GitLab Stock (NASDAQ:GTLB)
GitLab Inc. (NASDAQ:GTLB) stock was trading at an all-time high today after the development, security, and operations (DevSecOps) software platform reported first-quarter profit results above analyst expectations.
At 12:19 PM ET, the GitLab stock price had increased by 31.4%.
What’s the Reason?
The cloud-based software provider GitLab, which aids businesses in developing and deploying software, reported a quarterly revenue increase of 45% to $126.9 million, surpassing analysts’ predictions of $117.8 million.
The firm gained 404 new clients during the quarter, including 63 with annual recurring revenue of $100,000 or more. Customers’ spending climbed by 28% over the last four quarters, resulting in a net retention percentage of 128%, down from 132% in the preceding quarter.
GitLab increased its adjusted gross margin to 91%, demonstrating that the firm can reinvest virtually all of its income into the business in the form of research and development as well as sales and marketing.
Adjusted loss per share of $0.06 was up from a loss of $0.18 and higher than projections at $0.14, while the company’s operating loss margin improved from negative 29% to 12%.
The company’s chief executive officer, Sid Sijbrandij, extolled the virtues of its investments in artificial intelligence (AI), stating that “with AI revolutionizing how companies develop, secure, and operate software, we believe GitLab is positioned as the leading AI-powered DevSecOps platform.” No other DevSecOps platform can compare to the number of AI-powered features we provide to our clientele.
What’s Next?
GitLab has increased its full-year sales outlook, expecting $541–$543 million in revenue, or 28% growth at the midpoint. The business has also reduced its full-year adjusted loss per share projection from $0.18 to $0.14, indicating it is closing in on profitability, at least after excluding share-based compensation.
To increase profits, the SaaS firm cut expenses by laying off seven percent of its workforce in February.
With just a handful of competitors, GitLab has successfully broken into a $40 billion industry. GitLab stock price will likely rise further if the company continues to develop solidly.
Featured Image: Unsplash @ Pankaj Patel
Author Shariq Khan 
