GitLab Inc (NASDAQ: GTLB) shot up nearly 25% in extended trading on Monday even though it reported a wider-than-expected loss for its third financial quarter.
GitLab stock up on raised full-year guidance
Investors are cheering revenue that came in well above the Street estimates. The tech stock is climbing also because GitLab raised its guidance for the full financial year.
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It’s now calling for $420.5 million to $421.5 million in revenue this year on up to 56 cents of adjusted per-share loss. In comparison, analysts were at $412.8 million and 65 cents a share, respectively. In the earnings press release, CEO Sid Sijbrandij said:
Companies can’t afford to slow down their software innovation. In today’s turbulent economic climate, they’re turning to solutions like GitLab to reduce costs, drive efficiencies, fuel a fast pace of innovation and meet customer demand.
For the year, GitLab stock is still down 40%.
Notable figures in GitLab’s Q3 earnings report
- Lost $48.5 million versus the year-ago $41.2 million
- Per-share loss narrowed from 62 cents to 33 cents
- Revenue jumped 70% year-on-year to $113 million
- Consensus was 36 cents loss on $106 million revenue
- Adjusted operating margin gained roughly 1,700 bps
Number of customers bringing in over $100,000 of annual recurring revenue went up 49% versus a year ago to 638. According to CFO Brian Robins:
Our dollar-based net retention rate again exceeded our reporting threshold of 130%, which we believe remains best in class and consistent with our track record as a public company.
Wall Street currently has a consensus “buy” rating on the GitLab stock. The average price target on it is $68 – up another 45% from here.
Source: https://invezz.com/news/2022/12/06/gitlab-stock-up-25-on-raised-guidance/