# EDGAR Filing Document

**Accession Number:** 0001568100
**File Stem:** 0001568100-23-000006
**Filing Date:** 2023-1
**Character Count:** 21856
**Document Hash:** 2e9c685a8147427575b54bb19cbbdb37
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001568100-23-000006.hdr.sgml**: 20230124

**ACCESSION NUMBER**: 0001568100-23-000006

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230123

**ITEM INFORMATION**: Cost Associated with Exit or Disposal Activities

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230124

**DATE AS OF CHANGE**: 20230124

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PagerDuty, Inc.
- **CENTRAL INDEX KEY:** 0001568100
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **IRS NUMBER:** 272793871
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38856
- **FILM NUMBER:** 23545887

**BUSINESS ADDRESS:**
- **STREET 1:** 600 TOWNSEND STREET #200
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94103
- **BUSINESS PHONE:** (844) 800-3889

**MAIL ADDRESS:**
- **STREET 1:** 600 TOWNSEND STREET #200
- **CITY:** SAN FRANCISCO
- **STATE:** CA
- **ZIP:** 94103

?xml version="1.0" ? pd-20230123

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**_________________________**

**FORM 8-K**

**_________________________**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): January 23, 2023** 

**_________________________**

**PagerDuty, Inc.**

**(Exact name of Registrant as Specified in Its Charter)**

**_________________________**

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| | | |
|:---|:---|:---|
| **Delaware** | **001-38856** | **27-2793871** |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| **600 Townsend St., Suite 200**<br>**San Francisco, California** | | **94103** |
| **(Address of Principal Executive Offices)** | | **(Zip Code)** |

---

**(844) 800-3889**

**(Registrant's Telephone Number, Including Area Code)**

**Not Applicable**

**(Former Name or Former Address, if Changed Since Last Report)** 

**_________________________**

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 <br> ◻ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 <br> ◻ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 <br> ◻ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 <br> ◻ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading symbol(s) | Name of each exchange on which registered |
| **Common Stock, $0.000005 par value** | **PD** | **New York Stock Exchange (NYSE)** |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ◻

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

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**Item 2.05 Costs Associated with Exit or Disposal Activities**

On January 24, 2023, PagerDuty, Inc. (the "Company") announced that as part of the Company's ongoing actions to drive efficient growth and expand operating margins, the Company is advancing global scaling initiatives designed to increase the Company's capacity while improving its cost structure. The changes include reallocating certain roles and realigning teams to continue to improve operational resiliency and agility, and rationalizing the Company's real estate footprint. The immediate impact is a 7% reduction in headcount, as some roles are eliminated and new roles created in high-talent, lower-cost geographies.

The Company estimates that it will incur non-recurring charges in a range of $5.0 million to $7.0 million in connection with the headcount reductions, primarily consisting of severance payments, notice pay (where applicable), employee benefits contributions and related costs. The Company expects that the majority of the restructuring charges will be incurred in the fourth quarter of fiscal 2023 and that the implementation of the headcount reductions, including cash payments, will be substantially complete by the end of the first quarter of fiscal 2024.

Potential position eliminations are subject to legal requirements that vary by jurisdiction, which may extend this process beyond the first quarter of fiscal 2024 in certain cases. The charges that the Company expects to incur are subject to a number of assumptions, including legal requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above.

Concurrent with the Company's efficient growth strategy, the Company is considering real estate rationalization in line with the distributed nature of the workforce and a changed use of office facilities. This will include early termination on specific leases, which will result in one time expenses in a range of $14.0 million to $16.0 million. The Company expects the majority of these charges will be incurred in fiscal 2024.

The above information is preliminary and subject to the completion of year-end financial reporting processes and review. The Company expects to release the final fourth quarter and fiscal 2023 financial results in more detail and host a conference call in conjunction with the quarterly earnings release in March 2023.

**Forward-Looking Statements**

This Current Report on Form 8-K contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements related to the expected benefits of and timing of completion of the restructuring plan and intention to improve operational resiliency and agility in support of efficient growth, and the expected costs and charges associated therewith. Words such as "expects," "intends," "estimates," "designed," "considering," variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Actual results and the timing of events may differ materially from those contemplated by such forward-looking statements due to a number of factors that involve substantial known and unknown risks and uncertainties. These risks and uncertainties include, among other things, the risk that the restructuring costs and charges may be greater than anticipated; the risk that the Company's restructuring efforts may adversely affect its ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; the risk that the restructuring efforts may negatively impact the Company's business operations and reputation with or ability to serve customers; the risk that the restructuring efforts may not generate their intended benefits, including operational resiliency and agility and a more efficient growth strategy to the extent or as quickly as anticipated; and other risks and uncertainties included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we may file with the Securities and Exchange Commission from time to time. Forward-looking statements should be considered in light of these risks and uncertainties. Investors and others are cautioned not to place undue reliance on forward-looking statements. The forward-looking statements included in this report represent our views as of the date of this report. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this filing.

