Stockideas

PagerDuty, Inc
(NYSE:PD)
PagerDuty, Inc

PagerDuty, Inc. operates a digital operations management platform in the United States and internationally. Its platform harnesses digital signals from virtually any software-enabled system or device, combines it with human response data, and orchestrates teams to take the right actions in real time. The company's platform provides on-call management, event intelligence, incident response, business visibility, and advanced analytics solutions to ...
Founded: 2009
IPO date: 2019-04-11
IPO price: $24
Full Time Employees: 783
Co-Founder: Alex Solomon
CEO: Jennifer Tejada  (July 2016~)
CTO: Alex Solomon 
Sector: Technology
Industry: Software-Application
Next Earnings Date: 2022-12-06
Stock price: $22.39 (+0.68%)
This is how I used mongodb on my website
By: ssmlee04 Community Lead :))   💬 97   
   on Nov 29, 2022

I remember years ago when I was learning how to create websites, the first thing I used to start a local webserver and webpage was xampp or LAMP stack (php, Apache, MySQL,.. etc). With those stacks you can type a few commands in your terminal to have a website running in no time. As time goes by I had more exposure to different technologies like MEAN stack (mongodb, Angular, ...etc) or Meteor and I get to learn about the all kinds of technologies and frameworks and about their strength and weaknesses. But regardless of stacks you would always be in a situation when you need some sort of persistent storage to store your data. And it turns out mongodb would very often find its way into most of my development workflows and become a big part of the projects.

https://i.imgur.com/1OpKADZ.png

So, what’s special about mongodb? Not much. But at the same time it's just something that works. It's so well-known in open-source and is relatively fast to read and write, to scale, to deploy and maintain when compared to many other db technologies. If you can find developers who know how to write a couple of lines of code and click on a few buttons to deploy a small mongodb cluster and have applications talk to it, it would be fairly easy for companies to onboard engineers and create applications on them and go from there. And that suits my personal project really really well.

Imagine with a couple of lines of code in node.js you can create a table and start to talk to your database.

var mongoose = require('mongoose');
var Schema = mongoose.Schema;

var TickerSchema = new Schema({
  ticker: {
    type: String,
  },
});

const Ticker = mongoose.model('Ticker', TickerSchema);
const data = await Ticker.findOne({ ticker: "AAPL" }).exec();

This is very similar to what the actual code would look like. And it is what makes your life easy as a developer. Pretty cool isn't it?

To start some small mongodb machines you can simply spin up machines on AWS ($amzn) and copy some scripts from the internet, and with a bit of configuration you would have a small cluster of mongodb running with basic infrastructure setup. I also have scripts to backup the db to S3 and restore the database if I had to. And occasionally I would see the database grow to disk space limit or crash so that I would need to ssh into the machine to do something about it.

It's doable but it's not worry-free. For a period of time I had this constant fear that my db would go away and I would lost them forever when I go to sleep. And then I discovered there are fully-managed solutions such as Mongodb Atlas.

So there's a company called MongoDB Inc that takes this open-source mongodb and bundles it into a cloud service called MongoDB Atlas. Atlas is a cloud database service that helps you deal with the complexities of running a database. Without Atlas, you would be hosting VMs, deal with the maintenance overheads yourself. But this is really not good time spent for most companies when it costs so much to hire a dev in 2022. Imagine with a few extra bucks a month you wouldn't need developers for this and can focus on developing your application itself. Keep in mind, for faang, it costs like 200k-400k easily to hire a dev.

Starting a database cluster in Atlas is free and it's as easy as a mouse click.

https://i.imgur.com/ixDXNNC.png

https://i.imgur.com/PtuUCQY.png

https://i.imgur.com/W7Xt9OL.png

And with a few extra clicks and $$ you can also have integrations like datadog $ddog or pagerduty $pd.

Atlas charges you based on compute and storage. Compute means how fast your database can process requests. Storage is about how much disk space that's allocated to your db and how often you can do your backups. This is actually not a bad idea, because for most companies that's growing and uses Atlas they would have more applications running every quarter. This means your data, number of databases and collections, your size and duration of backups would only go up normally. Can you go back to hosting VMs yourself and do bare-metal mongodb? You can't because it wouldn't make much sense to justify hiring extra engineers to do the heavy-lifting of running a database. That just won't work anymore, at least not without scale.

There's also no reason you cannot use other db technologies like ElasticSearch or Cassandra. It's just databases is not something you can switch easily. When you have an industry of people who know how mongodb works, have products running based on it, and then that makes switching to something else costly. In addition, if you decide to migrate away from it, you'll have to worry about consistency and many other things. So unless mongodb becomes a bottleneck of your application it’s usually difficult to justify moving away from it.

