PagerDuty's increased integration with Amazon Web Services, Amazon Bedrock and Q Business is likely to give the company's strategy to target larger enterprises a lift.
At AWS re:Invent 2024, PagerDuty CEO Jennifer Tejada joined AWS CEO Matt Garman on stage to tout the company's new collaboration. PagerDuty Advance will be integrated into Amazon Q Business, Amazon Bedrock and Amazon Bedrock Guardrails.
PagerDuty provides observability and incident management tools. PagerDuty and AWS already have nearly 6,000 joint customers. PagerDuty's Operations Cloud detects and diagnoses disruptive events, coordinates response and streamlines workflows.
The company has turned up during multiple customer presentations at re:Invent. For instance, Goldman Sachs outlined a mainframe migration and had PagerDuty in an architecture slide.
According to AWS and PagerDuty, new integrations include:
- PagerDuty Advance will be integrated into Amazon Bedrock to provide situational awareness through chat interactions. PagerDuty Advance is the company's genAI offering that features an assistant that leverages the company's data model.
- PagerDuty Advance also will be embedded into Amazon Bedrock Guardrails to ensure accuracy of query responses from models.
- In Amazon Q Business, PagerDuty is the first incident management platform to integrate. PagerDuty Advance customers will use one interface via Amazon Q Business plugins. PagerDuty said that early adopters said they saved an average of 30 minutes per incident with the integration.
The AWS integration comes a week after PagerDuty reported solid third quarter results and traction targeting larger enterprises.
PagerDuty reported a third quarter net loss of 7 cents a share on revenue of $118.9 million, up 9% from a year ago. Non-GAAP third quarter earnings were 25 cents a share to top estimates.
The company projected fourth quarter revenue of $118.5 million to $120.5 million, up 7% to 8% from a year ago. For fiscal 2025, PagerDuty is projecting revenue of $464.5 million to $466.5 million, up 8%.
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Speaking on an earnings conference call, PagerDuty CEO Tejada said:
"We were pleased to see stabilization across all segments in the quarter, with retention improving across the board. That said, we remain focused on growth reacceleration and there is room for improvement, particularly on large deal conversions. We had an unusual number of large Q3 opportunities defer, and while they are not lost, these will delay ARR acceleration to FY '26. Nonetheless, we are encouraged by improvements in several key indicators, including dollar-based net retention, multi-product adoption, enterprise contract duration, and total pipeline growth."
Tejada noted that PagerDuty is seeing strength among technology, financial services and telecom customers. The plan for PagerDuty is to land and expand with large enterprises.
