PagerDuty ( NYSE: PD ) shares rose on Friday after the cloud computing company reported better-than-expected results and guidance that investment firm Monness, Crespi, Hardt said were "worthy of a relief rally."
Analyst Brian White, who has a neutral rating on PagerDuty ( PD ) shares, noted that the results and guidance should be well-received by investors, though the enthusiasm could be "fleeting."
"In our view, PagerDuty has a large opportunity in the real-time digital operations market, playing into digital transformation; however, the economy appears to be in a recession, equity markets are in turmoil, and the geopolitical landscape viperous," White wrote in a note to clients.
PagerDuty ( PD ) shares rose nearly 9% to $26.20 in premarket trading.
The application-software company said it now expects full-year revenue to be between $365M and $370M, compared to a prior outlook of $364M and $369M. Its adjusted loss is expected to be between 10 cents and 12 cents per share, compared to a prior estimate of a loss between 17 and 21 cents per share.
Although billings missed estimates, coming in at $92.5M, White noted the "constructive tone" on the earnings call.
White said PagerDuty ( PD ) is "executing well and enjoying a favorable competitive environment; however, the company experienced lengthening sales cycles for some larger deals in [second-quarter] and transaction scrutiny increased in Europe."
In addition to reporting strong results, PagerDuty ( PD ) said it expects trailing 12 months billings growth exiting the third quarter to be at or above 20% over last year .
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PagerDuty rises as Monness, Crespi, Hardt says Q2 results 'worthy of a relief rally'