According to a report published by IndustryArc, the global DevOps market is forecast to grow at 25.2% CAGR to reach $12.5 billion by 2025 driven by the increased need for faster application delivery, high productivity of business and to eliminate unnecessary capital expenditure in IT. San Francisco-based PagerDuty (NYSE: PD) announced its results recently that impressed the market.

PagerDuty’s Financials

Revenues for the fourth quarter grew 29% over the year to $59.28 million, compared with the market’s forecast of $57.48 million. GAAP net loss was $22.1 million or $0.27 per share, compared with a loss of $10.4 million or $0.14 per share a year ago. On an adjusted basis, loss was $0.07 per share compared with the market’s forecast of a loss of $0.11 per share.

Among key metrics, it reported 13,800 customers at the end of January 2021 with new names like Belcorp, Chanel, CRED, LegalZoom, Lego and MSCI joining its customer portfolio.

For the first quarter, PagerDuty forecast revenues of $61-$63 million for the first quarter and an adjusted loss of $0.10-$0.09 a share. For the year, it expects revenues of $264-$270 million and an adjusted loss of $0.43-$0.36 a share. Analysts had forecast revenues of $60.39 million for the quarter with a loss of $0.07 a share and revenues of $262.24 million for the year with a loss of $0.23 per share.

PagerDuty’s Expanded Market Reach

Recently, PagerDuty announced its plans to offer customers a European hosting option for data assets based on AWS. The offering will allow European customers using PagerDuty’s European data hosting to see a reduction in any potential data latency issues. The expansion will also help PagerDuty grow its European customer base, especially by offering higher reliability to highly regulated markets such as financial services, public sector, and healthcare across the region.

The current pandemic has helped accelerate the demand for digital transformation of enterprise services, and companies like PagerDuty are benefiting from this transition. PagerDuty’s buyers are now extending its use case beyond ITOps. As digital environments are becoming increasingly complex and shifting towards DevOps models, there is a growing need to understand and respond to changes across the entire technology landscape and this can be seen across PagerDuty’s product adoption. Its customers are selecting PagerDuty for operations management, but then are using it into areas such as customer service and security.

PagerDuty’s CEO, Jennifer Tejada, recently highlighted how its cloud-native operations platform has become the central nervous system for digital modern businesses and is helping manage mission-critical emergent work across distributed teams. Over the course of the year, PagerDuty has seen an increase in transformative work with its customers, where it has become critical infrastructure as teams’ increased focus on resilience and expanded to new use cases that cater to other opportunities relevant in strengthening the brand experience. This transition is also reflected in PagerDuty’s upgrades during the quarter. For instance, the upgrades in the quarter include advanced automation, self-remediation, deeper customer service integrations, and change impact mapping that allow developers to identify code changes that impact their services and resolve incidents faster.

Meanwhile, PagerDuty continued to add to its robust API-based integration ecosystem, accelerating the network effect and establishing itself as the hub for Digital Operations and incident detection. It now has over 530 integrations, including change event partners like Buildkite, GitLab, and Jenkins and security partners like JFrog. Integrations are helping it deliver seamless work across platforms and teams.

Its stock is currently trading at $43.12 with a market capitalization of $3.58 billion. It touched a 52-week high of $58.36 in February. In April of last year, the stock was at a 52-week low of $18.10.