PagerDuty Beats Q1 EPS with $0.32, Flat ARR Sparks $100M Buyback
PD•PagerDuty reported Q1 EPS of $0.32, beating the $0.24 estimate, and revenue of $121 million versus $119.5 million consensus, though year-over-year growth remained under 1%. Annual recurring revenue was flat and DBNRR dipped below 100%, prompting a $100 million share buyback while maintaining a 1.95 current ratio.
1. Q1 Earnings Performance
PagerDuty reported first-quarter EPS of $0.32, surpassing the $0.24 consensus, and delivered $121 million in revenue versus $119.5 million expected. Despite the upside, year-over-year revenue growth was under 1%, marking a slowdown compared with prior quarters.
2. Subscription Metrics and Customer Trends
Subscription metrics showed flat annual recurring revenue and a dollar-based net retention rate below 100%, indicating revenue lost from downgrades and churn outpaced expansions. The number of large enterprise customers also declined sequentially, signaling challenges in upselling.
3. Capital Allocation and Liquidity
In response to the muted growth, the company launched a $100 million share repurchase program to support stock valuation, while maintaining a current ratio of 1.95, reflecting solid short-term liquidity.
