GitLab NASDAQ: GTLB shares wallowed over the summer, but those days are long behind it now that the Q2 results are in. The results show that AI-focused spending is shifting to applications development, where GitLab excels. It is the leading DevSecOps platform, providing an end-to-end solution for companies ramping up their software development programs. Its AI-powered tools improve development time, security, and outcomes; they were recently named a leader in AI assist in one of Gartner's newest Magic Quadr ...

NEW YORK, Sept. 04, 2024 (GLOBE NEWSWIRE) -- The following statement is being issued by Levi & Korsinsky, LLP: To: All persons or entities who purchased or otherwise acquired securities of GitLab Inc. ("GitLab" or the "Company") (NASDAQ: GTLB) between June 6, 2023 and March 4, 2024, both dates inclusive. You are hereby notified that the class action lawsuit Dolly v. GitLab Inc., et al. (Case No. 3:24-cv-06244) has been commenced in the United States District Court for the Northern District of California. To ...

Sumedha Lakmal Thesis GitLab Inc. (NASDAQ:GTLB) presents a compelling investment opportunity due to its strong position in the rapidly growing DevOps market, innovative product offerings, and potential for continued growth despite facing intense competition. Company Overview GitLab is a complete DevOps platform delivered as a single application, covering the entire software development lifecycle from planning to monitoring. Founded in 2011, the company went public in October 2021. Reasons to Consider Invest ...

It's business as usual for GitLab. Shares of GitLab (GTLB 17.07%) were soaring today after the DevOps cloud software specialist posted strong results in its fiscal 2025 second-quarter earnings report, beating estimates on the top and bottom lines. As of 12:17 p.m. ET, the stock was up 17% on the news. GitLab keeps growing In a difficult environment for cloud software companies, GitLab keeps delivering solid growth. Revenue in the quarter rose 31% to $182.6 million, topping estimates at $177 million. Adjuste ...

Shares of Gitlab Inc GTLB spiked in early trading on Wednesday, after the company reported upbeat secondquarter results. The company reported its results amid an exciting earnings season. Here are some key analyst takeaways. Cantor Fitzgerald analyst Yi Fu Lee reiterated an Overweight rating, while raising the price target from $55 to $60. Scotiabank analyst Patrick Colville reaffirmed a Sector Outperform rating, while lifting the price target from $59 to $65. Truist Securities analyst Joel Fishbein maintai ...

Key Takeaways GitLab posted second-quarter earnings and revenue that exceeded forecasts as artificial intelligence (AI) product demand boosted sales. The software-development provider also raised its full-year guidance. Co-founder and CEO Sid Sijbrandij said organizations need faster software solutions to compete in the AI arena. GitLab (GTLB) shares soared Wednesday, a day after it posted better-than-expected results and raised its guidance, becoming the latest tech firm to benefit from the soaring demand ...

Olemedia/E+ via Getty Images The GitLab Investment Thesis GitLab Inc (NASDAQ:GTLB) is a company with significant growth potential due to its market position and a potential TAM of more than $40 billion. At the time of my last article, however, the stock had taken a big hit after guidance came in worse than expected. Fortunately, the stock was able to bounce back from the weaker-thanexpected guidance and even raised guidance above what was expected at the time. The first half of the fiscal year was also very ...

