GitLab (GTLB) reported non-GAAP earnings of 33 cents per share in fourth-quarter fiscal 2025, beating the Zacks Consensus Estimate by 43.48%. The bottom line soared 120% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues of $211.4 million beat the consensus mark by 2.82% and rallied 29.1% year over year. The upside can be attributed to strong demand for its DevSecOps platform and AI-driven solutions.Following the results, GTLB shares rose 1.16% in the pre-ma ...

Core Viewpoint - JP Morgan analyst Pinjalim Bora maintains a Neutral rating on GitLab Inc. and lowers the price forecast to $62 from $65, despite the company reporting better-than-expected quarterly earnings and revenue [1][4]. Financial Performance - GitLab reported quarterly earnings of 33 cents per share, surpassing the analyst consensus estimate of 23 cents [1]. - Quarterly revenue reached $211.43 million, exceeding the analyst consensus estimate of $206.12 million [1]. Future Guidance - For the first quarter, GitLab anticipates adjusted earnings between 14 cents and 15 cents per share, with revenue projected in the range of $212 million to $213 million [1]. - The guidance assumes no significant changes in the macroeconomic environment and maintains the same approach as FY25 [3]. Market Position and Risks - The fourth quarter was noted as strong for bookings, with several growth factors contributing positively [2]. - The current stock price reflects a "balanced risk-reward" profile after adjusting for pricing benefits, which remain in the low 20s percentage-wise [3]. - GitLab's public sector business, which constitutes 12% of its Annual Recurring Revenue (ARR), is not factoring in extra caution, primarily tied to the U.S. federal government [4]. - Management exceeded initial FY25 pricing impact estimates of $15 million – $20 million but expects a similar revenue impact in FY26 without specifying the amount [4].

GitLab TodayGTLBGitLab$59.74 +3.50 (+6.21%) 52-Week Range$40.72▼$74.18Price Target$75.50Add to WatchlistGitLab’s NASDAQ: GTLB market may wallow near its early 2024 lows, but lower lows are unlikely, and a strong rebound lies ahead. The Q4 results and guidance for 2025 are the reason. However, the strong results and outlook weren’t the cause. The market had set a high bar driven by ramping demand for AI software, which created a no-win situation for the stock price; no result short of a mind-boggling, NVIDI ...

Financial Data and Key Metrics Changes - Q4 FY2025 revenue increased by 29% year over year to $211 million, exceeding expectations [10][45] - FY2025 total revenue grew by 31% to $759.2 million, with a non-GAAP operating margin of 10.2%, an increase of approximately 1,050 basis points year over year [44][45] - Non-GAAP operating margin for Q4 reached 17.7%, up from 8.1% in Q4 of the previous year, marking an increase of over 960 basis points [49] - Adjusted free cash flow grew by 259% to $120 million [44][50] - Total remaining performance obligations (RPO) grew by 40% year over year to $945 million, while current RPO (CRPO) grew by 35% to $579.2 million [48] Business Line Data and Key Metrics Changes - GitLab Ultimate now accounts for 50% of total annual recurring revenue (ARR) [31] - GitLab Dedicated grew approximately 90% year over year in Q4, with significant adoption among existing enterprise customers [32] - The number of customers with ARR of at least $5,000 reached 9,893, contributing over 95% of total ARR in Q4 [46] Market Data and Key Metrics Changes - The dollar-based net retention rate (DBNR) for Q4 was 123%, driven by seed expansion, increased customer yield, and tier upgrades [47] - The enterprise segment saw a record quarter of net ads for customers over $100,000 in ARR, with 1,229 customers in this cohort, an increase of 29% year over year [46] Company Strategy and Development Direction - The company aims to add more new paying customers, particularly in the mid-market and enterprise segments [18] - Focus on accelerating customer value realization through faster innovation in core DevOps, security, and AI areas [19] - Plans to enhance go-to-market strategies, including expanding customer success and professional service teams [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential of AI to transform software development and increase the number of software creators [70][81] - The company is committed to responsible growth while navigating competitive challenges in the market [39][82] - Management highlighted strong customer enthusiasm and the importance of GitLab's platform approach in driving productivity and efficiency [78][80] Other Important Information - The company announced the private beta of Duo Workflow, an AI-driven software development tool, expected to enhance productivity [37][70] - GitLab's partnership with AWS was highlighted, with an integrated AI offering expected to be available soon [27] Q&A Session Summary Question: Insights on the competitive landscape in the co-gen space - Management acknowledged the competitive nature of the co-gen market but emphasized GitLab's unique platform capabilities and context for AI models [62][66] Question: Clarification on guidance and underlying enthusiasm - Management noted strong customer feedback and ROI from GitLab's platform, which supports their optimistic outlook despite guidance [75][80] Question: Customer conversations regarding software developer numbers - Management explained that AI will raise the abstraction level in software development, leading to increased demand for GitLab's platform [88][91] Question: Sustainability of Ultimate's growth - Management confirmed that Ultimate's strong performance is driven by security and compliance needs, with a payback period of less than six months [96] Question: Changes in go-to-market strategy with new CRO - Management indicated that changes will be mostly incremental, focusing on customer success and global expansion [101][104] Question: Balance of growth investments versus margin expansion - Management stated that growth remains the top priority, with investments in sales capacity and engineering to support future growth [109][111] Question: Driving utilization of the GitLab platform - Management emphasized a full team and partner approach to help customers realize value and increase platform utilization [115][118]

