By Jon Swartz
Shares of PagerDuty Inc. are up 19% in premarket trading Friday after the software company reported quarterly results that topped Wall Street estimates.
PagerDuty /zigman2/quotes/210571191/composite PD +1.26% reported a net loss of $20.6 million, or 26 cents a share, compared with a net loss of $15.3 million, or 20 cents a share, in the year-ago quarter. The non-GAAP net loss was $6.9 million, or 9 cents a share, compared with a loss of $7.9 million, or 10 cents, a year ago.
Revenue rose 26% to $53.8 million, from $42.75 million a year ago.
Analysts surveyed by FactSet had expected a third-quarter loss of 10 cents a share on revenue of $52.7 million.
Digital transformation, cloud migration and devops transformation fueled the growth in revenue and prompted PagerDuty to raise guidance, PagerDuty Chief Executive Jennifer Tejada told MarketWatch in an interview before the results were announced Thursday afternoon.
The San Francisco-based company raised revenue guidance for its fourth quarter ($57 million to $58 million) and full-year guidance ($211 million to $212 million). Analysts polled by FactSet have forecast $55.6 million and $208.7 million, respectively.
This was the seventh straight quarter in which approximately a third of PagerDuty’s enterprise customers expanded their use of its technology — among them, DocuSign Inc. /zigman2/quotes/205992027/composite DOCU +0.92% , Okta Inc. /zigman2/quotes/210420951/composite OKTA +0.89% , and Salesforce.com Inc. /zigman2/quotes/200515854/composite CRM +0.27% .
The results have affirmed positive notes from financial analysts such as Craig-Hallum of Benzinga, who initiated coverage with a buy rating and price target of $41.
Through Thursday’s close, PagerDuty shares are up 38% this year, while the broader S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.02% has climbed 13.5%.