Pagerduty Inc (NYSE:PD) stock fell 1.43% (As on June 5, 11:42:34 AM UTC-4, Source: Google Finance) after the company received a downgrade from Buy to Hold by Craig-Hallum analyst Chad Bennett. Bennett also announced a new price target of $26 for the company’s stocks.

Moreover, the company has reduced its outlook amid broader macroeconomic issues in the economy. For its fiscal first quarter that ended April 30, PagerDuty reported earnings before costs such as stock compensation of 20 cents per share, up from a loss of four cents per share in the same quarter of last year. Revenue rose 21%, to $103.2 million. Analysts had expected earnings per share of three cents in the quarter on revenue of $103.22 million. As of the end of April, PagerDuty had $495.1 million in cash, cash equivalents and current investments, up from $467.5 million the year prior. The company saw its number of paying customers increase to 15,040, up from 13,918, and customers with annual recurring revenue over $100,000 totaled 655, up from 458 the year before.

For its second quarter of fiscal 2024, the company expects an adjusted profit of 10 to 11 cents on revenue of $103.5 million to $105.5 million, a mixed result as analysts had expected nine cents and $108.6 million. The full fiscal year outlook was also mixed, with the company expecting earnings of 60 to 65 cents per share on revenue of $425 million to $430 million. Analysts had forecast 44 cents and $448.3 million.

The lower-than-expected revenue outlooks were attributed to the broader economy. In an interview, PageDuty Chief Financial Officer Howard Wilson told MarketWatch that “this economic environment is uncertain, but we have a strong business and the economic environment will improve.

Additionally, Highlights in the quarter included PageDuty launching its AIOps solution into general availability to provide greater incident automation capabilities to DevOps and information technology teams by reducing noise and labor. The AIOps solution includes tools that provide event correlation capabilities, noise compression and triage context capability to make it easier to cut through data and see what’s happening during an incident, according to the company. Other highlights included PageDuty launching three generative AI-supported capabilities for the PagerDuty Operations Cloud: status updates, incident postmortems and process automation. Called “GenAI,” the service is said to bring consumer-style simplicity to enterprise-grade automation. Cash, cash equivalents and current investments were $495.1 million as of April 30, 2023.