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PagerDuty Announces Fourth Quarter and Full Year Results for Fiscal 2021

March 17, 2021 GMT

SAN FRANCISCO--(BUSINESS WIRE)--Mar 17, 2021--

PagerDuty, Inc. (NYSE:PD), a global leader in digital operations management, today announced financial results for the fourth quarter and full year of fiscal 2021 ended January 31, 2021.

“The fourth quarter was outstanding for PagerDuty. We added $59 million in revenue, reaccelerating growth sequentially to 29% year over year, as our momentum built to close out an unparalleled year,” said Jennifer Tejada, CEO at PagerDuty. “During fiscal 2021 we continued to see strength in the enterprise and mid-market, with total dollar-based net retention of 121 percent and enterprise dollar-based net retention above 125 percent exiting the year. I am incredibly appreciative of our customers and partners for their loyalty and trust, and grateful for the PagerDuty team, whose resilience, commitment and customer devotion over the last 12 months was inspiring and delivered a great outcome for our stakeholders.”

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Fourth Quarter Fiscal 2021 Financial Highlights

  • Revenue: Total revenue was $59.3 million, up 29.1% year-over-year.
  • Gross Margin: GAAP gross margin was 84.1% compared to 86.2% in the fourth quarter of fiscal 2020. Non-GAAP gross margin was 85.6% compared to 86.7% in the fourth quarter of fiscal 2020.
  • Operating Loss: GAAP operating loss was $18.4 million, or GAAP operating margin of negative 31.0%, compared to an $11.8 million GAAP operating loss, or GAAP operating margin of negative 25.6%, in the fourth quarter of fiscal 2020. Non-GAAP operating loss was $5.4 million, or non-GAAP operating margin of negative 9.1%, compared to a $3.9 million non-GAAP operating loss, or non-GAAP operating margin of negative 8.6%, in the fourth quarter of fiscal 2020.
  • Net Loss: GAAP net loss was $22.1 million, compared to $10.4 million in the fourth quarter of fiscal 2020. GAAP net loss per share was $0.27, compared to $0.14 in the fourth quarter of fiscal 2020. Non-GAAP net loss was $5.8 million, compared to $2.6 million in the fourth quarter of fiscal 2020. Non-GAAP net loss per share was $0.07, compared to $0.03 in the fourth quarter of fiscal 2020.
  • Cash Flow: Net cash provided by operations was $3.4 million, or 5.7% of revenue, compared to net cash provided by operations of $1.8 million, or 3.9% of revenue, in the fourth quarter of fiscal 2020. Free cash flow was $2.3 million, or 3.8% of revenue, compared to negative $0.2 million, or (0.4)% of revenue, in the fourth quarter of fiscal 2020.
  • Cash and Cash Equivalents and Investments were $560.3 million as of January 31, 2021.

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Full Year Fiscal 2021 Financial Highlights

  • Revenue: Total revenue was $213.6 million, up 28.4% year-over-year.
  • Gross Margin: GAAP gross margin was 85.6% compared to 85.2% for fiscal 2020. Non-GAAP gross margin was 86.6% compared to non-GAAP gross margin of 85.8% for fiscal 2020.
  • Operating Loss: GAAP operating loss was $66.3 million, or GAAP operating margin of negative 31.0%, compared to a $55.6 million GAAP operating loss, or GAAP operating margin of negative 33.4%, for fiscal 2020. Non-GAAP operating loss was $19.4 million, or non-GAAP operating margin of negative 9.1%, compared to a $28.4 million non-GAAP operating loss, or non-GAAP operating margin of negative 17.0%, for fiscal 2020.
  • Net Loss: GAAP net loss was $68.9 million, compared to $50.3 million for fiscal 2020. GAAP net loss per share was $0.87, compared to $0.77 for fiscal 2020. Non-GAAP net loss was $19.3 million, compared to $23.1 million for fiscal 2020. Non-GAAP net loss per share was $0.24, compared to $0.35 for fiscal 2020.
  • Cash Flow: Net cash provided by operations was $10.1 million, or 4.7% of revenue, compared to net cash used in operations of $0.2 million, or (0.1)% of revenue, for fiscal 2020. Free cash flow was $5.2 million, or 2.5% of revenue, compared to negative $5.3 million, or (3.2)% of revenue, for fiscal 2020.

