PagerDuty, Inc. has appointed Eric Prengel as its new Chief Financial Officer, effective immediately, to oversee its Finance and Business Operations organization as the company enters its next phase of growth. Prengel succeeds Howard Wilson, who is retiring before the end of the second quarter of fiscal 2027, ending July 31, 2026. The leadership transition aims to advance business objectives and strengthen the company's financial and operational strategy.

Prengel will be responsible for all Finance and Accounting Functions, Global Business Operations, Corporate Strategy, Corporate Development, and Investor Relations. His appointment comes at a critical juncture as PagerDuty focuses on scaling its AI-first operations management platform. The company emphasized that his leadership will be instrumental in driving the next phase of growth and operational efficiency.

Howard Wilson, the outgoing CFO, is set to retire before the conclusion of the second quarter of fiscal 2027. His departure marks the end of a significant tenure, though the company has not disclosed specific details about his contributions or future plans. The transition has been structured to ensure continuity in PagerDuty's financial operations and strategic initiatives.

Leadership Transition Details

The appointment of Prengel is part of PagerDuty's broader efforts to align its leadership team with its long-term growth objectives. The company has not provided additional details about Prengel's background or previous roles, focusing instead on his immediate responsibilities and the strategic importance of his role.

PagerDuty, Inc. continues to position itself as a leader in AI-first operations management, with this leadership change reflecting its commitment to strengthening its financial and operational foundation. The company has not announced any further executive changes or strategic shifts at this time.

PagerDuty Inc reported first-quarter revenue of $121 million, a 1% year-over-year increase, driven by the adoption of its new Operations Cloud offering and usage-based pricing model. The company achieved a GAAP net income of $10.2 million, marking its fourth consecutive quarter of GAAP profitability, while non-GAAP operating margin improved to 25%. Annual recurring revenue remained flat at $496 million compared to the previous year.

The company announced a significant leadership transition, with Jennifer Tejada stepping down as CEO to become Executive Chair and John DiLullo taking over as Chief Executive Officer. This change follows a deliberate succession process initiated by the Board. Additionally, PagerDuty completed its authorized $200 million share repurchase program and announced a new $100 million buyback initiative, reflecting confidence in its financial stability.

Financial Performance

PagerDuty's financial results for the first quarter of fiscal 2027 highlighted efficiency gains and solid cash generation. The company reported an operating income of $30 million, representing 25% of revenue, up from $24 million or 20% in the same quarter last year. Cash from operations was $44 million, and free cash flow reached $41 million.

Strategic Developments

The transition to a usage-based pricing model is progressing, with usage-based products now accounting for nearly 10% of total ARR. The new Operations Cloud offering has unlocked value for customers, leading to larger multi-year commitments. For the fifth consecutive quarter, PagerDuty acquired over 600 new customers, growing its total customer base by 14% year over year to over 36,000.

Outlook

Looking ahead, PagerDuty provided guidance for the second quarter of fiscal 2027, expecting revenue between $122 million and $124 million with an operating margin of 22% to 23%. For the full fiscal year, the company projects revenue to range between $488.5 million and $496.5 million, remaining essentially flat year over year. The full-year operating margin is expected to be between 24% and 25%.