PagerDuty net worth has garnered attention in 2024, as businesses increasingly rely on digital operations management. At Ando Money, we analyze how PagerDuty’s revenue growth reflects its financial performance.
From key partnerships to innovative services, I’ll cover the elements shaping this company’s financial health.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | PagerDuty, Inc. |
| Full Name | PagerDuty, Inc. |
| Website | www.pagerduty.com |
| Industry | Digital Operations Management |
| Traded as | NYSE |
| ISIN | N/A |
| Founded | 2009 |
| Founders | Andrew Miklas, Baskar Puvanathasan, Alex Solomon |
| Country/Territory | United States |
| Headquarters | San Francisco, California |
| Chief Executive Officer | Jennifer Tejada |
| Number of Employees | 2,200 |
| Market Cap | $1.68 billion |
| Total Assets | $916 million |
| Total Equity | $164.7 million |
| Revenue | $227.1 million (six months ending July 31, 2024) |
| Net Income | $28.5 million loss |
What is the Net Worth/Market Cap of PagerDuty in 2024?
In 2024, PagerDuty has a market cap of $1.68 billion, positioning it as a competitive player in the digital operations industry.
This valuation places the company among the top tech firms, although not yet in the ranks of the biggest global giants.
Compared to well-established players, PagerDuty’s growth reflects its niche expertise in digital operations management. Here’s a list of companies in a similar space:
- Splunk
- ServiceNow
- Datadog
- New Relic
- Atlassian
- VMware
- Cisco Systems
- Elastic NV
- GitLab
- Microsoft
For a more comprehensive overview of how PagerDuty compares to some of the top-performing companies, check out the biggest corporations worldwide.
PagerDuty Financial Performance Overview
How Does the Company Generate Revenue?
PagerDuty generates revenue by offering critical digital operations management services.
Its PagerDuty Operations Cloud is the backbone of these offerings, enabling customers to manage incidents, optimize automation, and maintain operational efficiency.
This platform is a combination of AIOps, Automation, Customer Service Operations, and Incident Management.
It ensures swift responses to operational disruptions, helping clients maintain uptime and reduce costs, which drives PagerDuty’s revenue streams.
Its major clients include half of the Fortune 500, further reinforcing its revenue generation potential.
Factors Driving Growth in Revenue
Several factors contribute to PagerDuty’s revenue growth.
The company’s expansion into generative AI solutions and its integration with Snowflake have been instrumental in driving client acquisition and retaining major partners.
Moreover, as digital transformation continues globally, PagerDuty’s services have become critical in handling operational outages, reinforcing its role in corporate digital strategy.
The Annual Recurring Revenue (ARR) reached $474 million, showcasing a steady increase.
Impact of Digital Operations Management on Revenue
The shift towards digital operations management directly correlates with PagerDuty’s financial performance.
As companies depend more on automated incident management, PagerDuty’s tools help them avoid costly downtime.
The integration of AI-driven automation further boosts efficiency, allowing clients to operate at higher productivity levels.
By offering these services, PagerDuty maintains long-term contracts with key clients, which in turn drives consistent revenue growth.
Key Clients and Partnerships Boosting Financial Performance
Some of PagerDuty’s key clients, like Aon, Moderna, and Vodafone, significantly contribute to its revenue base.
Partnerships with tech giants like Snowflake also help PagerDuty grow its footprint.
These strategic collaborations offer mutual benefits, and PagerDuty’s role in ensuring operational reliability is a critical part of their partnerships’ success.
Such alliances reinforce PagerDuty’s revenue streams while securing its position in the tech ecosystem.
Financial Performance in Recent Quarters
In the second quarter of fiscal 2025 (ending July 31, 2024), PagerDuty reported $115.9 million in revenue, reflecting a 7.7% year-over-year growth.
Despite a net loss of $28.5 million, the company has continued to push forward with non-GAAP profitability.
Free cash flow stood at $60.4 million, a clear indicator of the company’s ability to generate operational cash beyond its expenses.
The non-GAAP net income during the same period was $36.3 million, showing that the company remains financially sound despite some short-term losses.
Costs Affecting Revenue Margins
PagerDuty faces various operational costs, which influence its revenue margins.
Key areas include research and development (R&D), which amounted to $72.6 million in the first half of 2024.
Sales and marketing expenses also remain significant at $99.5 million for the same period, as the company invests heavily in maintaining its competitive edge.
These costs, while necessary for future growth, have affected margins in the short term.
Free Cash Flow and Its Importance to the Company’s Financial Health
Free cash flow is a vital metric in assessing PagerDuty’s financial health.
By the end of July 2024, PagerDuty reported a free cash flow of $60.4 million, showing that the company continues to operate efficiently.
This figure reflects PagerDuty’s ability to generate cash flow despite higher operational costs.
With continued improvements in profitability and cash flow, PagerDuty is well-positioned to sustain its operations and pursue growth.
Role of Total Assets and Investments in Revenue Generation
PagerDuty’s total assets amounted to $916 million as of July 2024.
These assets include cash and cash equivalents, significant investments in technology, and partnerships.
This strong asset base allows PagerDuty to continue investing in R&D, enabling it to innovate and meet market demands.
Such investments play a crucial role in ensuring the company’s long-term revenue growth, especially in the fast-evolving digital operations sector.
Financial Outlook for the Future
Looking ahead, PagerDuty’s financial outlook appears promising.
With projected revenue between $463 million and $467 million for fiscal 2025, the company expects growth in several areas, including new AI solutions and increased ARR.
As digital transformation continues to drive demand for operational efficiency, PagerDuty is positioned to capitalize on these trends.
FAQs About PagerDuty
What Services Does PagerDuty Offer?
It provides a digital operations management platform that includes AIOps, Automation, Incident Management, and Customer Service Operations.
How Has PagerDuty’s Revenue Grown in Recent Years?
Its revenue has consistently grown, reaching $227.1 million for the first six months of 2024, representing steady annual growth. Key drivers include digital transformation and expanded client offerings in automation and AI.
Who Are PagerDuty’s Major Clients?
The company serves major corporations, including Aon, Moderna, Vodafone, and several Fortune 500 companies.
What Are PagerDuty’s Financial Goals for the Future?
For fiscal 2025, PagerDuty aims to reach revenue between $463 million and $467 million. The company also expects continued growth in ARR and profitability through investments in AI and automation.
How Does PagerDuty Manage Operational Costs?
The company manages costs through careful investments in R&D, sales and marketing, and operational efficiencies. For example, the company spent $72.6 million on R&D and $99.5 million on sales and marketing in 2024, balancing innovation with cost management.
Conclusion
PagerDuty’s financial journey reflects a strong focus on innovation and partnerships. Interested in more financial insights?
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