PagerDuty Reports Loss in Fiscal Second Quarter But Beats Expectations — PagerDuty Inc. (PD) is making headlines as one of the most active small-cap stocks in the market.
The company recently announced a loss of $13.2 million in its fiscal second quarter, translating to a loss of 14 cents per share. However, when adjusted for stock option expenses and amortization costs, the earnings came to 21 cents per share. This result surpassed Wall Street expectations, where analysts had predicted earnings of 16 cents per share.
Despite the positive adjusted earnings, PagerDuty’s revenue of $115.9 million fell short of forecasts. Analysts expected revenue to reach $116.6 million. Looking ahead, the company projects per-share earnings for the current quarter to range from 16 to 17 cents, with expected revenue between $115.5 million and $117.5 million for the fiscal third quarter. PagerDuty also anticipates full-year earnings to be between 67 cents and 72 cents per share, with revenue estimated to fall between $463 million and $467 million.
Key Statistics for PagerDuty
Market Valuation
PagerDuty holds a market cap of $1.72 billion and an enterprise value of $1.63 billion. This shows the company’s standing in the market, despite the recent challenges.
Share Statistics
Currently, PagerDuty has approximately 95.60 million shares outstanding. Over the past year, the number of shares has increased by 2.14%. Institutional investors own 93.03% of the shares, while insiders hold just 4.39%. The float stands at 91.40 million shares.
Valuation Ratios
PagerDuty’s PS ratio is 3.80, and the forward PS ratio is 3.58, indicating its valuation compared to its sales. The PB ratio is 10.36, reflecting how much investors are willing to pay for each dollar of equity.
Financial Position and Challenges
Financial Position
The company has a current ratio of 2.13, indicating good short-term financial health, although it faces a high debt-to-equity ratio of 2.55. This suggests that the company relies significantly on debt to finance its operations.
Financial Efficiency
PagerDuty’s return on equity (ROE) stands at -31.30%, and the return on assets (ROA) is -6.04%. These figures indicate challenges in generating profits relative to equity and assets.
Recent Performance
In the last 12 months, PagerDuty reported revenue of $446.94 million but also recorded a loss of $83.06 million. The loss per share was -$0.89, highlighting ongoing challenges in profitability.
PagerDuty Reports Loss in Q2 But Beats Expectations – Stock Price and Market Sentiment
Stock Price Statistics
Over the past year, PagerDuty’s stock price has decreased by 23.67%. The stock exhibits a beta of 1.06, indicating its price volatility is comparable to the broader market.
Short Selling Information
Currently, the short interest for PagerDuty stands at 11.04 million shares, representing 11.55% of the outstanding shares. This suggests a significant level of skepticism among investors regarding the company’s future performance.
Analyst Forecasts
Despite recent struggles, analysts remain optimistic. The average price target for PagerDuty is $22.73, which is 26.42% higher than its current price. The consensus rating is “Buy,” suggesting confidence in the company’s potential for recovery.
PagerDuty is navigating a challenging fiscal landscape but has shown resilience by surpassing adjusted earnings expectations. The company’s focus on improving its financial performance and managing its debt will be crucial for its future growth. As PagerDuty works to enhance its revenue streams, market sentiment will remain closely tied to its ability to deliver consistent financial results. Investors should monitor upcoming earnings announcements and market developments as PagerDuty strives to stabilize and grow in the competitive software industry.
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