PagerDuty, Inc. (NYSE:PD) Q2 2025 Earnings Conference Call September 3, 2024 5:00 PM ET
Company Participants
Tony Righetti - VP, IR
Jennifer Tejada - CEO
Howard Wilson - CFO
Conference Call Participants
Sanjit Singh - Morgan Stanley
Koji Ikeda - Bank of America Securities
Jacob Roberge - William Blair
Andrew Sherman - TD Cowen
Jeff Van Rhee - Craig Hallum
Kingsley Crane - Canaccord Genuity
John Gomez - Scotiabank
Operator
Good afternoon, folks. Sorry for the delay. We've had some technical difficulties with Zoom, but we're going to get going here in just 2 seconds. Go ahead, Tony.
Tony Righetti
All right. So apologies again for the delay. We will start with the safe harbor right about now. Good afternoon, and thank you for joining us to discuss PagerDuty's Second Quarter Fiscal Year 2025 Results. With me on today's call are Jennifer Tejada, Pager Duty'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. Thanks for your patience, and thanks for joining us today. PagerDuty delivered a solid second quarter with revenue growth within our guidance range at 8% and non-GAAP operating margin 4 points above the range at 17%. This was our eighth consecutive record quarter of non-GAAP profitability. We increased annual recurring revenue by approximately $11 million to $474 million. We have stabilized ARR growth at 10% year-on-year for a third consecutive quarter, as well as dollar-based net retention at 106% quarter-over-quarter. Both results were supported by improving new and expansion bookings, especially in our Enterprise segment.