Customer growth enhances their outlook

Article Excerpt

PagerDuty’s clients are mostly big corporations, while NortonLifeLock targets the consumer market. But both have winning business models that we expect will lead to strong growth in future years. We see PagerDuty as a Power Buy and NortonLifeLock as a buy. PAGERDUTY INC., $41.16, is a buy. The company (New York symbol PD; TSINetwork Rating: Extra Risk) (www.pagerduty.com; Shares outstanding: 85.0 million; Market cap: $3.6 billion; No dividends paid) operates a platform that collects real-time data from software systems and devices and then notifies its IT customers of any incident that could harm their operations. In the quarter ended July 31, 2021, revenue rose 33.2%, to $67.5 million from $50.7 million a year earlier. Sales were higher mostly due to the addition of new customers. Excluding one-time items, the company lost $10.7 million, or $0.13 a share. That’s more than its year-earlier loss of $3.2 million, or $0.04. The loss rose as it spent more on research as well as marketing to win clients. On July 31, 2021, PagerDuty’s…