Shares in PagerDuty Inc. rose in late trading after the application observability platform provider topped earnings and revenue estimates in its most recent quarter.

For its fourth quarter that ended Jan. 31, PagerDuty reported a profit before costs such as stock compensation of eight cents a share on revenue of $101 million, up 29% year-over-year. Analysts had expected an adjusted profit of six cents a share on revenue of $99.1 million.

Operating cash flow in the quarter came in at $17.6 million, free cash flow at $15.6 million, and cash and equivalents on hand sat at $477 million as of the end of January. PageDuty hit 15,244 customers as of the end of the quarter, up from 14,865 at the same time last year.

The company saw customer growth across the board, with 752 customers with annual recurring revenue of more than $100,000, up from 594 a year ago. The number of customers with an ARR of $1 million or more came in at 50, up from 43. The company’s dollar-based retention rate sits at 120%, down slightly from 124% but still an indication it’s getting more revenue from existing customers.

Highlights in the quarter included the launch of PagerDuty Status Pages, a service that allows PagerDuty customers to communicate status updates with their customers while keeping both internal technical teams and customer service teams informed.

“Land and expands,” new customers and expanded contracts in the quarter included Carrefour SA, International Business Machines Corp., Recruit Holdings Co. Ltd., Proofpoint Inc., Trimble Inc. and Workday Inc.

For its full fiscal year 2023, PagerDuty reported adjusted earnings per share of seven cents on revenue of $370.8 million, the latter up 32% year-over-year.

“PagerDuty had another strong year where we grew revenue 32% year-over-year and achieved non-GAAP profitability a year ahead of plan,” Jennifer Tejada, chairperson and chief executive officer at PagerDuty, said in the company’s earnings release. “In Q4 PagerDuty achieved our first-ever $100 million quarter and surpassed $400 million in annual recurring revenue. We continue to combine durable growth with operating margin expansion and innovation.”

For its outlook, PagerDuty expects earnings of nine to 10 cents a share in its first quarter of fiscal 2024 on revenue of $102 million to $104 million. Analysts had expected three cents and $104.82 million. For the full fiscal year, the company predicted adjusted earnings of 42 to 50 cents a share on revenue of $446 million to $452 million versus an expected 20 cents and $451.43 million.

The two outlooks were a mixed bag, with PagerDuty solidly beating earnings outlook but missing on revenue. Despite two small misses, investors focused on the positive results and strong earnings outlook, with shares in PagerDuty up nearly 5% after the bell.

Image: PagerDuty