earnings presentation · 2021. 6. 3. · safe harbor this presentation contains forward-looking...
TRANSCRIPT
Earnings
Presentation
June 2021Q1 FY22
Safe harbor
This presentation contains forward-looking statements. All statements other than statements of
historical fact contained in this presentation, including statements as to future results of operations
and financial position, planned products and services, business strategy and plans, objectives of
management for future operations of PagerDuty, Inc. (“PagerDuty” or the “Company”), market size
and growth opportunities, competitive position and technological and market trends, are forward-
looking statements. In some cases, you can identify forward-looking statements by terms such as
“expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,”
“potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” or the negative of these
terms or other similar words. You should not rely upon-forward looking statements as predictions
of future events.
The outcome of events described in these forward-looking statements contained in this
presentation is subject to known and unknown risks, uncertainties, assumptions and other factors
that may cause PagerDuty’s actual results, performance or outcomes to differ materially from
those expressed or implied by such forward-looking statements, including: the effect of
uncertainties related to the COVID-19 pandemic on U.S. and global markets, our business,
operations, revenue results, cash flow, operating expenses, demand for our solutions, sales
cycles, customer retention and our customers’ businesses; our ability to achieve and maintain
future profitability; our ability to attract new customers and retain and sell additional functionality
and services to our existing customers; our ability to sustain and manage our growth; our
dependence on revenue from a single product; our ability to compete effectively in an increasingly
competitive market; and
general market, political, economic, and business conditions.
The forward-looking statements contained in this presentation are also subject to additional risks,
uncertainties, and factors, including those more fully described in PagerDuty’s filings with the
Securities and Exchange Commission, including its most recent Annual Report on Form 10-K.
Forward-looking statements represent PagerDuty’s management’s beliefs and assumptions only
as of the date such statements are made. PagerDuty undertakes no obligation to update any
forward-looking statements made in this presentation to reflect events or circumstances after the
date of this presentation or to reflect new information or the occurrence of unanticipated events,
except as required by law.
This presentation also contains estimates and other statistical data made by independent parties
and by the Company relating to market size and growth and other industry data. These data
involve a number of assumptions and limitations, and you are cautioned not to give undue weight
to such estimates. The Company has not independently verified the statistical and other industry
data generated by independent parties and contained in this presentation and, accordingly, it
cannot guarantee their accuracy or completeness. In addition, projections, assumptions and
estimates of its future performance and the future performance of the markets in which the
Company competes are necessarily subject to a high degree of uncertainty and risk due to a
variety of factors. These and other factors could cause results or outcomes to differ materially
from those expressed in the estimates made by the independent parties and by PagerDuty.
This presentation also includes certain non-GAAP financial measures. These non-GAAP financial
measures are in addition to, and not as a substitute for or superior to measures of financial
performance prepared in accordance with GAAP. There are a number of limitations related to the
use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example,
other companies may calculate non-GAAP financial measures differently or may use other
measures to evaluate their performance, all of which could reduce the usefulness of the
Company’s non-GAAP financial measures as tools for comparison. The Company has provided a
reconciliation of those measures to the most directly comparable GAAP measures, which is
available in the appendix.
For further information with respect to PagerDuty, we refer you to our most recent Annual Report
on Form 10-K filed with the SEC. In addition, we are subject to the information and reporting
requirements of the Securities Exchange Act of 1934 and, accordingly, file periodic reports,
current reports, proxy statements and other information with the SEC. These periodic reports,
current reports, proxy statements and other information are available for review at the SEC’s
website at http://www.sec.gov.
33
Recovery trends
Ongoing tailwinds
Land and expand
Driving consistent growth
Total revenue
+28%
4
Dollar Based Net Retention (“DBNR”)
4
Total DBNR 121%
Enterprise DBNR Above 125%
% of revenue
Proprietary & Confidential
PagerDuty momentum
Notes: Period ended April 30 2021.
