The tech industry is constantly evolving, and small-cap stocks often present unique opportunities for investors seeking high growth potential. With the advent of 6G technology on the horizon, several small-cap tech companies are poised to make significant strides. Here are 11 tech small-cap stocks that are worth watching, along with a look at the promising future of AI, 6G, and the small-cap tech market. 1.$MeridianLink (MLNK.US)$ MeridianLink provid...
$PagerDuty (PD.US)$ PagerDuty Announces Third Quarter Fiscal 2025 Financial Results Third quarter revenue increased 9% year over year to $119 million Ending ARR grew 10% year over year to $483 million Third quarter loss from operations was $10 million; non-GAAP operating income was $25 million
The company's solid growth from enterprise customers is being offset by very low growth from smaller customers. The higher tax rate is also expected to impact the company's earnings, which could weigh on the stock.
Despite liabilities, PagerDuty's net cash position suggests manageable debt. However, future profitability will determine balance sheet strength. Despite revenue growth, the stock is risky. Investors should note 2 warning signs.
BofA Securities analysts predict a 2024 turnaround for PagerDuty, spurred by potential growth, profitability, operational improvements and fresh c-suite additions. They also anticipate subsiding macro headwinds to enhance the company's growth prospects.
PagerDuty is undervalued with expected robust growth. Shareholders can consider increasing holdings and for potential investors, this may be the time to buy. Remember to review other financial aspects before decision making.
TD Cowen analyst cites macro pressures and heightened churn rate as grounds for downgrading the stock and trimming the price target. The fiscal 2025 growth forecast is reduced to 10% from 17%, indicating potential medium-term overhang on valuations due to weakening key performance indicators.
Despite a 'fairly challenging environment', CFO Howard Wilson foresees a moderate growth in fiscal 2025, with operating margins improving from the 13% projected in fiscal 2024. He also notes an uptick in new customer acquisitions and business expansion for midsize and enterprise customers.
Analysis reveals moderate risk linked to the company, despite revenue growth and a comforting net cash position mitigating debt concerns. PagerDuty potential investors need to heed flagged warning signs.
PagerDuty Stock Forum
1. $MeridianLink (MLNK.US)$
MeridianLink provid...
PagerDuty Announces Third Quarter Fiscal 2025 Financial Results
Third quarter revenue increased 9% year over year to $119 million
Ending ARR grew 10% year over year to $483 million
Third quarter loss from operations was $10 million; non-GAAP operating income was $25 million
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