuty, Inc. | ||||||||
Date: September 3, 2024 |
By: | /s/ Shelley Webb | ||||||
Name: |
Shelley Webb | |||||||
Title: |
Senior Vice President, Chief Legal & People Officer |
Three months ended July 31, | Six months ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue | $ | 115,935 | $ | 107,616 | $ | 227,107 | $ | 210,862 | |||||||||||||||
Cost of revenue(1) |
20,080 | 19,833 | 39,423 | 37,769 | |||||||||||||||||||
Gross profit | 95,855 | 87,783 | 187,684 | 173,093 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development(1) |
35,088 | 36,441 | 72,611 | 69,949 | |||||||||||||||||||
Sales and marketing(1) |
50,966 | 49,724 | 99,465 | 93,525 | |||||||||||||||||||
General and administrative(1) |
25,828 | 27,791 | 53,368 | 51,592 | |||||||||||||||||||
Total operating expenses | 111,882 | 113,956 | 225,444 | 215,066 | |||||||||||||||||||
Loss from operations | (16,027) | (26,173) | (37,760) | (41,973) | |||||||||||||||||||
Interest income(2) |
7,516 | 5,011 | 14,496 | 9,214 | |||||||||||||||||||
Interest expense | (2,363) | (1,396) | (4,511) | (2,730) | |||||||||||||||||||
Other income (expense), net(2) |
117 | (114) | (134) | (127) | |||||||||||||||||||
Loss before (provision for) benefit from income taxes | (10,757) | (22,672) | (27,909) | (35,616) | |||||||||||||||||||
(Provision for) benefit from income taxes | (427) | 50 | (620) | 156 | |||||||||||||||||||
Net loss | $ | (11,184) | $ | (22,622) | $ | (28,529) | $ | (35,460) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest | (272) | (569) | (478) | (1,189) | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (10,912) | $ | (22,053) | $ | (28,051) | $ | (34,271) | |||||||||||||||
Less: Adjustment attributable to redeemable non-controlling interest | 2,330 | 1,729 | 9,247 | 1,729 | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (13,242) | $ | (23,782) | $ | (37,298) | $ | (36,000) | |||||||||||||||
Weighted average shares used in calculating net loss per share, basic and diluted | 93,289 | 92,542 | 93,082 | 92,041 | |||||||||||||||||||
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.14) | $ | (0.26) | $ | (0.40) | $ | (0.39) |
Three months ended July 31, | Six months ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Cost of revenue | $ | 1,508 | $ | 2,164 | $ | 3,264 | $ | 4,040 | |||||||||||||||
Research and development | 11,842 | 12,773 | 23,064 | 22,874 | |||||||||||||||||||
Sales and marketing | 8,116 | 8,317 | 16,063 | 14,268 | |||||||||||||||||||
General and administrative | 10,900 | 12,283 | 22,915 | 21,900 | |||||||||||||||||||
Total | $ | 32,366 | $ | 35,537 | $ | 65,306 | $ | 63,082 |
July 31, 2024 | January 31, 2024 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 385,673 | $ | 363,011 | |||||||
Investments | 213,640 | 208,178 | |||||||||
Accounts receivable, net of allowance for credit losses of $948 and $1,382 as of July 31, 2024 and January 31, 2024, respectively |
66,804 | 100,413 | |||||||||
Deferred contract costs, current | 19,676 | 19,502 | |||||||||
Prepaid expenses and other current assets | 14,683 | 12,094 | |||||||||
Total current assets | 700,476 | 703,198 | |||||||||
Property and equipment, net | 18,239 | 17,632 | |||||||||
Deferred contract costs, non-current | 24,373 | 25,118 | |||||||||
Lease right-of-use assets | 3,339 | 3,789 | |||||||||
Goodwill | 137,401 | 137,401 | |||||||||
Intangible assets, net | 26,530 | 32,616 | |||||||||
Other assets | 5,648 | 5,552 | |||||||||
Total assets | $ | 916,006 | $ | 925,306 | |||||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 6,940 | $ | 6,242 | |||||||
Accrued expenses and other current liabilities | 16,104 | 15,472 | |||||||||
Accrued compensation | 29,547 | 30,239 | |||||||||
Deferred revenue, current | 214,494 | 223,522 | |||||||||
Lease liabilities, current | 4,603 | 6,180 | |||||||||
