RBC Capital analysts released their outlook on PagerDuty, Inc. (NYSE:PD) ahead of the company’s upcoming Q1/23 earnings announcement, expecting an upside to the Street estimates.
Given strong Q4/22 results, overall momentum and bullish job posting trends, the analysts expect the company to deliver a slight beat to consensus revenue/EPS estimates of $82.6 million/($0.08).
The analysts believe results should continue to benefit from digitization tailwinds aided by an increased focus on automation to deal with broad-based labor shortages.
Looking at the full 2023-year, initial guidance calls for 29% midpoint revenue growth. The analysts think the company is in a good position to deliver over 30% growth as the year progresses.
Ultimately, the analysts would look for durable growth trends and consistent execution toward the $1 billion revenue framework with a 10% operating margin.