PagerDuty, Inc. (PD): history, ownership, mission, how it works & makes money

A Brief History of PagerDuty, Inc. (PD)

Foundation and Early Years

PagerDuty, Inc. was founded in 2009 by Alex Solomon, Andrew Miklas, and Luke Kanies. The company was established to address the need for improved incident management and response in the IT and DevOps sectors. Initially, it provided a cloud-based platform that helped IT professionals respond to outages swiftly.

Funding and Growth

PagerDuty gained significant attention and funding in its early years. In 2010, the company secured a seed investment of $1.3 million led by Y Combinator. Over the years, it raised a total of $173 million across multiple funding rounds from investors including Andreessen Horowitz, Costanoa Ventures, and Accel Partners.

Acquisition of Major Customers

By 2015, PagerDuty had established itself as a leader in incident response services, attracting major clients such as Netflix, Spotify, and Salesforce. The platform supported over 10,000 customers worldwide, emphasizing its capability to scale with enterprise needs.

Public Offering

On April 11, 2019, PagerDuty went public, trading on the New York Stock Exchange under the ticker symbol PD. The initial public offering (IPO) was priced at $24 per share, raising $218 million at a valuation of approximately $1.9 billion.

Financial Performance

Strategic Initiatives

In 2020, PagerDuty launched several strategic initiatives aimed at enhancing its platform capabilities. This included the introduction of PagerDuty's Data Visibility and Automation features, allowing organizations to leverage data analytics for incident response and operational efficiency.

Market Position and Competitors

As of 2023, PagerDuty holds a significant market share in the incident response market, competing with firms such as Opsgenie, ServiceNow, and XMatters. The company continues to expand its offerings to maintain its position as a leader in incident management.

Recent Developments

In September 2023, PagerDuty announced the acquisition of Rundeck, a company specializing in operations management tools, for approximately $100 million. This acquisition is expected to enhance PagerDuty's capabilities in automation and orchestration.

Stock Performance

Community and Corporate Social Responsibility

PagerDuty is also known for its commitment to corporate social responsibility, including initiatives aimed at supporting diversity, equity, and inclusion within the tech community. The company actively participates in outreach programs and partnerships with organizations focused on social impact.

A Who Owns PagerDuty, Inc. (PD)

Ownership Structure

PagerDuty, Inc. (PD) is publicly traded on the New York Stock Exchange under the ticker symbol "PD." As of the most recent filings, the ownership of the company includes both institutional and individual investors.

Major Institutional Investors

Board of Directors

The board of directors plays a crucial role in the governance of PagerDuty, Inc. Key members include:

• Jennifer Tejada (CEO)
• David T. McJannet (Director)
• Ranjan K. M. Chatterjee (Director)
• Thomas P. Gibbons (Chair)
• Patricia Hatter (Director)

Recent Shareholder Meetings

In the most recent shareholder meeting held in May 2023, the following key decisions were made:

• Approval of executive compensation packages totaling $12 million.
• Approval of the issuance of additional shares amounting to 2 million shares.
• Re-election of board members with over 90% shareholder support.

Recent Stock Performance

As of October 2023, PagerDuty’s stock price is approximately $47.50, with a year-to-date performance indicating:

• Opening price (January 2023): $35.00
• 52-week high: $55.00
• 52-week low: $28.00
• Market capitalization: $4 billion

Current Financial Metrics

Employee Ownership

Within the company, employee ownership accounts for approximately 5% of the total shares, representing a significant portion of stock options granted over the years, estimated to amount to 2 million shares.

Recent Acquisitions

PagerDuty acquired the analytics company "OpsGenie" for approximately $300 million in 2022, enhancing its service offerings.

PagerDuty, Inc. (PD) Mission Statement

Mission Statement Overview

PagerDuty, Inc. aims to revolutionize incident management and empower teams to focus on delivering exceptional digital experiences. The core mission emphasizes creating a culture of operational excellence.

Core Values

• Customer Focus: A commitment to understanding and serving the needs of customers.
• Innovation: Continuous improvement and creativity in solutions offered.
• Teamwork: Fostering collaboration across teams to achieve shared goals.
• Integrity: Upholding transparency and ethical standards in all operations.
• Diversity and Inclusion: Valuing diverse perspectives and encouraging an inclusive environment.