Convertible senior notes, net, current | 57,241 | — | |||||||||
Total current liabilities | 328,929 | 281,655 | |||||||||
Convertible senior notes, net, non-current | 392,098 | 448,030 | |||||||||
Deferred revenue, non-current | 3,395 | 4,639 | |||||||||
Lease liabilities, non-current | 6,622 | 6,809 | |||||||||
Other liabilities | 4,216 | 5,280 | |||||||||
Total liabilities | 735,260 | 746,413 | |||||||||
Redeemable non-controlling interest | 16,062 | 7,293 | |||||||||
Stockholders' equity | |||||||||||
Common stock | — | — | |||||||||
Additional paid-in capital | 747,599 | 774,768 | |||||||||
Accumulated other comprehensive loss | (730) | (733) | |||||||||
Accumulated deficit | (580,486) | (552,435) | |||||||||
Treasury stock | (1,699) | (50,000) | |||||||||
Total stockholders’ equity | 164,684 | 171,600 | |||||||||
Total liabilities, redeemable non-controlling interest, and stockholders' equity | $ | 916,006 | $ | 925,306 |
Three months ended July 31, | Six months ended July 31, | |||||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (13,242) | $ | (23,782) | $ | (37,298) | $ | (36,000) | ||||||||||||
Net loss and adjustment attributable to redeemable non-controlling interest | 2,058 | 1,160 | 8,769 | 540 | ||||||||||||||||
Net loss | (11,184) | (22,622) | (28,529) | (35,460) | ||||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization | 5,163 | 5,266 | 10,455 | 9,991 | ||||||||||||||||
Amortization of deferred contract costs | 5,427 | 5,173 | 10,706 | 10,163 | ||||||||||||||||
Amortization of debt issuance costs | 671 | 478 | 1,279 | 933 | ||||||||||||||||
Stock-based compensation | 32,366 | 35,537 | 65,306 | 63,082 | ||||||||||||||||
Non-cash lease expense | 789 | 1,143 | 1,635 | 2,319 | ||||||||||||||||
Other | (1,163) | 950 | (2,465) | 98 | ||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable | 10,441 | (5,599) | 33,157 | 24,404 | ||||||||||||||||
Deferred contract costs | (5,325) | (3,393) | (10,130) | (6,765) | ||||||||||||||||
Prepaid expenses and other assets | 1,951 | 822 | (2,862) | (1,385) | ||||||||||||||||
Accounts payable | 511 | 961 | 779 | (245) | ||||||||||||||||
Accrued expenses and other liabilities | 2,606 | 229 | (829) | (15) | ||||||||||||||||
Accrued compensation | 846 | (1,506) | (821) | (18,792) | ||||||||||||||||
Deferred revenue | (5,893) | (5,182) | (10,316) | (12,428) | ||||||||||||||||
Lease liabilities | (1,437) | (1,507) | (2,949) | (2,998) | ||||||||||||||||
Net cash provided by operating activities | 35,769 | 10,750 | 64,416 | 32,902 | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Purchases of property and equipment | (637) | (713) | (1,094) | (948) | ||||||||||||||||
Capitalized internal-use software costs | (1,849) | (1,299) | (2,941) | (2,371) | ||||||||||||||||
Purchases of available-for-sale investments | (48,335) | (68,972) | (98,400) | (108,057) | ||||||||||||||||
Proceeds from maturities of available-for-sale investments | 47,021 | 58,609 | 93,577 | 107,564 | ||||||||||||||||
Proceeds from sales of available-for-sale investments | — | — | 2,237 | — | ||||||||||||||||
Purchases of non-marketable equity investments | — | (200) | — | (200) | ||||||||||||||||
Net cash used in investing activities | (3,800) | (12,575) | (6,621) | (4,012) | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Investment from redeemable non-controlling interest holder | — | 1,781 | — | 1,781 | ||||||||||||||||
Cash paid for debt issuance costs | (403) | — | (403) | — | ||||||||||||||||
Repurchases of common stock | (27,213) | — | (27,213) | — | ||||||||||||||||
Proceeds from employee stock purchase plan | 5,735 | 6,292 | 5,735 | 6,292 | ||||||||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 513 | 2,666 | 804 | 7,417 | ||||||||||||||||
Employee payroll taxes paid related to net share settlement of restricted stock units | (7,576) | (7,166) | (14,128) | (15,986) | ||||||||||||||||
