Here is How to Spot Oversold Stocks This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering GTLB in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 47.4% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term. Moreover, GTLB currently has a ...

GitLab (GTLB) reported non-GAAP earnings of 3 cents per share in first-quarter fiscal 2025, beating the Zacks Consensus Estimate of a loss of 4 cents. The company reported a loss of 6 cents in the year-ago quarter. Top-Line Details Subscriptions- self-managed and SaaS (89.4% of total revenues) revenues increased 36% year over year to $151.2 million, beating the Zacks Consensus Estimate by 3.03%. License-, self-managed and other revenues (10.6% of total revenues) rose 14.8% year over year to $18 million. Saa ...

Key Points GitLab's NASDAQ: GTLB post-release plunge was not as large as it could have been, but the weaknesses were already priced in. The stock price fell 15% the week before after results from MongoDB NASDAQ: MDB and UiPath NYSE: PATH undercut the outlook for AI and IT spending this year. The takeaways, however, are that the tech sector is growing, albeit at a less robust pace than prior forecasts, and AI is leading the technology industry, setting these businesses up for long-term success. Get GitLab al ...

> $100K Customers (H) 39% 2-Year CAGR Adjusted Free Cash Flow2 8,976 1,025 J N Continued Investment in Growth with Non-GAAP Gross Margin 1 92% 91% 91% 91% 91% 90% 90% 89% 89% 68% 65% 60% 55% 56% 44% 51% 47% 45% 25% 28% 31% 28% 29% 27% 26% 24% 24% 24% 23% 20% 20% 19% 18% 17% 17% 15% S&M as % of Revenue Driving Operating Efficiency While Maintaining Growth Non-GAAP Adjusted Free Cash Flow1 (% of Revenue) Significant year-over-year operating margin expansion Cash efficient business Q1.FYB Questions? Appendix G ...

Financial Data and Key Metrics - Q1 revenue was $169 million, a 33% increase year-over-year [17] - Excluding the impact of the new SSP allocation, Q1 revenue was $170 million, a 34% increase year-over-year [18] - Dollar-based net retention rate (DBNRR) was 129% in Q1, driven by seat expansion (55%), price increases (35%), and tier upgrades (10%) [18] - Non-GAAP gross margins were 91% for the quarter, with SaaS representing over 28% of total revenue, growing 50% year-over-year [19] - Cash from operating activities was $38.1 million in Q1 FY 2025, compared to an $11 million use of cash in the same quarter last year [20] - Adjusted free cash flow was $37.4 million in Q1 FY 2025, compared to an $11.2 million use of cash in the same quarter last year [20] Business Line Data and Key Metrics - GitLab Duo adoption is growing, with customers leveraging AI features like GitLab Duo Chat for project status, planning, and code generation [4][9] - GitLab Duo Enterprise, combining developer-focused AI with enterprise features, is gaining traction, particularly for security tools like root cause analysis and vulnerability resolution [10] - The company closed a six-figure deal with a global financial services company, highlighting the demand for integrated security in the DevSecOps lifecycle [11] - GitLab Dedicated, a single-tenant SaaS solution, was adopted by a major European public service department to enhance collaboration while maintaining compliance [12] Market Data and Key Metrics - Partnerships with Google Cloud and AWS are accelerating cloud migration and expanding distribution [13] - GitLab received the 2024 Google Cloud Technology Partner of the Year Award for the fourth consecutive year [13] - The company is expanding its global presence and focusing on industries with complex security and compliance requirements, such as financial services [14] Company Strategy and Industry Competition - GitLab is investing in AI across the software development lifecycle, with a focus on security, compliance, and productivity [8][10] - The company is expanding its go-to-market strategy by adding more solution architects and global field CTOs to meet regional and industry-specific needs [14] - GitLab is differentiating itself through its integrated platform, which allows customers to replace multiple point solutions, reducing costs and improving efficiency [11][14] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong Q1 performance, with significant revenue growth and margin expansion [3][16] - The company is optimistic about the large market opportunity in front of it, driven by the demand for AI and security features [15][21] - Management emphasized the importance of responsible growth, balancing revenue expansion with profitability [16][21] Other Important Information - The company completed its SSP analysis, resulting in a $4 million headwind for FY 2025, which has been factored into guidance [17][20] - GitLab's China joint venture, JiHu, incurred $3 million in non-GAAP expenses in Q1 FY 2025, with a goal to deconsolidate it in the future [21] - The company is preparing for the GitLab 17 product launch, which will include enhanced security scanning and governance controls [119] Q&A Session Summary Question: Update on pricing model and potential changes - GitLab's pricing model remains user-based, with a focus on productivity rather than compute costs [34] - The company is not planning to shift to usage-based pricing, as its value proposition lies in making developers more efficient [34] Question: Contribution of Duo Pro and Duo Enterprise to FY 2025 guidance - Early adoption of Duo Pro and Duo Enterprise is promising, but the full impact is expected in future fiscal years [93] - The company has included the potential contribution of these products in its FY 2025 guidance but has not broken out specific numbers [65] Question: RPO growth and seasonality - RPO growth was impacted by seasonality, with Q4 being the strongest quarter and Q1 the weakest [42] - The company remains confident in its visibility and growth trajectory [42] Question: Free cash flow drivers and seasonality - Strong Q1 free cash flow was driven by strong collections from Q4 and lower spending [83] - Seasonality will continue to impact cash flow, with Q1 being stronger due to Q4 collections [85] Question: Competitive positioning with AI features - GitLab believes its AI features, particularly in security and integration, give it a competitive edge [62] - The company is focused on replacing point solutions and integrating AI across the software development lifecycle [62][76] Question: Hiring trends and developer productivity - The company has not observed significant changes in hiring trends, with seat expansion remaining stable [69] - GitLab's AI features are expected to drive productivity gains, particularly in coding and security [75][76]

