Pagerduty tops Wall Street Estimates

Yahoo Finance's Emily McCormick breaks down Pagerduty's first-quarter earnings report.

Video Transcript

ALEXIS CHRISTOFOROUS: All right, I want to get another earnings report in here, Emily. Pagerduty seems to be getting a nice boost as so many of us continue to work from home through the pandemic. What are the numbers there?

EMILY MCCORMICK: Well, taking a look at Pagerduty, this is one of those cloud-computing platforms that did make its initial public offering last year. It still is up for the year to date and since its IPO price.

It did still post a loss for the first quarter. That adjusted loss was at $0.04 a share. That was still narrower than the loss of $0.09 expected. And revenue of $49.8 million was up 33% over last year, also beating expectations.

Now, we did get a little bit of mixed guidance. It did lower the bottom end of its range for full-year revenue to $204 million from the $208 million it had posted previously.

And then finally, the last thing I want to point out that I thought was interesting from this company is that it noted that there was a noticeable increase in churn in its small-business segment as these businesses cut spending due to the pandemic. At the same time, though, we did see a pickup in spending among its large business partners. So that's something that really offset some of those declines and contributed to the overall year-over-year rise we saw for the company. Alexis.

ALEXIS CHRISTOFOROUS: All right, thanks a lot, Emily McCormick.