The section titled “Non-GAAP Financial Measures” below contains a description of the non-GAAP financial measures and reconciliations between historical GAAP and non-GAAP information.

Recent Highlights

  • Continued Expansion Within Existing Customers: PagerDuty had the eighth consecutive quarter in which approximately a third of its enterprise customers expanded. Expansions during the quarter included Dropbox, Marqeta, Morgan Stanley, Netflix, Okta, and Slack.
  • Customer Growth: PagerDuty had over 13,800 customers as of January 31, 2021. These included new customers Ally Financial, Ameren Corporation, Jetblue Airways, Sega Sammy Holdings, SK Telecom, and WaWa.
  • Record Setting Quarter: PagerDuty had a record-setting quarter closing its largest one time, multi-year expansion in its history, its first million dollar contract in EMEA, and achieving record transaction growth in the mid-market. For the year, annual recurring revenue (ARR) from the PagerDuty Digital Operations plan doubled and now accounts for over 20 percent of total ARR.
  • Expanding Use Cases and Platform: During the year, customers adopted PagerDuty beyond on-call and incident response to security, where users grew 56 percent, and customer service, where users grew 40 percent year over year. PagerDuty continues to add integration partners for a total of over 530 integrations, with partners such as Buildkite, Gitlab and Jenkins for change events and Jfrog for security.
  • Inclusion, Diversity & Equity: During the year, PagerDuty continued investment and volunteer support for racial and social equity and inclusive leadership development. PagerDuty’s ID&E efforts resulted in improved access, representation, pay equity and career opportunities. The Company’s board of directors is among the most balanced in the tech industry, representing the diverse communities we serve.

Financial Outlook

For the first quarter of fiscal 2021, PagerDuty currently expects:

  • Total revenue of $61.0 million - $63.0 million, representing a growth rate of 23% - 27% year-over-year
  • Non-GAAP net loss per share of $0.10 - $0.09, assuming approximately 83 million shares

For the full fiscal year 2021, PagerDuty currently expects:

  • Total revenue of $264.0 million - $270.0 million, representing a growth rate of 24% - 26% year-over-year
  • Non-GAAP net loss per share of $0.43 - $0.36, assuming approximately 84 million shares

These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

PagerDuty has not reconciled its expectations as to non-GAAP net loss per share to GAAP net loss per share because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net loss per share is not available without unreasonable effort.

Conference Call Information:

PagerDuty will host a conference call and live webcast for analysts and investors at 2:00 p.m. Pacific Time on March 17, 2021. This news release with the financial results will be accessible from PagerDuty’s website at investor.pagerduty.com prior to the conference call. A live webcast of the conference call will be accessible from the PagerDuty investor relations website at investor.pagerduty.com.

Supplemental Financial and Other Information:

Supplemental financial and other information can be accessed through PagerDuty’s investor relations website at investor.pagerduty.com. PagerDuty uses the investor relations section on its website as the means of complying with its disclosure obligations under Regulation FD. Accordingly, we recommend that investors should monitor PagerDuty’s investor relations website in addition to following PagerDuty’s press releases, SEC filings, social media, including PagerDuty’s Twitter account ( twitter.com/pagerduty ), the Twitter account @jenntejada and Facebook page ( facebook.com/pagerduty ), and public conference calls and webcasts.

Non-GAAP Financial Measures:

This press release and the accompanying tables contain the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share, and free cash flow.

PagerDuty believes that non-GAAP financial measures, when taken collectively, may be helpful to investors because they provide consistency and comparability with past financial performance and can assist in comparisons with other companies, some of which use similar non-GAAP financial measures to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in PagerDuty’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by PagerDuty’s management about which expenses and income are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each historical non-GAAP financial measure to the most directly comparable financial measure presented in accordance with GAAP.

