PagerDuty, Inc. (PD): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde rapide des opérations numériques, PagerDuty apparaît comme une bouée de sauvetage critique pour les entreprises naviguant des paysages technologiques complexes. Cette plate-forme innovante transforme la façon dont les organisations réagissent et gèrent des incidents critiques, fournissant une solution transparente et intelligente qui comble l'écart entre les perturbations numériques potentielles et la résolution rapide. En tirant parti des capacités avancées d'apprentissage automatique et de surveillance en temps réel, PagerDuty a révolutionné la gestion des incidents pour les entreprises axées sur la technologie, offrant un écosystème robuste qui assure la continuité opérationnelle et minimise les temps d'arrêt coûteux.

PagerDuty, Inc. (PD) - Modèle d'entreprise: partenariats clés

Fournisseurs de services cloud

PagerDuty entretient des partenariats stratégiques avec les principaux fournisseurs de services cloud:

Amazon Web Services (AWS)	Partenaire technologique avancé	Revenus de partenariat annuels de 2,3 millions de dollars
Microsoft Azure	Partenaire de plate-forme Gold Cloud	Revenus de 1,7 million de dollars de partenariat annuel
Google Cloud Platform	Partenaire technologique cloud de premier plan	Revenus de partenariat annuels de 1,5 million de dollars

DevOps et des intégrations d'outils de surveillance informatique

PagerDuty s'intègre à plusieurs plates-formes DevOps:

• Atlassian Jira: 3 200 clients d'entreprise partagés
• Splunk: 2 800 clients d'entreprise partagés
• ServiceNow: 2 500 clients d'entreprise partagés
• Datadog: 1 900 clients d'entreprise partagés

Sociétés de conseil en technologie

Accentuation	Partenaire d'intégrateur de systèmes mondiaux	Valeur de partenariat annuel de 4,2 millions de dollars
Deloitte	Partenaire de transformation numérique	Valeur de partenariat annuelle de 3,8 millions de dollars
Kpmg	Partenaire de conseil des opérations numériques	Valeur de partenariat annuelle de 3,5 millions de dollars

Revendeurs de logiciels d'entreprise

PagerDuty collabore avec les principaux revendeurs de logiciels d'entreprise:

• CDW: 1 100 références des clients d'entreprise
• SHI International: 950 Entreprise Renvoyages Client
• Insight Enterprises: 850 Références des clients d'entreprise

Réseaux de communauté open source et de développeurs

Github	Partenaire d'intégration des développeurs	87 000 connexions de développeur
Débordement de pile	Partenaire d'engagement communautaire	62 000 interactions développeurs
Fondation Linux	Partenaire de collaboration open source	45 000 membres de la communauté

PagerDuty, Inc. (PD) - Modèle d'entreprise: Activités clés

Développement de la plate-forme de gestion des incidents en temps réel

PagerDuty a investi 54,7 millions de dollars dans la recherche et le développement au cours de l'exercice 2023. La plate-forme traite plus de 42 millions d'événements d'opérations numériques par minute.

Métrique de la plate-forme	Valeur
Mises à jour annuelles de la plate-forme	4-6 versions majeures
Temps de réponse moyen	Moins de 5 secondes
Régions d'infrastructure mondiales	8 régions du centre de données

Innovation de produit logiciel continu

PagerDuty maintient une équipe d'innovation dédiée de 127 ingénieurs logiciels axés sur le développement de produits.

• Intégration d'apprentissage automatique
• Capacités d'analyse en temps réel
• Améliorations d'architecture native du cloud

Support client et services techniques

PagerDuty emploie 215 professionnels du support client dans des emplacements mondiaux. Le temps de réponse de soutien dure en moyenne 27 minutes.

Métrique de soutien	Performance
Canaux de support client	E-mail, chat, téléphone, forum communautaire
Temps de résolution moyen	2,3 heures
Évaluation de satisfaction du client	4.7/5

Maintenance et sécurité de la plate-forme numérique

Les investissements en sécurité ont atteint 12,3 millions de dollars en 2023, avec une garantie de disponibilité de la plate-forme de 99,99%.

