PagerDuty : Investor Presentation

Investor presentation

Q4 and FY 2024

Period ended January 31, 2024

Safe harbor

This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements as to future results of operations and financial position such as the financial guidance for the first quarter of fiscal 2025 and full year fiscal 2025, growth prospects and future revenue, expected benefits of our offerings, planned products and services, business strategy and plans, objectives of management for future operations of PagerDuty, Inc. ("PagerDuty" or the "Company"), market size and growth opportunities, competitive position, technological and market trends and target operating model, are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "can," "desire," "able," "guidance," "expect," "extend," "anticipate," "should," "believe," "hope," "target," "project," "accelerate," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" or the negative of these terms or other similar words or expressions. You should not rely upon-forward looking statements as predictions of future events.

The outcome of events described in these forward-looking statements contained in this presentation is subject to known and unknown risks, uncertainties, assumptions and other factors that may cause PagerDuty's actual results, performance or outcomes to differ materially from those expressed or implied by such forward-looking statements, including: the impact of an economic downturn or recession, rising inflation, significant market volatility in the global economy on our customers, sales cycles, partners, employees, revenue results, cash flow, operations and business, and general political, economic, and business conditions, including those related to bank failures and geopolitical uncertainty; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to sustain and manage our growth; our dependence on revenue from a single platform; and our ability to compete effectively in an increasingly competitive market.

The forward-looking statements contained in this presentation are also subject to additional risks, uncertainties, and factors, including those more fully described in PagerDuty's filings with the Securities and Exchange Commission, including its most recently filed Form 10-K and Form 10-Q.

Forward-looking statements represent PagerDuty's management's beliefs and assumptions only as of the date such statements are made. PagerDuty does not undertake, and expressly disclaims any duty, to update any statements made in this presentation to reflect events or circumstances after the date of this presentation or to reflect new information or the occurrence of unanticipated events, except as required by law.

This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other industry data. These data involve a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Company has not independently verified the statistical and other industry data generated by independent parties and contained in this presentation and, accordingly, it cannot guarantee their accuracy or completeness. In addition, projections, assumptions and estimates of its future performance and the future performance of the markets in which the Company competes are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results or outcomes to differ materially from those expressed in the estimates made by the independent parties and by PagerDuty.

This presentation also includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the Company's non-GAAP financial measures as tools for comparison. The Company has provided a reconciliation of those measures to the most directly comparable GAAP measures, which is available at https://investor.pagerduty.com.

For further information with respect to PagerDuty, we refer you to our most recent Form 10-K and Form 10-Q and our other filings with the SEC. In addition, we are subject to the information and reporting requirements of the Securities Exchange Act of 1934 and, accordingly, file periodic reports, current reports, proxy statements and other information with the SEC. These periodic reports, current reports, proxy statements and other information are available for review at the SEC's website at http://www.sec.gov.

© PagerDuty Inc. PagerDuty and the PagerDuty logo are trademarks of PagerDuty, Inc. Other names and brands may be claimed as the property of others.

Purpose

Vision

Mission

We empower teams with the time and efficiency to build the future.

An equitable world where we transform critical work so all teams can delight their customers and build trust.

To revolutionize operations and build customer trust by anticipating the unexpected in an unpredictable world.

PagerDuty overview

Strong	Durable	Scaled	Non-GAAP
scale	revenue growth	adoption	profitable

$111m 16% 15,039 10%

Quarter ended	Revenue growth YoY	Paid customers as of	Q4'24 Non-GAAP
January 31, 2024
through Q4'24	January 31, 2024	Operating Margin

See appendix for GAAP to non-GAAP reconciliation

PagerDuty's Operations Cloud:

Addressing customers' critical business priorities

Enterprise priorities

Grow revenue by increasing innovation velocity

Reduce costs to achieve operational efficiency at scale

Mitigate the risk of operational failures and poor digital customer experiences

PagerDuty delivers

Modern operations capabilities enable teams to move faster, create more value, and build a competitive advantage

AI- and machine learning-powered automation to optimize workflows, consolidate tooling, and embed best practices to significantly improve operational efficiency across the organization.

Streamlined alerting processes, automated remediation and triage, AI-powered insights from past incidents and correlated events, and supporting compliance to regulatory obligations related to major incidents.

The PagerDuty Operations Cloud

Monitoring &

Observability

Security

DevOps & Lifecycle

DataOps

700+	Reduce MTTR
integrations
by 25%

Customer Service

Business Ops & IoT

ChatOps & Collaboration

ITOps & ITSM

87% fewer

Higher customer

incidents

satisfaction per

case

The Operations Cloud product pillars

Land: PagerDuty Incident

Management

• Free
• Professional $252 per user/year
• Business $492 per user/year
• Digital Operations (contact for pricing)

Deliver always on digital services by mobilizing the right response when seconds matter.

Add on: PagerDuty AIOPs: consumption pricing, starting at $4,788/year

Add on: Runbook Automation for Incident Management

$708 per user/year

Reduce noise, identify root causes, and automate incident resolution in real time.

Land: PagerDuty Process Automation Self-managed(contact for pricing)

Land: PagerDuty Runbook Automation SaaS, $1,500 per user/year

Operate faster by automating and delegating business and IT processes.

Land: PagerDuty for

Customer Service

• Professional $252 per user/year
• Business $492 per user/year
• Digital Operations (contact for pricing)

Add on: Status Pages $1,068 per 1,000 subscribers/year

Empower Customer Service teams to proactively solve customer issues, faster.

The PagerDuty Operations Cloud is a market leader

GigaOm	Forrester Wave	G2
Process-Centric AIOps
Incident Response Platforms Radar	Workload Automation Grid

#1 Overall Leader

LEADER

#1 Overall Leader

Underpenetrated, fragmented market opportunity

80 million users by persona (estimated) in 2023

Developers: driven by digital services and software-driven innovation → 29m users

Infrastructure and Operations: undergoing modernization with Digital, Cloud adoption, and DevOps → 22m users

Customer Service: push for improving cost-efficiency and productivity through self-service and automation → 27m users

SecOps: a relatively small, but influential population (i.e. protect all technology / data, employees, customers and stakeholders for a business) → 2m users

$38B Total Addressable Market

~$38B

Automation

~$27BAIOps

Incident

~$22B Management

On-Call Automation

Sources: IDC Worldwide Developer Forecast: 2022 to 2027; WW Info / Comm. Technology Employment Forecast, 2020-2023:Covid-19 Impact on Demand for Skills, Bureau of Labor Statistics (2) Source: CapIQ Note: To calculate our total addressable market, we multiply our estimate of 75 million potential users by our applicable product average revenue per user. We believe that we have approximately 1% penetration worldwide within these markets.

Go-to-market model aligns to customer opportunity

Customer segment (by $ revenue)	Sales channel
Enterprise >$1B	High value
field sales

Mid-Market >$50m

SMB <$50m

High velocity inside sales

Programmatic

digital sales

Self-service

Strong upsell motion with 62% of ARR coming from customers with two or more products1

1 As of FY2024 ended January 31, 2024; See appendix for definitions of operating metrics