PagerDuty (PD) 28th Annual Needham Growth Conference Virtual summary

Market opportunity and platform overview

• Digital operations management is critical for enterprise resilience and customer experience in complex, AI-enabled environments.

• The platform integrates over 700 APIs and supports both no-code and pro-code environments, with embedded AI and machine learning.

• Four core pillars: incident management, AIOps, automation, and generative AI (PagerDuty Advance).

• Over a million users, with a potential market of 87 million users across developers, operations, customer service, and security.

• Incidents can cost enterprises up to $800,000 per minute, highlighting the value of operational resilience.

Product innovation and AI agents

• Generative AI offerings (PagerDuty Advance) include four agents: Shift, SRE, Scribe, and Insights, automating and enhancing operations.

• Agents handle tasks from scheduling to diagnostics, incident summarization, and operational recommendations.

• Adoption of generative AI is gradual but growing, with robust security and compliance measures in place.

• Customer collaboration and transparency are emphasized to build trust and ensure reliable AI deployment.

• Early access and general availability of agents have been positively received by customers.

Pricing model and customer flexibility

• Transitioning to a usage-based, flex pricing model, allowing customers access to the full Operations Cloud.

• Customers commit to annual subscriptions with rate cards for different product actions, supporting flexible usage and top-ups.

• Flex pricing removes friction, enabling broader product discovery and easier scaling within organizations.

• The model is designed to avoid punitive overages and supports proactive management of usage and renewals.

• Broader release of the flex pricing model is planned for early in the year.