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 November 30, 2023 |
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104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
PagerDuty, Inc. | ||||||||||||||
Dated: November 30, 2023 |
By: | /s/ Shelley Webb | ||||||||||||
Shelley Webb | ||||||||||||||
Senior Vice President, Legal, General Counsel, and Secretary |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | 108,720 | $ | 94,203 | $ | 319,582 | $ | 269,827 | |||||||||||||||
Cost of revenue(1) |
19,705 | 18,007 | 57,474 | 52,090 | |||||||||||||||||||
Gross profit | 89,015 | 76,196 | 262,108 | 217,737 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development(1) |
34,272 | 35,004 | 104,221 | 100,307 | |||||||||||||||||||
Sales and marketing(1) |
49,630 | 47,118 | 143,155 | 143,001 | |||||||||||||||||||
General and administrative(1) |
25,955 | 26,616 | 77,547 | 77,316 | |||||||||||||||||||
Total operating expenses | 109,857 | 108,738 | 324,923 | 320,624 | |||||||||||||||||||
Loss from operations | (20,842) | (32,542) | (62,815) | (102,887) | |||||||||||||||||||
Interest income | 4,522 | 1,382 | 11,300 | 2,760 | |||||||||||||||||||
Interest expense | (1,454) | (1,360) | (4,184) | (4,072) | |||||||||||||||||||
Gain on partial extinguishment of convertible senior notes | 3,970 | — | 3,970 | — | |||||||||||||||||||
Other income (expense), net | 673 | (172) | 2,982 | (1,326) | |||||||||||||||||||
Loss before benefit from income taxes | (13,131) | (32,692) | (48,747) | (105,525) | |||||||||||||||||||
Benefit from income taxes | 41 | (112) | 197 | 1,302 | |||||||||||||||||||
Net loss | $ | (13,090) | $ | (32,804) | $ | (48,550) | $ | (104,223) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest | (324) | (262) | (1,513) | (362) | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. | $ | (12,766) | $ | (32,542) | $ | (47,037) | $ | (103,861) | |||||||||||||||
Adjustment attributable to redeemable non-controlling interest | 2,359 | — | 4,088 | — | |||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (15,125) | $ | (32,542) | $ | (51,125) | $ | (103,861) | |||||||||||||||
Net loss per share, basic and diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.16) | $ | (0.36) | $ | (0.55) | $ | (1.18) | |||||||||||||||
Weighted-average shares used in calculating net loss per share, basic and diluted | 93,104 | 89,285 | 92,257 | 88,200 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cost of revenue | $ | 1,820 | $ | 1,937 | $ | 5,860 | $ | 4,948 | |||||||||||||||
Research and development | 11,128 | 10,824 | 34,002 | 30,066 | |||||||||||||||||||
Sales and marketing | 8,094 | 8,004 | 22,362 | 22,533 | |||||||||||||||||||
General and administrative | 10,786 | 10,679 | 32,686 | 28,931 | |||||||||||||||||||
Total | $ | 31,828 | $ | 31,444 | $ | 94,910 | $ | 86,478 |
As of October 31, 2023 | As of January 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 380,307 | $ | 274,019 | |||||||
Investments | 195,006 | 202,948 | |||||||||
Accounts receivable, net of allowance for credit losses of $1,285 and $2,014 as of October 31, 2023 and January 31, 2023, respectively |
71,106 | 91,345 | |||||||||
Deferred contract costs, current | 18,893 | 18,674 | |||||||||
Prepaid expenses and other current assets | 15,742 | 13,350 | |||||||||
Total current assets | 681,054 | 600,336 | |||||||||
Property and equipment, net | 18,746 | 18,390 | |||||||||
Deferred contract costs, non-current | 24,495 | 27,715 | |||||||||
Lease right-of-use assets | 10,120 | 13,982 | |||||||||
Goodwill | 118,862 | 118,862 | |||||||||
Intangible assets, net | 28,807 | 37,224 | |||||||||
Other assets | 4,646 | 1,364 | |||||||||
Total assets | $ | 886,730 | $ | 817,873 | |||||||
Liabilities, redeemable non-controlling interest, and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 6,763 | $ | 7,398 | |||||||
Accrued expenses and other current liabilities | 13,323 | 11,804 | |||||||||
Accrued compensation | 28,833 | 41,834 | |||||||||
Deferred revenue, current | 192,920 | 204,137 | |||||||||
Lease liabilities, current | 6,088 | 5,904 | |||||||||