Customer Growth - GitLab's Base Customers increased to 8,976 as of April 30, 2024, from 7,406 as of April 30, 2023, representing a 21% increase[131] - Customers with Annual Recurring Revenue (ARR) of $100,000 or more rose to 1,025 as of April 30, 2024, up from 760 as of April 30, 2023, marking a 35% increase[132] - The Dollar-Based Net Retention Rate was 129% as of April 30, 2024, compared to above 130% in the previous year[134] - The Dollar-Based Net Retention Rate was 129% as of April 30, 2024, reflecting strong customer expansion[164] - The number of customers with ARR over $100,000 increased to 1,025 as of April 30, 2024, up from 760 in the same period last year[164] Financial Performance - Total revenue increased by $42.3 million, or 33%, to $169.2 million for the three months ended April 30, 2024, compared to $126.9 million for the same period in 2023[164] - Subscription revenue from self-managed and SaaS grew by $39.99 million, or 36%, reaching $151.18 million for the three months ended April 30, 2024[164] - Gross profit for the three months ended April 30, 2024, was $150.41 million, with a gross margin of 89%[166] - Net loss attributable to GitLab was $54.64 million for the three months ended April 30, 2024, compared to a net loss of $52.47 million for the same period in 2023[161] - Interest income for the three months ended April 30, 2024, was $12.03 million, compared to $7.32 million for the same period in 2023[161] - Interest income rose by 64% to $12.0 million for the three months ended April 30, 2024, up from $7.3 million in the same period in 2023, driven by higher interest rates and investments from the IPO proceeds[177] - The provision for income taxes increased significantly by 755.3% to $12.7 million for the three months ended April 30, 2024, compared to $1.5 million in 2023, with an effective tax rate of (30.1)%[180] Operating Expenses - Sales and marketing expenses increased by $5.89 million, or 7%, to $92.42 million for the three months ended April 30, 2024[168] - Research and development expenses rose by $3.75 million, or 7%, to $54.14 million for the three months ended April 30, 2024[170] - General and administrative expenses surged by $23.24 million, or 68%, to $57.49 million for the three months ended April 30, 2024, primarily due to a company-wide event[173] - GitLab's operating expenses are expected to increase due to additional costs associated with being a public company[137] Cash Flow and Investments - Cash provided by operating activities was $38.1 million for the three months ended April 30, 2024, compared to a cash outflow of $11.0 million in the same period in 2023[192] - Cash provided by investing activities increased to $89.4 million for the three months ended April 30, 2024, compared to $24.4 million in the same period in 2023, primarily from proceeds of short-term investments[196] - Adjusted free cash flow for the three months ended April 30, 2024, was $37.4 million, compared to $(11.2) million in the same period in 2023[200] - As of April 30, 2024, the company had cash, cash equivalents, and short-term investments totaling $1.1 billion, up from $1.0 billion as of January 31, 2024[189] - Cash equivalents and short-term investments increased to $971.7 million as of April 30, 2024, compared to $711.8 million in the same period of 2023[207] Future Outlook and Strategy - The company plans to continue investing in research and development, expecting R&D expenses to increase in absolute terms in future periods[130] - The company intends to expand its sales and marketing efforts to acquire new customers and increase sales to existing customers[133] - The company aims to build and maintain successful partnerships and alliances to broaden its distribution footprint[136] - The company anticipates that existing cash and investments will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months[191] Currency and Foreign Exchange Risks - A hypothetical 1% increase or decrease in interest rates would result in a fair value change of approximately $4.1 million in the company's investment portfolio[207] - The weighted-average life of the investment portfolio was approximately 5 months as of April 30, 2024[207] - The company has $54.4 million in cash and cash equivalents denominated in currencies other than the U.S. dollar as of April 30, 2024[209] - A hypothetical 10% change in foreign currency exchange rates would have a material impact on the company's financial statements[209] - The company has not engaged in hedging foreign currency transactions to date but may consider it in the future[210] - All sales contracts to date have been denominated in U.S. dollars, except for the variable interest entity, JiHu, which operates in local currency[208] - Operating expenses in the U.S. are primarily in U.S. dollars, while those outside the U.S. are in local currencies, exposing the company to foreign currency exchange risks[208] - The company's financial results may be adversely affected by fluctuations in foreign currency exchange rates in the future[208] Community and Contributions - GitLab's open-core business model allows for community contributions, with nearly 700 contributors making over 2,100 merge requests in 2023[124]

GitLab Inc. (GTLB) came out with quarterly earnings of $0.03 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 175%. A quarter ago, it was expected that this company would post earnings of $0.08 per share when it actually produced earnings of $0.15, delivering a surprise of 87.50%. Over the last four quarters, the compan ...

