RBC Capital analysts provided their views on PagerDuty, Inc. (NYSE:PD) ahead of the company’s upcoming Q4/23 earnings announcement on Thursday, expecting durability to continue.
According to the analysts, a slight upside to consensus expectations of 20% billings growth looks achievable given a solid pipeline into Q4, stabilizing job postings and recently re-affirmed guidance.
Additionally, the analysts expect outperformance on profitability including the potential for significant free cash flow improvements in fiscal 2024 aided by a recent 7% RIF. Overall, the analysts would look for consistent execution as secular tailwinds around digital transformations, workflow and AIOps continue.