PagerDuty, Inc. (NYSE:PD) Q4 2023 Earnings Call Transcript

Page 9 of 9

Jennifer Tejada: No. It’s probably safe to say that we’re assuming that the difficult macro environment is going to persist throughout the year, but we’re confident in our ability to execute given how we’re entering the year from capacity standpoint where we are in terms of new products to monetize in our competitive position.

Tim Pusnik-Jausovec: Thank you. And then a follow-up for Jennifer. You announced a tech €“ tight tech integration with ServiceNow CSM in January. Could you talk about the customer pool you’re seeing in the CS ops arena and how do you see the partnership with ServiceNow evolve over the next few years?

Jennifer Tejada: Yes. I mean, I think that in a number of cases, what we’ve seen is customers asking us how they can leverage their customer service agents to both help capture information as it’s coming in from customers. I mean, unfortunately, many of our customers learn about major incidents from their end customers, either reaching out to their customer support teams or through social media or other channels. And so we had seen this demand from our customers to help leverage the customer support agents to engage on both identifying problems and being able to kick off incidents, but also being able to collaborate more closely with technology teams, engineering teams, software engineering teams and service owners associated with the products and services that maybe at the root of those incidents.

And so bringing those two platforms together to help reduce the time that’s lost and the customer impact that maybe exposed or created because teams are working in disparate separate platforms that don’t talk to each other, it was a big part of the problem that was described to us. And then what we also see is, with customers like Salesforce, ServiceNow, Zendesk, et cetera, like there are opportunities where the platforms compliment each other very well or you might be using one platform in one part of the business for a certain type of work, but you still need a platform like PagerDuty that can help you manage mission critical, time sensitive unstructured work, which is very different than what a ticketing queuing system or a CRM or CSM product does.

And so there’s actually a lot of compliment there. And really, this, again, has been driven by pull from the customer as opposed to strategic partnerships, where our customers saying, I need these systems to not just sit alongside each other nicely, I need them to work effectively together. I need to integrate the workflow across these to save my people time.

Howard Wilson: Yes. And just on that point that this was something that already been validated by customers who are using the special integration we had done for Salesforce Service Cloud and Zendesk and ServiceNow CSM was the next piece to Jen’s point.

Operator: Okay, team. Excellent. We’ve reached the end of another call and questions. Jen, can I turn it over to you for some final remarks?

Jennifer Tejada: Yes, you can. Well, first of all, I’d just like to say thank you for joining us today and for your questions. To recap our fourth quarter results round out a strong year for PagerDuty, a year in which we extended our leadership in digital operations, surpassed $400 million in annual recurring revenue and achieved non-GAAP profitability a year ahead of plan. I am confident in our operations cloud strategy reinforced by our recent innovation in AI and automation and in our team’s ability to execute. Thank you to all of our employees around the world for championing our customers and delivering a successful year of profitable growth. Have a great day.

Follow Pagerduty Inc. (NYSE:PD)

Page 9 of 9