PagerDuty beats Street estimates, shares soar

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PagerDuty beats Street estimates, shares soar

PagerDuty Inc.'s stock soared more than 10% in extended trading Tuesday after the cloud-computing company reported fiscal third-quarter results that topped Street estimates.

PagerDuty PD reported a net loss of $26.3 million, or 31 cents a share, compared with a net loss of $20.6 million, or 26 cents a share, in the year-ago quarter. Revenue soared 33% to a record $71.8 million from $53.8 million a year ago. PagerDuty sales increased more than 30% year-over-year, for the second straight quarter in a row. PagerDuty Chief Executive Jennifer Tejada told MarketWatch that there are strong signals that we are sustaining a high growth rate. Our product innovation continues to grow as we empower enterprises to deliver superior customer experiences across use cases and departments. Analysts surveyed by FactSet had predicted a net loss of 9 cents a share on revenue of $70.2 million. The company also offered fourth quarter guidance of $75.5 million to $76.5 million in revenue, representing a growth rate of 27% to 29% year-over-year and a net loss of 5 cents to 6 cents a share. FactSet analysts said revenue was $73.7 million and a net loss of 8 cents a share. The Shares of PagerDuty have gone down 19.5% this year, while the S&P 500 Index SPX has gained 25%.