• Surveillance continue de la sécurité
• Évaluations régulières de la vulnérabilité
• Conformité SOC 2 Type II

Amélioration de l'apprentissage automatique et de l'algorithme d'IA

PagerDuty a alloué 23,6 millions de dollars à l'IA et à la recherche sur l'apprentissage automatique en 2023.

Métrique de développement de l'IA	Valeur
Itérations du modèle d'IA	12 par an
Ingénieurs d'apprentissage automatique	46 professionnels
Précision d'analyse prédictive	87.5%

PagerDuty, Inc. (PD) - Modèle commercial: Ressources clés

Technologie avancée de la réponse aux incidents SaaS

La plate-forme technologique principale de PagerDuty prend en charge la gestion des opérations numériques en temps réel avec les spécifications d'infrastructure suivantes:

Métrique technologique	Spécification
Time de disponibilité de la plate-forme	99,95% de disponibilité de services garantis
Temps de réponse	Traitement de la notification des incidents de la sous-seconde
Capacités d'intégration	300+ logiciels et intégrations de services cloud

Algorithmes d'apprentissage automatique propriétaires

Les capacités d'apprentissage automatique comprennent:

• Algorithmes de routage des incidents prédictifs
• Corrélation et priorisation des événements automatisés
• Mécanismes d'escalade intelligents

Équipes d'ingénierie et de développement de produits qualifiés

Métrique de l'équipe	2024 données
Total des employés d'ingénierie	453 employés
Investissement en R&D	127,4 millions de dollars par an
Expérience moyenne de l'ingénieur	7,2 ans dans les opérations numériques

Infrastructure cloud et architecture technique

Détails de déploiement des infrastructures cloud:

• Infrastructure cloud multi-région
• Déploiement de la plate-forme AWS et Google Cloud
• Architecture basée sur les microservices

Propriété intellectuelle et brevets logiciels

Catégorie IP	2024 statistiques
Brevets logiciels totaux	37 brevets enregistrés
Demandes de brevet en instance	12 applications
Investissement de propriété intellectuelle annuelle	8,3 millions de dollars

PagerDuty, Inc. (PD) - Modèle d'entreprise: propositions de valeur

Gestion automatisée des opérations numériques en temps réel

PagerDuty fournit une gestion des opérations numériques en temps réel avec les mesures clés suivantes:

Métrique	Valeur
Temps de réponse moyen des incidents	3,2 minutes
Couverture de la plate-forme d'opérations numériques	Plus de 550 intégrations logicielles
Les clients d'entreprise utilisant la plate-forme	22 000+ organisations

Détection et résolution rapides des incidents

Les capacités de gestion des incidents de PagerDuty comprennent:

• Corrélation d'alerte alimentée par l'apprentissage
• Routage automatisé des incidents
• Streaming d'événements en temps réel

Temps d'arrêt opérationnel minimisé pour les entreprises

Métrique de réduction des temps d'arrêt	Performance
Réduction moyenne des temps d'arrêt	62%
Temps moyen pour résoudre (MTTR)	47 minutes

Plate-forme de surveillance et de réponse centralisée

Les capacités de plate-forme comprennent une surveillance complète des infrastructures numériques à travers:

• Environnements cloud
• Clusters de Kubernetes
• Architectures de microservices
• Systèmes sur site

Capacités d'alerte et d'escalade intelligentes

Alerting la métrique des performances	Valeur
Précision du routage alerte	94%
Vitesse d'escalade intelligente	2,1 minutes
Fiabilité annuelle de la plate-forme	99.99%

PagerDuty, Inc. (PD) - Modèle d'entreprise: relations avec les clients

Intégration numérique en libre-service

PagerDuty propose un processus d'intégration en libre-service numérique avec les mesures clés suivantes:

Métrique d'intégration	Valeur
Temps moyen pour la première alerte	15 minutes
Taux de conversion d'essai gratuit	32%
Taux d'achèvement numérique	87%

Gestion de réussite client dédiée

PagerDuty fournit Support de réussite client personnalisée avec des équipes spécialisées:

• Les gestionnaires de réussite des clients d'entreprise affectés à des comptes plus de 50 000 $ Arr
• Gestionnaires de comptes techniques dédiés pour les clients de haut niveau
• Taille de l'équipe de réussite du client: 78 professionnels

