: PagerDuty’s stock jumps on strong earnings, sales

PagerDuty Inc.’s PD stock initially jumped 8% in extended trading Thursday after the enterprise-software company reported quarterly results that edged analyst revenue and earnings estimates. PagerDuty reported a fiscal-third-quarter net loss of $13.1 million, or 16 cents a share, compared with a net loss of $32.8 million, or 36 cents a share, in the same quarter a year ago. Adjusted earnings were 20 cents a share. Revenue was $108.7 million, up 15% from $94.2 million in the same quarter a year ago. Analysts surveyed by FactSet had expected on average net earnings of 14 cents a share on revenue of $107.7 million. “This has been a challenging environment, with customers cautious toward renewals,” PagerDuty Chief Financial Officer Howard Wilson said in an interview. “But we excelled in customer acquisitions and expansion with more multiyear deals.” For the fourth quarter, the company expects revenue of between $109.5 million and $111.5 million. FactSet analysts are forecasting $110.9 million. Shares of PagerDuty have tumbled 18% this year, while the broader S&P 500 index SPX has increased 19%.

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