Core Insights - GitLab exceeded its own guidance and analysts' expectations in its fiscal 2025 fourth-quarter earnings report, showcasing strong operational improvements and effective cost management [2][4] Financial Performance - Non-GAAP earnings per share (EPS) were $0.33, surpassing analysts' estimates of $0.23, and reflecting a 120% increase from $0.15 in the prior year [3] - Revenue for the quarter reached $211.4 million, exceeding the forecast of $206 million and demonstrating a robust 29% year-over-year growth [3][6] - Non-GAAP net income rose to $56.7 million, nearly doubling from $25 million in the previous year, indicating a 126.4% increase [3][7] - Non-GAAP adjusted free cash flow was $62.1 million, a significant 153.1% increase from $24.5 million in the prior year [3] Business Overview - GitLab operates as a pioneer in the DevSecOps industry, integrating development, security, and operations within a single application, aiming to enhance productivity and reduce complexity [4] - The company focuses on AI integration, expanding its global presence, and optimizing software offerings to maintain its leadership position [4][5] Customer Growth - The number of customers providing annual recurring revenue (ARR) of more than $100,000 increased by 29%, while those delivering ARR of more than $5,000 rose by 15% to 9,893 [7] Product Development - GitLab's integration of artificial intelligence through tools like GitLab Duo has strengthened its competitive position, enabling customers to meet software quality, security, privacy, compliance, and governance requirements [8] Future Outlook - Management has set an optimistic revenue guidance range of $212 million to $213 million for the first quarter of fiscal 2026, and for the fiscal year, revenue guidance is between $936 million to $942 million [10]

Core Insights - GitLab Inc. reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.15 per share a year ago, resulting in an earnings surprise of 43.48% [1] - The company achieved revenues of $211.43 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.82% and up from $163.78 million year-over-year [2] - GitLab has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of GitLab's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $211.88 million, and for the current fiscal year, it is $0.74 on revenues of $931.75 million [7] Industry Context - The Internet - Software industry, to which GitLab belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

GitLab (GTLB) Q4 2025 Earnings Call March 03, 2025 04:30 PM ET Company Participants Kelsey Turcotte - VP of Investor RelationsBill Staples - CEOBrian Robins - Chief Financial OfficerKarl Keirstead - Managing Director - Software Equity ResearchMatthew Hedberg - Managing Director, Software ResearchJoel Fishbein - Managing DirectorDerrick Wood - Managing DirectorKoji Ikeda - Director - Enterprise Software Equity ResearchPinjalim Bora - Executive DirectorNicholas Altmann - Director - U.S. Software Equity Resear ...

