PD earnings call summary

Prepared Highlights

• Q4 FY2026 revenue $125M, up 3% YoY; full-year revenue ~$493M, up 5% YoY (CEO, CFO)
• Q4 non-GAAP operating margin 24% (above guidance); full-year non-GAAP operating margin 25% (CFO)
• Total ARR at year-end ~$499M, up 1% YoY (CEO, CFO)
• Q4 new and expansion bookings strongest of fiscal year, up 6% YoY and up 37% sequentially (CEO)
• Over 40 deals worth $100K+ signed in Q4, nearly double prior quarterly average (CEO)
• Customers with ARR >$1M: 79, up 10% YoY; customers with ARR >$100K: 861, up 1% YoY (CEO, CFO)
• Dollar-based net retention 98% in Q4; expected to stabilize in Q1 FY2027 and increase gradually (CFO)
• Q4 non-GAAP gross margin 87% (above 84%-86% target range); full-year gross margin 86% (CFO)
• Q4 free cash flow $23M (18% of revenue); full-year free cash flow ~$103M (21% of revenue) (CFO)
• Total RPO ~$449M, up 2% YoY; ~$314M (70%) expected recognized in next 12 months (CFO)
• Total paid customers 15,351 (+2% YoY); total platform customers (paid + free) >35,000 (+14% YoY) (CEO, CFO)
• ARR from customers using 2+ paid products: 66% (FY2026), up from 65% (FY2025) (CFO)
• ARR contribution from $100K+ cohort: 72% of total ARR (FY2026), up from 71% (FY2025) (CFO)

Official Guidance (FY2027):

• Q1 FY2027 revenue: $118M–$120M (midpoint flat YoY); non-GAAP EPS $0.23–$0.25; non-GAAP operating margin 19%–20% (CFO)
• Full-year FY2027 revenue: $488.5M–$496.5M (midpoint flat YoY); non-GAAP EPS $1.23–$1.28; non-GAAP operating margin 24%–25% (CFO)
• Expect full-year GAAP profitability in FY2027 (CFO)
• Free cash flow margin expected ~2–4 ppts lower than FY2026 (CFO)

Mgmt Quotes:

• "Fiscal 2026 was a transformational year for PagerDuty. We stabilized ARR in Q4 and accelerated new and expansion business, ending the year with solid fourth quarter results." (CEO)
• "Our new pricing model makes it more compelling for customers to land new business and expand existing accounts on the platform." (CEO)
• "We achieved our first full year of GAAP profitability, a testament to our operational discipline. We expect to maintain full year GAAP profitability in FY '27." (CFO)
• "The fundamentals of our business are strong. We have a durable balance sheet, expanding operating margins and a clear strategy to navigate AI taking center stage." (CFO)
• "FY '27 is about scaling what's working and capturing that opportunity ahead." (CEO)

Prepared Metrics