PagerDuty Reports 7.8% Revenue Growth to $119.8 Million for Q1 2025

PagerDuty, Inc. reported a revenue of $119.8 million for the three months ended April 30, 2025, marking a 7.8% increase from $111.2 million in the same period last year. The company’s gross profit rose to $100.6 million, resulting in a gross margin of 84.0%, up from 82.6% in the prior year. Operating expenses decreased to $110.9 million from $113.6 million, leading to a reduced loss from operations of $10.3 million compared to $21.7 million in the previous year. The net loss attributable to PagerDuty, Inc. common stockholders was $6.5 million, a significant improvement from a net loss of $24.1 million in the same quarter of 2024.

The company experienced notable changes in its financial performance, particularly in its operating expenses, which decreased primarily due to lower research and development costs. Research and development expenses fell to $34.0 million from $37.5 million, while sales and marketing expenses increased slightly to $50.0 million. The overall reduction in operating expenses contributed to a narrower loss, reflecting improved operational efficiency. Additionally, interest income decreased to $6.0 million from $7.0 million, while interest expense rose to $2.4 million from $2.1 million.

In terms of strategic developments, PagerDuty continues to focus on expanding its customer base and enhancing its product offerings. The company reported a total of 15,247 customers as of April 30, 2025, up from 15,120 a year earlier, with 848 customers generating more than $100,000 in annual recurring revenue (ARR). The ARR itself increased to $496.0 million, compared to $463.4 million in the previous year. This growth is attributed to increased user adoption and upselling of additional products and services, particularly among enterprise customers.

Operationally, PagerDuty has maintained a strong market presence, with 69% of its long-lived assets located in the United States. The company’s international revenue also grew, reaching $33.8 million, up from $30.4 million in the prior year. The company’s dollar-based net retention rate was reported at 104%, slightly down from 106% a year earlier, indicating a stable ability to retain and expand revenue from existing customers. As of April 30, 2025, PagerDuty had cash and cash equivalents totaling $371.8 million, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, PagerDuty anticipates continued growth driven by its focus on enhancing its digital operations management platform and expanding its international footprint. 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, management remains cautious about potential macroeconomic challenges, including inflation and market volatility, which could impact future performance.