PagerDuty, Inc. (PD) Bundle
When a company like PagerDuty, Inc. (PD) generates 2025 fiscal year revenue of $467.5 million with an Annual Recurring Revenue (ARR) of $494 million, you know their core identity is more than just a catchy tagline; it's the engine driving that financial performance. Do you really know how the mission To revolutionize operations and build customer trust translates into the operational efficiency that keeps over 31,000 organizations running, or how their five core values shape the product roadmap? We need to look past the balance sheet and understand the foundational beliefs that guide their next move, especially as they lean into Agentic Artificial Intelligence (AI) offerings.
PagerDuty, Inc. (PD) Overview
You're looking for a clear-eyed assessment of PagerDuty, Inc.'s foundation and financial reality, and here's the quick math: this company has cemented its role as the central nervous system for digital operations, converting system alerts into coordinated, business-critical response. It's not just an alerting tool anymore; it's a full-stack digital operations management platform.
PagerDuty was founded in 2009 in San Francisco, California, by Andrew Miklas, Baskar Puvanathasan, and Dan Alexandru Solomon, born from the simple, defintely relatable frustration of developers being woken up by unprioritized alerts. Their core product, the PagerDuty Operations Cloud, has evolved significantly since then. It's the platform that helps businesses detect, respond to, and resolve incidents in real-time, ensuring their digital services stay 'always-on.'
The company's offerings extend well beyond simple on-call scheduling. They now provide a comprehensive suite of products that includes:
- Incident Management: Core alerting and response.
- Artificial Intelligence for IT Operations (AIOps): Machine learning to filter noise and predict issues.
- Process Automation: Automated workflows for resolution.
- Customer Service Operations: Connecting internal operations to customer experience.
For the full Fiscal Year 2025 (FY2025), which ended January 31, 2025, PagerDuty, Inc. reported total revenue of $467.5 million. That's the kind of scale that proves their mission-critical status in the enterprise world.
Financial Resilience and Growth in FY2025
When you look at PagerDuty, Inc.'s financial performance for the Fiscal Year 2025, you see a company prioritizing efficient growth and operational discipline. Total revenue climbed to $467.5 million, marking an increase of 8.5% over the previous fiscal year. This steady growth is underpinned by strong customer retention and expansion within their existing base.
The real story, though, is how they are translating that revenue into financial health. Their Annual Recurring Revenue (ARR) grew 9% year-over-year to hit $494 million as of January 31, 2025. Plus, they've been laser-focused on efficiency: non-GAAP operating income for FY2025 was a strong $82.7 million, which translates to a non-GAAP operating margin of 17.7%. They are making money while still growing.
Here's the quick math on customer stickiness: their dollar-based net retention rate was 106% as of the end of FY2025, meaning existing customers spent more with them than they did the year before, even accounting for churn. This expansion is driven by their high-value customers, as the number of clients with an ARR over $100 thousand grew 6% to 849 accounts. Honestly, that kind of expansion in the enterprise segment is the clearest signal of product value.
A Leader in Digital Operations Management
PagerDuty, Inc. isn't just a participant in the digital operations space; they are a recognized leader. The company's platform is now considered essential for business resilience, especially as organizations rely more heavily on complex digital services. They've successfully moved from being a tool for developers to an enterprise-grade platform for IT, security, and customer service teams.
The proof is in the customer list. PagerDuty, Inc. is trusted by nearly half of the Fortune 500 and approximately two-thirds of the Fortune 100, demonstrating their critical role in the world's largest enterprises. This market penetration confirms that their transition to the AI-powered PagerDuty Operations Cloud is resonating with decision-makers who need to orchestrate complex operations at scale.
The recent focus on Agentic Artificial Intelligence (AI) offerings shows they are adapting to the next wave of operational challenges, moving beyond simple alerting to proactive resolution. This is why they are a leader-they solve problems before they become catastrophes. If you want to understand the deep mechanics of who is betting on this success and why, you should continue Exploring PagerDuty, Inc. (PD) Investor Profile: Who's Buying and Why?
PagerDuty, Inc. (PD) Mission Statement
You're looking for the bedrock of PagerDuty, Inc.'s strategy, and honestly, it's all in the mission statement: a clear directive that maps directly to their market opportunity. The company's mission is: To revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world. This isn't just a feel-good phrase; it's the long-term goal that guides every product decision, and it's why their platform is essential for 68% of the Fortune 100.
A mission statement this precise is a strategic asset, especially in the high-stakes world of digital operations management. It tells investors and customers exactly what PagerDuty does and why they matter. It's what drove the company to a full-year fiscal 2025 revenue of $467.5 million, an increase of 8.5% year over year.
The mission breaks down into three core, actionable components that define the company's value proposition and its financial resilience.
Revolutionize Operations
The first pillar is about transforming how teams work, moving beyond simple alerting to full-scale digital operations management. This means using automation and artificial intelligence (AI) to make human work smarter, not just faster. PagerDuty's platform, the PagerDuty Operations Cloud, is the engine for this revolution, automating the entire incident management lifecycle.
