Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. PagerDuty is an IT alert and incident management application from the company of the same name in San Francisco. With that, I'll turn the call over to Howard, and I look forward to your questions. It does not store any personal data. You can read more about how we did that at PagerDuty. I'm going to see if I can get to them all here. The overall concept is to notify those who need to know at the right time and then build in backups so nothing falls through the cracks. This was particularly pronounced in the back half of the quarter where more deals were pushed, deal size has decreased, and conversion rates came under pressure compared to our historical trends. As I mentioned earlier, our mission to revolutionize operations is unchanged. relying on a formal decision by the European Commission that a certain country ensures an adequate level of protection for personal data (a full list of such decisions may be accessed online here: entering into appropriate data transfer agreements based on language approved by the European Commission, such as the Standard Contractual Clauses (2010/87/EC and/or 2004/915/EC), which are available upon request at privacy@pagerduty.com; implementing appropriate physical, technical and organizational security measures to protect Personal Data against accidental or unlawful destruction, accidental loss or alteration, unauthorized disclosure or access, and against all other unlawful forms of processing; and. I then set up incident escalation so that if I didn't respond from the first alert within 10 minutes and secondary responder would be emailed. Regarding your pipeline for other new use cases such as SecOps, customer support, marketing, IoT, et cetera, what do you view as the most compelling with the most immediate market opportunity? We continue to win in financial services during the quarter, where the strength of our integrated Operations Cloud platform displaced point solutions for an enterprise in the midst of a multiyear cloud transformation.Standardization of PagerDuty at this customer increased ARR to over $1 million. As required by applicable law, PagerDuty, Inc. will provide an adequate level of protection for your personal data using various means, including, where appropriate: Any onward transfer is subject to appropriate onward transfer requirements as required by applicable law. So I kind of want to dive a little bit deeper into some of what happened here and what transpired throughout the quarter. You have a right to request from PagerDuty access to and rectification or erasure of your personal data or restriction of processing concerning you, as well as the right to data portability under the EU GDPR. But certainly, the value that we deliver is clearly evident. What is incident response? PagerDuty is an excellent incidence response and alerting service that is both straightforward and powerful and will make sure that every member of your team stays in the loop regarding IT infrastructure status. I saw the use cases you put out on your blog earlier today. You can move integrations between as many services as needed, as many times as needed and all incidents tied to that integration will follow. PagerDuty reduced its guidance for the fiscal year ending January 2024, as macroeconomic concerns lead to buyer hesitation, more scrutiny, and smaller deal sizes. Connect with talented users and find innovative ways to expand the power of PagerDuty. When it comes to keeping your business's lights on, you need to manage and orchestrate your operational activities, prioritize high-impact and urgent work, and maintain day-to-day precision. Free and paid companies on our platform grew to over 25,000, an increase of approximately 19% compared to Q1 of last year. Yes. To me, it feels like it could be an easier on-ramp for customers taking it, maybe some customers spend more, some less. But just kind of the broader picture of Generative AI being a pretty significant tailwind to developer productivity in general. Sign In. And then Howard, I had a follow-up for you. "CEO Jennifer Tejada just took PagerDuty public; we talked about the roadshow, the IPO and what comes next", "How This Company Hopes to Make $100 Million From Your Glitchy Website", "PagerDuty, Inc. Form 10-K year ending January 31, 2022", "Okta Customer Research Finds Office 365 Most Used Cloud Service", "PagerDuty Brings Machine Learning to Management Platform", "Forbes Cloud 100: Meet the Hottest Companies in Cloud Computing for 2017", "New Cloud Unicorn: PagerDuty Scores $1.3 Billion Valuation In $90 Million Round", "PagerDuty - A Successful Start-up Founded by Software Grads", "PagerDuty Raises $10.7M Round From Andreessen Horowitz For IT Alert Service Modeled On AWS System", "Seeking more enterprise clients, PagerDuty takes $10.7M in funding", "Mutual Fund Giants Make DevOps Startup PagerDuty a Unicorn", "Application Health Monitoring Platform PagerDuty Lands $43.8M Funding", "IT's Best Friend: PagerDuty raises $27.2M Series B to Help All Companies Manage Infrastructure Like Amazon", "PagerDuty's CEO Jennifer Tejada on Selling Software and Demanding Diversity", "PagerDuty Bolsters Platform and Integrated Workflow at PagerDuty Summit 2016", "Digital Transformation Top of Mind at PagerDuty Summit 2016", "The PagerDuty Summit 2017 Will Focus on 'Ops Reimagined', "PagerDuty Summit 2018 brings big changes", "PagerDuty raises $43.8million to help businesses streamline digital operations", "PagerDuty incident response tools loop in business stakeholders", "PagerDuty Visibility and