Shares of IT incident response platform PagerDuty (NYSE:PD)
fell 11.2% in the afternoon session after the company reported underwhelming first-quarter 2025 results: its full-year revenue guidance was lowered and came in below expectations. The company's EPS guidance for next quarter also fell short of Wall Street's estimates, reflecting a more cautious outlook on enterprise spending.
IT incident response platform PagerDuty (NYSE:PD) met Wall Street’s revenue expectations in Q1 CY2025, with sales up 7.8% year on year to $119.8 million. The company expects next quarter’s revenue to be around $123.5 million, close to analysts’ estimates. Its non-GAAP profit of $0.24 per share was 28.3% above analysts’ consensus estimates.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the software development industry, including PagerDuty (NYSE:PD) and its peers.
A number of stocks fell in the after-market session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%.
Small-cap stocks in the Russell 2000 can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
Looking back on software development stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Bandwidth (NASDAQ:BAND) and its peers.
Shares of IT incident response platform PagerDuty (NYSE:PD)
jumped 18.8% in the afternoon session after the company put up impressive fourth quarter results: PagerDuty's strong growth in customers allowed it to beat analysts' revenue, EPS, and adjusted operating income expectations.
The company said its artificial intelligence innovation, combined with new features added to all PagerDuty Incident Management packages, positions it well to accelerate enterprise momentum in the second half.
IT incident response platform PagerDuty (NYSE:PD) announced better-than-expected revenue in Q4 CY2024, with sales up 9.3% year on year to $121.4 million. On the other hand, next quarter’s revenue guidance of $119 million was less impressive, coming in 1.9% below analysts’ estimates. Its non-GAAP profit of $0.22 per share was 36% above analysts’ consensus estimates.
