PDPagerDuty, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (5.2×), margins widening, and elite returns on assets.
Operating profit is fully backed by cash.
Operating margin has widened over the past few years, the business is getting more profitable per dollar of sales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 70% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is PD?
PagerDuty, Inc. keeps 6.5% of every revenue dollar as operating profit, against 6.4% for the median Software - Application name.
Operating margin · Software - Application median 6.4% · 12 months to Q2 2027
- Cash conversion
- 5.20×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- −16%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 25%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | −31% |
| FY2022 | −36% |
| FY2023 | −35% |
| FY2024 | −22% |
| FY2025 | −13% |
| FY2026 | 1.2% |
Details›
- Gross margin12 months to Q2 2027
- 85%
- Operating margin12 months to Q2 2027
- 6.5%
- Net margin12 months to Q2 2027
- 37%
- Free cash flow margin
- 26%
- R&D as % of revenue
- 25%
- Revenue, trailing twelve months
- $495M
- Free cash flow, trailing twelve months
- $127M
- Net income, trailing twelve months
- $184M
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.