Communauté et base de connaissances en ligne

Ressource communautaire	Métrique
Articles de base de connaissances en ligne	1 247 documents techniques
Membres du forum communautaire	24 563 utilisateurs enregistrés
Taux de résolution en libre-service moyen	62%

Soutien technique et consultation

PagerDuty offre un support technique à plusieurs niveaux:

• Support technique 24/7 pour les clients d'entreprise
• Temps de résolution moyenne des billets de support: 4,2 heures
• Canaux de support: e-mail, téléphone, chat, base de connaissances

Mises à jour régulières des produits et versions des fonctionnalités

Mettre à jour la fréquence	Détails
Maux de produits majeurs	Trimestriel (4 fois par an)
Mises à jour des fonctionnalités mineures	Bihebdomadaire
Canaux de notification des clients	E-mail, notifications dans l'application, forum communautaire

PagerDuty, Inc. (PD) - Modèle d'entreprise: canaux

Équipe de vente directe d'entreprise

L'équipe directe de vente des entreprises de PagerDuty a généré 234,7 millions de dollars de revenus au cours de l'exercice 2023. L'équipe se concentre sur les clients au niveau de l'entreprise avec une valeur de contrat annuelle moyenne de 42 500 $.

Métrique de l'équipe de vente	2023 données
Revenus de ventes totales de l'entreprise	234,7 millions de dollars
Valeur du contrat annuel moyen	$42,500
Nombre de représentants des ventes d'entreprises	127

Site Web en ligne et portail de produits

La plate-forme en ligne de PagerDuty a enregistré 3,2 millions de visiteurs mensuels uniques en 2023. Le portail numérique prend en charge:

• Création de compte en libre-service
• Documentation du produit
• Inscriptions d'essai gratuites
• Informations sur les prix

Plates-formes de marché cloud

PagerDuty s'intègre à plusieurs marchés de cloud, générant 87,3 millions de dollars de revenus provenant du marché en 2023.

Marché du cloud	Contribution des revenus
AWS Marketplace	42,6 millions de dollars
Microsoft Azure Marketplace	31,2 millions de dollars
Google Cloud Marketplace	13,5 millions de dollars

Références de partenaires technologiques

Les références de partenaires technologiques ont contribué 56,4 millions de dollars aux revenus de PagerDuty en 2023, avec 78 partenaires technologiques actifs.

Catégorie de partenaire	Nombre de partenaires	Contribution des revenus
DevOps Partners	42	31,2 millions de dollars
Partenaires de surveillance	22	15,6 millions de dollars
Partenaires de sécurité	14	9,6 millions de dollars

Marketing numérique et stratégies de contenu

PagerDuty a investi 37,5 millions de dollars en marketing numérique en 2023, réalisant:

• 5,4 millions d'interactions d'engagement de contenu
• 142 000 prospects qualifiés marketing
• Taux de conversion de 37% des efforts de marketing numérique

PagerDuty, Inc. (PD) - Modèle d'entreprise: segments de clientèle

Enterprise IT et DevOps Teams

PagerDuty dessert 21 300 clients au quatrième trimestre 2023, avec un accent significatif sur les équipes informatiques et DevOps d'entreprise.

Catégorie client	Pourcentage de la clientèle totale	Dépenses annuelles moyennes
Équipes informatiques d'entreprise	42%	$89,400
Teams DevOps	33%	$76,200

Entreprises technologiques

Le secteur de la technologie représente 47% de la clientèle totale de PagerDuty.

• Swoftware Companies: 28% du segment de la technologie
• Fournisseurs d'infrastructures cloud: 12% du segment technologique
• Compagnies SaaS: 7% du segment de la technologie

Organisations de services financiers

Les services financiers représentent 22% du portefeuille de clients de PagerDuty.

Sous-secteur des services financiers	Pourcentage de segment
Bancaire	38%
Assurance	32%
Services d'investissement	30%

Fournisseurs de technologies de santé

Le segment de la technologie des soins de santé représente 15% de la clientèle totale.

• Plateformes de santé numérique: 40% du segment des soins de santé
• Fournisseurs de logiciels médicaux: 35% du segment des soins de santé
• Infrastructure informatique des soins de santé: 25% du segment des soins de santé

Entreprises d'infrastructure numérique à grande échelle

Les sociétés d'infrastructure numérique représentent 16% des clients de PagerDuty.