**Item 5.02&nbsp;&nbsp;&nbsp;&nbsp;Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

On January 24, 2023, the Company announced that Dave Justice has given notice that he will resign from his position as the Company's Chief Revenue Officer, effective February, 3, 2023 to pursue other opportunities. Jeremy Kmet, previously the Company's Senior Vice President, North America Sales and Customer Acquisition, has been appointed Senior Vice President of Global Field Operations, reporting into Chair and CEO Jennifer Tejada, effective February 1, 2023.

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A copy of the Company's press release announcing the foregoing changes is attached hereto as Exhibit 99.1.

**Item 7.01 Regulation FD Disclosure**

On January 24, 2023, the Company issued a press release to publicly reaffirm its previously announced financial guidance for fiscal year 2023. The release, furnished with this Current Report on Form 8-K as an exhibit, was posted on the Company's website (www.pagerduty.com) and distributed to the media through a newswire service.

This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in any such filing.

**Item 9.01 Financial Statements and Exhibits**

(d) Exhibits.

The following exhibit is provided as part of this report:

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| | |
|:---|:---|
| Exhibit No. | Description |
| <u>[99.1](ex991pressrelease12423.htm)</u> | <u>[Press Release Issued by PagerDuty, Inc. dated](ex991pressrelease12423.htm)[January](ex991pressrelease12423.htm)[24](ex991pressrelease12423.htm)[, 2023](ex991pressrelease12423.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **PagerDuty, Inc.** | **PagerDuty, Inc.** |
| Dated: January 24, 2023 | By: | /s/ Shelley Webb |
|  |  | Shelley Webb |
|  |  | *Senior Vice President, Legal, General Counsel, and Secretary* |

---

## Exhibit 99.1

![pdlogoa14a.jpg](pdlogoa14a.jpg)

**PagerDuty Appoints Jeremy Kmet Senior Vice President of Global Field Operations**

*Reaffirms Q4 and Fiscal Year 2023 Financial Guidance* 

*Advances Global Scaling Initiative to Drive Continued Operating Margin Improvement*

**SAN FRANCISCO - January 24, 2023** - PagerDuty, Inc. (NYSE:PD), a leader in digital operations management, today announced Jeremy Kmet, Senior Vice President, North America Sales and Customer Acquisition, is being appointed Senior Vice President of Global Field Operations, reporting into Chair and CEO Jennifer Tejada, effective February 1, 2023. Dave Justice, Chief Revenue Officer, is leaving the company to pursue other opportunities after the financial year end.

Kmet, who joined the company in 2017, is credited with designing and scaling the land-and-expand motion underpinning PagerDuty's efficient enterprise and mid-market growth, and setting the company's performance pace. In Kmet's expanded role, his leadership will extend beyond the Americas, which represents approximately 75% of annual recurring revenue, to include EMEA and APJ.

"Jeremy is a capable global leader with a track record of success. As we progress towards our goal of operating as a Rule of 40 company, I am confident in his ability to lead our GTM teams through our next phase of efficient growth," said Tejada. "Jeremy is well respected by our customers, partners and employees, has deep product and domain expertise, and has demonstrated his ability to scale our unique go-to market model effectively and profitably."

"I would like to thank Dave for his partnership and many contributions to the company and our customers. He will ensure a seamless transition through the end of the financial year, and we wish him well in his next endeavor."

As part of the company's ongoing efforts to drive efficient growth and expand operating margins, PagerDuty is advancing global scaling initiatives designed to increase PagerDuty's capacity, growing quota carrying and engineering headcount, while improving its cost structure. The changes include reallocating certain roles and realigning teams to continue to improve operational resiliency and agility, and rationalizing the company's real estate footprint. The immediate impact is a 7% reduction in headcount in the near term, as some roles are eliminated and new roles created in cost-effective, high-talent geographies over time.

Tejada stated, "We are committed to continuing to grow PagerDuty's revenue more than 20% year-over-year even in an uncertain economic environment. At the same time, we remain committed to continue the trend of significantly improving our operating margin, at least at the same level of improvement as FY23, balancing growth and profitability. These planned changes are designed to reinforce our go-to-market execution, improve operating margins, and enable us to continue to operate from a position of strength. While any action that impacts our employees is difficult, we are confident this is the right path forward for our company over the long term. I want to thank all of our departing employees for their hard work, significant contributions, and commitment to our customers."

