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Know The Company - Pager Duty ($PD)
Hello everyone, and welcome to all the new followers! Thank you so much for showing interest in the developer tools market, we are all excited to have you onboard.
This is the second post in our series - Know The Company. In the previous post, we learned about what Okta is.
Today, we are taking a deeper look on Pager Duty.
Pager Duty is a bit of an odd animal. It doesn't have a direct public competitor, and it's a pretty standard tool in the box of every software company.
TL;DR: PagerDuty, operating in the Incident Management and Digital Operations sector, offers a unique blend of services and has no direct public competitor, making it a standard tool in the software industry. Analysts are optimistic about PagerDuty, with upgrades in ratings and a strong buy sentiment, reflecting its successful earnings and growth, including a 21% year-over-year revenue increase to $103.2 million as of April 30, 2023.
What Is PagerDuty?
PagerDuty operates in the Incident Management and Digital Operations sector, providing solutions to enable real-time incident response for IT operations and DevOps teams.
PagerDuty's platform focuses on the following key aspects:
- Incident Management: Offering detection, response, and resolution tools to IT professionals and developers.
- Event Intelligence: Analyzing, grouping, and predicting problems for more efficient incident resolution.
- Real-Time Operations: Monitoring and collaboration capabilities to manage systems and applications.
- On-Call and Escalation Policies: Structured approach to handling incidents with multi-channel notifications.
- Integration with Other Tools: Seamless connectivity with various third-party applications for enhanced functionality.
What sets PagerDuty apart is its integration capabilities, ease of use, and unique blend of services that cater to both IT operations and software development.
Unlike some competitors, PagerDuty offers a versatile platform that supports different tech stacks, making it a preferred choice for businesses striving for uninterrupted, high-quality digital services.
PagerDuty Business Model
PagerDuty's revenue is driven by its subscription-based incident management and digital operations solutions.
- Customers: PagerDuty have total of 15,089 paying customers, with 764 companies paying > $100k in ARR.
- Latest Revenue Growth: Total revenue grew by 21% year-over-year to $103.2 Million as of April 30, 2023
- Operating Cash Flow Margin: 21%, which is low compared to other SaaS companies, with free cash flow of $20.8 million.
PagerDuty History Brief
PagerDuty was founded in 2009 by Alex Solomon, Andrew Miklas, and Baskar Puvanathasan, with a mission to empower businesses through real-time & modern incident management.
Funding and Growth:
- 2010: Raised initial funding of $1.9 million from Harrison Metal
- 2012: Expanded its platform to include new event intelligence capabilities.
- 2015: Reached over 10,000 customers.
- 2019: Went public with an IPO, raising $218 million.
- 2022: Introduced innovative features for predictive incident analysis and automated responses.
Competition in the Market
PagerDuty faces competition from various players in the incident management and digital operations sector. Key competitors include:
- OpsGenie: Offering alerting, on-call scheduling, and escalation.
- VictorOps: Providing incident management for faster resolution.
- xMatters: Digital service availability platform.
- BigPanda: Utilizing AI for IT incident management.
- ServiceNow: Comprehensive ITSM solution including digital workflows.
- Zenduty: Managing incidents with collaborative management.
- Squadcast: Promoting SRE practices with incident response orchestration.
These competitors differentiate based on integration options, response automation, and analytics capabilities. PagerDuty's unique selling proposition lies in its extensive integration capabilities and user-friendly experience.
Analysts View
Analysts feel optimistic about $PD.
Morgan Stanley upgraded their rating for it in 2022, providing a target of 36 for the stock.
PagerDuty has beaten EPS in the last 4 quarters.
There is a Strong Buy sentiment around the stock, with a target of $30.57.
Summarize
In the competitive landscape of incident management and digital operations, PagerDuty stands out with its all-encompassing platform that aids businesses in maintaining continuous delivery and minimizing service disruption. Its focus on integration, automation, and user experience positions it well to tackle the potential opportunities and challenges in the digital operations market.
PagerDuty's next earnings call is scheduled for 31 Aug 23. Stay tuned!
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PagerDuty, Inc. Common Stock (PD) Analyst Reports & Ratings | Nasdaq
Find the latest analyst research, reports, and ratings for PagerDuty, Inc. Common Stock (PD) at Nasdaq.com.
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