PagerDuty (NYSE:PD) shares dropped nearly 11% intra-day today after the company’s strong first-quarter performance was overshadowed by a weaker-than-expected outlook for the upcoming quarter and full fiscal year.
The operations management platform exceeded Wall Street expectations for the first quarter, delivering adjusted earnings of $0.24 per share—comfortably above the $0.19 forecast. Revenue rose 7.8% year-over-year to $119.8 million, narrowly beating consensus estimates.
However, sentiment turned negative as the company issued second-quarter guidance that underwhelmed investors. PagerDuty projected adjusted earnings of $0.19 to $0.20 per share, falling short of the $0.23 analysts anticipated. Revenue guidance also missed the mark, with a projected range of $122.5 million to $124.5 million compared to the $123.8 million consensus.
While the company raised its full-year earnings outlook to $0.95–$1.00 per share, up from its prior forecast, it trimmed its full-year revenue expectations to between $493 million and $499 million, down from $500–$507 million. The mixed signals left investors cautious, leading to the post-market selloff.