Specifically, PagerDuty excludes the following from its historical and prospective non-GAAP financial measures, as applicable:

Share-based Compensation: PagerDuty utilizes share-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its stockholders and at long-term retention, rather than to address operational performance for any particular period. As a result, share-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of Acquired Intangible Assets: PagerDuty views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.

Acquisition-Related Expenses: PagerDuty views acquisition-related expenses, such as transaction costs and acquisition-related retention payments, as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such expenses can assist in the comparison of operational performance in different periods which may or may not include such expenses.

Amortization of Debt Issuance Costs: The imputed interest rate of Convertible Senior Notes (the “Notes”) was approximately 7.88%. This is a result of the debt discounts recorded for the conversion features of the Notes that are required to be separately accounted for as equity, and debt issuance costs, which reduce the carrying value of the convertible debt instruments. The debt discounts are amortized as interest expense together with the issuance costs of the debt. The expense for the amortization of debt discount and debt issuance costs is a non-cash item, and PagerDuty believes the exclusion of this interest expense will provide for a more useful comparison of its operational performance in different periods.

Acquisition-Related Income Tax Benefit: PagerDuty views acquisition-related income tax benefits as events that are not necessarily reflective of operational performance during a period. In particular, PagerDuty believes the consideration of measures that exclude such benefits can assist in the comparison of operational performance in different periods which may or may not include such benefits.

PagerDuty defines non-GAAP operating loss as GAAP loss from operations excluding stock-based compensation expense, non-cash charitable contribution expense, amortization of acquired intangible assets, and transaction-related costs. PagerDuty defines non-GAAP net loss (which is used in calculating non-GAAP net loss per share) as GAAP net loss excluding amortization of debt discount and issuance costs, stock-based compensation expense, non-cash charitable contribution expense, amortization of acquired intangible assets, transaction-related costs, and acquisition-related income tax benefit. There are a number of limitations related to the use of these non-GAAP measures as compared to GAAP operating loss and net loss, including that the non-GAAP measures exclude stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in PagerDuty’s business and an important part of its compensation strategy.

PagerDuty defines free cash flow as net cash provided by (used in) operating activities, less cash used for purchases of property and equipment and capitalized internal-use software. In addition to the reasons stated above, PagerDuty believes that free cash flow is useful to investors as a liquidity measure because it measures PagerDuty’s ability to generate or use cash in excess of its capital investments in property and equipment to strengthen its balance sheet and further invest in its business and potential strategic initiatives. PagerDuty uses free cash flow in conjunction with traditional GAAP measures as part of its overall assessment of its liquidity, including the preparation of PagerDuty’s annual operating budget and quarterly forecasts, to evaluate the effectiveness of its business strategies, and to assess its liquidity.

There are a number of limitations related to the use of free cash flow as compared to net cash provided by (used in) operating activities, including that free cash flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.

PagerDuty encourages investors to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures, which it includes in press releases announcing quarterly financial results, including this press release, and not to rely on any single financial measure to evaluate PagerDuty’s business.

Please see the reconciliation tables at the end of this release for the reconciliation of GAAP and non-GAAP results.

Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our future financial performance and outlook, market positioning, addressable market, and expected benefits of our product improvements and new integrations. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our Form 10-K filed with the Securities and Exchange Commission (SEC) on March 19, 2020 and our Form 10-Qs filed with the SEC on June 5, 2020, September 3, 2020 and December 4, 2020. Additional information will be made available in our annual report on Form 10-K for the fiscal year ended January 31, 2021 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the effect of uncertainties related to the COVID-19 pandemic on U.S. and global markets, our business, operations, revenue results, cash flow, operating expenses, demand for our solutions, sales cycles, customer retention and our customers’ businesses; our ability to achieve and maintain future profitability; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to sustain and manage our growth; our dependence on revenue from a single product; our ability to compete effectively in an increasingly competitive market; and general market, political, economic, and business conditions.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

About PagerDuty

PagerDuty, Inc. (NYSE:PD) is a leader in digital operations management. In an always-on world, organizations of all sizes trust PagerDuty to help them deliver a perfect digital experience to their customers, every time. Teams use PagerDuty to identify issues and opportunities in real time and bring together the right people to fix problems faster and prevent them in the future. Notable customers include GE, Cisco, Genentech, Electronic Arts, Cox Automotive, Netflix, Shopify, Zoom, DoorDash, Lululemon and more. To learn more and try PagerDuty for free, visit www.pagerduty.com. Follow our blog and connect with us on Twitter, LinkedIn, YouTube and Facebook.