Net cash used in financing activities | (28,944) | 3,573 | (35,205) | (496) | ||||||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | 92 | (214) | (23) | (274) | ||||||||||||||||
Net change in cash, cash equivalents, and restricted cash | 3,117 | 1,534 | 22,567 | 28,120 | ||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 386,117 | 300,605 | 366,667 | 274,019 | ||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 389,234 | $ | 302,139 | $ | 389,234 | $ | 302,139 |
Three months ended July 31, | Six months ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Non-GAAP gross profit and non-GAAP gross margin | |||||||||||||||||||||||
Gross profit | $ | 95,855 | $ | 87,783 | $ | 187,684 | $ | 173,093 | |||||||||||||||
Add: | |||||||||||||||||||||||
Stock-based compensation | 1,508 | 2,164 | 3,264 | 4,040 | |||||||||||||||||||
Employer taxes related to employee stock transactions | 39 | 45 | 83 | 117 | |||||||||||||||||||
Amortization of acquired intangible assets | 2,268 | 2,086 | 4,675 | 4,173 | |||||||||||||||||||
Restructuring costs | (2) | — | (2) | 137 | |||||||||||||||||||
Non-GAAP gross profit | $ | 99,668 | $ | 92,078 | $ | 195,704 | $ | 181,560 | |||||||||||||||
Revenue |
$ | 115,935 | $ | 107,616 | $ | 227,107 | $ | 210,862 | |||||||||||||||
Gross Margin |
82.7 | % | 81.6 | % | 82.6 | % | 82.1 | % | |||||||||||||||
Non-GAAP gross margin | 86.0 | % | 85.6 | % | 86.2 | % | 86.1 | % | |||||||||||||||
Non-GAAP operating expenses | |||||||||||||||||||||||
Research and development | $ | 35,088 | $ | 36,441 | $ | 72,611 | $ | 69,949 | |||||||||||||||
Less: | |||||||||||||||||||||||
Stock-based compensation | 11,842 | 12,773 | 23,064 | 22,874 | |||||||||||||||||||
Employer taxes related to employee stock transactions | 236 | 203 | 518 | 720 | |||||||||||||||||||
Acquisition-related expenses | 228 | 162 | 523 | 323 | |||||||||||||||||||
Amortization of acquired intangible assets | 29 | 87 | 116 | 174 | |||||||||||||||||||
Restructuring costs | (2) | (2) | (2) | (5) | |||||||||||||||||||
Non-GAAP research and development | $ | 22,755 | $ | 23,218 | $ | 48,392 | $ | 45,863 | |||||||||||||||
Sales and marketing | $ | 50,966 | $ | 49,724 | $ | 99,465 | $ | 93,525 | |||||||||||||||
Less: | |||||||||||||||||||||||
Stock-based compensation | 8,116 | 8,317 | 16,063 | 14,268 | |||||||||||||||||||
Employer taxes related to employee stock transactions | 145 | 283 | 335 | 550 | |||||||||||||||||||
Amortization of acquired intangible assets | 633 | 610 | 1,265 | 1,220 | |||||||||||||||||||
Restructuring costs | (10) | 56 | (10) | (48) | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 42,082 | $ | 40,458 | $ | 81,812 | $ | 77,535 | |||||||||||||||
General and administrative | $ | 25,828 | $ | 27,791 | $ | 53,368 | $ | 51,592 | |||||||||||||||
Less: | |||||||||||||||||||||||
Stock-based compensation | 10,900 | 12,283 | 22,915 | 21,900 | |||||||||||||||||||
Employer taxes related to employee stock transactions | 154 | 172 | 341 | 513 | |||||||||||||||||||
Acquisition-related expenses | 31 | — | (1) | — | |||||||||||||||||||
Amortization of acquired intangible assets | 7 | 22 | 29 | 44 | |||||||||||||||||||
Restructuring costs | 16 | 1,204 | 24 | 1,318 | |||||||||||||||||||
Non-GAAP general and administrative | $ | 14,720 | $ | 14,110 | $ | 30,060 | $ | 27,817 |
Three months ended July 31, | Six months ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Non-GAAP operating income and non-GAAP operating margin | |||||||||||||||||||||||
Loss from operations | $ | (16,027) | $ | (26,173) | $ | (37,760) | $ | (41,973) | |||||||||||||||
Add: | |||||||||||||||||||||||
Stock-based compensation | 32,366 | 35,537 | 65,306 | 63,082 | |||||||||||||||||||
Employer taxes related to employee stock transactions | 574 | 703 | 1,277 | 1,900 | |||||||||||||||||||
