PagerDuty, Inc. (NYSE:PD) Q1 2025 Earnings Conference Call May 30, 2024 5:00 PM ET
Company Participants
Tony Righetti - Vice President of Investor Relations
Jennifer Tejada - Chief Executive Officer
Howard Wilson - Chief Financial Officer
Conference Call Participants
Simran Biswal - RBC Capital Markets
Rob Oliver - Baird
Jacob Zerbib - William Blair
Andrew Sherman - TD Cowen
Koji Ikeda - Bank of America Securities
Keith Weiss - Morgan Stanley
Tony Righetti
Good afternoon and thank you for joining us to discuss PagerDuty's First Quarter Fiscal Year 2025 Results. With me on today's call are Jennifer Tejada, PagerDuty's Chairperson and Chief Executive Officer; and Howard Wilson, our 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 belief 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/A as well as our subsequent filings made with the SEC.
With that, I will turn the call over to Jennifer.
Jennifer Tejada
Good afternoon, and thanks for joining us today. PagerDuty delivered a solid first quarter, with revenue growth near the midpoint of our guidance range at 8%, and non-GAAP operating margin four points above the range at 14%. This was our seventh consecutive quarter of non-GAAP profitability.
We increased annual recurring revenue by approximately $11 million to $463 million. ARR growth stabilized at 10% for a second consecutive quarter, strengthened by improving new and expansion ARR. We continue to see momentum in large multiyear, multiproduct contracts with customers spending more than $100,000 growing 6%, while both customers spending more than $500,000 and $1 million grew in the high teens.