PagerDuty, Inc. maintains a Hold rating as it transitions from seat-based to usage-based pricing amid flat revenue and slowing growth. PD's Operations Cloud ARR nearly doubled sequentially, but only a small fraction of clients have adopted the new model, creating near-term disruption. Margins and free cash flow have improved, with four consecutive GAAP-profitable quarters and a strong balance sheet supporting ongoing investment.
PagerDuty: Less Risk, Limited Growth, Neutral Rating
Source: Seeking Alpha