Revenue Growth - Total revenue for Q4 FY 2025 reached $211.4 million, representing a 29% year-over-year growth[6] - Fiscal Year 2025 total revenue was $759.2 million, up 31% from $579.9 million in FY 2024[7] - Total revenue for the three months ended January 31, 2025, was $211,431 thousand, representing a 29% increase from $163,779 thousand in the same period of 2024[31] - Subscription revenue from self-managed and SaaS offerings reached $185,562 thousand for the three months ended January 31, 2025, up 31% from $142,026 thousand in the prior year[31] Profitability - Non-GAAP operating income for Q4 FY 2025 was $37.4 million, compared to $13.2 million in Q4 FY 2024, marking a $24.2 million increase[8] - GAAP net income attributable to GitLab for Q4 FY 2025 was $10.8 million, a significant improvement from a loss of $36.9 million in Q4 FY 2024[8] - The company reported a net income of $10,207 thousand for the three months ended January 31, 2025, compared to a net loss of $37,972 thousand in the same period of 2024[31] - GitLab reported a non-GAAP net income attributable to common stockholders of $56.7 million for the latest quarter, compared to $25.0 million in the same quarter last year, representing a 126% increase[37] - The GAAP net income per share, diluted, was $0.06, a significant improvement from a loss of $0.24 per share in the same quarter last year[37] Cash Flow and Expenses - Cash provided by operating activities for the three months ended January 31, 2025, was $63,222,000, compared to $24,853,000 in 2024[33] - Total cash used in investing activities was $21,941,000 for the three months ended January 31, 2025, down from $35,772,000 in 2024[33] - Cash provided by financing activities was $11,693,000 for the three months ended January 31, 2025, compared to $14,992,000 in 2024[33] - Operating expenses for the fiscal year ended January 31, 2025, totaled $812,932 thousand, an increase from $707,638 thousand in the previous fiscal year[31] - Stock-based compensation expense for the three months ended January 31, 2025, was $46,636,000, slightly up from $43,017,000 in 2024[36] Assets and Liabilities - Cash and cash equivalents decreased to $227,649 thousand as of January 31, 2025, from $287,996 thousand as of January 31, 2024[29] - Total assets increased to $1,399,263 thousand as of January 31, 2025, compared to $1,321,403 thousand as of January 31, 2024[29] - Deferred revenue increased to $74,240,000 for the three months ended January 31, 2025, from $50,189,000 in 2024[33] - GitLab's accumulated deficit as of January 31, 2025, was $(1,163,722) thousand, slightly increasing from $(1,161,288) thousand as of January 31, 2024[29] Future Guidance - GitLab expects Q1 FY 2026 revenue guidance between $212.0 million and $213.0 million[11] - Non-GAAP diluted net income per share for FY 2026 is projected to be between $0.68 and $0.72[11] Operational Highlights - Customers with more than $5,000 of ARR increased to 9,893, a 15% year-over-year growth[15] - Dollar-Based Net Retention Rate was reported at 123%[15] - GitLab announced the general availability of GitLab Duo Self-Hosted, enhancing data privacy and security for customers[15] - The company appointed Ian Steward as Chief Revenue Officer, effective May 3, 2025[3] Other Financial Metrics - The Dollar-Based Net Retention Rate is calculated by comparing Current Period ARR to Prior Period ARR, indicating customer growth and retention[26] - The company experienced a gross profit of $188,562 thousand for the three months ended January 31, 2025, compared to $147,790 thousand in the same period of 2024[31] - Gross profit on a GAAP basis for the three months ended January 31, 2025, was $188,562,000, compared to $147,790,000 in 2024, reflecting a gross margin of 89%[36] - Non-GAAP gross profit for the same period was $192,755,000, with a gross margin of 91%, up from 149,951,000 and 92% in 2024[36] Foreign Exchange and Impairment - The company reported a foreign exchange loss of $3.9 million in the latest quarter, compared to a gain of $2.6 million in the same quarter last year[37] - The company recorded an impairment of equity method investment of $8.9 million in the latest quarter[37] Tax and Other Adjustments - GitLab's income tax adjustment for the latest quarter was a loss of $3.2 million, compared to a gain of $735,000 in the same quarter last year[37] - GitLab incurred acquisition-related expenses of $391,000 in the latest quarter, down from $1.3 million in the same quarter last year[37] - The company did not record any non-recurring payments related to the formation of JiHu during the periods presented[38]

Group 1 - GitLab (NASDAQ: GTLB) was previously rated a "buy" with a price target of $62.4, indicating a positive outlook for the company's market share growth [1] - The investment strategy of a boutique family office fund focuses on sustainable, growth-driven companies that aim to maximize shareholder equity [1] - The founder of the family office fund has experience in high-growth supply-chain start-ups and has worked with venture capital firms, enhancing her expertise in user acquisition and investment portfolios [1] Group 2 - The newsletter "The Pragmatic Optimist" emphasizes portfolio strategy, valuation, and macroeconomics, aiming to make financial literacy accessible and understandable [1] - The newsletter has been recognized as a top finance newsletter on popular platforms, showcasing its influence and reach in the investment community [1]

Core Viewpoint - GitLab is expected to report strong fourth-quarter fiscal 2025 results, with anticipated revenues between $205 million and $206 million, reflecting a year-over-year growth of 25-26% and non-GAAP earnings per share between 22 cents and 23 cents [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues stands at $205.64 million, indicating a 25.56% increase from the previous year's quarter [1]. - The consensus for earnings per share has remained at 23 cents, showing a growth of 53.33% year-over-year [2]. Performance Drivers - GitLab's fourth-quarter performance is expected to benefit from the integration of AI capabilities into its platform, enhancing automation and developer productivity, which likely attracted new customers and improved retention [4]. - The GitLab Duo Pro and Enterprise offerings have gained momentum, contributing to increased productivity and time savings for customers, further supported by a bundled offering with Amazon Q [5]. - The company has focused on adapting to enterprise clients' needs, which is expected to drive higher annual recurring revenues and sustained growth [6]. SaaS Growth - In the third quarter of fiscal 2025, GitLab's SaaS offerings accounted for 29% of total revenues, growing 44% year-over-year, indicating strong adoption of cloud solutions [7]. Operational Challenges - GitLab's cash flow from operations may have been impacted by tax agreements with the U.S. Internal Revenue Service and the Dutch tax authority, including a one-time tax payment of $188 million to the Dutch tax authority [8]. Earnings Expectations - According to the Zacks model, GitLab currently has an Earnings ESP of 0.00% and a Zacks Rank of 3, indicating that the odds of an earnings beat are not favorable [9].