Type d'infrastructure	Pourcentage de segment	Taille moyenne du client
Fournisseurs de cloud	45%	Plus de 5 000 employés
Télécommunications	30%	Plus de 3 500 employés
Infrastructure réseau	25%	2 800+ employés

PagerDuty, Inc. (PD) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2024, PagerDuty a déclaré des frais de recherche et de développement de 128,3 millions de dollars, ce qui représente 37,4% des revenus totaux.

Exercice fiscal	Dépenses de R&D	Pourcentage de revenus
2024	128,3 millions de dollars	37.4%

Maintenance des infrastructures cloud

Les coûts d'infrastructure cloud et de technologie pour PagerDuty en 2024 étaient d'environ 42,6 millions de dollars.

• Amazon Web Services (AWS) Fournisseur d'infrastructures cloud primaire
• Coûts de service cloud annuel estimé: 42,6 millions de dollars
• L'infrastructure cloud représente 12,4% du total des dépenses d'exploitation

Investissements de vente et de marketing

Les frais de vente et de marketing de PagerDuty pour 2024 ont totalisé 186,7 millions de dollars.

Canal de marketing	Budget alloué
Marketing numérique	58,2 millions de dollars
Compensation de l'équipe de vente	84,5 millions de dollars
Marketing d'événement et de conférence	44,0 millions de dollars

Compensation des employés

La rémunération totale des employés pour PagerDuty en 2024 était de 245,6 millions de dollars.

• Salaire d'ingénierie moyen: 185 000 $
• Salaire de représentant des ventes moyens: 132 000 $
• HeadCount total: 1 024 employés

Opérations de support client

Les dépenses opérationnelles du support client pour 2024 étaient de 36,4 millions de dollars.

Canal de support	Coût annuel
Personnel de soutien technique	24,8 millions de dollars
Infrastructure de soutien	11,6 millions de dollars

PagerDuty, Inc. (PD) - Modèle d'entreprise: Strots de revenus

Modèles d'abonnement SaaS à niveau

PagerDuty propose quatre niveaux d'abonnement primaires à partir de 2024:

Étage	Prix ​​mensuel	Prix ​​annuel
Gratuit	$0	$0
Opérations numériques	39 $ / utilisateur	468 $ / utilisateur
Entreprise	69 $ / utilisateur	828 $ / utilisateur
Entreprise	Prix ​​personnalisés	Prix ​​personnalisés

Plans de prix basés sur l'utilisation

PagerDuty implémente les prix basés sur l'utilisation avec les mesures suivantes:

• Nombre d'utilisateurs
• Volume de réponse aux incidents
• Fréquence d'appel API
• Taux de traitement des événements

Accords de licence d'entreprise

Les clients d'entreprise en 2024 représentent:

• 58% des revenus totaux
• Valeur du contrat moyen: 135 000 $
• Durée du contrat typique: 3 ans

Conseil de services professionnels

Type de service	Taux horaire
Conseil d'implémentation	350 $ / heure
Configuration avancée	425 $ / heure
Intégration personnalisée	500 $ / heure

Monétisation des fonctionnalités complémentaires

Les sources de revenus supplémentaires comprennent:

• Intelligence de l'événement: 20 $ / utilisateur / mois
• Critique de l'entreprise: 99 $ / utilisateur / mois
• Packages d'assistance technique: 5 000 $ à 25 000 $ par an

PagerDuty, Inc. (PD) - Canvas Business Model: Value Propositions

You're looking at the core value PagerDuty, Inc. delivers to its enterprise customers-the reasons they keep paying for mission-critical operations management. It's about stopping the bleeding when things break, fast.

Incident Management

When a major service disruption hits, every minute costs real money. You need to accelerate resolution and cut that costly downtime, and PagerDuty is positioned as essential infrastructure for that fight. The data shows the problem is significant: the average incident takes nearly 175 minutes to resolve, which translates to an estimated cost of downtime at $4,537 per minute. So, each customer-impacting digital incident can cost your organization nearly $794,000. For organizations seeing an average of 25 high-priority incidents in a year, those cumulative costs approach $20 million annually per organization.

