In a recent transaction, Shelley Webb, the Chief Legal and People Officer at PagerDuty, Inc. (NYSE:PD), sold 6,246 shares of common stock at an average price of $18.12, netting a total of $113,177. The sale took place on October 9, 2024, as reported in a recent filing with the Securities and Exchange Commission.
The shares were sold at prices ranging from $18.00 to $18.22, which represents a weighted average price for the total number of shares sold. Following the transaction, Webb still owns a substantial number of shares in the company, totaling 216,572, some of which are restricted stock units.
It's important to note that the sales reported were conducted in accordance with a pre-arranged 10b5-1 trading plan, which was adopted by Webb on July 10, 2024. This plan allows company insiders to establish a pre-set schedule for trading securities to avoid accusations of insider trading.
The transaction was carried out as a direct ownership and was duly signed by Irving Gomez, as Attorney-in-Fact for Shelley Webb. This move comes as part of the regular financial activities of corporate executives and is often monitored by investors for insights into the company's health and the confidence that company insiders have in the firm's prospects.
PagerDuty, based in San Francisco, operates in the prepackaged software industry and has been a key player in its sector. The company's stock performance and transactions by its executives are closely watched by the market for indications of its operational momentum and strategic direction.
In other recent news, PagerDuty, a global leader in incident management solutions, has reported a strong second-quarter performance for fiscal year 2025. The company highlighted an 8% year-over-year revenue increase, reaching $116 million, and a non-GAAP operating margin of 17%. The annual recurring revenue (ARR) saw a rise of $11 million, hitting $474 million, and maintained a 10% growth rate for the third consecutive quarter.
The enterprise segment displayed significant strength, marking a record number of multi-year agreements and substantial growth in high-value accounts. Despite facing some issues in the small and medium-sized business (SMB) sector, PagerDuty remains hopeful about surpassing a 10% ARR growth in fiscal year 2025.
In terms of future expectations, the company projects a Q3 revenue ranging from $115.5 million to $117.5 million, indicating a growth rate between 6% and 8%. For the full fiscal year, PagerDuty anticipates a revenue range of $463 million to $467 million, with a growth rate of 7% to 8%.
However, it's noteworthy that the total paid customers decreased to 15,044, primarily due to losses in the SMB segment. Despite these challenges, PagerDuty continues its focus on long-term growth and customer relations, underpinned by its investment in R&D and a strategic shift towards securing larger, multi-year contracts.
InvestingPro Insights
To provide additional context to Shelley Webb's recent stock sale, let's delve into some key financial metrics and insights from InvestingPro.
PagerDuty's market capitalization stands at $1.69 billion, reflecting its significant presence in the prepackaged software industry. The company's impressive gross profit margin of 82.25% for the last twelve months as of Q2 2025 underscores its operational efficiency, which is crucial in the competitive software sector.
An InvestingPro Tip highlights that PagerDuty holds more cash than debt on its balance sheet. This strong liquidity position is further supported by another tip indicating that the company's liquid assets exceed short-term obligations. These factors suggest a solid financial foundation, which may provide reassurance to investors in light of executive stock sales.
Despite these positive indicators, it's worth noting that PagerDuty is not currently profitable, with a negative P/E ratio of -20.27. However, analysts predict the company will turn profitable this year, according to another InvestingPro Tip. This optimistic outlook could explain why the stock is trading at a high Price/Book multiple of 10.21.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 5 more InvestingPro Tips available for PagerDuty, which could provide valuable context for understanding the company's financial health and future prospects.
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