PagerDuty, Inc.

Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except per share data)

(unaudited)

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2021

 

2020

 

2021

 

2020

Revenue

$

59,284

 

 

$

45,926

 

 

$

213,556

 

 

$

166,351

 

Cost of revenue (1)

9,401

 

 

6,353

 

 

30,686

 

 

24,579

 

Gross profit

49,883

 

 

39,573

 

 

182,870

 

 

141,772

 

Operating expenses:

 

 

 

 

 

 

 

Research and development (1)

17,861

 

 

13,851

 

 

64,566

 

 

49,011

 

Sales and marketing (1)

33,884

 

 

24,972

 

 

122,155

 

 

97,350

 

General and administrative (1)

16,532

 

 

12,506

 

 

62,431

 

 

50,970

 

Total operating expenses

68,277

 

 

51,329

 

 

249,152

 

 

197,331

 

Loss from operations

(18,394)

 

 

(11,756)

 

 

(66,282)

 

 

(55,559)

 

Interest income

857

 

 

1,409

 

 

4,232

 

 

5,692

 

Interest expense

(4,224)

 

 

 

 

(9,965)

 

 

 

Other income (expense), net

67

 

 

(143)

 

 

(794)

 

 

203

 

Loss before (provision for) benefit from income taxes

(21,694)

 

 

(10,490)

 

 

(72,809)

 

 

(49,664)

 

(Provision for) benefit from income taxes

(454)

 

 

50

 

 

3,906

 

 

(675)

 

Net loss

$

(22,148)

 

 

$

(10,440)

 

 

$

(68,903)

 

 

$

(50,339)

 

Comprehensive (loss) income

 

 

 

 

 

 

 

Unrealized (loss) gain on investments

(291)

 

 

187

 

 

206

 

 

137

 

Total other comprehensive loss

$

(22,439)

 

 

$

(10,253)

 

 

$

(68,697)

 

 

$

(50,202)

 

Net loss per share, basic and diluted

$

(0.27)

 

 

$

(0.14)

 

 

$

(0.87)

 

 

$

(0.77)

 

Weighted-average shares used in calculating net loss per share, basic and diluted

81,933

 

 

77,165

 

 

79,614

 

 

65,544

 

(1) Includes stock-based compensation expense as follows (in thousands, unaudited):

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2021

 

2020

 

2021

 

2020

Cost of revenue

$

607

 

 

$

245

 

 

$

1,702

 

 

$

1,018

 

Research and development

3,636

 

 

1,807

 

 

11,095

 

 

5,566

 

Sales and marketing

3,324

 

 

2,839

 

 

14,733

 

 

8,924

 

General and administrative

3,929

 

 

2,922

 

 

15,701

 

 

11,697

 

Total

$

11,496

 

 

$

7,813

 

 

$

43,231

 

 

$

27,205

 

PagerDuty, Inc.

Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

As of January 31,

 

As of January 31,

 

2021

 

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

339,166

 

 

$

124,024

 

Investments, current

221,112

 

 

227,375

 

Accounts receivable, net of allowance for doubtful accounts of $1,188 and $810 as of January 31, 2021 and January 31, 2020, respectively

55,119

 

 

37,128

 

Deferred contract costs, current

12,330

 

 

9,301

 

Prepaid expenses and other current assets

10,587

 

 

7,163

 

Total current assets

638,314

 

 

404,991

 

Property and equipment, net

12,639

 

 

12,369

 

Deferred contract costs, non-current

19,257

 

 

16,387

 

Lease right-of-use assets

24,691

 

 

 

Goodwill

72,126

 

