PagerDuty Q4 FY1/24

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Waiting For A Bigger Friend

By Alex King

PagerDuty ($PD) is a niche enterprise software business. It provides monitoring and alerting functionality deep within the datacenter. The company is small - less than $500m in TTM revenue - and right now is neither growing quickly (+10% this quarter vs. PY; +16% on a TTM basis vs. PY) nor generating high cashflow margins (+4% TTM UFCF as of this quarter).

Here’s the headline numbers.

The stock is likely under accumulation - in anticipation, I believe, of a sale of the company. Nothing the management team has accomplished in recent years gives the impression that they can keep growing as an independent vendor; the company as-is has the look of a product set that should belong to a larger consolidator.

Read on for our fundamental, technical and valuation analysis, latest stock charts and rating.