(CTN News) – GitLab’s stock experienced a significant surge of up to 18% during after-hours trading on Monday. This remarkable increase was attributed to the company’s impressive fiscal third-quarter results and quarterly guidance, which greatly impressed Wall Street.
In comparison to the consensus of estimates among analysts polled by LSEG (formerly known as Refinitiv), GitLab exceeded expectations. The company reported adjusted earnings of 9 cents per share, while analysts had anticipated a loss of 1 cent per share.
Additionally, GitLab’s revenue reached $149.7 million, surpassing the expected $141.5 million.
This is the first instance in which GitLab has reported a modified operating profit. In a statement, the company’s finance chief, Brian Robins, stated, “We are continuing to grow in a responsible manner and have achieved a non-GAAP operating margin expansion of over 2,200 basis points.”
According to the statement, GitLab’s revenue increased by 32% compared to the previous year in the quarter ending on October 31. The net loss attributed to the company amounted to $285.2 million, or $1.84 per share, in contrast to a net loss of $48.5 million, or 33 cents per share, in the same quarter of the previous year.
GitLab made a one-time income tax adjustment during the quarter, which affected the results. As of now, the company, which became publicly traded in 2021 and operates remotely, has 874 customers who contribute more than $100,000 in annual recurring revenue, marking a 37% increase from the same quarter last year.
GitLab’s CEO, Sid Sijbrandij, mentioned during a conference call with analysts that the introduction of a planning tool for non-technical workers will not have an immediate impact on the results for the upcoming fiscal year.
However, it is expected to make a significant difference in the following years. Sijbrandij also revealed that is in discussions with Amazon Web Services regarding integration into the recently announced Amazon Q work assistant.
For the fourth quarter of its 2024 fiscal year, GitLab has projected adjusted earnings of 8 to 9 cents per share, with a revenue range of $157 million to $158 million. In contrast, analysts surveyed by LSEG anticipated a net loss of 1 cent per share and $150.2 million in revenue.
Despite the after-hours movement, GitLab’s stock has shown a 16% increase year-to-date, while the S&P 500 stock index has gained 19% during the same period.
SEE ALSO:
Binance May Be The Peak For US Crypto Enforcement Cases.