PagerDuty Analytics Released", "PagerDuty pops nearly 60% in debut as tech IPO market heats up", "PagerDuty Completes Acquisition of DevOps Automation Leader and Innovator Rundeck", "PagerDuty CEO Quotes Martin Luther King Jr. in Layoff Email", "CEO faces backlash after quoting Martin Luther King Jr. in announcing layoffs", https://en.wikipedia.org/w/index.php?title=PagerDuty&oldid=1158078702, Software companies based in the San Francisco Bay Area, Companies listed on the New York Stock Exchange, Pages with non-numeric formatnum arguments, Short description is different from Wikidata, Official website different in Wikidata and Wikipedia, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 1 June 2023, at 21:20. Obviously, there's a lot of noise, a lot of fundraising going on right now. The multimillion dollar ARR contract includes 3 Operations Cloud products, incident response, AIOps and process automation. Cookie preferences can be changed by clicking here. I admit it, I'm in love with PagerDuty. Year-over-year operating margin expanded by more than 1,800 basis points as we balance growth with profitability in an increasingly challenging macro environment. What is PagerDuty? [17] Later that year, the company held its first PagerDuty Summit, an industry conference. Summary metrics are also provided that show the mean time to acknowledge, the mean time to resolve, the number of escalated incidents, and more. Add this number to your phone to make sure you always receive your alerts." THESE WEBSITE TERMS OF USE (TERMS) CONTROL YOUR (YOU OR YOUR) ACCESS TO THE PAGERDUTY, INC. (WE, OUR OR US) WEBSITE. Working with PagerDuty Logging into PagerDuty, I was struck by how straightforwardthe interface looked. PagerDuty is an incident management platform that uses artificial intelligence to provide DevOps insights to respond to dow-times and critical disruptions in service. This copy is for your personal, non-commercial use only. Read more PagerDuty | A guide from Mid Career Create/update/delete the teams. Next, we will hear from Tim Jausovec. [14][15][16], In July 2016, the former CEO of Keynote Systems, Jennifer Tejada, was named CEO of PagerDuty. How is AlertOps saving money for their users? To create a notification channel by using the Google Cloud console, follow the channel-specific instructions contained in the following table: We've seen the percentage of pipeline that shifts, and we've had to look at what the conversion rates look like. The notifications that I received via email and SMS were similar, with the email alert also containing a link to the PagerDuty site so that I could see more information. PagerDuty PagerDuty is a cloud software that connects people, systems, and data into a single view - creating visibility and actionable intelligence across their operations. PagerDuty was early in building a foundational data model to support our customers in moving from simply responding faster to issues to proactively preventing them from becoming major business and financial disruptions. You may update your Cookie preferences anytime here. For example, an organization could have a team that gets notified for server incidents and another team that gets notified for security incidents. Given our revised expectation for pipeline conversion rates, we now expect DBNR to be at or above 110% for the remainder of this fiscal year. PagerDuty has registered its compliance with the EU-U.S. Privacy Shield Framework and the Swiss-U.S. Privacy Shield Framework and is awaiting final confirmation by the US Department of Commerce. Every page in the portal includes at least one link to context sensitive help. On-call schedules can be layered on top of each other so you can see where they overlap, and a calendar appears on the schedule management page that clearly shows on-call schedules and overlaps. Okay. Excellent Customer Service means excellent customer experience, even during incidents. As I mentioned, entering the quarter with more ramp reps than in the past with a stronger pipeline than we have in the past. We see a vast number of use cases for Generative AI across the Operations Cloud that will increase efficiency, improve team productivity and delight users.Today, we announced early access for 3 use cases, including AI-generated status updates, incident postmortems and process automation. The discount retailer's first-quarter profit beat . We continue to speed the innovation, and we've frankly never been in a better competitive position. All Rights Reserved. The real meat to PagerDuty resides within the configuration menu, which includes options for schedules, services, escalation policies, users, and teams. And then like I said, I think not only does Generative AI expand our TAM overall because more software, more complexity, more need for DevOps, more need for automation. A new incident. Straightforward incidence response and alerting service eases the communications burden for IT infrastructure management teams. Q1 gross margin of 87%, above our target range of 84% to 86% was driven by infrastructure cost optimization and improved headcount utilization. In anticipation of continued pressure on the SMB segment, we're revising our total paid customer growth expectations to low single-digit growth by the end of the year. With that, I'll turn the call over to Jennifer. Okay. This can apply to creating a service with a scope so large that the knowledge necessary to support it is beyond what's contained within the team. PagerDuty is essential infrastructure that ensures all unplanned, time-sensitive work is detected, diagnosed, and