PagerDuty Reports Q2 Earnings with ARR Exceeding $500M for First Time
PagerDuty (PD) reported second-quarter revenue of $124.4 million, representing a modest 1% year-over-year growth. The company crossed the $500 million Annual Recurring Revenue (ARR) threshold for the first time and achieved a non-GAAP operating margin of 23.7%, surpassing guidance expectations. The firm also reported strong retention metrics with dollar-based net retention stabilizing at 98%. PagerDuty announced a workforce reduction of 15% in non-customer-facing roles to reallocate resources toward sales and engineering. The company raised its full-year revenue guidance to $491.5 million–$496.5 million, while also increasing the low end of its non-GAAP operating margin forecast. Key highlights included a 30% contribution from international markets, nearly 800,000 shares repurchased for $7.6 million during Q2, and significant wins in enterprise contracts such as a three-year usage-based agreement with a financial services firm worth $850,000.
Tickers: $PD
Topics: ARR free cash flow non-GAAP operating margin revenue workforce restructuring