According to a recent market research report, the global market for DevOps is estimated to grow from $6 billion in 2020 to $17.8 billion by 2026, at a CAGR of just under 20%. DevOps solutions are being increasingly adopted across various industries, with the telecom & ITES sector leading the growth. San Francisco-based PagerDuty (NYSE: PD) recently announced the results for the second quarter that outpaced market expectations.

PagerDuty’s Financials

Revenues for the second quarter grew 33% to $68 million, ahead of the market’s forecast by 3.28%. GAAP net loss was $29.7 million or $0.35 per share, compared with a loss of $14.7 million or $0.19 per share a year ago. Non-GAAP net loss was $0.13 per share compared with the market’s forecast of a loss of $0.16 per share.

Among key metrics, it reported 18,000 customers as of the end of July this year with new names like Alkeon Capital Management, Citigroup, EnterpriseDB Corporation, Mattress Firm, Via Varejo S.A., and Selfridges joining its customer portfolio.

For the third quarter, PagerDuty forecast revenues of $69-$71 million and an adjusted loss of $0.10-$0.09 per share. It expects revenues of $273-$276 million and an adjusted loss of $0.39-$0.35 a share for the fiscal year. Analysts had forecast revenues of $70.04 million and a loss of $0.09 a share for the third quarter and revenues of $275.05 million and a loss of $0.37 per share for the year.

PagerDuty’s Focus Areas

PagerDuty continued to build its integration ecosystem and ended the quarter with over 600 direct integrations across security, workflow, data observability, digital experience, and other use cases. The company currently allows three kinds of integrations – email integrations that allow users to integrate PagerDuty with any service capable of sending email alerts; through APIs that allow developers to build real-time workflows into their applications, and through a helper program PagerDuty Agent that can be installed on a monitoring system to integrate monitoring tools with PagerDuty.

Additionally, PagerDuty also expanded its product offering and geographical footprint. It released a Dynamic Service Graph that enables users to instantly map, visualize, and act on business and technical service dependencies across their entire digital environment. Customers with Service Graph will be able to see into the health of their organization and assess the impact of an incident. It will help accelerate the process of identifying probable causes, moving teams, and data streams to derive insights and deliver intelligent action.

Earlier this summer, PagerDuty announced the general availability of its European service region to support its growing customer base with operations across Europe. Now when new customers sign up for PagerDuty, they will be able to choose between either the U.S. service region or the European service region. Over the last two years, the EMEA region’s annual recurring revenues have grown by 43% each year. By offering a European region service, PagerDuty will be able to offer its European customers a more reliable always-on service.

Its stock is currently trading at $46.63 with a market capitalization of $3.96 billion. It touched a 52-week high of $58.36 in February. In September of last year, the stock was at a 52-week low of $23.50.