The change in a company's future earnings potential, as reflected in earnings estimate revisions, and the nearterm price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stoc ...

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 ...