| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 34.21 | 223 |
| Intrinsic value (DCF) | 6.38 | -40 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
PagerDuty, Inc. (NYSE: PD) is a leading provider of digital operations management solutions, empowering enterprises to manage real-time incidents and automate workflows. Founded in 2009 and headquartered in San Francisco, PagerDuty’s AI-driven platform aggregates data from software-enabled systems to detect, analyze, and resolve operational issues proactively. The company serves high-growth industries such as technology, telecommunications, retail, and financial services, helping businesses minimize downtime and enhance efficiency. With a strong focus on machine learning and automation, PagerDuty is well-positioned in the fast-evolving IT operations (ITOps) and DevOps markets. Its cloud-native platform integrates seamlessly with third-party tools, making it a critical component for enterprises undergoing digital transformation. As businesses increasingly prioritize operational resilience, PagerDuty’s role in incident response and workflow automation continues to expand.
PagerDuty presents a compelling growth opportunity in the digital operations management space, driven by increasing enterprise demand for real-time incident resolution and automation. The company’s recurring revenue model and strong cash flow generation ($117.9M in operating cash flow for FY 2024) underscore its financial stability. However, profitability remains a challenge, with a net loss of $42.7M in the last fiscal year. The stock’s beta of 0.993 suggests moderate volatility relative to the market. While PagerDuty operates in a competitive landscape dominated by larger players like ServiceNow, its specialized focus on incident management and AI-driven automation provides differentiation. Investors should weigh its high-growth potential against ongoing losses and competitive pressures.
PagerDuty competes in the IT operations management (ITOM) and DevOps tooling markets, where its primary differentiation lies in real-time incident response and workflow automation. Unlike broader IT service management (ITSM) platforms, PagerDuty specializes in aggregating and analyzing digital signals to predict and resolve operational disruptions. Its machine learning capabilities provide a competitive edge in reducing mean time to resolution (MTTR). However, the company faces intense competition from larger players like ServiceNow (NYSE: NOW), which offers end-to-end ITSM solutions, and Datadog (NASDAQ: DDOG), which provides broader observability features. PagerDuty’s strength lies in its deep integrations with DevOps tools and developer-friendly workflows, making it a preferred choice for tech-forward enterprises. Its ability to scale with high-velocity environments (e.g., cloud-native applications) gives it an advantage over legacy monitoring tools. Nevertheless, the lack of broader IT infrastructure management features limits its appeal to organizations seeking consolidated platforms. PagerDuty’s future growth hinges on expanding its AI/ML capabilities and upselling automation features to existing customers.