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%.

PagerDuty, Inc. has named Ingram Micro as its first and only authorised distributor in Australia, marking a significant expansion of its regional channel strategy. The partnership aims to accelerate the adoption of PagerDuty's AI-powered Operations Cloud platform by leveraging Ingram Micro's established distribution network and Xvantage AI-driven platform. This move is designed to enhance partner enablement, improve procurement simplicity, and accelerate time-to-value for enterprise customers in Australia.

Under the agreement, Ingram Micro will onboard PagerDuty into its Australia line card and cloud marketplaces. Both companies will collaborate on partner recruitment and enablement, focusing on solution bundling with adjacent technologies such as observability and IT operations management tools. This integration will allow solution providers to build customised, resilient operational environments tailored to their needs.

Enterprise customers will benefit from access to PagerDuty technology integrated with complementary solutions across observability, IT service management (ITSM), security, DevOps, and customer service. The alliance addresses the growing need for mature incident management and AI-driven operations across sectors like financial services, healthcare, telecommunications, retail, and eCommerce.

Strategic Impact

The collaboration is expected to improve partner economics and accelerate deal velocity for PagerDuty. By utilising Ingram Micro's expansive network, PagerDuty aims to deliver scalable distribution and deeper enablement to its partners. This will help enterprises build resilience into their digital operations and maintain uptime in increasingly complex, always-on environments.

Key Partnership Details

Callum Eade, vice president of Sales, APAC at PagerDuty, emphasised that Australia is a high-growth, innovation-driven market. He stated that appointing Ingram Micro as the exclusive distributor strengthens PagerDuty's commitment to partners and customers, delivering faster access to its Operations Cloud.