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PagerDuty reports earnings today. Last Q $PD sunk 25% after earnings, as longer sales cycles and contraction led to weak billings. It is one of my biggest positions and I expect it to re-rate soon. Here's why....
$PD customers have resumed hiring for devops engineers. The number of new devops jobs per day increased 64% since the end of July. As hiring improves, this means customers pay for more seats, and that leads to more revenue.
There are signs that companies have shifted spend to $PD. The % of companies that mention Pagerduty in a job opening increased 90% YoY. They've also increased their "market share" from 60% to 74% in a year when you compare this to Opsgenie and VictorOps.
Secular IT trends like microservices have remained popular. The % of companies that require knowledge of microservices is up 24% YoY. As usage of microservices and containers increase, the need for monitoring and incident response tools like $PD go up too.
$PD also simplified their pricing midway in September. They added a limited free plan, and increased the price of their cheapest plan to $19/month from $10/month per user. Pricing still remains the same for legacy customers, however.
Fun fact: $PD bulls are the coolest stockholders. @KermitCapital @akramsrazor @robertthetrader @cameroniadeluca @GetBenchmarkCo @DPogrebinsky @Ryan_Burgio @seandougfan @BornInvestor @hnag @frostybifrosty