Total current liabilities | 247,927 | 271,077 | |||||||||
Convertible senior notes, net | 447,389 | 282,908 | |||||||||
Deferred revenue, non-current | 3,499 | 4,914 | |||||||||
Lease liabilities, non-current | 8,391 | 12,704 | |||||||||
Other liabilities | 4,933 | 4,184 | |||||||||
Total liabilities | 712,139 | 575,787 | |||||||||
Redeemable non-controlling interest | 5,472 | 1,108 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.000005 par value; 1,000,000,000 shares authorized; 94,219,644 and 91,178,671 shares issued and 91,888,642 and 91,178,671 outstanding as of October 31, 2023 and January 31, 2023, respectively | — | — | |||||||||
Additional paid-in-capital | 745,114 | 719,816 | |||||||||
Accumulated other comprehensive loss | (1,712) | (1,592) | |||||||||
Accumulated deficit | (524,283) | (477,246) | |||||||||
Treasury stock at cost, 2,331,002 and — shares as of October 31, 2023 and January 31, 2023, respectively | (50,000) | — | |||||||||
Total stockholders’ equity | 169,119 | 240,978 | |||||||||
Total liabilities, redeemable non-controlling interest, and stockholders’ equity | $ | 886,730 | $ | 817,873 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss attributable to PagerDuty, Inc. common stockholders | $ | (15,125) | $ | (32,542) | $ | (51,125) | $ | (103,861) | |||||||||||||||
Net loss and adjustment attributable to redeemable non-controlling interest | 2,035 | (262) | 2,575 | (362) | |||||||||||||||||||
Net loss | (13,090) | (32,804) | (48,550) | (104,223) | |||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 5,025 | 4,498 | 15,016 | 12,778 | |||||||||||||||||||
Amortization of deferred contract costs | 5,123 | 4,922 | 15,286 | 14,178 | |||||||||||||||||||
Amortization of debt issuance costs | 523 | 461 | 1,456 | 1,376 | |||||||||||||||||||
Gain on partial extinguishment of convertible senior notes | (3,970) | — | (3,970) | — | |||||||||||||||||||
Stock-based compensation | 31,828 | 31,444 | 94,910 | 86,478 | |||||||||||||||||||
Non-cash lease expense | 1,106 | 611 | 3,425 | 2,913 | |||||||||||||||||||
Tax benefit related to release of valuation allowance | — | — | — | (1,330) | |||||||||||||||||||
Other | (1,524) | (124) | (1,426) | 1,686 | |||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (5,420) | (13,473) | 18,983 | 3,048 | |||||||||||||||||||
Deferred contract costs | (5,520) | (6,290) | (12,285) | (16,323) | |||||||||||||||||||
Prepaid expenses and other assets | (1,289) | (1,424) | (2,674) | (2,934) | |||||||||||||||||||
Accounts payable | (757) | 1,109 | (1,002) | (1,117) | |||||||||||||||||||
Accrued expenses and other liabilities | 781 | (4,593) | 767 | (1,350) | |||||||||||||||||||
Accrued compensation | 5,706 | 6,034 | (13,086) | (624) | |||||||||||||||||||
Deferred revenue | (119) | 10,181 | (12,547) | 8,635 | |||||||||||||||||||
Lease liabilities | (1,486) | (1,000) | (4,484) | (3,783) | |||||||||||||||||||
Net cash provided by (used in) operating activities | 16,917 | (448) | 49,819 | (592) | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchases of property and equipment | (245) | (815) | (1,193) | (3,755) | |||||||||||||||||||
Capitalization of internal-use software costs | (1,441) | (988) | (3,812) | (2,725) | |||||||||||||||||||
Business acquisition, net of cash acquired | — | — | — | (66,262) | |||||||||||||||||||
Asset acquisition | — | — | — | (1,845) | |||||||||||||||||||
Purchases of available-for-sale investments | (43,927) | (59,842) | (151,984) | (155,310) | |||||||||||||||||||
Proceeds from maturities of available-for-sale investments | 56,500 | 54,425 | 164,064 | 149,625 | |||||||||||||||||||
Purchases of non-marketable equity investments | — | — | (200) | — | |||||||||||||||||||
Net cash provided by (used in) investing activities | 10,887 | (7,220) | 6,875 | (80,272) | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from issuance of convertible senior notes, net of issuance costs | 391,543 | — | 391,543 | — | |||||||||||||||||||
Purchases of capped calls related to convertible senior notes | (55,102) | — | (55,102) | — | |||||||||||||||||||
