PagerDuty Reports 9.4% Revenue Growth to $118.9 Million in Q3 Fiscal 2025

PagerDuty, Inc. reported a revenue of $118.9 million for the third quarter of fiscal 2025, marking a 9.4% increase from $108.7 million in the same period last year. For the nine months ending October 31, 2024, the company generated $346.1 million in revenue, up 8.3% from $319.6 million in the prior year. Despite the revenue growth, PagerDuty recorded a net loss of $6.1 million for the quarter, a significant improvement compared to a net loss of $13.1 million in the same quarter of the previous year. The net loss attributable to common stockholders for the nine-month period was $43.9 million, compared to $51.1 million in the prior year.

The company’s operating expenses slightly decreased to $109.0 million for the third quarter, down from $109.9 million a year earlier, primarily due to reduced costs in sales and marketing. Research and development expenses remained stable, while general and administrative costs also saw a minor decline. The gross profit margin improved to 83.0% from 81.9% year-over-year, reflecting better cost management and operational efficiency.

PagerDuty's customer base remained stable, with a total of 15,050 customers as of October 31, 2024, compared to 15,049 a year earlier. The number of customers generating over $100,000 in annual recurring revenue (ARR) increased to 825, up from 778 in the previous year. The company reported a dollar-based net retention rate of 107%, down from 110% a year prior, indicating a slight decline in revenue growth from existing customers.

In terms of strategic developments, PagerDuty completed the acquisition of Jeli, Inc. on November 15, 2023, which is expected to enhance its operational capabilities. The company continues to focus on expanding its international presence and increasing product adoption rates. As of the end of the reporting period, PagerDuty had cash and cash equivalents totaling $326.4 million, down from $363.0 million at the beginning of the fiscal year, indicating a strong liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, PagerDuty anticipates continued revenue growth driven by its expanding customer base and product offerings. The company expects to leverage its existing cash reserves and cash generated from operations to meet its working capital and capital expenditure needs for at least the next 12 months. However, it remains vigilant regarding potential macroeconomic challenges, including inflation and market volatility, which could impact customer spending and overall business performance.