Financial Performance

As of the fiscal year ending January 31, 2023, PagerDuty reported the following financial metrics:

Market Position

As of October 2023, PagerDuty holds a significant market presence in the IT incident management sector, with a market capitalization of approximately $1.5 billion. The company continually innovates its platform to maintain a competitive edge.

Customer Base

PagerDuty serves a diverse range of clients across various sectors, including:

• Technology
• Healthcare
• Retail
• Finance
• Government

Notably, over 15,000 organizations utilize PagerDuty's solutions, including notable clients such as:

• Netflix
• IBM
• American Express
• NASA
• Salesforce

Employee Statistics

As of 2023, PagerDuty employs approximately 800 individuals globally. The company focuses on fostering a dynamic work environment with an emphasis on professional development and employee satisfaction.

Commitment to Sustainability

PagerDuty has implemented initiatives focused on sustainability, including:

• Reduction of carbon footprint through remote work policies.
• Investment in renewable energy sources for office locations.
• Engagement in community support programs.

Conclusion on Mission Statement Impact

The mission statement of PagerDuty, Inc. drives the company’s strategic goals, growth initiatives, and overall vision. By adhering to its core principles and focusing on delivering value, PagerDuty positions itself as a leader in the incident management space.

How PagerDuty, Inc. (PD) Works

Company Overview

PagerDuty, Inc. is a leader in digital operations management, providing a platform that helps organizations manage their incident response process. The company was founded in 2009 and is headquartered in San Francisco, California. As of October 2023, PagerDuty operates with a workforce of approximately 800 employees.

Business Model

PagerDuty's business model is subscription-based, offering various tiers of services that cater to different organizational needs. The primary revenue stream comes from:

• Software subscriptions
• Professional services
• Integrations and API access

Financial Performance

As of the fiscal year ending January 31, 2023, PagerDuty reported the following financial data:

Customer Base

PagerDuty serves over 15,000 customers across various industries, including technology, healthcare, retail, and finance. Notable clients include:

• Netflix
• IBM
• Salesforce
• NASA
• GitHub

Market Position

PagerDuty has established a strong market position with a significant share in the digital operations management space. Competitors include:

• ServiceNow
• Zendesk
• Opsgenie (Atlassian)
• VictorOps (Splunk)

Product Offerings

PagerDuty offers a comprehensive suite of products, including:

• Incident Management
• On-Call Management
• Event Intelligence
• Analytics and Reporting

Growth Strategies

In recent years, PagerDuty has adopted several strategies to fuel growth:

• Expansion of product offerings through acquisitions
• Investment in marketing and sales initiatives
• Focus on partnerships with technology providers
• Enhancing user experience and engagement through continuous development

Recent Developments

As of 2023, PagerDuty has made significant advancements:

• Launched new features in AI-driven incident response
• Partnership with AWS for better cloud integration
• Announced collaborations with over 30 technology partners

Stock Performance

As of October 2023, PagerDuty’s stock (PD) performance is summarized below:

Future Outlook

Analysts project a revenue growth rate of approximately 15% annually over the next three years, driven by increasing demand for incident management tools and digital operations solutions.

How PagerDuty, Inc. (PD) Makes Money

Subscription Revenue

PagerDuty primarily generates revenue through subscription-based services. For the fiscal year 2023, PagerDuty reported total revenue of approximately $400 million, a significant increase from previous years.

Enterprise Plans

PagerDuty offers various enterprise plans that cater to different business sizes and needs. The average annual contract value (ACV) for enterprise customers exceeds $70,000.

Customer Segmentation

As of the end of FY 2023, PagerDuty had over 16,000 customers, including notable enterprises like Yahoo, Netflix, and Salesforce.

Pricing Structure

Professional Services

In addition to subscription fees, PagerDuty earns revenue from professional services, which include consulting and implementation support. This segment contributed approximately $15 million in FY 2023.

International Revenue

International markets have also become a significant revenue stream, with approximately 30% of PagerDuty's total revenue coming from outside the United States.

Revenue Growth

For the fiscal year 2023, PagerDuty achieved a revenue growth rate of 25% year-over-year, largely driven by increased adoption of its platform across various sectors.

Churn Rate

PagerDuty maintains a relatively low customer churn rate of 5% annually, indicating strong customer satisfaction and retention.

Market Position

According to predictive analytics, PagerDuty is positioned as a leader in the incident management space, competing against companies like Opsgenie and VictorOps.

Future Projections

Analysts project that PagerDuty's revenue could exceed $500 million by the end of FY 2025, driven by new product innovations and market expansion.