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PagerDuty IPO: What You Need To Know

BOX

One company is seeking to capitalize on the technological transformation disrupting global businesses across sectors. It wants you to capitalize, too.

The Offering

On Thursday, PagerDuty, Inc. will issue 9.07 million shares under the ticker “PD” on the New York Stock Exchange, according to the company’s S-1 filing. Sold at a rate between $19 and $21, the offering represents 12.3 percent of outstanding shares. On Tuesday, PagerDuty raised the price range to $21 to $23 per share.

Underwriting is led by Morgan Stanley, JPMorgan, RBC Capital Markets and Allen & Company.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

See Also: Is The Lyft IPO A 'Panic Moment' For Venture Capitalists?

The Company

Based in California, the digital-operations management platform gathers and mines data signals from various company platforms and uses analytics, machine learning and automation to convert the signals into actionable business information.

Its real-time operations platform facilitates data analysis, workflow streamlining, IT and security operations, and customer support for more than 10,800 organizational customers worldwide.

PagerDuty counts one-third of the Fortune 500, as well as Okta Inc (NASDAQ: OKTA), Box Inc (NYSE: BOX) and Slack, among its clients. This sampling represents less than 1-percent penetration in a $25 billion market.

Management cites a market opportunity of all businesses undergoing digital transformation, with about 85 million prospective users in developer, IT, security and customer support work.

The Finances

In its last fiscal year ending Jan. 31, PagerDuty recorded $117.8 million in revenue supporting a net loss per share of $1.90. Pro forma net loss per share amounted to 68 cents. International operations accounted for 23-percent of revenue.

The top- and bottom-line performances compare favorably to PagerDuty’s previous year, when it notched $79.6 million in revenue for a net loss per share of $1.91.



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