PagerDuty sells business software for managing digital operations
PagerDuty (PD) is another Silicon Valley technology startup that went public in April. Its stock popped nearly 60% on its first trading day, making it one of the brightest tech startup IPOs this year. Zoom (ZM) and Pinterest (PINS), the other Silicon Valley tech startups that went public in the month, soared 28% and 72%, respectively, on their first trading days.
PagerDuty is one of the few business software companies that have gone public in the United States so far in 2019. Its software helps companies’ technical teams to quickly identify problems with applications and fix them to avoid service outages. PagerDuty disclosed in its IPO filing that it served more than 10,000 customers, citing names such as Box (BOX) and Slack. Box uses PagerDuty’s platform to ensure that its services are always available to customers.
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PagerDuty estimates its market at over $25 billion
PagerDuty estimates its addressable market to be worth more than $25 billion. The company generated revenue of $117.8 million in fiscal 2019, which ended in January, up from its revenue of $79.6 million in fiscal 2018. However, the company is still in the red. It saw a loss of $40.7 million in fiscal 2019 compared to its loss of $38.1 million in fiscal 2018.
PagerDuty’s competitors in the business of selling software for managing digital operations include Splunk (SPLK) and Atlassian (TEAM). Splunk recorded revenue of $622.1 million in the quarter that ended in January, representing an increase of 35.3% YoY (year-over-year). Revenue rose 38.2% YoY at Atlassian in the quarter that ended in March.