PagerDuty (PD) investor relations material

Executive summary

• Revenue for Q1 FY27 grew 1% year-over-year to $121 million, exceeding guidance, with ARR at $496 million and 15,380 paid customers, including 860 with ARR over $100,000.

• Net income reached $10.2 million, marking the fourth consecutive quarter of GAAP profitability.

• Non-GAAP operating margin was 25%, with free cash flow margin at 34%.

• Leadership transitioned to John DiLullo as CEO, with Jennifer Tejada becoming Executive Chair.

• The company is focused on accelerating profitable growth through AI-first operations and automation.

Financial highlights

• Q1 revenue was $121 million, up 1% year-over-year; ARR was $496 million, flat year-over-year.

• Non-GAAP operating income was $29.7 million (24.6% margin); GAAP net income was $10.2 million.

• Gross margin reached 86%, at the high end of the target range.

• Free cash flow was $41.2 million (34% of revenue); cash from operations was $44.3 million.

• Cash, cash equivalents, and investments totaled $444 million as of April 30, 2026.

Outlook and guidance

• Q2 FY27 revenue expected between $122 million and $124 million; operating margin guidance of 22% to 23%.

• FY27 revenue guidance maintained at $488.5 million to $496.5 million; net income per diluted share expected at $1.27 to $1.32.

• Free cash flow expected to normalize in Q2 after elevated Q1 collections.

• Management targets continued margin expansion and profitable growth.

• $316 million of $441 million in remaining performance obligations expected to be recognized in the next 12 months.