$mdb


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This company is pretty bad
By: ssmlee04 Community Lead :))   💬 97   
   on Nov 07, 2021

PagerDuty user here.

You can't even link your google calendar to your on-call schedule. And instead you need to go to your on-call schedule to download some schedule.ipa and import it locally to your machine to somehow keep your non-google calendar in sync. It's hard to believe tech companies like this still exist in 2021.

Their valuation and past stock performance also seem to tell you maybe they're not gonna have a good future ahead of them.

If I run a software team I'd switch away from their on-call service almost without a question. It's just unacceptable that your teammates can't sync a simple schedule to their calendar. $pd


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2020 SaaS review
By: ssmlee04 Community Lead :))   💬 97   
   on Jan 03, 2021

2020 is an interesting year for SaaS companies. Some of them went public and gained huge success in the stock market. Some of them continued their rally from 2016-2019 and have another great year. Some of them have greater success than the others because of their business models in the work-from-home environment. And there's a common thing for those SaaS companies, that is: those companies probably developed something people want.

The following is a list of the top 15 SaaS performers in our database in the last 250 days as of December 31, 2020. https://i.imgur.com/xL1w2F2.jpg

Some of the companies here are getting a lot of attention this year. Terminologies like Zoom Fatigue even appeared in the second quarter. It seems everyone was talking about Zoom at some point. And that's reasonable because Zoom is the clear winner in this video conferencing space. They keep your company operational by providing you a smooth video call user experience for your employees and your clients. There are literally companies built on top of Zoom calls that provide you remote journey experiences, and they do great because of Zoom and Covid.

https://i.imgur.com/KWx3Ea2.png

Cybersecurity is also something to worry about for companies in 2020. Intuitively, when companies are working remotely it would be harder for companies to safeguard their infrastructure. That's when companies like CrowdStrike or Zscalar or Okta come into play. Okta help companies manage their employees' access identities. Zscalar and CrowdStrike protect your web infrastructure using technologies to derive insights from your data and protect your infrastructure in real-time or near real-time.

Also when a lot of people are working remotely you'd expect Internet usage to go up. Cloudflare is a CDN company that help websites serve their requests fast. Fastly is also doing similar things in the video CDN space and helps companies like TikTok serve their videos. And as more people spend more time on their mobile devices those companies also do well. And to support those web requests you need companies like Twilio to send you SMS messages or phone calls, without Twilio you might not even able to login to your apps.

Also when people are staying at home people have more time to get creative. So maybe people start selling stuff on Shopify or Etsy or Pinterest or create websites on Wix. And at the same time, you have marketing companies like Facebook or TradeDesk or Digital Turbine to help you advertise your stuff on mobile devices. The success stories for those SaaS companies are inter-connected.

There are many other interesting SaaS companies that are not mentioned above. They are not in the top 15 maybe because they're not directly related to the stay-at-home trend, but that doesn't mean they're less interesting. As a software engineer, I have to use application monitoring services, database services, image compression and processing services, mailing services... and many others. This is what makes a modern software company functional. And as long as your company is growing you would continue to add and look for the best services for your company. And when more companies are becoming software companies I can imagine those SaaS companies to have a great future ahead.

A few things in common here for the companies on the list:

  • They grow REALLY fast. A lot of the companies on the list are growing 40-80% a year.
  • They all have really high gross profit margins.
  • They're traded at a very high valuation. A lot of them have a p/s ratio of 40-60.
  • The majority of them are losing money.
  • They don't pay dividends.

A possible explanation is that there are no clear winners in the space they're operating in, so they're doing whatever it takes to make sure they win in the long run. And of course that means they cannot afford to pay dividends. Also they're all traded at astronomical levels of valuations maybe because they have high profit margins, and the future for those companies are expected to be good.

Take DocuSign for example. They're one of the pioneers in e-signature. But e-signature is some sort of niche market. You may come up with another e-signature solution with a small team but by the time you have the solution in place you might already be spending millions achieving zero revenue while DocuSign might grow revenue another 40%. In the end there's just not enough market share for you to survive. So it would not be a good idea to copy DocuSign business model, this makes DocuSign (and all the SaaS companies) unique in a way.

If you look back at Amazon anytime in the past 20 years you'll see it's always traded at high multiples. It is still traded at high multiples today but would anyone complain that Amazon is too expensive? Probably not. Because now we know Amazon is dominating in any spaces they're operating in, we just couldn't see it 20 years ago. So maybe there's a correction between winning and being expensive and that's why all the cloud stocks are expensive because there's a chance all of them are dominating in their space in the next 5-10 years.