Amortization of acquired intangible assets | 2,937 | 2,805 | 6,085 | 5,611 | |||||||||||||||||||
Acquisition-related expenses | 259 | 162 | 522 | 323 | |||||||||||||||||||
Restructuring costs | 2 | 1,258 | 10 | 1,402 | |||||||||||||||||||
Non-GAAP operating income | $ | 20,111 | $ | 14,292 | $ | 35,440 | $ | 30,345 | |||||||||||||||
Revenue | $ | 115,935 | $ | 107,616 | $ | 227,107 | $ | 210,862 | |||||||||||||||
Operating margin | (13.8) | % | (24.3) | % | (16.6) | % | (19.9) | % | |||||||||||||||
Non-GAAP operating margin | 17.3 | % | 13.3 | % | 15.6 | % | 14.4 | % | |||||||||||||||
Non-GAAP net income attributable to PagerDuty, Inc. common stockholders | |||||||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (13,242) | $ | (23,782) | $ | (37,298) | $ | (36,000) | |||||||||||||||
Add: | |||||||||||||||||||||||
Stock-based compensation | 32,366 | 35,537 | 65,306 | 63,082 | |||||||||||||||||||
Employer taxes related to employee stock transactions | 574 | 703 | 1,277 | 1,900 | |||||||||||||||||||
Amortization of debt issuance costs | 671 | 478 | 1,279 | 933 | |||||||||||||||||||
Amortization of acquired intangible assets | 2,937 | 2,805 | 6,085 | 5,611 | |||||||||||||||||||
Acquisition-related expenses | 259 | 162 | 522 | 323 | |||||||||||||||||||
Restructuring costs | 2 | 1,258 | 10 | 1,402 | |||||||||||||||||||
Adjustment attributable to redeemable non-controlling interest | 2,330 | 1,729 | 9,247 | 1,729 | |||||||||||||||||||
Income tax effects and adjustments | (5,566) | (662) | (10,092) | (1,454) | |||||||||||||||||||
Non-GAAP net income attributable to PagerDuty, Inc. common stockholders | $ | 20,331 | $ | 18,228 | $ | 36,336 | $ | 37,526 | |||||||||||||||
Non-GAAP net income per share, basic | |||||||||||||||||||||||
Net loss per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | (0.14) | $ | (0.26) | $ | (0.40) | $ | (0.39) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.36 | 0.46 | 0.79 | 0.80 | |||||||||||||||||||
Non-GAAP net income per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | 0.22 | $ | 0.20 | $ | 0.39 | $ | 0.41 | |||||||||||||||
Non-GAAP net income per share, diluted(1) |
|||||||||||||||||||||||
Net loss per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.14) | $ | (0.26) | $ | (0.40) | $ | (0.39) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.35 | 0.45 | 0.78 | 0.77 | |||||||||||||||||||
Non-GAAP net income per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | 0.21 | $ | 0.19 | $ | 0.38 | $ | 0.38 | |||||||||||||||
Weighted-average shares used in calculating net loss per share, basic and diluted | 93,289 | 92,542 | 93,082 | 92,041 | |||||||||||||||||||
Weighted-average shares used in calculating non-GAAP net income per share | |||||||||||||||||||||||
Basic | 93,289 | 92,542 | 93,082 | 92,041 | |||||||||||||||||||
Diluted | 96,238 | 103,235 | 96,245 | 103,342 |
Three months ended July 31, | Six months ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Free cash flow and free cash flow margin |
|||||||||||||||||||||||
Net cash provided by operating activities | $ | 35,769 | $ | 10,750 | $ | 64,416 | $ | 32,902 | |||||||||||||||
Purchases of property and equipment | (637) | (713) | (1,094) | (948) | |||||||||||||||||||
Capitalization of internal-use software costs | (1,849) | (1,299) | (2,941) | (2,371) | |||||||||||||||||||
Free cash flow | $ | 33,283 | $ | 8,738 | $ | 60,381 | $ | 29,583 | |||||||||||||||
Net cash used in investing activities | $ | (3,800) | $ | (12,575) | $ | (6,621) | $ | (4,012) | |||||||||||||||
Net cash (used in) provided by financing activities | $ | (28,944) | $ | 3,573 | $ | (35,205) | $ | (496) | |||||||||||||||
Revenue | $ | 115,935 | $ | 107,616 | $ | 227,107 | $ | 210,862 | |||||||||||||||
Free cash flow margin | 28.7 | % | 8.1 | % | 26.6 | % | 14.0 | % |