PD Reports Q1

PagerDuty (NYSE: PD ) reported first-quarter financial results on Thursday.

The transcript from the company's first-quarter earnings call has been provided below.

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The full earnings call is available at Summary PagerDuty Inc announced a leadership transition with Jennifer Tejada stepping down as CEO and John DiLullo taking over the role.

The company reported Q1 revenue of $121 million, a 1% year-over-year increase, and an annual recurring revenue of $496 million, flat compared to the previous year.

Non-GAAP operating margin improved to 25%, with a goal of reaching 30% long-term, driven by efficiency initiatives and AI adoption.

The transition to a usage-based pricing model is underway, with usage-based products now accounting for nearly 10% of total ARR.

PagerDuty introduced the Operations Cloud offering, which has led to increased customer engagement and larger multi-year commitments.

The company acquired over 600 new customers for the fifth consecutive quarter, with total customers growing 14% year over year.

Q1 GAAP net income was $10.2 million, marking the fourth consecutive quarter of GAAP profitability.

PagerDuty completed a $200 million share repurchase program and announced an additional $100 million buyback initiative.

Guidance for Q2 FY27 expects revenue between $122 to $124 million and an operating margin of 22-23%, with full-year revenue guidance remaining flat year over year.

Full Transcript OPERATOR Good afternoon and thank you for joining us to discuss PagerDuty's first quarter and fiscal year 2027 results.

With me today on today's call are Jennifer Tejada, PagerDuty's Executive Chair, John DiLullo, PagerDuty's Chief Executive Officer, and Howard Wilson, our Chief Financial Officer.

Before we begin, let me remind everyone that statements made on this call include forward-looking statements based on the environment as we currently see it, which involve known and unknown risks and uncertainties that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements.

These forward-looking statements include our growth prospects, future revenue, operating margins, net income, cash balance, and total addressable market, among others, and represent our management's beliefs and assumptions only as of the date such statements are made, and we undertake no obligation to update these.

During today's call, we will discuss non-GAAP financial measures, which are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP.

A reconciliation between GAAP and non-GAAP financial measures is available in our earnings release, which can be found on our Investor Relations website.

Further information on these and other factors that could cause the company's financial results to differ materially are included in filings we make with the Securities and Exchange Commission, including our most recently filed Form 10-K and our subsequent filings made with the SEC.

With that, I will turn the call over to Jennifer.

Jennifer Tejada, Executive Chair Thank you, Christine.

Good afternoon and thanks for joining us today.

Before we discuss our results, I want to acknowledge the leadership change we announced mid-May.

After 10 years as CEO, I've transitioned to Executive Chair, and today I'm pleased to introduce PagerDuty's new CEO, John DiLullo.

We're already partnering well, and the transition is off to a great start.

John's appointment is the result of a deliberate and comprehensive succession process that I initiated with the Board some time ago.

John stood out as a proven leader with a unique combination of technical depth, operational discipline, and go-to-market experience.

Prior to joining PagerDuty, he served as CEO of both public and private companies, most recently Deepwatch and previously LiveVox and Lastline.

Having been a customer and a partner in the past, he brings firsthand knowledge of PagerDuty's role in our market, of our potential, as well as an understanding of how our customers operate in increasingly complex mission-critical environments.

With the business poised for profitable growth acceleration, now is the right time for this transition.

The Board and I are confident John is the right leader to build on PagerDuty's momentum towards our next phase of growth.

I'll turn it over to John for his brief remarks.

John DiLullo, CEO I am very excited to join you today.

As Jen mentioned, I've known and followed PagerDuty for years as both a customer and as a partner, and I've long admired the role that the company plays at the center of modern digital operations.

That perspective has only deepened in the weeks since I joined as I spent time with Jen, the board, and the broader team.