PagerDuty's Q3: Seat-Based Licenses Down, Usage-Based Ups
Update: 2025-12-02
Description
PagerDutys Q3 2025 results sparked market turmoil due to customer retention issues and reduced seat-based licenses, particularly among large clients undergoing reorganizations. Despite increased usage-based product adoption and operational efficiency, revenue loss from seat license reductions persisted. Analysts questioned the impact of usage-based pricing and the trend of seat reductions. PagerDuty plans to stabilize seat-based licenses, explore revenue growth through multi-year agreements, and expand operating margin via efficiency and product mix changes.
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