PagerDuty shares fell over 10% in premarket trade Friday on weak third-quarter fiscal 2024 guidance even as the cloud computing company posted second-quarter results that topped Street estimates.
For 2Q revenue increased by 19.2% year-over-year to $107.6 million, ahead of the expected $106.9 million, according to Zacks Consensus Estimate.
Earnings per share (EPS) were $0.19, $0.04 ahead of the Street estimate of $0.15.
“PagerDuty delivered durable growth with continued improvement in operational efficiency, exceeding our guidance on both the top and bottom line,” PagerDuty CEO Jennifer Tejada said in a statement.
“PagerDuty advanced our generative AI offerings in the quarter to include AI-generated runbooks, expanding the Operations Cloud to address our customers’ top priorities – to protect and grow revenue, reduce operating costs and mitigate risk.”
Sending its stock lower on Friday, however, was weaker-than-expected revenue guidance for 3Q.
PagerDuty expects quarterly revenue between $106.5 million and $108.5 million, falling short of the consensus estimate of $112.6 million, per Zacks.
It projected earnings per share of $0.13 to $0.14, below expectations of $0.18.
For the full-year fiscal 2024, PagerDuty continues to expect revenue between $426 million to $430 million, representing growth of 15% to 16% year-over-year, and EPS of $0.60 to $0.65.
This is in line with the consensus analyst expectation of EPS of $0.62 on revenue of $427.5 million.
PagerDuty shares were down 11.6% at US$22.77 shortly before the opening bell in New York on Friday.
Contact the author at emily.jarvie@proactiveinvestors.com
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