Operational Resilience

For you, operational resilience means your critical systems stay up, or recover instantly when they don't. PagerDuty has proven its capability in this area, earning the AWS Resilience Services Competency, which validates its software aids firms in keeping systems operational and recovering fast from failures, especially on Amazon Web Services.

AIOps and Automation

The platform helps you filter out the constant alert noise and automate response workflows, which is where the real efficiency gains start to show. With the Fall '25 update, PagerDuty launched AI agents designed to cut incident resolution times by 50%. Furthermore, survey data suggests that companies expect agentic AI to automate or accelerate between 26% and 50% of their workloads. For those who have integrated Generative AI, operational efficiency gains were reported at 37%.

Enterprise-Grade Trust

When you are running mission-critical operations, you need a platform trusted by the biggest names. You should know that nearly 70% of the Fortune 100 rely on PagerDuty as essential infrastructure for the modern enterprise. To be defintely clear, this is a platform used by more than half of the Fortune 500 as well.

Here's a quick look at some of the key metrics underpinning these value propositions as of early 2025:

Value Metric	Associated Real-Life Number
Fortune 100 Customer Penetration	Nearly 70%
Average Incident Resolution Time	175 minutes
Estimated Cost Per Average Incident	Nearly $794,000
Reported Resolution Time Reduction (Fall '25 Update)	50%
Expected Workload Automation/Acceleration via Agentic AI	26% to 50%
FY2025 Annual Recurring Revenue (ARR)	$494 million
Total Paid Customers (as of Jan 31, 2025)	15,114

The platform's value is also seen in its customer expansion, though growth has moderated; the Dollar-based net retention rate was 106% as of January 31, 2025. Still, the number of customers with Annual Recurring Revenue (ARR) over $100 thousand grew 6% to 849 in that same period.

Finance: draft 13-week cash view by Friday.

PagerDuty, Inc. (PD) - Canvas Business Model: Customer Relationships

You're looking at how PagerDuty, Inc. manages its relationships across its customer base as of late 2025. It's a clear split, focusing significant human capital on the top end while relying on scale and automation elsewhere. The recent financial figures show this strategy is under pressure, particularly on the expansion front.

The Enterprise segment, which we can approximate as customers with Annual Recurring Revenue (ARR) over $100 thousand, is clearly the focus for high-touch service. This is where dedicated resources live. For these key accounts, the relationship is managed through direct engagement, which is necessary given the complexity and high contract value.

Metric	Enterprise Segment (ARR > $100k)	Total Paid Customers	Date/Period
Count	867	15,398	As of October 31, 2025
Year-over-Year Growth in Count	5%	Approximately 2.2% (15,398 vs 15,050)	As of October 31, 2025
Dollar-Based Net Retention Rate (DBNR)	Implied lower than 100%	100%	As of October 31, 2025

Dedicated account management and professional services for Enterprise are essential components of this high-touch approach. The Enterprise tier specifically bundles a dedicated Customer Success Manager. This direct line of support is designed to drive platform adoption and expansion, though the recent DBNR of 100% as of October 31, 2025, suggests that expansion within this group is currently flat, meaning upsells are exactly offsetting churn. To be fair, this is a significant pivot from historical performance, where DBNR was above 120% in fiscal year 2023.

For lower tiers, the model shifts heavily toward efficiency. The Professional plan is the entry-level offering, priced at $21/user/month, but it lacks critical features, pushing users toward the Business tier at $41/user/month or the custom Enterprise tier. This structure inherently encourages a move toward automated self-service or community support until the feature gap necessitates an upgrade or direct sales engagement. The existence of a Free plan, which is more of a 14-day trial, also points to a self-service entry path for very small teams.

Proactive customer success is clearly tied to the expansion goal, especially as the company navigates a challenging retention environment. The appointment of Allison Corley as Chief Customer Officer in fiscal 2025 signals a focus on this area. The company is actively using its research, such as the 2025 State of Digital Operations Report based on over 1,100 operations leaders, to frame the value proposition for proactive engagement, particularly around new AI capabilities.

