The San Francisco provider of a platform to spot and prevent software problems reported a fiscal-second-quarter adjusted loss of 4 cents a share, better than the Bloomberg-derived analyst estimate of a loss of 7 cents.
PagerDuty posted 26% growth in revenue to $50.7 million for the second quarter ended July 31. A Bloomberg survey pegged revenue at $51.6 million.
For the fiscal third period PagerDuty projected a loss excluding special items of 10 cents to 11 cents a share. Bloomberg pegs the analyst estimate at a loss of 8 cents.
The company projected revenue of $52 million to $53 million for the fiscal third quarter, compared with analyst expectations of $53.7 million, according to Bloomberg.
And for fiscal 2021, the software maker estimated it would report $211 million of revenue, short of analysts’ estimates of $212 million.
"We had a challenging start to the quarter with macro conditions driving conservatism on the part of enterprise buyers," Chief Executive Jennifer Tejada said during the company's conference call with analysts and investors on Wednesday.
"We saw lower than typical pipeline conversion, some length in sales cycles and higher than normal churn and contraction, especially in small business and hard-hit verticals."
For the second quarter, PagerDuty also posted second-quarter billings growth of 7% year over year, versus an increase of 35% in the first quarter.
Sanjit Singh, an analyst covering PagerDuty at Morgan Stanley, noted the CEO's comments. He said the weaker macro environment is clearly the dominating factor as that has slowed the pace of expansion in the enterprise customer base. He added that investors will look for improvement in the spending environment.
At last check PagerDuty shares were down 26% at $25.98.