We see this commitment in their product development velocity. In the second half of 2025 alone, the company launched over 150+ customer-driven features and enhancements, focusing heavily on AI agents and automation embedded across the platform. This continuous innovation is why PagerDuty was named a Leader and Outperformer in the 2025 GigaOm Radar for AIOps for the fourth year running. That's defintely a strong signal of product quality and market leadership.
Here's the quick math on the value: one customer, Anaplan, streamlined its process using PagerDuty AIOps and saw a 95% improvement in detecting and addressing incidents, saving an estimated $250,000 per year. That's a clear return on investment.
Build Customer Trust
For a company whose product is used when systems fail, trust is everything. The second pillar grounds the mission in the customer relationship, which is why PagerDuty's core values include 'Champion the Customer' and 'Ack & Own' (acknowledge and take ownership). This focus helps secure and expand their enterprise footprint, which is where the real money is.
As of the end of fiscal year 2025 (January 31, 2025), PagerDuty had 849 customers with Annual Recurring Revenue (ARR) over $100 thousand, a 6% growth from the prior year. This growth in high-value customers shows their platform is sticky and mission-critical. Also, total ARR grew 9% year over year to $494 million as of January 31, 2025. That's a massive endorsement of their reliability.
The company also extends this trust to the community through PagerDuty.org, supporting 585 impact customers-nonprofits and B Corps-in FY25 with $2.2 million in product discounts and donations. This commitment to a broader stakeholder group deepens the ethical foundation of their brand. You can dig deeper into who is investing in this mission by Exploring PagerDuty, Inc. (PD) Investor Profile: Who's Buying and Why?
Anticipating the Unexpected in an Unpredictable World
This component speaks directly to the inherent volatility of the digital landscape. The goal is to move customers from a reactive stance-fixing things after they break-to a proactive one, anticipating and preventing issues. This is the ultimate promise of the PagerDuty Operations Cloud.
The market is clearly leaning into this proactive approach. A PagerDuty survey in 2025 found that 81% of executives trust AI agents to take action on the company's behalf during a crisis, like a service outage. This high level of trust is critical for the adoption of their Agentic AI offerings, which are designed to predict and resolve issues faster and more efficiently.
From a financial perspective, the company's ability to generate cash flow in an unpredictable market is key. For fiscal year 2025, PagerDuty reported strong net cash provided by operating activities of $117.9 million, with a Free Cash Flow of $108.4 million. That kind of cash generation provides the financial resilience needed to invest in the next wave of AI innovation, ensuring they can keep their promise to anticipate the unexpected for their customers.
PagerDuty, Inc. (PD) Vision Statement
You're looking for the foundational beliefs that drive PagerDuty, Inc.'s (PD) strategy, and you should know the vision is far more than a poster on a wall; it's a direct map to their product development and financial performance. The core takeaway is that PagerDuty's vision is a commitment to operational resilience, framed by a social mission: Exploring PagerDuty, Inc. (PD) Investor Profile: Who's Buying and Why?
Their mission is clear: To revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world. This mission is directly supported by the full-year fiscal 2025 revenue of $467.5 million, an 8.5% increase year-over-year, showing a steady monetization of their core value proposition. That's real money built on helping teams avoid digital disasters.
An Equitable World: The Social and Operational Context
The first part of PagerDuty's vision, 'An equitable world,' isn't just about corporate social responsibility (CSR); it's a statement on operational access. It reflects a belief that the best technology for managing critical work shouldn't be limited to the largest, most well-funded organizations. This focus on accessibility is why they serve over 31,000 total customers, including free and paid tiers, as of January 31, 2025, demonstrating broad market penetration.
Their PagerDuty.org initiative aligns with this, supporting 585 impact customers-nonprofits and mission-driven organizations-in fiscal year 2025, a 22% growth in that cohort. They backed this with $2.2 million in product discounts and donations. Honestly, that's a smart long-term play, too; you build brand loyalty and a talent pipeline by supporting valuable work.
Transform Critical Work: The AI and Automation Mandate
The vision component, 'transform critical work,' is where the rubber meets the road for investors. It means moving beyond simple alerting to full-scale digital operations management (DOM). PagerDuty is doing this by embedding Agentic Artificial Intelligence (AI) and automation across its platform, the PagerDuty Operations Cloud.
This is a strategic necessity, not a luxury. The goal is to reduce Mean Time to Resolution (MTTR) and cut down on alert noise, which is the constant, distracting stream of notifications. For the fiscal year 2025, PagerDuty reported a full-year non-GAAP operating income of $82.7 million, resulting in a healthy non-GAAP operating margin of 17.7%. This profitability shows their platform is driving efficiency for customers, which in turn drives their own financial health. They're making money by saving you time.
- AI agents are now core to future IT operations for 53% of CIOs/CTOs.
- The Operations Cloud automates and orchestrates the entire incident lifecycle.
- They are targeting a 400%+ Return on Investment (ROI) for customers.
