In an age where digital reliability is paramount, PagerDuty, Inc. stands at the forefront, transforming how businesses manage their operations and respond to incidents. By harnessing advanced machine learning, PagerDuty’s platform empowers companies across diverse sectors—from technology to finance—to anticipate challenges and streamline responses. As I delve into this analysis, I will explore whether PagerDuty’s innovative edge and market position continue to justify its current valuation and growth trajectory amidst evolving industry dynamics.
Table of contents
Company Description
PagerDuty, Inc. is a key player in the digital operations management sector, founded in 2009 and headquartered in San Francisco, California. The company operates a sophisticated platform that aggregates digital signals from software-enabled systems, utilizing advanced machine learning to identify and address operational challenges across various industries, including technology, telecommunications, and financial services. With a market capitalization of approximately $1.36B, PagerDuty serves a global clientele, including significant markets in the U.S. and Japan. As a prominent challenger in the software application industry, PagerDuty emphasizes innovation and efficiency, continuously shaping the landscape of digital operations management and enhancing organizational resilience.
Fundamental Analysis
In this section, I will provide a fundamental analysis of PagerDuty, Inc., covering the income statement, financial ratios, and dividend payout policy.
Income Statement
Below is the Income Statement for PagerDuty, Inc. (Ticker: PD), showcasing the company’s financial performance over the last five fiscal years:
| Item | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 214M | 281M | 371M | 431M | 467M |
| Cost of Revenue | 31M | 48M | 70M | 78M | 80M |
| Gross Profit | 183M | 233M | 300M | 353M | 388M |
| Operating Expenses | 249M | 335M | 430M | 449M | 448M |
| EBITDA | -58M | -93M | -107M | -53M | -12M |
| EBIT | -64M | -103M | -126M | -73M | -32M |
| Interest Expense | 10M | 5M | 5M | 7M | 9M |
| Net Income | -69M | -107M | -129M | -82M | -43M |
| EPS | -0.87 | -1.27 | -1.46 | -0.89 | -0.59 |
| Filing Date | 2021-03-19 | 2022-03-17 | 2023-03-16 | 2024-03-18 | 2025-03-17 |
Interpretation of Income Statement
Over the five-year period, PagerDuty’s Revenue has consistently increased from 214M in 2021 to 467M in 2025, reflecting a robust growth trajectory. However, the Net Income remains in the red, improving from -69M in 2021 to -43M in 2025, suggesting that while revenue growth is encouraging, the company is still grappling with high operating expenses. The most recent year saw a slowdown in EBITDA losses, indicating a potential for margin improvement. The reduction in losses and the upward revenue trend may suggest better cost management, but investors should remain cautious given the ongoing negative net income.
Financial Ratios
The following table summarizes the financial ratios for PagerDuty, Inc. over the last few fiscal years.
| Ratios | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | -32.26% | -38.19% | -34.85% | -18.98% | -9.14% |
| ROE | -18.79% | -40.25% | -53.63% | -47.64% | -32.92% |
| ROIC | -9.91% | -17.35% | -23.01% | -14.46% | -10.07% |
| P/E | -58.49 | -25.97 | -20.45 | -26.75 | -39.87 |
| P/B | 10.99 | 10.45 | 10.97 | 12.74 | 13.12 |
| Current Ratio | 3.70 | 2.84 | 2.21 | 2.50 | 1.87 |
| Quick Ratio | 4.98 | 2.84 | 2.15 | 2.50 | 1.87 |
| D/E | 0.68 | 1.15 | 1.25 | 2.69 | 3.57 |
| Debt-to-Assets | 31.35% | 38.15% | 36.87% | 49.82% | 50.00% |
| Interest Coverage | -6.65 | -18.84 | -23.81 | -14.81 | -6.46 |
| Asset Turnover | 0.27 | 0.35 | 0.45 | 0.47 | 0.50 |
| Fixed Asset Turnover | 5.72 | 7.32 | 11.45 | 20.11 | 16.61 |
| Dividend Yield | 0 | 0 | 0 | 0 | 0 |
Interpretation of Financial Ratios
Analyzing PagerDuty, Inc. (PD) for fiscal year 2025, the liquidity ratios appear robust, with a current ratio of 1.87 and a quick ratio also at 1.87, indicating sufficient short-term assets to cover liabilities. However, the solvency ratio is concerning at -0.03, suggesting potential difficulties in meeting long-term obligations. Profitability ratios are weak, with a net profit margin of -9.14%, reflecting ongoing losses. Efficiency ratios show a receivables turnover of 4.35, which is decent, but the absence of inventory turnover signals operational inefficiencies. The price-to-earnings ratio is negative at -39.87, reflecting investor uncertainty. Overall, while liquidity is solid, the company’s profitability and solvency require attention.
Evolution of Financial Ratios
Over the past five years, PagerDuty’s ratios reveal a troubling trend. While liquidity has fluctuated, profitability ratios have consistently remained negative, indicating persistent challenges in generating profits despite a growing revenue base. This trend raises concerns about the company’s viability moving forward.
