PD PagerDuty (PD) Q2 FY27 earnings call
PagerDuty delivered a strong Q2 FY27, surpassing ARR and profitability targets, driven by new customer wins and expansion. The company is pivoting to a "build, sell, optimize" strategy, focusing on product innovation, go-to-market motions, and fiscal discipline, including a recent workforce restructuring. Management is confident in the PD Reliability Platform and AI-driven operations to stabilize retention and accelerate growth, aiming for long-term margin expansion.
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PD operating KPIs by quarter
| KPI | Apr 2026 Q1 FY27 | This call Jul 2026 Q2 FY27 | Change vs prior quarter |
|---|---|---|---|
| Annual recurring revenue (ARR) | $496MQuarterly revenue was $121 million, up 1% year-over-year and annual recurring revenue was $496 million, flat year-over-year.Source: earnings call transcript | $501MOur confidence stems from the positive signs in the business with annual recurring revenue crossing the $500 million milestone, ending at $501 million, an increase of $6 million in the quarter.Source: earnings call transcript | +1% |
| Net revenue retention rate | 97%Dollar-based net retention was 97%, we expect our continued customer success and renewal initiatives, along with our operations cloud pricing to result in stabilization of DBNR and for it to gradually increase throughout the year.Source: earnings call transcript | 98%Dollar-based net retention was 98%, up sequentially and annualized gross retention also improved sequentially.Source: earnings call transcript | +1 pt |
| Customers Paid | 15.38KTotal paid customers grew to 15,380 in Q1, adding 133 net new customers since the year ago period.Source: earnings call transcript | 15K+With more than 15,000 paying customers relying on the PagerDuty platform, including nearly 2/3 of the Fortune 100, we see firsthand the massive volume of AI-generated enterprise software now being deployed and exactly how it's evolving.Source: earnings call transcript | — |
| Remaining performance obligation (RPO) | ~$441MAt the end of Q1, total RPO was approximately $441 million increasing 3% year-over-year.Source: earnings call transcript | $426MTotal RPO was $426 million, $1 million higher than year-over-year.Source: earnings call transcript | — |
| Remaining performance obligation (RPO) Current | ~$316MOf this amount, approximately $316 million or 72% is expected to be recognized over the next 12 months.Source: earnings call transcript | ~$309MOf this amount, approximately $309 million is expected to be recognized over the next 12 months, which represents a 5% year-over-year increase versus Q2 FY '26.Source: earnings call transcript | — |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.