All Teams Can Delight Their Customers: Expanding Beyond Engineering
When the vision states 'all teams can delight their customers,' it's a clear signal of market expansion from the traditional IT and developer audience to Customer Service Operations (CSOps) and Security Operations (SecOps). PagerDuty is now used by over 1,000,000+ users across more than 30,000 organizations. That's a massive user base that needs to be constantly expanding beyond the core developer team.
The dollar-based net retention rate, a key metric for any SaaS business, was 106% as of January 31, 2025. While this is a slight dip from the prior year, it still confirms that existing customers are, on average, spending more money with PagerDuty each year, adopting more products like automation and AIOps features. The platform is defintely becoming sticky.
Build Trust: The Foundation of Recurring Revenue
The final pillar, 'build trust,' is the most critical for a company that handles mission-critical operations. If PagerDuty fails, a customer's business fails, making trust the ultimate competitive moat. This trust is quantified in the quality of their enterprise customer base: 68% of the Fortune 100 use PagerDuty.
This high-value customer base is the engine for their Annual Recurring Revenue (ARR), which reached $494 million, growing 9% year-over-year as of the end of fiscal 2025. The fact that 849 customers now have an ARR over $100,000, a 6% growth in that segment, shows that the largest, most demanding organizations are deepening their reliance on the platform. That's the kind of reliable, high-margin revenue you want to see.
PagerDuty, Inc. (PD) Core Values
You're looking past the stock ticker (PD) and the quarterly earnings-which, by the way, saw full-year fiscal 2025 revenue hit a solid $467.5 million-to understand the real engine of PagerDuty, Inc.: its culture and values. As a seasoned analyst, I can tell you that in a market obsessed with generative AI and operational efficiency, a clear, actionable value set is your defintely best leading indicator for long-term resilience. It's what guides their strategy, from product development to their environmental, social, and governance (ESG) commitments.
PagerDuty's mission is clear: To revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world. Their vision maps this to a greater good, aiming for an equitable world where they transform critical work so all teams can delight their customers and build trust. This isn't just corporate boilerplate; it's a framework for how they allocate capital and effort, broken down into five core values.
Champion the Customer
This value is about putting the user experience (UX) first, making the complex work of digital operations management simple and reliable. It's a core driver of their product roadmap and, ultimately, their top-line growth. In fiscal year 2025, the company delivered over 150 customer-driven features and enhancements in its H2 2025 release alone, which is a massive commitment to iteration based on feedback. They are not just selling software; they are selling back time and operational resilience.
- Shipped Flexible Shifts to remove on-call scheduling toil.
- Introduced Required Fields on Resolve for Enterprise customers, ensuring compliance and data capture before an incident (a key governance feature).
- Prioritized AI-powered solutions to accelerate mean time to resolution (MTTR), directly benefiting customer operations.
The product must work, and it must be easy. This is the simple math behind their dollar-based net retention rate, which was 106% as of January 31, 2025-meaning existing customers are consistently expanding their use of the platform.
Run Together
This is the value of collaboration, community, and shared success, both internally and externally. It speaks to the concept of collective ownership (or 'service ownership' in their industry jargon) and their commitment to social impact through PagerDuty.org. In FY25, this value translated to concrete support for mission-driven organizations.
They supported 585 impact customers-nonprofits, healthcare providers, and B Corps-a growth of 22% over the previous year. Here's the quick math: that support totaled $2.2 million in product discounts, donations, and pro bono services, earning a 90 Net Promoter Score (NPS) from those partners. You can see more about their foundational principles here: PagerDuty, Inc. (PD): History, Ownership, Mission, How It Works & Makes Money.
Ack & Own (Acknowledge and Own)
This value is about accountability, integrity, and taking responsibility for outcomes-both business and environmental. On the financial side, it shows up in their commitment to efficiency, with a non-GAAP operating income of $82.7 million for FY25, translating to a non-GAAP operating margin of 17.7%.
On the environmental front, their accountability is starkly clear. They achieved 100% renewable electricity sourcing ahead of schedule and reduced their Scope 1 and 2 emissions by a massive 90% in FY25. That's not a small footnote; it's a material commitment that reduces operational risk and cost over time. Accountability means facing the numbers, whether they are in the balance sheet or the ESG report.
Take the Lead
To 'Take the Lead' means to innovate, disrupt, and continuously improve. For a technology company in 2025, this is synonymous with their generative AI strategy. They are positioning their AI-powered PagerDuty Operations Cloud as the platform for the future, helping mission-driven organizations work smarter and stretch limited resources.
They announced upcoming Agentic AI offerings, including an Agentic Site Reliability Engineer and Operational Insights Agents, demonstrating a clear intent to lead the next wave of automation in digital operations. This is about moving beyond simple alerting to true, autonomous incident resolution, a key competitive differentiator that drives new revenue streams.
Bring Your Self
This value champions inclusion, diversity, and the idea that employees should feel safe and empowered to contribute their whole selves. It's a direct link to employee retention and innovation. The most measurable proof of this value is the employee engagement in their social impact programs. In FY25, a remarkable 83% of employees volunteered or donated to causes they care about through the Employee Impact program. That high participation rate suggests a healthy, engaged culture where people feel their company's values align with their personal ones. When your people show up for the community, they show up for the business, too.

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