PagerDuty Reports $467.5 Million Revenue for Fiscal Year 2025, Net Loss Improves

PagerDuty, Inc. reported a revenue of $467.5 million for the fiscal year ending January 31, 2025, marking a 9% increase from $430.7 million in the previous fiscal year. Despite this growth, the company recorded a net loss of $42.7 million, an improvement from the $75.2 million loss reported in the prior year. The increase in revenue was primarily attributed to growth from existing customers, driven by an increase in the number of users and upselling additional products and services. The company's gross margin also improved to 83%, up from 81.9% in the previous year, reflecting effective cost management.

In terms of operational metrics, PagerDuty's customer base grew to 15,114 paying customers, a slight increase from 15,039 in the previous year. The company reported a dollar-based net retention rate of 106%, indicating that existing customers are expanding their use of the platform. The company has focused on enterprise customers, with 849 customers contributing annual recurring revenue (ARR) exceeding $100,000, and 72 customers generating over $1 million in ARR. International operations accounted for 28% of total revenue, consistent with the previous year.

Strategically, PagerDuty has continued to invest in product innovation and market expansion. The company completed the acquisition of Jeli, Inc. in November 2023, enhancing its capabilities in incident analysis. The company has also emphasized the integration of artificial intelligence and automation into its offerings, which is expected to drive further growth. As of January 31, 2025, PagerDuty had 1,242 employees, with approximately 45% located outside the United States, reflecting its commitment to international expansion.

Looking ahead, PagerDuty plans to continue investing in its sales and marketing efforts to attract new customers and expand within its existing customer base. The company aims to enhance its product offerings and increase its presence in international markets, particularly in EMEA and Asia Pacific. Despite the positive outlook, the company acknowledges potential risks from macroeconomic conditions, including inflation and market volatility, which could impact customer spending and overall growth.

In summary, PagerDuty's financial performance for the fiscal year 2025 shows a positive trajectory with increased revenue and improved losses, supported by a growing customer base and strategic investments in product development and market expansion. The company remains focused on leveraging its platform to meet the evolving needs of its customers while navigating potential economic challenges.