Content locked
3 Tailwinds:
Digital acceleration
Cloud migration
DevOps transformation
Customers >$1m
55%YoY Growth
Fortune 100
>60%
Customers >$100K
32%YoY Growth
Fortune 500
>40%
Proprietary & Confidential
LandAlbertsons
Drizly
Jaguar Land Rover
Lunchbox
Pony.ai
Truist Financial
ExpandAdevintaBell Canada
KPMG New Zealand
Legal Zoom
Nvidia
Retail Business Services
Land and expand
Tech & Telco
Financial Retail HealthcareMedia &
EntertainmentTravel &
Hospitality
Proprietary & Confidential
Essential infrastructure for established leaders
Full-service ownership
Manage locomotives & railways
Reduce volume & noise
Incident management
Mobile application & investments in digital channels
Increased demand
Customer experience
Customer-facing services
Diverse teams
A Fortune 500 Auto Parts Company
A Global 500Connected Car Company
A Large Transcontinental Railway
Proprietary & Confidential
PagerDuty & Zendesk help transform support
Empower better
team collaboration
across support,
engineering, and IT
Automate process and
provide real-time visibility
across both people +
technology tool stack
Get ahead of customer
issues with proactive
service and customer
outreach
Proprietary & Confidential
Social impact and inclusion, diversity and equity
Asian Americans & Pacific IslandersDonations to advance rights and protections
“Establishes Benchmarks”IDC report recognizes PagerDuty’s commitment to social impact2
Black Futures MonthProgramming to elevate black voices
$1M Invested toward Equitable COVID-19 Vaccine Financial contribution to access & distribution funding round
Ranked 89 out of 799Sustainalytics Software & Services Industry Group Rating1
15 New Impact CustomersNon-profit & mission driven organizations
Notes: 1. https://www.sustainalytics.com/esg-rating/pagerduty-inc/2003294890 June 2, 2021.2. IDC PagerDuty Vendor Profile March 2021.
Proprietary & Confidential
Quarterly Financials
Proprietary & Confidential
Notes: 1. Non-GAAP; Refer to earnings press release for reconciliation of non-GAAP figures.
Highlights of Q1’22
Momentum
121%Total Dollar Based Net Retention
High Growth
28%Q1 YoY Growth
Predictable
>98%Subscription Revenue
Efficient
85%Non-GAAP Gross Margin1
Sticky
+95%Renewal Rate
Universal
>16,800Companies
1313
Recovery trends
Ongoing tailwinds
Land and expand
Driving consistent growth
Total revenue
+28%
Proprietary & Confidential14
Expanding footprint
Robust growth
Enterprise focus
International growth
% of revenue
Proprietary & Confidential
Moving up market
Notes: Period ended April 30 2021.
Content locked
Longer term contracts
Average annual revenue per customer increased each of the last 9 quarters
FY’22 GuidanceQuarterly DBNR 118-124%
Annual contracts
87%Of Revenue
Enterprise DBNR
>125%
RPO
52%YoY Growth
TTM Billings
23%YoY Growth
Proprietary & Confidential
Non-GAAP OpexPercentages represent percentage of revenue
Investing for growth
Notes: Non-GAAP; Refer to earnings press release for reconciliation of non-GAAP figures.
16
S&M Go-to-market, includes Rundeck
R&DExpansion of the platform
G&AEconomies of scale
+26%
Proprietary & Confidential
Notes: Non-GAAP; Refer to earnings press release for reconciliation of non-GAAP figures.
OCF & Non-GAAP operating margin
Q1’21
17
Operating Cash Flow $1.6M vs. ($0.2)M FY21
Operating Margin -9% vs. -8% FY21Q2’21 Q3’21 Q4’21 Q1’22
Operating Cash Flow ($M)
Operating Margin
Guidance
Proprietary & Confidential
Guidance
Q2 FY 2022 FY 2022
Revenue $64.5m - $66.5m $267m - $272m
Non-GAAP EPS per share
$(0.15) - $(0.16) $(0.36) - $(0.42)
Operating margin (18%)-(20%) (10%)-(12%)
Thank you