But, of course, being expensive does not mean the company would be successful eventually. But if you want to look for something good in the next 5-10 years there's a chance it's on the list but you just don't know it yet.

$ZS $DBX $ZUO $AYX $DOCU $SMAR $DOMO $SVMK $AVLR $TTD $PCOM $NOW $WDAY $PD $WORK $ZEN $TEAM $VEEV $CLDR $SHOP $FSLY $TWLO $ADBE $AAXN $CRM $OKTA $GOOG $DT $ZM $SPLK $WIX $COUP $MDLA $LPSN $APPN $EPAY $AKAM $APPS $FIVN $BL $PANW $PFPT $CRWD $DDOG $NET $HUBS $NEWR $APPF $RNG $ESTC $BILL $GDDY $DCT $ECOM $PLAN $SNOW $SUMO $FROG $ASAN $JAMF $ADSK


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Application monitoring and analytics space are trending
By: ssmlee04 Community Lead :))   💬 97   
   on Dec 17, 2020

This is the top 15 SAAS stocks by 1 day performance with market cap over 1 billion.

https://i.imgur.com/a7z4jrD.jpg

Application monitoring and analytics space are trending today. It could simply be because this sector is going to be really profitable. Many of those companies have high gross profit margins, some of them even have gross profit margins over 80%. And many of them are growing 40% - 80% a year consistently.

It's also a space with heavy competition at the same time. $dt and $ddog for example you can log some information about your infrastructure like cpu or memory usage and put them on a dashboard so your software team can monitor them and do something about your infrastructure. $pd calls you when your server crashes. $sumo and $estc helps you do logging and log searching efficiently. And you need them if you are a modern software company. So the demand for those services can only go high if their clients grow.

Software are meant to scale easily so that when you write it once you can run it in many places without too much extra costs. Also, intuitively, when you have more software companies in the future you need more tools to monitor your software infrastructure. That's why those services would continue to be good in the long run. And that's a reasonable and inevitable future that we're heading.

$DT $ESTC $AYX $SUMO $DDOG $PD


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Top 15 SaaS stocks with market cap over 1b today
By: ssmlee04 Community Lead :))   💬 97   
   on Dec 05, 2020

https://i.imgur.com/tDxDnL6.jpg

$PD calls you when your server crashes. $Sumo does logging for your code. $ESTC does search for your logs and other stuff. $NET does CDN, $DDOG does application monitoring.

They and other similar services are all required for a modern software company to run.


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PagerDuty
By: ssmlee04 Community Lead :))   💬 97   
   on Sep 04, 2020

This company is toast. The price drops 25% after the earnings call. According to the guidance there would be little growth from here on.

I have been a user of their service for a while and I haven't really used anything more than their core services, which is a service that gives you a call when your server crashes. But the thing is when your application matures, you get less calls from them because your server crashes less often. So maybe there's something wrong with their business model. They cannot up-sell efficiently like many other SAAS companies can.

The company fundamentals are still good. P/S ratio of 9 is relatively low for SAAS companies. Although they have a lot of competitors but still they're doing a great job making sure you or your teammates can get the calls you want when service is down. Maybe this is an acquisition play. We'll see. $PD


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PagerDuty
By: ssmlee04 Community Lead :))   💬 97   
   on Feb 27, 2020

I am starting to wonder if there's something wrong with this company fundamentally. I used their service to receive calls when your infrastructure crashes. But maybe this service is just too simple any big companies that can pay for some call APIs would be able to come up with their own solutions.

I still think this their platform is easy to use. But capitulation like this make it very hard to justify buying into this position. $PD


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Some thoughts about PagerDuty
By: ssmlee04 Community Lead :))   💬 97   
   on Dec 30, 2019

https://twitter.com/_shihminlee/status/1211470514625171456

long $PD, double bottom seem like a good technical setup to me as well.


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PagerDuty
By: ssmlee04 Community Lead :))   💬 97   
   on Dec 06, 2019

https://investor.pagerduty.com/news/news-details/2019/PagerDuty-Announces-Third-Quarter-Fiscal-Year-2020-Financial-Results/default.aspx

They beat the revenue and missed on the earnings. Also, they announced they will have a new CRO, Dave Justice, from SalesForce. But somehow their after-hour price dropped 15%.

Some key stats are as follows:

  • Customer growth at 15% year over year.
  • Accounts over $100k ARR at 49% growth.
  • Revenue increased 37% year-over-year. This is quite a deceleration from their previous 4 quarter growths.

2018Q4 49.31 % 2019Q1 46.94 % 2019Q2 49.14 % 2019Q3 45.48 %

The guidance is not as good though. They guided the q4 revenue of 44.5 - 45.5m, representing a growth rate of 32% - 34% year over year. Non-GAAP net loss per share of $0.06 - $0.07, assuming approximately 77 million shares. So revenue seems like it would decelerate even faster but they won't issue more new shares.

