Shares of incident response platform provider PagerDuty Inc. fell almost 5% in after-hours trading today after it projected a net loss for the next year that’s larger than Wall Street’s view.

That came despite a strong fiscal fourth-quarter performance that saw the company beat expectations on earnings and revenue.

The company reported a loss before certain costs such as stock compensation of $5.8 million, or 7 cents per share, on revenue of $59.3 million, up 29% from a year ago. Analysts had expected PagerDuty to report a wider loss of 11 cents per share on revenue of $57.5 million.

For its full fiscal 2021, PagerDuty reported revenue of $213.6 million, up 28% from a year ago. It said that its net loss for the year came to $68.9 million, compared with $50.3 million the year before, amounting to a net loss per share of 87 cents.

PagerDuty serves enterprises with a cloud-based platform that’s used to alert developers and engineers to any technical issues with their applications and infrastructure platforms. It also provides tools that can be used to troubleshoot those issues as quickly as possible.

PagerDuty founder and Chief Executive Jennifer Tejada (pictured) said the company had delivered an “outstanding” quarter amid what was an unparalleled year. “During fiscal 2021 we continued to see strength in the enterprise and mid-market, with total dollar-based net retention of 121% and enterprise dollar-based net retention above 125% exiting the year,” she added.

The company reported strong expansion among its enterprise customers, saying that around a third of those had expanded their use of its platform during the quarter. That’s the eighth successive quarter in which that has happened, it said.

Customers such as Dropbox Inc., Morgan Stanley, Netflix Inc. and Slack Technologies Inc. all expanded their use of the PagerDuty platform during the quarter.

In another encouraging development, the company said its cash flow from operations rose to $3.4 million in the quarter, up from $1.8 million in the same period last year. Meanwhile, its full-year cash flow swung from a net loss to a net positive of $10.1 million.

In a separate announcement today, the company revealed that it’s planning to expand its hosting options for customers with a new European region for data assets based on Amazon Web Services. It said that the region, which will go live in the second half of this year, would provide European customers with improved service reliability, redundancy and availability while helping them comply with regional data governance regulations.

“We take data protection very seriously and work with all our customers in the EU and throughout the world to address their needs and concerns while also complying with local policies such as the GDPR,” PagerDuty Chief Product Officer Sean Scott said.

Holger Mueller, an analyst with Constellation Research Inc., told SiliconANGLE that 30% revenue growth is never a bad result for a software company such as PagerDuty.

“PagerDuty is benefiting from the enterprise shift to the cloud. As more of them use cloud-based applications the company is a natural winner,” Mueller said. “But PagerDuty still needs to pay attention to profitability, and its executive team will have to come up with a better strategy and show results in 2021 to impress its investors.”

For the current quarter, PagerDuty is forecasting a net loss of 9 to 10 cents per share on revenue of $61 million to $63 million. That compares with Wall Street’s forecast of a 7-cent-per-share loss on revenue of $60.7 million.

For the full year, the company sees a net loss of 36 to 43 cents per share on revenue of $264 million to $270 million. Wall Street had forecast a full-year loss of just 22 cents per share on revenue of $263 million.

Photo: SiliconANGLE