 

 

Intangible assets, net

26,633

 

 

 

Other assets

1,783

 

 

1,651

 

Total assets

$

795,443

 

 

$

435,398

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

5,747

 

 

$

6,434

 

Accrued expenses and other current liabilities

9,627

 

 

7,197

 

Accrued compensation

28,372

 

 

13,911

 

Deferred revenue, current

123,686

 

 

87,490

 

Lease liabilities, current

5,262

 

 

 

Total current liabilities

172,694

 

 

115,032

 

Convertible senior notes, net

217,528

 

 

 

Deferred revenue, non-current

6,286

 

 

5,079

 

Lease liabilities, non-current

26,542

 

 

 

Other liabilities

5,666

 

 

7,349

 

Total liabilities

428,716

 

 

127,460

 

Stockholders’ equity:

 

 

 

Common stock

 

 

 

Additional paid-in-capital

614,494

 

 

487,008

 

Accumulated other comprehensive income

343

 

 

137

 

Accumulated deficit

(248,110)

 

 

(179,207)

 

Total stockholders’ equity

366,727

 

 

307,938

 

Total liabilities and stockholders’ equity

$

795,443

 

 

$

435,398

 

PagerDuty, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2021

 

2020

 

2021

 

2020

Cash flows from operating activities

 

 

 

 

 

 

 

Net loss

$

(22,148)

 

 

$

(10,440)

 

 

$

(68,903)

 

 

$

(50,339)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

1,918

 

 

662

 

 

5,270

 

 

2,337

 

Amortization of deferred contract costs

3,083

 

 

2,281

 

 

10,977

 

 

7,780

 

Stock-based compensation

11,496

 

 

7,813

 

 

43,231

 

 

27,205

 

Amortization of debt issuance costs

3,315

 

 

 

 

7,808

 

 

 

Noncash lease expense

1,099

 

 

 

 

4,398

 

 

 

Other

621

 

 

52

 

 

2,518

 

 

(331)

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

(13,758)

 

 

(7,934)

 

 

(17,637)

 

 

(3,601)

 

Deferred contract costs

(5,932)

 

 

(5,051)

 

 

(16,876)

 

 

(15,996)

 

Prepaid expenses and other assets

1,583

 

 

2,752

 

 

(2,022)

 

 

(2,112)

 

Accounts payable

526

 

 

276

 

 

316

 

 

(1,110)

 

Accrued expenses and other liabilities

(3,034)

 

 

1,204

 

 

(810)

 

 

3,668

 

Accrued compensation

3,495

 

 

(1,758)

 

 

11,184

 

 

3,861

 

Deferred revenue

22,248

 

 

11,945

 

 

34,723

 

 

28,465

 

Lease liabilities

(1,123)

 

 

 

 

(4,082)

 

 

 

Net cash provided by (used in) operating activities

3,389

 

 

1,802

 

 

10,095

 

 

(173)

 

Cash flows from investing activities

 

 

 

 

 

 

 

Purchases of property and equipment

(636)

 

 

(1,984)

 

 

(4,038)

 

 

(5,174)

 

Capitalized internal-use software costs

(482)

 

 

 

 

(810)

 

 

 

Business acquisitions, net of cash acquired

 

 

 

 

(49,656)

 

 

 

Purchases of held-to-maturity investments

 

 

 

 

 

 

(45,736)

 

Proceeds from maturities of held-to-maturity of investments

 

 

9,000

 

 

28,040

 

 

17,950

 

Purchases of available-for-sale investments

(68,788)

 

 

(91,404)

 

 

(222,042)

 

 

(224,110)

 

Proceeds from maturities of available-for-sale investments

66,549

 

 

25,000

 

 

189,901

 

 

25,000

 

Proceeds from sales of available-for-sale investments

 

 

 

 

9,285

 

 

 

Net cash used in investing activities

(3,357)

 

 

(59,388)

 

 

(49,320)

 

 

(232,070)

 

Cash flows from financing activities

 

 

 

 

 

 

 

Proceeds from issuance of convertible senior notes, net of issuance costs paid of $9,302

