PagerDuty, Inc (NYSE:PD) Q2 2021 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 05:00 pm ET

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PagerDuty, Inc (NYSE:PD) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Hello, everyone. And welcome to the PagerDuty Second Quarter Fiscal Year 2021 Earnings Call. [Operator Instructions]

And at this time, I'll hand it over to Willa McManmon, Investor Relations at PagerDuty.

Executive
Willa McManmon

Good afternoon. And thank you for joining us to discuss PagerDuty second quarter fiscal 2021. With me on today's call are Jennifer Tejada, PagerDuty's Chairperson and Chief Executive Officer, and Howard Wilson our Chief Financial Officer.

Statements made on this call include forward-looking statements that involve known and unknown risks and uncertainties that may cause our actual results performance, or achievements to be materially different from those expressed or implied by the forward-looking statements.

Forward-looking statements represent our management's beliefs and assumptions only as of the date. Such statements are made and we undertake no obligation to update these. In addition, during today's call, we will discuss non-GAAP financial measures, which are in addition to and not a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their closest GAAP equivalents.

For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance. All of which could reduce the usefulness of our non-GAAP financial measures as a tool for comparison. A reconciliation between GAAP and non-GAAP financial measures is available in our earnings release. Further information on these and other factors that could affect the company's financial results are included in filings we make with the Securities and Exchange Commission from time to time, including the section titled Risk Factors in the company's most recent Form 10-Q.With that, I'll turn the call over to Jennifer.

Executive
Jennifer Tejada

Thank you, Willa. And thank you all for joining us on Zoom today. We're thrilled to see you and appreciate our partners' Zoom for enabling us to engage with you face to face. I'm grateful, our team, and our employees are healthy, and I hope you all are well too.

We recognize how fortunate we are and our thoughts go out to all those who are affected by COVID and the current environment, while acknowledging the unprecedented near-term market uncertainty. Today, I will focus on the elements of our business we can control and how we are strengthening our company as we again execute against our strategy to become the de-facto platform for digital operations. Despite extraordinary market dynamics, our customers remain loyal as reflected in our retention rates and revenue growth. Digital transformation is accelerating, becoming imperative for our customers as they shift to an e-commerce led business model.

McKinsey recently reported that e-commerce penetration has grown by 10-years in the last three months. Literally, overnight. Many of our customers have been faced with two competing imperatives rapidly accelerating their digital initiatives, and cutting costs. We see customers' responses to this on a continuum, from the most impacted customers reducing users to some simply applying conservatism by delaying user expansion or pausing new initiatives.

At the