Repurchases of convertible senior notes | (223,471) | — | (223,471) | — | |||||||||||||||||||
Investment from redeemable non-controlling interest holder | — | — | 1,781 | 1,908 | |||||||||||||||||||
Proceeds from employee stock purchase plan | — | — | 6,292 | 5,736 | |||||||||||||||||||
Proceeds from issuance of common stock upon exercise of stock options | 973 | 1,899 | 8,390 | 8,459 | |||||||||||||||||||
Employee payroll taxes paid related to net share settlement of restricted stock units | (9,786) | (9,864) | (25,772) | (22,187) | |||||||||||||||||||
Repurchase of common stock | (50,000) | — | (50,000) | — | |||||||||||||||||||
Net cash provided by (used in) financing activities | 54,157 | (7,965) | 53,661 | (6,084) | |||||||||||||||||||
Effects of foreign currency exchange rates on cash, cash equivalents, and restricted cash | (177) | (365) | (451) | (504) | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 81,784 | (15,998) | 109,904 | (87,452) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 302,139 | 278,331 | 274,019 | 349,785 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 383,923 | $ | 262,333 | $ | 383,923 | $ | 262,333 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Reconciliation of gross profit and gross margin | |||||||||||||||||||||||
GAAP gross profit | $ | 89,015 | $ | 76,196 | $ | 262,108 | $ | 217,737 | |||||||||||||||
Plus: Stock-based compensation | 1,820 | 1,937 | 5,860 | 4,948 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 21 | 38 | 138 | 79 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,087 | 1,949 | 6,260 | 5,314 | |||||||||||||||||||
Plus: Restructuring costs | — | — | 137 | — | |||||||||||||||||||
Non-GAAP gross profit | $ | 92,943 | $ | 80,120 | $ | 274,503 | $ | 228,078 | |||||||||||||||
GAAP gross margin | 81.9 | % | 80.9 | % | 82.0 | % | 80.7 | % | |||||||||||||||
Non-GAAP adjustments | 3.6 | % | 4.2 | % | 3.9 | % | 3.8 | % | |||||||||||||||
Non-GAAP gross margin | 85.5 | % | 85.1 | % | 85.9 | % | 84.5 | % | |||||||||||||||
Reconciliation of operating expenses | |||||||||||||||||||||||
GAAP research and development | $ | 34,272 | $ | 35,004 | $ | 104,221 | $ | 100,307 | |||||||||||||||
Less: Stock-based compensation | (11,128) | (10,824) | (34,002) | (30,066) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (210) | (202) | (930) | (559) | |||||||||||||||||||
Less: Acquisition-related expenses | (161) | (738) | (484) | (3,100) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (88) | (29) | (262) | (145) | |||||||||||||||||||
Less: Restructuring costs | — | — | 5 | — | |||||||||||||||||||
Non-GAAP research and development | $ | 22,685 | $ | 23,211 | $ | 68,548 | $ | 66,437 | |||||||||||||||
GAAP sales and marketing | $ | 49,630 | $ | 47,118 | $ | 143,155 | $ | 143,001 | |||||||||||||||
Less: Stock-based compensation | (8,094) | (8,004) | (22,362) | (22,533) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (39) | (148) | (589) | (468) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (610) | (643) | (1,830) | (1,936) | |||||||||||||||||||
Less: Restructuring costs | 1 | — | 49 | — | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 40,888 | $ | 38,323 | $ | 118,423 | $ | 118,064 | |||||||||||||||
GAAP general and administrative | $ | 25,955 | $ | 26,616 | $ | 77,547 | $ | 77,316 | |||||||||||||||
Less: Stock-based compensation | (10,786) | (10,679) | (32,686) | (28,931) | |||||||||||||||||||
Less: Employer taxes related to employee stock transactions | (145) | (195) | (658) | (650) | |||||||||||||||||||
Less: Acquisition-related expenses | (530) | (164) | (530) | (1,454) | |||||||||||||||||||
Less: Amortization of acquired intangible assets | (21) | (7) | (65) | (36) | |||||||||||||||||||
Less: Restructuring costs | (133) | — | (1,451) | — | |||||||||||||||||||
Non-GAAP general and administrative | $ | 14,340 | $ | 15,571 | $ | 42,157 | $ | 46,245 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Reconciliation of operating income (loss) and operating margin | |||||||||||||||||||||||
GAAP operating loss | $ | (20,842) | $ | (32,542) | $ | (62,815) | $ | (102,887) | |||||||||||||||
