GitLab Surges on Boosted Outlook
Shares in GitLab (GTLB:US) soared more than 25% on Tuesday after the software development tools maker raised its full-year profit forecast.
For its first quarter, GitLab reported an adjusted loss per share of $0.06, much better than the expected loss per share of $0.14. Revenue surged as much as 45% year-over-year to $126.9 million, again better than the consensus of $117.8 million. The company also reported an adjusted gross margin of 91%.
“Against a backdrop of macroeconomic uncertainty, customers are looking to our AI-powered DevSecOps platform to drive efficiencies, increase productivity, and accelerate their pace of innovation. We are poised to make the most of the estimated $40B total addressable market opportunity before us,” said Brian Robins, GitLab Chief Financial Officer.
For this quarter, GitLab said it expects its loss per share to further improve to $0.03 - $0.02 on revenue of $129.5M. Analysts were expecting a loss per share of $0.08 on sales of $127M.
As expected, the bulk of the earnings release and subsequent earnings call was marked by the AI commentary.
“With AI revolutionizing how companies develop, secure, and operate software, we believe GitLab is positioned as the leading AI-powered DevSecOps platform. Today, we deliver more AI-powered capabilities to customers than any other DevSecOps platform,” said CEO Sid Sijbrandij.
GitLab raised its full-year forecast for profit to now expect a loss per share of $0.16, better than the prior forecast for a loss per share of $0.29 - $0.24. Analysts were expecting guidance for an FY loss per share of $0.26.
FY revenue is seen at $542 million, again better than the average analyst estimate of $533M.
Congressman Daniel Goldman disclosed two weeks ago that he sold some GTLB shares on April 10, when the stock closed at $33.58.
GitLab shares were seen trading around the $45 mark on Tuesday.