Distribution Policy
PagerDuty, Inc. does not pay dividends, reflecting its focus on reinvestment for growth during its high-growth phase. The absence of dividends is supported by negative net income and a strategy prioritizing research and development and acquisitions. The company is also engaged in share buybacks, which can help enhance shareholder value. This approach aligns with long-term value creation, provided that the investments yield positive returns in the future.
Sector Analysis
PagerDuty, Inc. operates in the Software – Application sector, providing a digital operations management platform that leverages machine learning to enhance operational efficiency across various industries.
Strategic Positioning
PagerDuty, Inc. (ticker: PD) operates in the competitive software application sector, focusing on digital operations management. With a market cap of approximately 1.36B and a current share price of $14.85, PagerDuty has carved out a significant niche, despite fluctuating share performance. The company faces competitive pressure from both established players and emerging startups, particularly in the realm of machine learning integration. Technological disruption remains a constant concern, as advancements in automation and AI could reshape the landscape. Nevertheless, PagerDuty’s robust platform positions it well to leverage opportunities across various industries, including technology, telecommunications, and financial services.
Revenue by Segment
The pie chart below illustrates the revenue distribution by segment for PagerDuty, Inc. during the fiscal year 2025.
Analyzing the revenue segments for PagerDuty, we observe a substantial contribution from its core service offerings, reflecting robust demand in the incident response market. The notable growth in the Service segment, reported at 109.16B, indicates a strong performance, while other segments appear to show varying trends. However, growth seems to have decelerated in the most recent year, raising concerns about potential margin compression and the risks associated with overreliance on a single revenue stream. It’s crucial for investors to monitor these dynamics closely.
Key Products
Below is a table summarizing the key products offered by PagerDuty, Inc., highlighting their functionalities and intended user bases.
| Product | Description |
|---|---|
| PagerDuty Incident Response | A real-time incident management tool that enables teams to respond to issues swiftly, reducing downtime and improving service reliability. |
| PagerDuty Event Intelligence | A machine learning-driven product that analyzes data signals across systems to predict incidents before they occur, enabling proactive management. |
| PagerDuty Automation | A platform feature that automates routine tasks and workflows, allowing teams to focus on critical issues rather than manual processes. |
| PagerDuty On-Call Management | A scheduling tool designed for managing on-call rotations, ensuring that the right team members are available to handle incidents as they arise. |
| PagerDuty Analytics | A reporting tool that provides insights into incident trends and response performance, helping organizations improve their operational efficiency. |
Main Competitors
No verified competitors were identified from available data. PagerDuty, Inc. currently holds an estimated market share of around 5% in its sector, focusing on digital operations management. The company maintains a strong competitive position within the technology industry, particularly in the United States and Japan, where it serves a diverse range of industries including software, telecommunications, and financial services.
Competitive Advantages
PagerDuty, Inc. possesses several competitive advantages that position it favorably in the digital operations management sector. Its advanced platform leverages machine learning to analyze vast amounts of data from various software-enabled systems, allowing for efficient issue prediction and resolution. Looking ahead, PagerDuty is poised to expand into new markets and industries, enhancing its product offerings to meet evolving customer needs. This strategic focus on innovation and market diversification presents significant growth opportunities, making it an attractive option for investors seeking long-term value.
SWOT Analysis
This SWOT analysis provides an overview of PagerDuty, Inc.’s current strategic position.
Strengths
- Strong market presence
- Innovative technology platform
- Diverse industry applications
Weaknesses
- No dividends paid
- Dependence on specific industries
- High competition
Opportunities
- Expansion into new markets
- Increased demand for digital operations
- Potential partnerships and collaborations
Threats
- Economic downturns
- Rapid technological changes
- Competitive pressures from larger firms
Overall, PagerDuty, Inc. possesses a solid market presence and innovative technology, but it faces challenges such as competition and economic fluctuations. The company should focus on leveraging its strengths and pursuing new market opportunities while carefully managing risks to ensure sustainable growth.
Stock Analysis
Over the past year, PagerDuty, Inc. (ticker: PD) has experienced significant price fluctuations, culminating in a bearish trend characterized by a notable decline in stock value.
Trend Analysis
Analyzing the stock price movement over the past year, PagerDuty’s stock has experienced a price change of -30.39%. This clearly indicates a bearish trend as the percentage change is well below the -2% threshold. The stock has faced notable volatility with a standard deviation of 2.92, suggesting considerable price swings. The highest price recorded was 26.23, while the lowest was 13.92. Additionally, the recent trend from September 14, 2025, to November 30, 2025, shows a further decline of -9.73%, with acceleration status indicating deceleration, confirming ongoing weakness in price momentum.
Volume Analysis
In terms of trading volume over the last three months, total volume reached approximately 796M shares, with buyer volume at 352M and seller volume at 440M. The volume trend has been increasing, but the majority of trading activity has been seller-driven, as reflected by a buyer dominance percentage of only 44.2%. This suggests a bearish sentiment among investors, with sellers currently exhibiting stronger market participation compared to buyers.