Plus: Stock-based compensation | 31,828 | 31,444 | 94,910 | 86,478 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 415 | 583 | 2,315 | 1,756 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,806 | 2,628 | 8,417 | 7,431 | |||||||||||||||||||
Plus: Acquisition-related expenses | 691 | 902 | 1,014 | 4,554 | |||||||||||||||||||
Plus: Restructuring costs | 132 | — | 1,534 | — | |||||||||||||||||||
Non-GAAP operating income (loss) | $ | 15,030 | $ | 3,015 | $ | 45,375 | $ | (2,668) | |||||||||||||||
GAAP operating margin | (19.2) | % | (34.5) | % | (19.7) | % | (38.1) | % | |||||||||||||||
Non-GAAP adjustments | 33.0 | % | 37.7 | % | 33.9 | % | 37.1 | % | |||||||||||||||
Non-GAAP operating margin | 13.8 | % | 3.2 | % | 14.2 | % | (1.0) | % | |||||||||||||||
Reconciliation of net income (loss) | |||||||||||||||||||||||
GAAP net loss attributable to PagerDuty, Inc. common stockholders | $ | (15,125) | $ | (32,542) | $ | (51,125) | $ | (103,861) | |||||||||||||||
Plus: Stock-based compensation | 31,828 | 31,444 | 94,910 | 86,478 | |||||||||||||||||||
Plus: Employer taxes related to employee stock transactions | 415 | 583 | 2,315 | 1,756 | |||||||||||||||||||
Plus: Amortization of debt issuance costs | 523 | 461 | 1,456 | 1,376 | |||||||||||||||||||
Plus: Amortization of acquired intangible assets | 2,806 | 2,628 | 8,417 | 7,431 | |||||||||||||||||||
Plus: Acquisition-related expenses | 691 | 902 | 1,014 | 4,554 | |||||||||||||||||||
Plus: Restructuring costs | 132 | — | 1,534 | — | |||||||||||||||||||
Plus: Adjustment attributable to redeemable non-controlling interest | 2,364 | — | 4,093 | — | |||||||||||||||||||
Less: Gain on partial extinguishment of convertible senior notes | (3,970) | — | (3,970) | — | |||||||||||||||||||
Less: Income tax effect of non-GAAP adjustments |
(466) | — | (1,920) | (1,330) | |||||||||||||||||||
Non-GAAP net income (loss) attributable to PagerDuty, Inc. common stockholders | $ | 19,198 | $ | 3,476 | $ | 56,724 | $ | (3,596) | |||||||||||||||
Reconciliation of net income (loss) per share, basic | |||||||||||||||||||||||
GAAP net loss per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | (0.16) | $ | (0.36) | $ | (0.55) | $ | (1.18) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.37 | 0.40 | 1.16 | 1.14 | |||||||||||||||||||
Non-GAAP net income (loss) per share, basic, attributable to PagerDuty, Inc. common stockholders | $ | 0.21 | $ | 0.04 | $ | 0.61 | $ | (0.04) | |||||||||||||||
Reconciliation of net income (loss) per share, diluted(1) |
|||||||||||||||||||||||
GAAP net loss per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | (0.16) | $ | (0.36) | $ | (0.55) | $ | (1.18) | |||||||||||||||
Non-GAAP adjustments to net loss attributable to PagerDuty, Inc. common stockholders | 0.36 | 0.40 | 1.13 | 1.14 | |||||||||||||||||||
Non-GAAP net income (loss) per share, diluted, attributable to PagerDuty, Inc. common stockholders | $ | 0.20 | $ | 0.04 | $ | 0.58 | $ | (0.04) | |||||||||||||||
Weighted-average shares used in calculating GAAP net loss per share, basic and diluted | 93,104 | 89,285 | 92,257 | 88,200 | |||||||||||||||||||
Weighted-average shares used in calculating non-GAAP net income (loss) per share | |||||||||||||||||||||||
Basic | 93,104 | 89,285 | 92,257 | 88,200 | |||||||||||||||||||
Diluted | 96,235 | 100,941 | 100,834 | 88,200 |
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 16,917 | $ | (448) | $ | 49,819 | $ | (592) | |||||||||||||||
Less: | |||||||||||||||||||||||
Purchases of property and equipment | (245) | (815) | (1,193) | (3,755) | |||||||||||||||||||
Capitalization of internal-use software costs | (1,441) | (988) | (3,812) | (2,725) | |||||||||||||||||||
Free cash flow | $ | 15,231 | $ | (2,251) | $ | 44,814 | $ | (7,072) | |||||||||||||||
Net cash used in investing activities | $ | 10,887 | $ | (7,220) | $ | 6,875 | $ | (80,272) | |||||||||||||||
Net cash provided by (used in) financing activities | $ | 54,157 | $ | (7,965) | $ | 53,661 | $ | (6,084) | |||||||||||||||
Free cash flow margin | 14.0% | (2.4)% | 14.0% | (2.6)% |