After the DevOps software company reported FQ2 2023 results that beat expectations and raised its fiscal year revenue guidance on Wednesday during midday trading, Class A shares of GitLab (NASDAQ:GTLB) gained as much as 7.6% to $50.98. GitLab (NASDAQ:GTLB) announced that it would raise its revenue guidance for the fiscal year.
After the market closed on Tuesday, GitLab (NASDAQ:GTLB) reported quarterly non-GAAP earnings per share of -$0.15, which was $0.08 better than analysts’ expectations. Its sales rose by 73.8% year over year to $101.04 million, which was higher than expected by $6.6 million.
Customers who have more than $5,000 in annual recurring revenue (ARR) increased by 61% year over year, reaching 5,864, while customers who have more than $100,000 in ARR gained 55% year over year, reaching 593. The firm reported excellent growth in its client base throughout the quarter.
GitLab (NASDAQ:GTLB) CEO Sid Sijbrandij stated in the quarterly report that businesses are “navigating economic uncertainties while yet needing to embrace the imperatives of digital transformation, cloud migration, and app modernization.”
The prior prediction for GitLab’s (NASDAQ:GTLB) annual revenue was in the range of $398 million to $402 million, but this new guide places the range between $411 million and $414 million. The whole revenue forecast is agreed upon to be $414.15M.
The business also stated that it anticipates reporting a loss per share for the fiscal year in the range of $0.64 to $0.67, which is a change from its previous view of a loss per share in the range of $0.89 to $0.93. The most widely held projection for EPS is a loss of $0.65.
Mike Cikos, a research analyst at Needham, said in a research note, “GitLab reported a strong 2QF23 and was a notable outlier in the recent earnings period – delivering a true ‘beat and raise’ with no impact from the broader economic downturn.” Cikos’s comments came in response to a statement made by GitLab.
The investment professional maintained a buy recommendation on the company but reduced their price estimate for it from $70 to $60. Compared to GTLB previous closing price of $47.40, this results in an increase of 26.6%.
“GitLab is achieving significant growth while also expanding its profits… GitLab (NASDAQ:GTLB) is becoming increasingly popular among businesses as a mission-critical piece of software because of its ability to boost developer capacity by integrating various point solutions used in the DevOps toolchain, “Cikos stated.
Featured Image- Megapixl @Mohammedsoliman4