Gitlab is up 15% after announcing its first-quarter financial results

GitLab Inc. (NASDAQ: GTLB), a One DevOps platform, shot up 15% after announcing its first-quarter financials for the 2023 fiscal year. The company reported an $87.4 million quarterly revenue, representing a 75% year-over-year increase. 

In the first quarter of the 2023 fiscal year, the company also recorded a 49% GAAP operating margin and a 28% Non-GAAP operating margin. The GAAP net loss for each share came to about $0.18. 

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Management statements 

Gitlab Co-Founder and Chief Executive Officer, Sid Sijbrandij, said:

While accelerating revenue growth, we were also able to show significant operating leverage. Underpinning this acceleration in growth was a higher velocity of new customer wins, as well as seat expansion and tier upgrades of existing customers.

Mr. Sijbrandij said that they expect more and more customers to adopt their One DevOps platform as momentum still continues to grow strong. The CEO confirmed that they’ve witnessed a huge shift in how organizations are securing, operating and developing software systems by moving them to certain platform strategies. 

The company’s Chief Executive Officer, Brian Robins, added:

Metrics in the first quarter were strong: 75% year-over-year revenue growth, dollar-based net retention above 130%, 92% year-over-year RPO growth, 90% non-GAAP gross margins, non-GAAP operating margin improvement of 1,700 basis points year-over-year and we saw great growth in all the customer segments despite the macro-environment.

Mr. Robins claims that he was pleased they delivered a strong first quarter exceeding their financial guidance. He said that they’ll stay committed to the company’s responsible growth. 

Business highlights 

Customers with over $5,000 of ARR went up 64% from the first quarter of the previous financial year to 5,168. Customers with over $100,000 of ARR went up 68% from the first quarter of the previous fiscal year to 545. The Dollar-Based Net Retention rate in the first quarter of the 2023 fiscal year was above 130%.