PagerDuty slumps despite 'strong' Q1, guidance; SaaS stocks move lower
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PagerDuty (NYSE:PD) shares slumped nearly 6% on Friday even as the cloud computing software company posted strong first-quarter results and raised its guidance.
For the period ending April 30, the company lost an adjusted $0.04 per share on $85.4M in sales, up 34% year-over-year. Analysts were expecting a loss of $0.08 per share on $82.7M in revenue.
Monness, Crespi, Hardt analyst Brian White noted that PagerDuty (PD) has "a large opportunity in the real-time digital operations market," but with concerns about the global economy tipping into a recession and rising geopolitical risks, the environment for tech stocks is not favorable.
PagerDuty (PD) shares fell nearly 6% to $26.01 on Friday, while other cloud computing stocks, such as Salesforce (CRM), Adobe (NASDAQ:ADBE), Workday (NASDAQ:WDAY) and ServiceNow (NOW) all declined as well, led by a 3.5% drop in Workday.
San Francisco-based PagerDuty (PD) also said its revenue forecast for the second-quarter and full-year.
It now expects second-quarter sales to be between $87M and $89M, with full-year sales between $364M and $369M, up from a prior outlook of $360M to $366M.
White raised his second-quarter and full-year sales forecasts on back of the guidance bump, noting the "positive" tone on the earnings call.