PagerDuty, Inc. (NYSE:PD) Q4 2023 Earnings Call Transcript

Matthew Hedberg: Got it. That’s super helpful. Thank you for that. And then Howard could you €“ I appreciate all the color on the guidance. One question for me. Could you remind us again what your exposure from a vertical perspective is to tech spending, maybe financial services these days?

Howard Wilson: Yes. So Matt, we’ve increasingly become more diverse in terms of the industries that we cover. We do have a presence in software and technology and financial services, but also across media and entertainment, travel and hospitality, telecommunications. So that’s a broad base which helps us at least to be able to manage certain movements within those particular industries. So it gives us to some extent a level of resilience, but we are able to prepare for that in terms of being able to focus on those different industries with their specific needs at a point in time.

Matthew Hedberg: Got it.

Jennifer Tejada: Yes. I’d make the point that in some of those verticals you mentioned, what we’re seeing is an increased appetite for automation and a platform that improves productivity. A real effort to look at infrastructure costs and try and remove duplicate costs where you might have point solutions that you could replace with the platform and so our efforts in AIOps in really leveraging AI in our incident response product, when that’s now become more important as our customers are trying to protect revenues, protect customers and subscribers is well timed.

Matthew Hedberg: Got it. Thanks, guys.

Jennifer Tejada: Thanks, Matt.

Operator: Turning next to Joel Fishbein at Truist.

Joel Fishbein: Thank you for taking my question and congrats also on a great execution. Jennifer, you’ve talked about on the call and gave us some good details on some of your big wins in the quarter. Obviously from a go-to-market perspective, you’re stressing the platform. And I think the environment that we’re in right now is very ripe for vendor consolidation. And so I would love to understand what the cadence is on platform sales for you guys, maybe some of the go-to-market things that you’re doing there, and then some of the €“ from a customer perspective, how PagerDuty’s being viewed from a customer perspective maybe €“ versus how it was maybe 18 months ago?

Jennifer Tejada: Yes. I think in some ways our innovation outpaced our branding. And so really building out awareness around our new products and services associated with the broader operations cloud value proposition is something that Katherine Calvert, our new CMO, she’s not really that new anymore. Our CMO is very focused on. And I think what’s important there is that, when you leverage an integrated platform that combines incident response, AIOps, automation along with customer service operations, you get benefit across those teams from every part of the platform. And you also get benefit from the integration of those solutions. So the incident response, flexible workflows inform some of the signal that comes into event intelligence, which allows you to get out in front of some of these issues instead of just responding to them preventing events from becoming major incidents.

Having customer service ops enables customer teams to more effectively communicate and manage situations with their customers, and likewise become part of the incident response process themselves by raising issues or providing input into the incident response. All of this is built in an easy to use sort of seamless platform environment where you don’t have to be a dev to understand how to leverage PagerDuty. And I think that is a big step forward. Some of the other products and services that we built that may not be as obvious, one is the flexibility and the ability to be able to build low-code or no-code workflows opens us up to new use cases, not only within incident response, but enabling customers to work however they want to work even if they’re not a mature DevOps full service ownership shop, they can work the way they need to work.