This lesser-known company is an international incident response technology company. The company operates a software-as-a-service (SaaS) platform that enables developers, information technology (IT) departments, and DevOps to respond efficiently to events so the business continues to run smoothly. PagerDuty, Inc (NYSE:PD) has been public since its IPO in April of 2019.
The company was founded, and aptly named, by software developers who were on call 24/7 to troubleshoot problems with cloud services. For our younger readers, pagers were devices that were used in prehistoric times, you know B.C.-before cellphones, to alert someone that they were needed. These software developers sought to produce a more efficient way to manage digital operations and PagerDuty was born. PagerDuty’s platform enables automated assignment of incident responses based on the customer’s workforce availability and other factors. It also enables real-time tracking of responses, among other features.
Exceptional company leadership
The leadership of an enterprise is often the critical factor in the company’s ultimate success. Investors have seen this come to fruition through Steve Jobs and his leadership at Apple (NASDAQ:AAPL), Bill Gates of Microsoft (NASDAQ:MSFT) and with today’s stars like Elon Musk of Tesla (NASDAQ:TSLA) and Matthew Prince of Cloudflare (NYSE:NET). Notice the fact that all of these companies have significantly rewarded shareholders. The PagerDuty leadership team is composed of many former employees and executives of Amazon (NASDAQ:AMZN), Salesforce (NYSE:CRM), and Keynote Systems, all of which are highly successful technology companies.
CEO Jennifer Tejada has decades of experience in the industry including as CEO of Keynote Systems. Keynote Systems was a profitable, cloud-based software development company which was acquired by Dynatrace in 2015. Alex Solomon, General Manager and one of the original founders of PagerDuty, has his roots as an Amazon software engineer. Dave Justice, the Chief Revenue Officer, has over 20 years experience most recently as Executive Vice President at the highly successful Salesforce. The Chief Product Officer Sean Scott also hails from Amazon and brings more than two decades of industry experience. This is likely why Amazon CEO Andy Jassy has said “If you don’t have availability, you don’t have a customer experience. If you’re not using PagerDuty, you’re missing the boat.”
Impressive metrics indicate scalability
There are several metrics that are important to software companies which indicate the ability to scale to profitability. First, PagerDuty has a terrific gross margin. At over 82%, PagerDuty’s gross margin eclipses SaaS heavyweights like ServiceNow (NYSE:NOW) and Salesforce (NYSE:CRM), which both have gross margins typically in the mid-70% range.
PagerDuty has also begun to accelerate its revenue growth. For the quarter ending July 31, 2021 the company earned…
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