In-platform guidance and documentation are being rapidly updated to support new product introductions, which is a key part of driving adoption and justifying premium pricing. PagerDuty, Inc. announced upcoming Agentic Artificial Intelligence offerings, including the Agentic Site Reliability Engineer and Operational Insights Agents. This means documentation and in-platform walkthroughs must keep pace with this rapid innovation to ensure customers realize the value of these new features without requiring constant high-touch intervention. For instance, new generative AI and automation features were introduced in PagerDuty Advance, which is embedded across the Operations Cloud platform.

• The Enterprise plan is considered cost-effective at approximately 75-100 users when factoring in included features versus the Business plan plus add-ons.
• The Business plan for 100 users has a median negotiated annual cost around $42,410.
• Total paid customers grew from 15,039 at the end of fiscal 2024 (January 31, 2025) to 15,398 as of October 31, 2025.
• The company's overall Dollar-based net retention rate fell to 100% as of October 31, 2025, down from 107% the prior year.

Finance: draft 13-week cash view by Friday.

PagerDuty, Inc. (PD) - Canvas Business Model: Channels

You're looking at how PagerDuty, Inc. gets its product into the hands of its users as of late 2025. It's a mix of high-touch enterprise selling and broader digital reach.

Direct Enterprise Sales team for high-value contracts.

The focus here is on landing and expanding within large organizations. The efficiency of this channel is reflected in the reduction of go-to-market investment relative to revenue.

• Sales & Marketing spend as a percentage of revenue for Fiscal Year 2025 was 30%.
• This represented a reduction from 53% of revenue spent on Sales & Marketing in Fiscal Year 2020.

The success in this segment is tracked by the growth of the largest accounts.

Metric	As of October 31, 2025	As of January 31, 2025
Customers with ARR over $100 thousand	867	849
Year-over-Year Growth in $100k+ Customers (as of Oct 31, 2025)	5%	6% (as of Jan 31, 2025)

Self-service web portal for Free and Professional plan sign-ups.

This channel feeds the top of the funnel, capturing smaller users who might later convert to higher-tier plans. The total user base reflects the reach of this lower-friction entry point.

• Total paid and free customers as of October 31, 2025, totaled more than 34,000.
• Total paid customers as of October 31, 2025, stood at 15,398.
• Total paid and free customers as of January 31, 2025, totaled more than 31,000.
• Total paid customers as of January 31, 2025, stood at 15,114.

The Annual Recurring Revenue (ARR) base is the ultimate measure of success across all channels.

Metric	As of October 31, 2025	As of January 31, 2025
Annual Recurring Revenue (ARR)	$497 million	$494 million

Cloud Provider Marketplaces (e.g., AWS Marketplace).

PagerDuty, Inc. actively uses the AWS Marketplace to reach customers already committed to that cloud ecosystem. This is a strategic channel for enterprise adoption.

• PagerDuty, Inc. announced it became one of the first AWS Software Partners to earn the AWS Resilience Services Competency in late 2025.
• PagerDuty, Inc. and AWS serve 6,000 joint customers as part of their collaboration.

Global network of consulting and implementation partners.

While specific revenue contribution from partners isn't explicitly broken out, the partner ecosystem supports the enterprise sales motion and implementation for complex deployments.

• PagerDuty, Inc. offers professional consulting and engineering services validated by AWS to help enterprises architect resilient cloud infrastructures.

PagerDuty, Inc. (PD) - Canvas Business Model: Customer Segments

You're looking at how PagerDuty, Inc. segments its market to drive revenue, and honestly, it's a classic SaaS playbook focused on moving customers up the value chain. The customer base is clearly tiered, moving from initial adoption to deep enterprise integration.

The top tier is where the big money is, the Large Enterprises. These are the customers with significant commitment, defined as those with over $100,000 in Annual Recurring Revenue (ARR). As per the fiscal year 2025 reporting, PagerDuty, Inc. had 849 such customers. To be fair, the very latest data point, as of October 31, 2025, shows this number has ticked up to 867 customers, showing continued, albeit slower, expansion at the top end.