resolved. Data Retention. What Is a PagerDuty Service? And one of the things that's really exciting to me is that our customers are already experimenting with how to use Generative AI alongside or in complement to our products.So I think there could be an explosive nature in use cases that comes from development not just be limited to us but others building on the platform. So I really do think it's a net-net tailwind. Automate, orchestrate, and accelerate responses across your digital infrastructure. Our definition is this specific because it refers to an infrastructure composed of distinct services that are written as separate pieces of code, but it also applies to parts of our monolithic codebase and even to external tools. There are three Twitter accounts that PagerDuty uses: This is our general-purpose account. Our long-term strategy and value proposition are increasingly relevant as our customers struggle to cross the operations CASM and address technical debt while their customers demand perfection in every digital moment.Even as companies focus on cost containment and efficiency, we see event volume continuing to rise and very high utilization rates across our installed base of over 15,000 paid accounts. Each user gets assigned notification rules; they can be alerted on new or changed incidents and when their on-call period starts by email, phone call, or SMS. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. Delete certain personal information we have about you. Is it net-net a tailwind or a positive? So I'd like to get your sense on how that transition to Jeremy is going to the extent in which that created potentially any disrupt at enterprise, which, of course, is always a fear when you have this. Entities can be applications, micro-services in an applications architecture or cross-cutting shared infrastructure (such as networks, security, etc.). You can exercise such rights by accessing the information in your account, submitting a request here, and/or by emailing privacy@pagerduty.com. Introduction Overview of the PagerDuty platform and the best alternative to PagerDuty What is PagerDuty? What is the PagerDuty Operations Cloud? SMB, which represents a high percentage of our customer mix, but only 20% of our ARR saw higher than historical churn with customers primarily moving to homegrown or free solutions. If an integration is no longer needed, it can be deleted from the service. This website uses cookies to improve your experience while you navigate through the website. This compares to the range previously provided of $446 million to $452 million. All other plans may have unlimited escalation policies. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. Provide the services and customer service, Analyze use of and personalize the services, Provide security, prevent fraud, and for de-bugging, Law enforcement in the event of a lawful request, With entities in the event of a business transaction. You can use the Online Services without consenting to cookies that are not strictly necessary or direct marketing emails; the only consequence is that our Online Services will be less tailored to you or you will not receive our marketing emails. In general, you have the right to object to our processing of your personal data for direct marketing purposes. So our expectation is that as we look through the rest of this year, we've built some conservatism into that guide, expecting that things would stay the same or get worse, and that then gives us confidence in the range that we provided of the $425 million to $430 million for the year. The service can be configured to deliver alerts by phone call, email, text, or via iOS and Android apps, complete with delivery confirmation and automatic re-routing. PagerDuty receives events from your monitoring systems and can then create incidents in different ways. The other thing we've done is improved our global event orchestration, which means these centralized teams can manage events across many parts of the business across the infrastructure at a much higher reliability and scale than a single developer managing their particular service. Okay. This copy is for your personal, non-commercial use only. Obviously, in this environment, people are looking at price carefully. Could you speak to what are the potential catalysts for customers to convert over the next couple of quarters versus continued to post spending and will be getting more visibility on the macro environment? More broadly, the foundational data model that we've developed over a decade positions us well to continue to leverage AI and machine learning across the platform to automate solutions to big challenges, where our customers are seeking productivity and efficiency.Ultimately, we see Generative AI expanding our TAM because more software is generated faster, increasing the complexity and the volume of the software ecosystem, widening the digital operations CASM and driving a greater need for PagerDuty's Operations Cloud. Through its SaaS-based platform, PagerDuty empowers developers, DevOps, IT operations and business leaders to prevent and resolve business-impacting incidents for exceptional customer experience. So if you look at where we ended for the full year last year, those are the 2 lines that you would expect to see the most improvement while we try and keep the R&D plan at the same level. In this module, well walk you through the creation of a service and its integrations. Provide you with information about the financial incentives that we offer to you, if any. It helps drive changes across your