GitLab’s stock soared up to 18% in after-hours trading following the release of its fiscal third-quarter results, which surpassed Wall Street expectations. Here’s how the company performed:
Earnings: 9 cents per share, adjusted, beating the expected loss of 1 cent per share.
Revenue: $149.7 million, exceeding the expected $141.5 million.
This quarter marked the first time GitLab reported an adjusted operating profit. The company achieved over 2,200 basis points of non-GAAP operating margin expansion, emphasizing responsible growth, according to Brian Robins, GitLab’s Chief Financial Officer.
GitLab experienced a 32% YoY revenue growth in the quarter ending on October 31. The net loss attributed to the company was $285.2 million, or $1.84 per share, including a one-time income tax adjustment during the quarter.
As of now, GitLab has 874 customers contributing over $100 million in annual recurring revenue, reflecting a 37% increase from the same quarter the previous year. Some organizations have been transitioning from Microsoft-owned GitHub to GitLab, as mentioned by Sid Sijbrandij, GitLab’s co-founder and CEO.
Although GitLab anticipates the integration of a planning tool for non-technical workers with Amazon Web Services’ Q work assistant to impact results in subsequent fiscal years, it won’t significantly affect the upcoming fiscal year.
For the fourth quarter of the 2024 fiscal year, GitLab forecasts adjusted earnings of 8 to 9 cents per share on $157.0 million to $158.0 million in revenue. Analysts expected a net loss of 1 cent per share and $150.2 million in revenue.
Despite the after-hours surge, GitLab’s stock has seen a 16% increase year-to-date, compared to the S&P 500 stock index’s 19% gain over the same period.
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