The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: That's very helpful. Thank you. And maybe just double-clicking on that last point. Obviously, growth and results held up very well through January
quarter, fiscal '23, year end. Seems like things have gotten a little incrementally tougher this year. Everyone's experiencing some softness of the
macro.
Would love to just dive into what you've seen in terms of the changes since January through being in June here. How you think about overall
positioning in this macro? And then maybe what's holding in well and where you're seeing maybe more relative challenges?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Great. Yeah, and as you mentioned, Jen, despite the challenging environment, you have been able to expand margins pretty substantially, I think,
roughly 9 basis points last year. You're guiding for even more this year. And maybe for Howard, actually, how do you think about the trajectory of
margin expansion going forward? What's the mature model in terms of margin and the timeline to get there?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Right, right. And you previously talked about, aspirationally, being a Rule of 40 company in the future. Obviously, you've been there in the past. I
guess what are the what's the thought on timeline to get there and key dynamics in terms of your balance between margin and revenue over time?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Right. Right. And speaking of AI, you mentioned AIOps released, I think, in April for GA as a significant opportunity. Could you just maybe dive into
what that is? And then why PagerDuty is advantageously positioned to offer that type of functionality with its customer base?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: And you've mentioned a couple of times the more advanced things you can do with PagerDuty with AIOps, is proactively address incidents and
may predictively address incidents before they actually become a problem. And those are where -- obviously you've talked about digital maturity
and your customer base. Are there any examples you can give to illustrate the advanced things you can there?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Right. And it's not just customer service, right? I think you've mentioned your security operations --?
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JUNE 06, 2023 / 3:40PM, PD.N - PagerDuty Inc at William Blair Growth Stock Conference
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Right, right.
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Right. That's helpful. And so as you think about where PagerDuty sits in the market -- excuse me, from a competitive standpoint, would love to
maybe get your thoughts on key points of differentiation? And how you think about the moat that you've built as you've expanded with this
functionality over time?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: And I guess, the potential competitors. We get the most questions about now with the benign developments with the ones that you mentioned
would be some of the observability players, who are trying to see if they can add downstream. Would like to just maybe dig into your relationship
with those providers, and how you sit in --?
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: Right, right. So we're just about of time. So I think we'll leave it there. Appreciate you both being here. Thank you very much. Thank you, everyone,
for sitting in.
Question: Matt Stotler - William Blair & Company L.L.C. - Analyst
: We will have a breakout in 10 minutes. And Richardson upstairs, for anyone who'd like to come and ask Paul questions. Thank you very much.
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