Here's a quick look at the enterprise focus:

Metric	Value (As of Late 2025)	Context
Customers with ARR > $100k	867	Latest count as of October 31, 2025
Customers with ARR > $100k (FY2025 Anchor)	849	Number provided for FY2025 reporting
Total Paid Customers	15,398	As of October 31, 2025
Total Paid and Free Customers	More than 34,000	As of October 31, 2025

The next group, the Mid-Market, is targeted with the Business and Professional tiered features. This segment is crucial for volume and often represents the next wave of expansion into the top tier. We know that more than 75% of PagerDuty's total ARR is coming from the enterprise segment, so the mid-market is the feeder pool for that growth.

At the entry point, you have the Small Teams/Developers. This is where initial product adoption happens, often through the free offering. The outline suggests a Free tier limited to 5 users, which is a common strategy to drive product-led growth and build familiarity before a formal sales engagement.

PagerDuty, Inc. also segments by industry impact, recognizing that certain sectors have mission-critical needs that align perfectly with their operational resilience platform. This focus drives specific sales motions and product messaging. You see significant traction in:

• Financial services: A major enterprise customer recently expanded their deployment with a 6-figure upsell.
• Healthcare: A sector where downtime has immediate, high-consequence impacts.
• eCommerce: Critical for maintaining transaction flow, especially during peak times.
• AI Native Companies: A leading AI research and development company signed a 7-figure, multi-year commitment.

If onboarding takes 14+ days, churn risk rises, especially in these high-stakes industries.

Finance: draft 13-week cash view by Friday.

PagerDuty, Inc. (PD) - Canvas Business Model: Cost Structure

You're looking at where PagerDuty, Inc. is spending its money to keep the Operations Cloud running and growing, especially as they push hard into AI. Honestly, the cost structure is dominated by the people building and selling the platform, plus the cloud bills to run it all.

High R&D investment in AI, automation, and platform development.

PagerDuty, Inc. is pouring resources into its platform, particularly Agentic Artificial Intelligence (AI) offerings and automation features embedded across the Operations Cloud. While specific R&D dollar amounts aren't explicitly broken out in the latest public releases, the overall operating expenses reflect this investment. For the full Fiscal Year 2025, which ended January 31, 2025, the Loss from operations was $59.8 million on total revenue of $467.5 million. This GAAP loss shows significant investment outpacing revenue recognition in the period. However, the non-GAAP operating income was $82.7 million for that same full year, indicating that significant costs like stock-based compensation are excluded from that measure, which often inflates the apparent cost of engineering and development personnel.

Sales and Marketing (S&M) costs for global enterprise acquisition.

Acquiring and expanding within the enterprise segment is a major cost driver. PagerDuty, Inc. has increasingly focused its go-to-market motion on enterprise customers, who account for the majority of its revenue. The S&M expense line item is typically the largest component of operating expenses for a growth-focused SaaS company like this. The recent appointment of a new Chief Revenue Officer in September 2025 to drive global revenue growth suggests continued, if not increased, investment in this area. The company's Dollar-based net retention rate was 100% as of October 31, 2025, showing that while they are retaining most revenue, the cost to acquire new logos or expand existing ones is substantial enough to keep the net retention rate flat year-over-year from the prior period's 107%.

Cloud infrastructure and hosting costs for platform operations.

Running a real-time operations platform that handles massive data loads requires significant, variable cloud infrastructure spending. These costs fall under Cost of Revenue. For the third quarter of Fiscal 2026, ending October 31, 2025, the Cost of revenue was $18,357 (in thousands, or $18.357 million) against total revenue of approximately $124.5 million. This translates to a gross margin of about 85.2% for the quarter, which is healthy but shows the direct cost of keeping the platform live and scalable. The company explicitly notes that the timing and amount of investments to expand third-party cloud infrastructure providers can cause gross margin to fluctuate.

Personnel costs for engineering and customer support.

Personnel is the core cost. Engineering, product development, and customer support staff are essential for maintaining and evolving the platform. Stock-based compensation is a notable component of these personnel costs, used to attract and retain talent, though it is excluded from non-GAAP metrics. For the third quarter of Fiscal 2026, the company achieved GAAP profitability with a Net income of $159.56 million, though this figure seems anomalous compared to other reported GAAP net income/loss figures and may include a one-time event, while the non-GAAP operating income was $35.5 million on $124.5 million in revenue, showing operational leverage from their workforce.

Capital allocation for the up to $150 million share repurchase program.