(467)

 

 

 

 

278,198

 

 

 

Purchases of capped calls related to convertible senior notes

 

 

 

 

(35,708)

 

 

 

Proceeds from initial public offering, net of underwriters' discounts and commissions

 

 

 

 

 

 

220,086

 

Payments of costs related to initial public offering

 

 

(342)

 

 

 

 

(5,945)

 

Proceeds from repayment of promissory note

 

 

 

 

 

 

515

 

Proceeds from issuance of common stock upon exercise of stock options

4,389

 

 

1,437

 

 

14,098

 

 

7,187

 

Proceeds from Employee Stock Purchase Plan

2,428

 

 

4,117

 

 

5,986

 

 

4,117

 

Employee payroll taxes paid related to net share settlement of restricted stock units

(3,873)

 

 

(2)

 

 

(8,207)

 

 

(16)

 

Net cash provided by financing activities

2,477

 

 

5,210

 

 

254,367

 

 

225,944

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

2,509

 

 

(52,376)

 

 

215,142

 

 

(6,299)

 

Cash, cash equivalents, and restricted cash at beginning of year

336,657

 

 

176,400

 

 

124,024

 

 

130,323

 

Cash, cash equivalents, and restricted cash at end of year

$

339,166

 

 

$

124,024

 

 

$

339,166

 

 

$

124,024

 

PagerDuty, Inc.

Reconciliation of GAAP to Non-GAAP Data

(in thousands, except percentages and per share data)

(unaudited)

 

 

Three Months Ended January 31,

 

Year ended January 31,

 

2021

 

2020

 

2021

 

2020

Reconciliation of gross profit and gross margin

 

 

 

 

 

 

 

GAAP gross profit

$

49,883

 

 

$

39,573

 

 

$

182,870

 

 

$

141,772

 

Plus: Share-based compensation

607

 

 

245

 

 

$

1,702

 

 

1,018

 

Plus: Amortization of acquired intangible assets

280

 

 

 

 

373

 

 

 

Non-GAAP gross profit

$

50,770

 

 

$

39,818

 

 

$

184,945

 

 

$

142,790

 

GAAP gross margin

84.1

%

 

86.2

%

 

85.6

%

 

85.2

%

Non-GAAP adjustments

1.5

%

 

0.5

%

 

1.0

%

 

0.6

%

Non-GAAP gross margin

85.6

%

 

86.7

%

 

86.6

%

 

85.8

%

 

 

 

 

 

 

 

 

Reconciliation of operating expenses

 

 

 

 

 

 

 

GAAP research and development

$

17,861

 

 

$

13,851

 

 

64,566

 

 

$

49,011

 

Less: Share-based compensation

(3,636)

 

 

(1,807)

 

 

$

(11,095)

 

 

(5,566)

 

Less: Acquisition-related expenses

(460)

 

 

 

 

(614)

 

 

 

Non-GAAP research and development

$

13,765

 

 

$

12,044

 

 

$

52,857

 

 

$

43,445

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

33,884

 

 

$

24,972

 

 

$

122,155

 

 

$

97,350

 

Less: Share-based compensation

(3,324)

 

 

(2,839)

 

 

(14,733)

 

 

(8,924)

 

Less: Amortization of acquired intangible assets

(595)

 

 

 

 

(794)

 

 

 

Non-GAAP sales and marketing

$

29,965

 

 

$

22,133

 

 

$

106,628

 

 

$

88,426

 

 

 

 

 

 

 

 

 

GAAP general and administrative

$

16,532

 

 

$

12,506

 

 

$

62,431

 

 

$

50,970

 

Less: Share-based compensation

(3,929)

 

 

(2,922)

 

 

(15,701)

 

 

(11,697)

 

Less: Acquisition-related expenses

(191)

 

 

 

 

(1,823)

 

 

 

Non-GAAP general and administrative

$

12,412

 

 

$

9,584

 

 

$

44,907

 

 

$

39,273

 

 

 

 

 

 

 

 

 

Reconciliation of operating loss and operating margin

 

