12% Drop in PagerDuty Shares Following Revenue Guidance Cut
- PagerDuty shares dropped 12% after cutting revenue guidance
- Weaker sales growth reported in the fiscal second quarter
- Revenue expected to be between $463 million and $467 million, down from previous guidance of $471 million to $477 million
PagerDuty shares plunged by 12% after the digital operations management platform reported weaker sales growth than anticipated and cut its revenue guidance for the fiscal year. The stock fell to $16.12 following a 7.5% decline during trading hours, which had already seen a 21% drop year-to-date. In a post-market announcement, PagerDuty revealed that it now expects revenue between $463 million and $467 million, down from the previous forecast of $471 million to $477 million. The company’s Q2 revenue increased by 7.7% to $115.9 million but missed analyst expectations of $116.6 million.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about PagerDuty’s revenue guidance cut and weaker sales growth, as well as the company’s stock performance. It also includes specific financial figures for comparison. However, it lacks context or background information on the company and industry trends that might help readers understand the significance of these events.
Noise Level: 8
Noise Justification: The article provides relevant financial information about PagerDuty’s performance and stock market reaction, but it lacks in-depth analysis or exploration of the reasons behind the weaker sales growth and potential long-term implications.
Public Companies: PagerDuty (PD)
Key People:
Financial Relevance: Yes
Financial Markets Impacted: PagerDuty’s stock price and revenue guidance
Financial Rating Justification: The article discusses the decline in PagerDuty’s stock price and a downward revision of their revenue guidance, which directly impacts the company’s financial performance and can have potential effects on investor sentiment and market reactions.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Financial Crash or Crisis
Impact Rating Of The Extreme Event: Severe
Extreme Rating Justification: The stock dropped 12% after hours, and the company cut revenue guidance and reported weaker sales growth than expected, leading to a significant impact on investor confidence.
Move Size: The market move size is a 12% decrease in stock price after the digital operations management platform cut revenue guidance and reported weaker sales growth than expected.
Sector: Technology
Direction: Down
Magnitude: Large
Affected Instruments: Stocks
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