Part of our mission at PagerDuty is to help businesses “anticipate the unexpected in an unpredictable world.” Over the last year, the macro environment shifted rapidly, with growth contracting in Q1 and Q2 yet expanding in Q3. Inflation and geopolitical concerns caused the US Federal Reserve to hike interest rates, while the jobs market overall remained strong and the unemployment rate remained low. Macro signals remain mixed and uncertain as we head into a new fiscal year.
Our $38 billion TAM of over 75 million potential users remains large, our Operations Cloud platform mission critical for our customers, and our competitive advantages deep, but we are not immune to macro volatility, nor can we predict when the economy will improve.
While demand for our products and services remains stable and our strategy to help our customers transform their operations remains relevant and intact, it is taking longer to convert than prior years. Macro uncertainty and volatility has led our customers – businesses across segments and regions – to scrutinize and slow investments in order to preserve business outcomes and protect shareholder returns, while improving their operational resilience.