2 min read

PagerDuty, a cloud computing firm, had its shares jump 59% in its opening day of trading at the New York Stock Exchange, yesterday after the firm priced its first software IPO of 2019 above an elevated range.

PagerDuty had initially targeted a price of $19 to $21 for its IPO shares. However, PagerDuty’s shares traded $38.25 a piece, giving the company a market capitalization of around $2.8 billion.  

Its stock was priced at $24 a piece, late Tuesday this week with a market cap of nearly $1.8 billion. PagerDuty had plans of selling 8.5 million shares in the IPO, but the stockholders offered about 570,000 shares.

PagerDuty operates an On-Call Management platform. The company helps improve the engagement between software developers and operators as it enables them to take action in real time. It is used by developers, IT, security, and customer support domains across different companies.  

The company was incorporated in 2010 and has its headquarters in San Francisco, California and its competitors include Atlassian Corp, OpsGenie, and Splunk. PagerDuty’s first financing round took place in September last year, where it was valued at $1.3 billion in a private funding round led by T. Rowe Price and Wellington Management.

PagerDuty is used by over 11000 companies, extending across 350,000 employees, including Box and Slack. Its revenue hiked 48% last year, reaching $117.8 million. However, the company’s overall loss had reached $40.7 million from $38.1 million last year.

Jennifer Tejada, CEO, PagerDuty, told TechCrunch about the IPO that “it is a gratifying day, especially for the co-founders who were pulling the idea together for PagerDuty…before they even launched it, and for employees who’ve been with the company for nearly as long and…turned down safer and higher-paying jobs along the way”. Tejada owns a 5.7% stake in the company and says that PagerDuty is going to serve a $25 billion market made up of about 22 million software developers.  

Public reaction to the news is positive, with people congratulating PagerDuty for the win:

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