PagerDuty, Inc. (NYSE:PD) Q3 2024 Results Conference Call November 30, 2023 5:00 PM ET

Company Participants

Tony Righetti - VP, IR

Jennifer Tejada - Chairman & CEO

Howard Wilson - CFO

Conference Call Participants

Rob Oliver - Robert W. Baird

Kingsley Crane - Canaccord Genuity

Chad Bennett - Craig-Hallum

Oscar Saavedra - Morgan Stanley

Anushtha Mittal - RBC

Tony Righetti

Good afternoon and thank you for joining us to discuss PagerDuty's Third Quarter Fiscal Year 2024 results. With me on today's call are Jennifer Tejada, PagerDuty's Chairperson and Chief Executive Officer; and Howard Wilson, Chief Financial Officer.

Before we begin, let me remind everyone that statements made on this call include forward-looking statements based on the environment as we currently see it, which involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

These forward-looking statements include our growth prospects, future revenue, operating margins, net income, cash balance and total addressable market, among others, and represent our management's beliefs and assumptions only as of the date such statements are made, and we undertake no obligation to update these.

During today's call, we will discuss non-GAAP financial measures, which are in addition to and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial measures is available in our earnings release.

Further information on these and other factors that could cause the Company's financial results to differ materially are included in filings we make with the Securities and Exchange Commission, including our most recently filed Form 10-K as well as other subsequent filings made with the SEC.

With that, I will turn the call over to Jennifer.

Jennifer Tejada

Good afternoon and thank you for joining us today. PagerDuty delivered solid Q3 top and bottom line results above the high end of our guidance ranges, with 15% revenue growth and a non-GAAP operating margin of 14%.

Year-over-year operating margin expanded by over 1,000 basis points as we continue to demonstrate our commitment to profitable growth. Long-term demand remains strong as all enterprises seek to address similar high priority challenges.

First, their customers are digital and expect real-time modern experiences and services. But their operations are antiquated, command and control and manual. Crossing this operations CASM is critical to protect and grow revenue in an increasingly digital on-demand marketplace.