people, technology, and operational processes to ensure your cloud migration journey is painless . Within five seconds, I received incident notifications by phone call, SMS, and email. What's within our control is enabling our sales force to adapt to a new way of buying, a buying that is more centralized, somewhat more rigorous to anticipate more approvals and higher level approvals for even smaller purchases.It also enables -- it also means that we've had to adapt our marketing to think about our coverage ratios from a pipeline perspective and make sure that we have more coverage than we would have historically needed to get to our targets again in every segment. Our tech lead has continued to grow. From observability to cloud infrastructure to customer service, PagerDuty can easily fit into and augment any teams toolkit. This cookie is set by GDPR Cookie Consent plugin. Installation Sign up was very easy and merely required my email address and a password. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. PagerDuty's advanced analytics help identify hotspots and team performance trends. If we are unable to verify you through this method, we shall have the right, but not the obligation, to request additional information from you. Your privacy is of the utmost importance to PagerDuty, Inc. (PagerDuty or we) and we take our obligations regarding your privacy seriously. We may link the information we store in cookies or through other mechanisms to the PII you submit while using our Online Services. Don't worry about dependencies between services at the beginningfocus instead on whether something represents something you and your team are responsible for. If you choose to disable cookies, be advised that some components of our Online Services may not work properly. In what continues to be an uncertain economic environment, I would like to thank our customers for their loyalty and continued partnership.Our expanding Operations Cloud offerings that help our customers transform critical work, our high retention rates and demonstrated operational efficiency put us in a strong position for the long term. Using accredited data centers, availability zones, and cloud suppliers makes it simple to protect your data. So we are being somewhat conservative in our guidance. . Matthew D. Sarrel, CISSP, is managing director for CMG, a worldwide organization of IT performance and scalability professionals. You can review this information on a services Integrations tab under Alert and Incident Settings. For example, a team of 100 would cost your business$46,800/yearfor PagerDuty Businessvs. $27,600/yearfor AlertOps Enterprise. And the funny thing is when we look across all of our customers, whether they're enterprise, mid-market or SMB, they're at widely varying points in the operational maturity curve. I was wondering relative to the outlook you provided in March, your conversion rate has decreased as customers which have spending. This newsletter may contain advertising, deals, or affiliate links. We did anniversary in March, some of the price increases that we introduced about a year ago. Read the post I was then prompted to send a test alert via SMS, phone, and email. I thought you had said in your prepared remarks that you did make some operational adjustments as a result of the new lowered outlook. Just to take a step back, a bigger picture and give us your thoughts on the how Generative AI is going to impact the industry? taking other measures to provide an adequate level of data protection in accordance with applicable law. If one team owns the monolith, they usually don't own any other services unless the on-call load for the monolith is low. So those were mainly adjustments that we're making from a go-to-market perspective in recognition of conditions essentially being worse for us in Q1 than they were in Q4. Describe your customer service philosophy in the support that you would provide. This Supplemental GDPR Privacy Statement does not cover any other data collection or processing, including, without limitation, through other PagerDuty websites or online services that do not display a direct link to this Supplemental GDPR Privacy Statement, or through third-party websites. Our Website, Services and Apps are collectively referred to in this Privacy Policy as our Online Services. And I can maybe just jump on the pricing side of things, Rob. Please also note that if your personal information has been collected by PagerDuty as a result of a Customers (as defined above) use of our services, PagerDuty collects and maintains your personal information under the directions of the relevant Customer. So Gabriel, we still would be thinking about gross margin being in our target range, which is 84% to 86%. PagerDuty recommends that you query the incidents through their API instead of exporting reports. That was a lot of questions. If a service has an Events API v2 integration, it will not be able to Create incidents only. In updating our guidance, we have factored in continued macroeconomic volatility manifested in constrained buying behavior, which leads to longer sales cycles and smaller than historical purchases.For the second quarter fiscal 2024, we expect revenue in the range of $103.5 million to $105.5 million, representing a growth rate of 15% to 17%. You can, If you do not want to add an integration, click, If you chose to add an integration to your service, you will now be in the services. And really, this was driven by feedback that we got from our customers over the course of the last several quarters. Monoliths tend to be the cause of a lot