 

 

 

 

 

 

GAAP operating loss

$

(18,394)

 

 

$

(11,756)

 

 

$

(66,282)

 

 

$

(55,559)

 

Plus: Share-based compensation

11,496

 

 

7,813

 

 

43,231

 

 

27,205

 

Plus: Amortization of acquired intangible assets

875

 

 

 

 

1,167

 

 

 

Plus: Acquisition-related expenses

651

 

 

 

 

2,437

 

 

 

Non-GAAP operating loss

$

(5,372)

 

 

$

(3,943)

 

 

$

(19,447)

 

 

$

(28,354)

 

GAAP operating margin

(31.0)

%

 

(25.6)

%

 

(31.0)

%

 

(33.4)

%

Non-GAAP adjustments

21.9

%

 

17.0

%

 

21.9

%

 

16.4

%

Non-GAAP operating margin

(9.1)

%

 

(8.6)

%

 

(9.1)

%

 

(17.0)

%

 

 

 

 

 

 

 

 

Reconciliation of net loss

 

 

 

 

 

 

 

GAAP net loss

$

(22,148)

 

 

$

(10,440)

 

 

$

(68,903)

 

 

$

(50,339)

 

Plus: Share-based compensation

11,496

 

 

7,813

 

 

43,231

 

 

27,205

 

Plus: Amortization of debt discount and issuance costs

3,315

 

 

 

 

7,808

 

 

 

Plus: Amortization of acquired intangible assets

875

 

 

 

 

1,167

 

 

 

Plus: Acquisition-related expenses

651

 

 

 

 

2,437

 

 

 

Plus: Acquisition-related tax benefit

41

 

 

 

 

(5,017)

 

 

 

Non-GAAP net loss

$

(5,770)

 

 

$

(2,627)

 

 

$

(19,277)

 

 

$

(23,134)

 

 

 

 

 

 

 

 

 

Reconciliation of net loss per share, basic and diluted

 

 

 

 

 

 

 

GAAP net loss per share, basic and diluted

$

(0.27)

 

 

$

(0.14)

 

 

$

(0.87)

 

 

$

(0.77)

 

Non-GAAP adjustments to net loss

0.20

 

 

0.11

 

 

0.62

 

 

0.42

 

Non-GAAP net loss per share, basic and diluted

$

(0.07)

 

 

$

(0.03)

 

 

$

(0.24)

 

 

$

(0.35)

 

 

Note: Certain figures in the tables above may not sum due to rounding.

PagerDuty, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except percentages and per share data)

(unaudited)

 

Free Cash Flow

 

 

Three Months Ended January 31,

 

Year Ended January 31,

 

2021

 

2020

 

2021

 

2020

Net cash provided by (used in) operating activities

$

3,389

 

 

$

1,802

 

 

$

10,095

 

 

$

(173)

 

Less:

 

 

 

 

 

 

 

Purchases of property and equipment

(636)

 

 

(1,984)

 

 

(4,038)

 

 

(5,174)

 

Capitalization of internal-use software

(482)

 

 

 

 

(810)

 

 

 

Free cash flow

$

2,271

 

 

$

(182)

 

 

$

5,247

 

 

$

(5,347)

 

Net cash used in investing activities

$

(3,357)

 

 

$

(59,388)

 

 

$

(49,320)

 

 

$

(232,070)

 

Net cash provided by financing activities

$

2,477

 

 

$

5,210

 

 

$

254,367

 

 

$

225,944

 

Free cash flow margin

3.8

%

 

(0.4)

%

 

2.5

%

 

(3.2)

%

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20210317005795/en/

CONTACT: Investor Relations Contact:

Christine Cloonan

investor@pagerduty.com

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: INTERNET DATA MANAGEMENT MOBILE/WIRELESS TECHNOLOGY SOFTWARE

SOURCE: PagerDuty, Inc.

Copyright Business Wire 2021.

PUB: 03/17/2021 04:05 PM/DISC: 03/17/2021 04:05 PM

http://www.businesswire.com/news/home/20210317005795/en