Investment Thesis
PagerDuty (PD) results were strong, but the market appears to be taking a pause, needing more than just meeting expectations to drive shareholder returns forward.
On the one hand, the stock trades for 13x forward sales which is not expensive in the SaaS world. On the other hand, PagerDuty's growth rates are now looking to stay around mid 20% range, which is not particularly enticing.
Despite reporting a strong improvement to its profitability, the stock looks fairly priced.
PagerDuty Background
PagerDuty is an incidence report company. As companies are forced to