What happened

It didn't release any news, but shares of PagerDuty (NYSE:PD) went higher on Tuesday nonetheless. And top stock-market darling Zoom Video Communications (NASDAQ:ZM) might be the reason why. You see, Zoom is one of PagerDuty's customers.

Zoom is crushing the market today after reporting blowout earnings. For its part, PagerDuty stock was trading 10% higher as of 2 p.m EDT.

A businessman rides a rocket ship expelling cash exhaust over a multi-colored bar chart.

Image source: Getty Images.

So what

Zoom just reported eye-popping earnings for the second quarter of its fiscal 2021. Revenue was up 355% year over year to $664 million and its net cash from operating activities was $401 million compared to just $31 million last year. These incredible growth numbers mean Zoom's business grew at an unprecedented rate.

PagerDuty counts Zoom as one of its top customers. In the company's first-quarter earnings call, PagerDuty noted how its platform could help accommodate technological shifts taking place because of the COVID-19 pandemic. CEO Jennifer Tejada then said: "There is no better example of this than Zoom Communications, where Eric Yuan and his team have scaled to support not only the deluge of businesses going remote but also the distance learning of many of our children. Zoom's Corporate CIO, Sunil Madan, said that PagerDuty's automation and intelligence has made their teams so efficient and effective that they've actually improved their time to resolve incidents despite the massive increase in people using Zoom."

In its most recent quarterly filing with the Securities and Exchange Commission (SEC), PagerDuty noted there weren't any customers accounting for 10% of total accounts receivable as of Jan. 31, 2020. However, by April 30, an unnamed customer did account for 10% of the business.

Now what

One of PagerDuty's customers surged to account for 10% of accounts receivable exactly when Zoom Video Communications was becoming a part of everyday pandemic life. Of course, that doesn't necessarily mean Zoom is the unnamed customer. As of Q1, PagerDuty had 57 customers accounting for $500,000 or more in annual recurring revenue. And it has over 13,000 customers overall. Zoom is but one of many.

Still, it's possible (if not likely) PagerDuty is set up for success when it reports quarterly earnings on Sept. 2. The call is scheduled to start after the market closes, and the company will host it on -- what else? -- Zoom.

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