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**Financial Outlook - Fourth Quarter and Fiscal Year 2023**

For the fourth quarter of fiscal 2023, PagerDuty reaffirms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $98.0 million - $100.0 million, representing a growth rate of 25% - 27% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP net income per diluted share attributable to PagerDuty, Inc. of $0.02 - $0.03 assuming approximately 102 million diluted shares

For the full fiscal year 2023, PagerDuty reaffirms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenue of $368.0 million - $370.0 million, representing a growth rate of 31% - 31% year over year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP net loss per share attributable to PagerDuty, Inc. of $0.01 - $0.00 assuming approximately 90 million basic shares and 101 million diluted shares.

PagerDuty has not reconciled its expectations as to non-GAAP net income (loss) per share attributable to PagerDuty to GAAP net loss per share attributable to PagerDuty because certain items are out of its control or cannot be reasonably predicted. Accordingly, a reconciliation for forward-looking non-GAAP net income (loss) per share attributable to PagerDuty is not available without unreasonable effort.

In connection with the reallocation of roles, realigning teams and rationalization of real estate, PagerDuty expects to incur approximately $19.0 million to $23.0 million in charges, of which approximately $5.0 million to $7.0 million is expected to be incurred in the fourth quarter fiscal 2023 and $14.0 million to $16.0 million is expected to be incurred by the end of fiscal 2024.

The above information is preliminary and subject to the completion of year-end financial reporting processes and review. PagerDuty expects to release final fourth quarter and fiscal 2023 financial results in more detail and host a conference call in conjunction with the quarterly earnings release in March 2023.

These statements are forward-looking and actual results may differ materially. Please refer to the Forward-Looking Statements section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

**About Jeremy Kmet**

Jeremy Kmet is a seasoned customer-focused go-to-market leader with more than 20 years of experience leading enterprise SaaS companies. He is in his seventh year at PagerDuty, most recently having led its America's go-to-market effort and global customer acquisition as Senior Vice President, North America Sales and Customer Acquisition. Prior to that role, he served as Senior Vice President, Commercial Sales and Customer Acquisition. Prior to joining PagerDuty, he was the Vice President for North America Sales at Zendesk. Before Zendesk, he served as Vice President of Commercial Sales for DocuSign. From 2004 to 2014, he held roles of increasing responsibility at Salesforce, including Vice President of Global Sales. Kmet started his career at Procter & Gamble and has a B.A. in Business Administration, Marketing Strategy, Finance, Information Technology and New Venture Creation from Wilfrid Laurier University in Waterloo, Ontario.

**Forward-Looking Statements**

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our

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future financial performance, financial outlook, expected benefits of our global scaling initiatives, and market positioning. Words such as "expect," "extend," "anticipate," "should," "believe," "hope," "target," "project," "accelerate," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall," "design" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks and other factors detailed in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 17, 2022 as well as information made available in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2022 and other filings and reports that we may file from time to time with the SEC. In particular, the following risks and uncertainties, among others, could cause results to differ materially from those expressed or implied by such forward-looking statements: the effect of uncertainties related to the COVID-19 pandemic on U.S. and global markets, our business, operations, revenue results, cash flow, operating expenses, demand for our solutions, sales cycles, customer retention and our customers' businesses; our ability to achieve and maintain future profitability; our ability to attract new customers and retain and sell additional functionality and services to our existing customers; our ability to sustain and manage our growth; our dependence on revenue from a single product; our ability to compete effectively in an increasingly competitive market; and general global market, political, economic, and business conditions; the risk that the restructuring costs and charges may be greater than anticipated; the risk that our restructuring efforts may adversely affect our ability to recruit and retain skilled and motivated personnel, and may be distracting to employees and management; the risk that restructuring efforts may negatively impact our business operations and reputation with or ability to serve customers; and the risk that the restructuring efforts may not generate their intended benefits, including operational resiliency and agility and a more efficient growth strategy to the extent or as quickly as anticipated.

Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

**About PagerDuty, Inc.**

PagerDuty, Inc. (NYSE:PD) is a leader in digital operations management. In an always-on world, organizations of all sizes trust PagerDuty to help them deliver a better digital experience to their customers, every time. Teams use PagerDuty to identify issues and opportunities in real time and bring together the right people to fix problems faster and prevent them in the future. Notable customers include Cisco, Genentech, Electronic Arts, Cox Automotive, Shopify, Zoom, DoorDash and more. To learn more and try PagerDuty for free, visit www.pagerduty.com. Follow our blog and connect with us on Twitter, LinkedIn, YouTube and Facebook.

Media Contact:

Claude Shy III

media@pagerduty.com

Tony Righetti

investor@pagerduty.com

<br>