PagerDuty (PD) investor relations material

Executive summary

• Achieved first full year of GAAP profitability, with FY net income of $174 million, driven by a one-time $169.2 million tax benefit, and Q4 net income of $11 million.

• Q4 revenue reached $125 million, up 3% year-over-year, with non-GAAP operating margin at 24%, both exceeding guidance.

• Total annual recurring revenue (ARR) ended at $499 million, with enterprise and AI-native customers contributing an increasing share.

• Platform customer base grew to over 35,000, up 14% year-over-year, with 15,351 paid customers and 861 above $100,000 ARR.

• Transitioned to flexible, consumption-based pricing, driving large multi-year deals and higher-value enterprise relationships.

Financial highlights

• FY26 revenue reached $493 million, up 5% year-over-year; Q4 revenue was $125 million, up 3% year-over-year.

• FY26 non-GAAP operating margin was 24%-25%; Q4 non-GAAP operating income was $29.8 million (24%).

• FY26 free cash flow was $103 million–$108.4 million (21% margin); operating cash flow for the year was $115 million.

• Q4 GAAP net income was $11 million; Q4 non-GAAP net income per diluted share was $0.29.

• Ended Q4 with $470 million in cash equivalents and investments.

Outlook and guidance

• FY27 revenue guidance: $488.5 million–$496.5 million, with midpoint essentially flat year-over-year.

• FY27 non-GAAP operating margin expected at 24%-25%; EPS guidance up 8% year-over-year.

• Q1 FY27 revenue expected at $118–$120 million, with non-GAAP operating margin of 19%-20%.

• Free cash flow margin expected to be 2–4 percentage points lower in FY27 due to lower interest income and higher CapEx.

• Targeting long-term non-GAAP operating margin of 30% and gross margin between 84% and 86%.