I can see it drop but honestly, don't see why they're dropping by this much. Maybe it's just they have too many shares that they can still. Or maybe their business has too small of an entry barrier. I still have a small position and let's see how it goes in the next while. $PD


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PagerDuty CEO on CNBC today
By: ssmlee04 Community Lead :))   💬 97   
   on Nov 21, 2019

https://www.cnbc.com/video/2019/11/20/pagerduty-ceo-supporting-modern-work-from-the-center-of-the-ecosystem.html

This is from the slideshows on TV and is something that I don't know already:

  • 37% of fortune 500 company uses PagerDuty.
  • Their popular tech customers include dropbox, datadog, okta, twlo, shopify, slack, ... etc
  • The stock price is still around 8% over IPO price.

The conversation form Jennifer doesn't convince me more about why PD is valuable though. When your server crashes it crashes, and as a software engineer it's usually not like within seconds the servers would heal itself, most of the time you need to go there and fix something. It's not as if when you receive a call all your issues would magically disappear.

Even that $PD is still a good company with good numbers, I look forward to see what they can achieve in the next while and hopefully it's good.


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PD
By: ssmlee04 Community Lead :))   💬 97   
   on Oct 24, 2019

Lots of startups up use this company for on-calls alerts (when your service crashes your dev guy gets a call). The price is enticing at this point, also the company fundamentals are good. If you look at the income statement it will be profitable if you remove all R&D expense, which is like 25% of the revenue. And they pay a lot for their dev guys and and have a lot of tech events posting as well those are mostly good for a thriving tech company.


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PD
By: ssmlee04 Community Lead :))   💬 97   
   on Sep 01, 2019

PagerDuty $pd is quite volatile these days. It went up 50% after the IPO and then it plummets around 45% after the peak. The price action is not that great considering a lot of other SaaS like $ayx $appn $crwd $fsly went up a lot around the same time. I was thinking about buying it back a little around $35 level but I was a bit hesitant so by the time I see it it's already $39. Anyways at least unlike $work it shows there are still people who's willing to buy it when the price dips. So maybe this is a good sign for the earnings call next week.

https://seekingalpha.com/article/4268931-pagerduty-inc-pd-ceo-jennifer-tejada-q1-2020-results-earnings-call-transcript

According to the previous ER the revenue growth is accelerating, gross margins are at an astounding 85% level, TAM is 25b. I was thinking for the worst case scenario if you grab 10% of the market share and with a low saturating P/S ratio of 2 then you can still expect a price of around $75-80. So even if you say $team OpsGenie takes most of the market share I guess it would still be OK. My impression about PagerDuty is the service is easy to use and integrate. Also the pricing is OK. I can't quite see existing companies switching to other services to be honest I am not sure how cheap or how much better the others services would have to be to justify switching from $pd to other on-call services.

Currently it is trading at an 20% discount since last call. And it seems nothing changed since the previous call. Would be interested in seeing what they have got before the next earnings call.


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PD
By: raspberry lazy guy   💬 31   
   on Aug 18, 2019

Pagerduty $pd chart looks terrible, it's lagging it's SAAS peers by a marge margin. There are news saying $team Opsgenie is also entering the incidence on-call market and according to Opsgenie they scale better than any of their competition in the market and it was just a matter of getting in front of our customers. This doesn't bode well you can also see $team and $pd are moving in two directions. Waiting for the current quarter earnings report to find out more.


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pagerduty
By: ssmlee04 Community Lead :))   💬 97   
   on Jun 08, 2019

Pagerduty delivers a 50% revenue growth yoy and 80% profit margin in the last earnings call. But the market doesn’t seem too upbeat about the numbers. Maybe because they have a P/S ratio of 30 already we’ll find out more in the coming weeks.


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SAAS
By: tachyon Very lazy guy   💬 23   
   on Jun 03, 2019

All the SAAS company dropped a lot today. I wonder if this is the beginning of the great decline for those SAAS companies. A lot of them have P/S over 30 even early stage Amazon does't have a valuation this high.


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support at 50 is very nice
By: christopher lazy guy   💬 13   
   on May 29, 2019

looking for it to dip a bit more. it bounce from 49.5 back to 51.5 in no time. I hope it dips a bit more. I have always been interested in this company.


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One of the strongest ticker today
By: raspberry lazy guy   💬 31   
   on May 23, 2019

Looks like a good buy now their services are great and worry free. According to my friend as a software engineer manager all his projects use it. They do more than just HTTP get / every 5 seconds and check if you have a 200.


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