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According to a recent report, the global DevOps market is expected to grow at 24% CAGR $6.78 billion in 2020 to reach $57.90 billion by 2030. San Francisco-based PagerDuty (PD) continued to deliver strong results and is looking to expand its market share through consolidation.

PagerDuty’s Financials

Last month, PagerDuty reported its fourth-quarter results. Revenues grew 32% to $78.5 million, compared with the market’s forecast of $76.1 million. Non GAAP loss was $0.04 per share compared with the market’s forecast of a loss of $0.06 per share.

Among key metrics, it reported 14,865 customers as of the end of January this year.

For the fiscal year, PargerDuty reported revenues of $281.4 million, up 31.8%, and a net loss of $0.32 per share.

PagerDuty forecast revenues of $81.5-$83.5 million for the first quarter with an adjusted loss of $0.09-$0.08 a share and revenues of $360-$366 million for the year with an adjusted loss of $0.23-$0.17 a share. Analysts had forecast revenues of $81.63 million and a loss of $0.07 a share for the quarter and revenues of $352.84 million and a loss of $0.24 per share for the year.

PagerDuty’s Catalytic Acquisition

Recently, PagerDuty announced its acquisition of Chicago-based Catalytic, a no-code workflow automation platform. The acquisition will allow PagerDuty to expand its offerings to new use cases in Finance, Human Resources, and Supply Chain workflows, while also complementing its existing process automation offering that is currently leveraged by technical teams. It will help build on PagerDuty’s position as the only digital-native platform that detects, orchestrates, and automates real-time, mission-critical work across organizations.

The merged entity will be able to provide teams with intelligent, flexible automation for urgent and unstructured work. Prior to the acquisition, Catalytic had raised $41.5 million in six rounds of funding led by Hyde Park Angels, Boldstart Ventures, New Enterprise Associates, Intel Capital, Redline Capital, Corazon Capital, Pritzker Group Venture Capital, and Hyde Park Venture Partners. Its most recent round was held in February 2019 where it raised $30 million at a valuation in the range of $100-$500 million. Terms of the deal or Catalytic’s prior financials were not disclosed.

PagerDuty’s recent growth has been driven by the continued expansion of its use cases within existing customers. More than half of its annual recurring revenue (ARR) now comes from customers utilizing two or more PagerDuty products. The average ARR per customer for the fourth quarter was more than $20,000. Customers spending more than $100,000 annually with PagerDuty grew 39%, and those spending more than $1 million grew by 65%. Offerings such as Event Intelligence and automation are each growing at 70% or more. PagerDuty customers are expanding their use of its platform across the enterprise, beyond their DevOps teams, and are upgrading to advanced functionality like AI ops and automation that deliver higher returns on investment. PagerDuty hopes to continue to fuel this growth through product innovation and go-to-market execution.

Its stock is currently trading at $36.16 with a market capitalization of $3.18 billion. It touched a 52-week high of $50.33 in February and a 52-week low of $24.02 in April last year.