PagerDuty Delivers Mixed Quarter, Outlook Amid Seat-Based Pressures, RBC Says

PagerDuty reported mixed Q3 results, with RBC Capital Markets noting seat-based pressures affecting its outlook. The company is focusing on multi-year contracts and early renewals to counter these challenges. Despite skepticism about short-term growth, RBC is encouraged by profitability outperformance. Client downgrades and churn are decreasing, but seat-based reductions exceeded forecasts. RBC attributes these optimizations to broader layoffs rather than platform issues, maintaining an outperform rating but lowering the price target to $17. PagerDuty's stock price fell 23.25% to $11.65.