Revenue Growth - Total revenue for Q1 FY 2025 was $169.2 million, representing a 33% year-over-year growth[5] - Total revenue for the three months ended April 30, 2024, was $169,187 thousand, a 33.2% increase from $126,878 thousand in the same period of 2023[28] - The company expects Q2 FY 2025 revenue guidance of $176.0 - $177.0 million and FY 2025 revenue guidance of $733.0 - $737.0 million[10] Customer Metrics - Customers with more than $5,000 of Annual Recurring Revenue (ARR) reached 8,976, a 21% increase year-over-year[6] - Customers with more than $100,000 of ARR reached 1,025, a 35% increase year-over-year[6] - Dollar-Based Net Retention Rate was reported at 129%[11] Profitability and Loss - GAAP operating loss improved to $(53.6) million from $(58.2) million year-over-year, showing a reduction of $4.6 million[3] - Non-GAAP net income for Q1 FY 2025 was $4.5 million, compared to a loss of $(8.8) million in Q1 FY 2024, an improvement of $13.3 million[3] - Net loss attributable to GitLab for the three months ended April 30, 2024, was $54,644 thousand, compared to a net loss of $52,469 thousand in the prior year[28] - GitLab reported a non-GAAP net income of $4.474 million, compared to a loss of $8.758 million in the previous year[33] - GAAP net loss per share remained at $(0.35) for both the current and previous year[33] - Non-GAAP net income per share was $0.03, improving from a loss of $(0.06) in the prior year[33] Cash Flow and Expenses - Operating cash flow for Q1 FY 2025 was $38.1 million, a significant increase from $(11.0) million in Q1 FY 2024, representing a $49.1 million improvement[5] - The company reported a net cash provided by operating activities of $38,138 thousand for the three months ended April 30, 2024, compared to a net cash used of $10,961 thousand in the prior year[30] - GAAP net cash provided by operating activities was $38.138 million, a significant increase from $(10.961) million in the previous year[34] - Non-GAAP adjusted free cash flow reached $37.438 million, compared to $(11.217) million in the same period last year[34] - Operating expenses totaled $204,051 thousand for the three months ended April 30, 2024, compared to $171,172 thousand in the same period of 2023, reflecting a 19.2% increase[28] - Stock-based compensation expense for the three months ended April 30, 2024, was $42,252 thousand, up from $32,330 thousand in the same period of 2023[30] Assets and Liabilities - Cash and cash equivalents increased to $420,322 thousand as of April 30, 2024, up from $287,996 thousand at the beginning of the period[30] - Total current assets as of April 30, 2024, were $1,263,043 thousand, slightly down from $1,280,917 thousand as of January 31, 2024[26] - The company’s total assets increased to $1,321,627 thousand as of April 30, 2024, compared to $1,317,861 thousand as of January 31, 2024[26] - Total liabilities as of April 30, 2024, were $707,269 thousand, an increase from $699,927 thousand as of January 31, 2024[26] Performance Obligations - Total Remaining Performance Obligations (RPO) grew 48% year-over-year to $681.2 million, while current RPO grew 34% to $436.1 million[11] Acquisitions - GitLab announced the acquisition of Oxeye to enhance its cloud-native application security capabilities[11]

First Quarter Fiscal Year 2025 Highlights: Total revenue of $169.2 million, up 33% year-over-year Significant year-over-year GAAP and Non-GAAP operating margin expansion Operating cash flow of $38.1 million and Non-GAAP adjusted free cash flow of $37.4 million SAN FRANCISCO, June 03, 2024 (GLOBE NEWSWIRE) -- GitLab Inc. (NASDAQ: GTLB), The DevSecOps Platform, today reported financial results for its first quarter fiscal year 2025, ended April 30, 2024. "GitLab continues to differentiate our platform with AI ...

Alphabet may have strong insight into both company's industries. When Google restructured its business as Alphabet (GOOG 0.72%) (GOOGL 0.83%) it broke out its Other Bets segment from its core Google operations. While many investors are familiar with some of those other bets like Waymo (autonomous vehicles) and Verily (life sciences), the segment also includes a $7 billion investment fund called CapitalG. CapitalG is a venture capital fund focused on growth-stage companies. Not only does it give these compan ...