PagerDuty Inc.’s stock initially drooped more than 17% in extended trading Thursday after the cloud-computing company reported quarterly results that met analysts’ revenue estimates and surpassed earnings projections, but reduced its annual revenue guidance.
The company
PD,
+1.98%
reported a fiscal first-quarter net loss of $12.8 million, or 13 cents a share, compared with a net loss of $32.8 million, or 38 cents a share, in the year-ago quarter. Adjusted earnings were 20 cents a share.
Quarterly revenue climbed 21% to $103.2 million from $85.4 million a year ago.
Analysts surveyed by FactSet had expected on average adjusted net earnings of 9 cents a share on revenue of $103.3 million.
The company also offered second-quarter revenue guidance of between $103.5 million and $105.5 million, representing a growth rate of 15% to 17%. Analysts polled by FactSet are modeling $108.8 million for the quarter. For the year, PagerDuty reduced its revenue range to $425 million to $430 million from $446 million to $452 million. Analysts are expecting $448.7 million.
“This economic environment is uncertain, but we have a strong business and the economic environment will improve,” PagerDuty Chief Financial Officer Howard Wilson said in an interview. “Deals are still happening, but they are taking longer. Customers are not leaving us. They are not buying ahead, but buying exactly what they need.”
Wilson pointed to a healthy non-GAAP operating margin of 15.5% and a record non-GAAP operating income of $16.1 million during the just-concluded first quarter.
Shares of PagerDuty are up 4.5% this year, while the broader S&P 500
SPX,
+0.99%
has improved 10%.