of incidents, both actionable and non-actionable. That were very interesting. The display of third-party trademarks and trade names on this site does not necessarily indicate any affiliation or the endorsement of PCMag. But it also applies to scoping a team in a way that is too small. If a third-party service provider providing services on PagerDutys behalf processes such PII in a manner inconsistent with the Privacy Shield Principles, PagerDuty will be liable unless we can prove that we are not responsible for the event giving rise to the damages. And we talked about two earlier in the prepared remarks, where the actual cost pressure and the margin pressure to do more with less is actually, in some cases, the impetus for a customer to engage with us and expand their deployment from pure incident response to include the benefit of AI and -- in our AIOps product and automation. And we do talk to you all every quarter, but I think about what is the value I'm driving for my customers over the long haul. This implies an operating margin of 11% to 12%. Next, we'll hear from Chad Bennett with Craig-Hallum. Our mission remains unchanged to revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world. PagerDuty is an incident management platform used to help teams quickly detect and fix infrastructure problems. It was a quarter with significant Operations Cloud product, innovation releases each month with general availability of flexible workflows in February, cloud-based process automation in March and the next version of our AIOps solution in April, which provides complex support for both developers and centralized ITOps teams. Just Launched: Generative AI for the PagerDuty Operations Cloud. You should also check this account in the event of downtime. Ready to Get Unmatched Customer Support,More Features, andSave Up to 41%? And how PagerDuty is positioned to deal with that? You may unsubscribe from the newsletters at any time. I think it's a more is more sort of a tail -- it is definitely a tailwind because I think my experience with developers, and I've spent a lot of time with developers is if you make them more efficient, they just build more interesting, more stuff, right? It collects alerts from your monitoring tools, gives you an overall view of all of your monitoring alarms, and alerts an on duty engineer if there's a problem. To edit an integration that exists on a service: You may wish to rotate an integration key, either as part of routine security or if it becomes compromised. You can add more than one integration on a service, which allows you to represent the actual entities you are monitoring, managing and operating as services in PagerDuty. When you access, use or register for our Online Services, you form a contract with us based on the applicable terms of use or terms of service, and PagerDuty needs to process your personal data to provide the requested Online Services. We adhere to the EU-U.S. Privacy Principles and Swiss-U.S. Privacy Principles with respect to the personal data of residents of the European Economic Area (EEA) and Switzerland respectively who access and use our Online Services and whose personal data we collect in reliance on each Privacy Shield Framework. Our social impact continued in Q1 this year as well. And some of these are multiples of what they would have been a year ago.And so we've adjusted accordingly to be able to take that into account. For your organization, a key first step is to come to a shared understanding of the boundaries of a given service and to figure out who its key stakeholders are. Learn how to align the business needs with technical needs when severe technical incidents occur. If you are accessing the Online Services from a member state of the EEA, this Supplemental GDPR Privacy Statement applies to you. The answers are out there, and we are here to help. Under Nevada law, certain Nevada consumers may opt out of the sale of personally identifiable information for monetary consideration (as such terms are defined under Nevada law) to a person or that person to license or sell such information to additional persons. What is PagerDuty? When issues can cost millions, dont put your business at risk. I know you were clear in most of the cost actions that you guys had done -- were done back in January. Its everything an MSP needs in 1 simple bundle. And it means, I think, a step change in difficulty in managing the technology ecosystem, which is already fraughtless technology debt today. Free accounts on our platform grew by 65% year-over-year. Take the following steps to help create that shared understanding: Define the team that will own the service. Got it. When an integration is deleted, PagerDuty does not remove the incidents. The cookie is used to store the user consent for the cookies in the category "Performance". Facebook But I'm just wondering if, net-net, it's a tailwind. IT teams and business stakeholders may get the unified perspective and comprehensive insight they need to align both technical and business incident response promptly. Please check for notes on requirements in the intro of the Integration Guide. We also receive some data in reliance on other compliance mechanisms, including data processing agreements based on the EU Standard Contractual Clauses. So the operational adjustments were really -- were not associated with any changes from a headcount perspective. We recognize from experience, one of the challenges for AI in our space is that our customers expect a very high level of signal fidelity, accuracy of work orchestration and automated actions.