Jaiden Patel

Jaiden Patel asked for a quantitative framework around Dash, including seats, attach rates, or ARR contribution, and inquired about the assumptions baked into the company's guidance, particularly regarding the focus on adoption.

Answer

Drew Houston, CEO and Co-Founder, explained the strategic progression for Dash from product quality to engagement, adoption, and then monetization, noting that specific metrics would be shared in the second half of the year. Ross Tennenbaum, CFO, added that the core business's size heavily influences the current year's guidance.

Jaiden Patel inquired about a quantitative framework for Dash, including seats, attach rates, or ARR contribution, and the assumptions for Dash baked into the company's financial guidance.

Answer

CEO Drew Houston explained that the focus is currently on product quality, engagement, and adoption, with monetization to follow. He anticipates sharing more specific metrics like attach rates and ARR contribution in the second half of the year. CFO Ross Tennenbaum added that while excited about Dash, the core business currently holds the most weight in influencing the annual guidance.

Jaiden Patel of JPMorgan Chase & Co. inquired about the qualitative impact of Dash on customer retention and downgrade prevention, and sought details on the improvements seen from the redesigned cancellation flow.

Answer

Co-Founder & CEO Drew Houston explained that for Dash, the focus is on product quality and early engagement metrics like image search adoption and weekly active user growth, which are leading indicators for retention. Regarding the cancellation flow, he noted that better articulating the value Dropbox provides has been accretive, alongside other optimizations like billing improvements.

Jaiden Patel of JPMorgan Chase & Co. asked about the outlook for trailing twelve-month billings for the remainder of the year, beyond the 7% growth guided for Q2.

Answer

CFO Howard Wilson stated that PagerDuty has not provided specific billings guidance beyond Q2. However, he indicated that directionally, they expect better overall bookings performance in the second half of the year as the sales force matures, which should lead to improvements in both billings and ARR.

Jaiden Patel, on for Pinjalim Bora of JPMorgan, asked about the assumptions for churn and retention in the 2025 guidance and questioned if Q1 guidance reflected a new philosophy.

Answer

Co-CEO Owen Ryan explained that while low-end customer count churn continues, the focus is on reducing enterprise attrition through increased customer touchpoints. CFO Mark Partin stated the guidance philosophy is not about conservatism but about setting 'appropriate and achievable targets' with transparency on assumptions, aiming to build on the company's established credibility.