PagerDuty's (PD) Q2 Results Impress amid Heightened AI Adoption

PagerDuty Inc. (NYSE:PD) is one of the best tech stocks to buy, according to Cathie Wood. On September 4, Goldman Sachs reiterated its Neutral rating on the stock and $16 price target. The stance follows the company’s second-quarter results, as it achieved significant milestones in profitability and growth across international markets.

Revenue in the quarter increased 6% year over year to $123 million, in line with expectations, as earnings per share totaled $0.30, well above the forecasted $0.20. The better-than-expected results came from PagerDuty, which capitalized on the heightened adoption of AI.

“As AI drives both opportunity but also unprecedented enterprise complexity and variability, PagerDuty is uniquely positioned at the center of the emerging AI ecosystem as the preferred real-time operations platform for Enterprise and AI native companies and innovators. These achievements, combined with the appointment of our new CRO, reinforce our confidence in the long-term strength of our business and outlook,” said Jennifer Tejada, Chair and CEO.

Annual recurring revenue increased 5% year over year to $499 million, as customers with over $100,000 in revenue grew 6% to 868. For the third quarter, PagerDuty expects revenue to range between $124 million and $126 million, representing 4% to 6% year-over-year growth.

PagerDuty (NYSE:PD) provides a digital operations management platform that helps IT and DevOps teams detect, respond to, and resolve incidents and operational issues in real-time. The platform integrates with various monitoring tools and uses AI for incident summarization and automation.

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Disclosure: None. This article is originally published at Insider Monkey.