Pagerduty Inc (NYSE:PD) stock rallies 15.97% (As on March 14, 11:30:58 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings results that surpassed analysts’ expectations. The company has reported annual recurring revenue of $494 million, up 9% from a year earlier. Meanwhile, its number of customers that generate at least $100,000 in annual revenue ticked up by 6%, to 849. Its number of total paying customers also increased, rising to 15,114 from 15,039 in the year-ago quarter. Dollar-based net retention rate was 106% as of January 31, 2025, compared to 107% in the prior year. Free and paid customers totaled more than 31,000 as of January 31, 2025 representing approximately 10% growth year over year. Remaining performance obligations were $440 million as of January 31, 2025. Of this amount, the Company expects to recognize revenue of approximately $302 million, or 69%, over the next 12 months with the balance to be recognized as revenue thereafter. Net cash provided by operating activities was $31.4 million, with free cash flow of $28.6 million. Cash, cash equivalents, and investments were $570.8 million as of January 31, 2025.

Meanwhile, the company has announced upcoming Agentic AI offering including Agentic Site Reliability Engineer, Operational Insights, and Scheduling Optimization Agents as well as AI use case library. the company has introduced new generative AI and automation features of PagerDuty Advance, which is embedded across the PagerDuty Operations Cloud platform, in collaboration with Amazon Web Services.

PD in the fourth quarter of FY24 has reported the adjusted earnings per share of 22 cents, beating the analysts’ estimates for the adjusted earnings per share of 16 cents. The company had reported the adjusted revenue growth of 9.3 percent to $121.4 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $119.53 million. The company delivered Non-GAAP operating income of $22.3 million and non-GAAP operating margin of 18.3%.

For the quarter in progress, PagerDuty is looking for earnings of 18 to 19 cents per share on revenue of $118 million to $120 million. Wall Street is eyeing 19 cents in earnings on $121.2 million in sales.

For the full year fiscal 2026, PagerDuty sees total revenue of between $500 million and $507 million, trailing the Street’s estimate of $510.6 million.

Additionally, the company has also announced a new $150 million share repurchase program, reflecting confidence in its long-term strategy and market opportunity.