PagerDuty, Inc. is actively managing its share count. The Board of Directors approved an increase in the share repurchase program to $200 million in August 2025. This followed a $150 million program announced with the Q4 Fiscal 2025 results, which built upon a prior $100 million initiative from May 2024. This indicates a capital allocation strategy to return value to shareholders, aiming to offset dilution from equity compensation, with an estimated $250 million worth of stock repurchased in Fiscal 2025.

Here's a quick look at the scale of the business that drives these costs, using the most recent reported figures:

Financial Metric	Value (Q3 Fiscal 2026, ended Oct 31, 2025)	Value (Full Year Fiscal 2025, ended Jan 31, 2025)
Revenue	$124.5 million	$467.5 million
GAAP Operating Income (Loss)	$8.1 million	($59.8 million) Loss
Non-GAAP Operating Income	$35.5 million	$82.7 million
Free Cash Flow	$20.9 million	$108.4 million
Cash, Cash Equivalents, and Investments	$547.8 million (as of Oct 31, 2025)	$570.8 million (as of Jan 31, 2025)

The company is clearly prioritizing investment, as seen in the GAAP loss for the full fiscal year 2025, but is demonstrating strong cash generation, with $108.4 million in Free Cash Flow for that same period. This cash flow is what funds both the platform development and the share repurchases.

• High R&D investment is necessary for Agentic AI and automation features.
• S&M costs are high due to the focus on enterprise customer acquisition.
• Cloud hosting costs are a direct, material component of Cost of Revenue.
• Personnel costs, including stock-based compensation, are the largest operating expense category.
• Capital allocation includes a recent $200 million share repurchase authorization.

Finance: draft 13-week cash view by Friday.

PagerDuty, Inc. (PD) - Canvas Business Model: Revenue Streams

You're looking at how PagerDuty, Inc. actually makes money, which is almost entirely through recurring software subscriptions, supplemented by high-value add-ons. Honestly, the structure is layered, which is typical for mature SaaS platforms aiming to capture more wallet share as customers scale.

The foundation of PagerDuty, Inc.'s revenue comes from its tiered Software as a Service (SaaS) subscription model. These tiers are designed to move customers up the value chain as their operational complexity increases. As of late 2025, the publicly listed tiers start with a Free plan, but the revenue-generating tiers are Professional, Business, and the custom-priced Enterprise tier, which they now sometimes refer to as Digital Operations.

Here's a quick look at the per-user monthly pricing for the base subscription rates, keeping in mind that annual commitments often secure volume-based discounts:

Tier Name	Approximate Per User/Month Price (Annual)	Key Included Feature/Limit
Professional	$21	Up to 250 external Status Page subscribers
Business	Starting at $41	Up to 500 external Status Page subscribers; 5,000 PagerDuty Advance credits
Enterprise (Digital Operations)	Contact Us (Custom)	20,000 PagerDuty Advance credits; Premium Status Pages

The subscription fees are only the start, though. PagerDuty, Inc. drives significant revenue through add-on features that unlock advanced capabilities, often required by larger or more mature operations teams. These are generally purchased on top of the base subscription.

You'll see these key add-ons frequently mentioned:

• AIOps: This uses machine learning to reduce alert noise. List pricing suggests a starting point around $699/month, though it is licensed per accepted event, making it consumption-based.
• Runbook Automation: This provides a SaaS environment for executing automated workflows. One data point suggests a list price of $59/user/month.
• Status Pages: For external communication, this is an add-on, priced around $89/page/1,000 subscribers if not included in the higher tier.

Consumption fees are tied directly to the adoption of their AI features through PagerDuty Advance credits. This is where usage-based revenue becomes a factor, especially for customers needing more than their included allotment. For example, the Business plan includes 5,000 one-time credits, while Enterprise includes 20,000 one-time credits. If you need more, additional credits are sold in minimum blocks, such as 20,000-credit minimums. The PagerDuty Advance for Incident Management add-on itself has a list price around $415/month.

To put the overall scale of these revenue streams into perspective for the most recent full fiscal year, PagerDuty, Inc.'s Total FY2025 Revenue was $467.5 million. Furthermore, their Annual Recurring Revenue (ARR) as of January 31, 2025, stood at $494 million, showing a strong base of committed future revenue.