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.
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 millionPer-share loss narrowed from 62 cents to 33 centsRevenue jumped 70% year-on-year to $113 millionConsensus was 36 cents loss on $106 million revenueAdjusted 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.
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