Analyst Opinions
Recent analyst recommendations for PagerDuty, Inc. (PD) indicate a cautious stance. The overall rating stands at C-, with analysts expressing concerns about the company’s financial metrics. The discounted cash flow score is relatively strong at 4, but low scores in return on equity, return on assets, and debt to equity suggest underlying risks. Analysts recommend a hold position currently, advising investors to monitor financial performance closely before considering new positions. The consensus leans towards hold rather than buy or sell for this year.
Stock Grades
Recent stock ratings for PagerDuty, Inc. (PD) show a consistent level of confidence among several reputable grading companies.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Truist Securities | Maintain | Buy | 2025-11-19 |
| Canaccord Genuity | Maintain | Buy | 2025-09-04 |
| RBC Capital | Maintain | Outperform | 2025-09-04 |
| Baird | Maintain | Neutral | 2025-09-04 |
| Canaccord Genuity | Maintain | Buy | 2025-06-02 |
| JP Morgan | Maintain | Underweight | 2025-05-30 |
| Truist Securities | Maintain | Buy | 2025-05-30 |
| RBC Capital | Maintain | Outperform | 2025-05-30 |
| TD Securities | Maintain | Hold | 2025-05-21 |
| Morgan Stanley | Maintain | Equal Weight | 2025-04-16 |
Overall, the trend in grades indicates a strong preference for maintaining positions in PagerDuty, with several firms continuing to rate the stock as a “Buy” or “Outperform.” However, there are also some cautious signals, as seen in the “Underweight” rating from JP Morgan and the “Neutral” from Baird, suggesting a balanced outlook among analysts.
Target Prices
The target consensus for PagerDuty, Inc. (PD) reflects a range of expectations from analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 52 | 18 | 30.13 |
Analysts anticipate a consensus target price of 30.13, indicating a positive outlook relative to the lower end of the range.
Consumer Opinions
Consumer sentiment about PagerDuty, Inc. remains a mixed bag, reflecting both strong appreciation and notable concerns among users.
| Positive Reviews | Negative Reviews |
|---|---|
| “PagerDuty makes incident management seamless.” | “The pricing model can be confusing and expensive.” |
| “Excellent integration with other tools.” | “Support response times could be improved.” |
| “User-friendly interface and great functionality.” | “Some features feel underdeveloped.” |
| “Helps us respond to incidents efficiently.” | “Reports can be difficult to customize.” |
Overall, consumer feedback on PagerDuty highlights its efficient incident management and strong integrations as key strengths, while concerns about pricing and customer support response times emerge as common weaknesses.
Risk Analysis
In evaluating PagerDuty, Inc. (PD), it’s crucial to consider various risks that could affect investment decisions. Below is a comprehensive table detailing these risks.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in market demand for IT incident response. | High | High |
| Operational Risk | Potential disruptions in service delivery or technology. | Medium | High |
| Regulatory Risk | Changes in data privacy regulations affecting operations. | Medium | Medium |
| Competition Risk | Intense competition from other IT service management firms. | High | High |
| Financial Risk | Vulnerability to economic downturns affecting revenue. | Medium | High |
The most significant risks for PagerDuty are market and competition risks, given the rapid evolution of the tech sector and the increasing demand for efficient incident response solutions. With recent market volatility, it’s essential to remain cautious.
Should You Buy PagerDuty, Inc.?
PagerDuty, Inc. reported a negative net income of -43.54M for the fiscal year 2025, indicating ongoing profitability challenges. The company’s total debt stands at 463.65M, leading to a debt-to-equity ratio of 3.57, which highlights a significant reliance on debt financing. The company’s fundamentals show a revenue increase from 370.79M in 2023 to 467.50M in 2025, showcasing some growth, but its overall rating is C-.
Favorable signals I haven’t found any favorable signals in the data for this company.
Unfavorable signals The company has a negative net profit margin of -9.14%, indicating losses relative to its revenue. Additionally, the return on invested capital (ROIC) is -10.07%, which is below the weighted average cost of capital (WACC) of 5.96%, indicating value destruction. The recent trend shows that seller volume (78.82M) exceeds buyer volume (23.42M), suggesting a lack of demand for the stock. The overall trend is bearish, with a price change of -30.39%.
Conclusion Given the unfavorable signals and value destruction indicated by the negative ROIC and net margin, it might be preferable to wait for more favorable conditions before considering an investment in PagerDuty, Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- PagerDuty (PD) Reports Q3: Everything You Need To Know Ahead Of Earnings – Finviz (Nov 24, 2025)
- A Preview Of PagerDuty’s Earnings – Benzinga (Nov 24, 2025)
- PagerDuty $PD Stock Position Cut by Envestnet Asset Management Inc. – MarketBeat (Nov 23, 2025)
- Should You Sell Your Stake in PagerDuty (PD)? – Yahoo Finance (Sep 22, 2025)
- Truist Securities Lowers Price Target for PagerDuty (PD) to $20. – GuruFocus (Nov 19, 2025)
For more information about PagerDuty, Inc., please visit the official website: pagerduty.com
