From 20-Day Close to AI Innovation: PagerDuty CFO's Finance Transformation Journey

Read time 6 min

In an era where finance leaders are increasingly challenged to do more with less, PagerDuty's CFO, Howard Wilson, offers a masterclass in scaling finance operations while maintaining efficiency. His journey from a 20+ day close process to a streamlined, AI-enabled finance function provides valuable insights for finance leaders navigating similar transformations.

Building the Foundation First

When Wilson took the helm as CFO in 2018, PagerDuty was processing month-end closes that took nearly a month to complete. "Once the month ended, we'd spend the next 20-something days trying to close the books again, only for the month to be over," Wilson recalls. This challenge will resonate with many finance leaders who've inherited legacy systems and processes.

The Path to Transformation

Wilson's approach to modernizing pagerduty's finance function centered on three key principles:

1. Foundational Systems First

Rather than rushing toward the IPO, Wilson prioritized building a robust financial infrastructure. "We had to mature our finance function by implementing foundational systems, such as a proper ERP and the right infrastructure to manage the boring stuff," he explains.

2. Incremental Progress

The team set achievable milestones: "We set small goals and achieved them. We got our close time to under 10 days, then under eight, then less than five." This methodical approach enabled sustainable improvement without overwhelming the team.

3. Global Scale by Design

"Early on, I knew we needed to think about the infrastructure to be a global business," Wilson notes. This forward-thinking approach included expanding key positions across time zones and building systems that could scale internationally.

Embracing AI and Innovation

Today, Wilson's finance team is leveraging both predictive and generative AI to drive efficiency. Key focus areas include:

• Revenue accounting automation

• Enhanced FP&A decision-making tools

• AI-powered employee and customer service solutions

The Results

The transformation has supported PagerDuty's impressive growth from under $50 million in annual recurring revenue to approaching $500 million. The finance team has scaled from 5 to nearly 100 people while maintaining efficiency and driving strategic value.

Looking Forward

Wilson's excitement about agentic AI and its potential to revolutionize finance operations reflects a broader trend in the industry. As finance teams increasingly look to automation and AI to handle routine tasks, they're freed to focus on strategic initiatives that drive business growth.

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