PagerDuty Surpasses Revenue Expectations in Q1 2027, Embarks on New Chapter with John DiLullo as CEO
PagerDuty, a leading AI-first operations platform, has announced its Q1 2027 results, exceeding the top end of guidance for both revenue and non-GAAP operating margin. The company reported quarterly revenue of $121 million, representing a 1% year-over-year increase, while annual recurring revenue (ARR) remained flat at $496 million.
As PagerDuty embarks on a new chapter with John DiLullo as its CEO, the company is poised for profitable growth acceleration. DiLullo's appointment marks a deliberate and comprehensive succession process initiated by former CEO Jennifer, who has transitioned to Executive Chair. In his brief remarks, DiLullo expressed excitement about joining the company, highlighting its trusted brand, enviable customer base, and platform that sits at the core of real-time, mission-critical operations.
DiLullo emphasized that as digital environments become more complex, with AI and automation volumes climbing, PagerDuty's platform usage is expected to continue growing. The transition to usage-based pricing will translate to revenue growth over time, positioning the company exceptionally well to extend its leadership. DiLullo's priority in the near term is to listen, learn, and engage with employees, customers, and partners to deepen his understanding of the market and business.
Former CEO Jennifer reflected on her decade-long tenure at PagerDuty, highlighting the company's evolution from a single-product firm with less than $50 million in revenue to a leading AI-first operations platform generating nearly $500 million in profitable revenue. During her time, PagerDuty strengthened its core franchise by embedding AI and automation into the platform, driving greater customer outcomes and increasing differentiation.
The company's Q1 results demonstrate consistent discipline, structural efficiency initiatives, and AI adoption, with non-GAAP operating margin growing to 25%. As PagerDuty increases its own operational AI leverage and drives customer usage of its AI platform, it sees a clear path to achieving its long-term target of 30% non-GAAP operating margin.
PagerDuty's product enhancements and pricing improvements initiated last year, including the introduction of the new usage-based Operations Cloud and PagerDuty Advance pricing and packaging, are expected to accelerate revenue growth. With DiLullo at the helm, the company is well-positioned for continued success and growth in the AI-first operations platform market.