Financial Data and Key Metrics Changes - In Q2 FY25, revenue increased by 31% year-over-year to $183 million, driven by new customer acquisitions and existing customer expansions [4][17] - Non-GAAP operating margin improved significantly, rising over 1,300 basis points year-over-year to 10% [4][19] - Dollar-based net retention rate (DBNRR) was 126%, supported by seat expansion, increased customer yield, and tier upgrades [17][33] - Non-GAAP gross margins were reported at 91% for the quarter, with SaaS revenue growing by 46% year-over-year [18][19] Business Line Data and Key Metrics Changes - GitLab Ultimate now represents 47% of total annual recurring revenue (ARR), with significant growth in larger customer cohorts [12][17] - The company reported a total remaining performance obligation (RPO) growth of 51% year-over-year to $747.9 million [18] - The number of customers with ARR of at least $5,000 increased by approximately 19% year-over-year, totaling 9,314 [17] Market Data and Key Metrics Changes - GitLab was recognized as a Leader in the 2024 Gartner Magic Quadrant for AI Code Assistants and DevOps Platforms, highlighting its competitive position in the market [8][9] - The company noted a significant increase in deal sizes, with large enterprises adopting AI capabilities [6][12] Company Strategy and Development Direction - GitLab's strategy focuses on integrating AI throughout the software development lifecycle to enhance productivity and security [5][12] - The company aims to consolidate toolchains for customers, which is seen as a significant opportunity for growth [10][12] - GitLab is positioning itself as a vendor-agnostic platform, emphasizing its comprehensive capabilities and security features [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive customer success and leverage AI for business outcomes in the second half of FY25 [15][20] - The macroeconomic environment remains cautious, but the company is focused on delivering quick time to value for customers [16][26] - Management anticipates continued growth in revenue and operating income for FY25, with guidance for Q3 revenue between $187 million and $188 million [20][65] Other Important Information - The company achieved the "In Process" designation for FedRAMP Moderate, enhancing its offerings for public sector clients [14] - Non-GAAP operating income for Q2 was $18.2 million, a significant improvement from a loss of $4.3 million in the same quarter last year [19] Q&A Session Summary Question: Update on go-to-market strategy and leadership transition - Management noted a smooth transition to new leadership and emphasized the quality of candidates for the new role [23] Question: Insights on operating margin and growth prioritization - Management confirmed that growth remains the top priority while responsibly increasing operating leverage [25] Question: Differences in macro environment between quarters - No significant changes were observed between Q1 and Q2; the spending environment remains cautious [26][27] Question: Interest in non-coding AI tools - Management acknowledged growing interest in AI throughout the software lifecycle, beyond just coding [28] Question: Market share dynamics with competitors - Management believes both GitLab and GitHub are benefiting from a shift towards platform solutions, with GitLab positioned well in the market [31][32] Question: Impact of pricing changes on net retention rate - Management expressed confidence in the stability of the net retention rate and noted ongoing expansion among historical cohorts [33] Question: AI adoption metrics among customers - Management indicated that AI adoption is still in early stages, with enterprises cautiously integrating AI into their workflows [51] Question: Expectations for Duo Enterprise adoption - Management expects AI to contribute significantly to growth in FY26 and beyond, with strong early performance from Duo [70]

GitLab Inc. (GTLB) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced earnings of $0.03, delivering a surprise of 175%. Over the last four quarters, the company has surpas ...

Financial Performance - Total revenue for Q2 FY 2025 reached $182.6 million, representing a 31% year-over-year increase[1][2] - Total revenue for the three months ended July 31, 2024, was $182.6 million, a 30.7% increase from $139.6 million in the same period last year[21] - Subscription revenue (self-managed and SaaS) reached $163.2 million, up 33.8% from $122.1 million year-over-year[21] - Gross profit for the six months ended July 31, 2024, was $311.6 million, compared to $237.8 million for the same period in 2023, reflecting a 31.0% increase[21] - Net income attributable to GitLab for the three months ended July 31, 2024, was $12.9 million, compared to a net loss of $50.1 million in the same period last year[21] - GAAP net income attributable to GitLab common stockholders was $12,949 thousand for the three months ended July 31, 2024, compared to a loss of $50,080 thousand in the prior year[24] - Non-GAAP diluted net income per share for FY 2025 is projected to be between $0.45 and $0.47[7] Customer Metrics - Customers with more than $5,000 of Annual Recurring Revenue (ARR) increased by 19% year-over-year to 9,314[3] - Dollar-Based Net Retention Rate was reported at 126%[4] Obligations and Liabilities - Total Remaining Performance Obligations (RPO) grew 51% year-over-year to $747.9 million, with current RPO (cRPO) increasing 42% to $475.0 million[4] - The total liabilities decreased to $688.3 million as of July 31, 2024, from $699.9 million at the end of the previous period[20] - GitLab's total current liabilities were $666.8 million as of July 31, 2024, slightly up from $662.1 million in the previous period[20] Cash Flow and Investments - Cash and cash equivalents increased to $438.6 million as of July 31, 2024, up from $288.0 million at the beginning of the fiscal year[18] - Net cash provided by operating activities was $11,697 for the three months ended July 31, 2024, down from $27,109 in the same period last year[22] - Net cash provided by financing activities was $12,912 for the three months ended July 31, 2024, down from $18,015 in the same period last year[22] - Purchases of short-term investments decreased to $118,866 for the three months ended July 31, 2024, compared to $276,132 in the same period last year[22] Operating Expenses - Total operating expenses increased to $406.3 million for the six months ended July 31, 2024, from $350.1 million in the prior year, representing a 16.1% rise[21] - Research and development expenses rose to $61.3 million for the three months ended July 31, 2024, up from $49.0 million in the prior year, indicating a focus on innovation[21] - Sales and marketing expenses on a GAAP basis were $97,778 thousand for the three months ended July 31, 2024, up from $92,116 thousand in the same period last year[23] Profitability Metrics - Non-GAAP gross profit for the same period was $165,623 thousand, up from $127,150 thousand, indicating a 30% increase year-over-year[23] - The adjusted free cash flow for the three months ended July 31, 2024, was $10,846 thousand, compared to $26,832 thousand for the same period in 2023[25] - GitLab's GAAP loss from operations improved to $(41,005) thousand for the three months ended July 31, 2024, from $(54,057) thousand in the same period last year[23] Future Projections - For Q3 FY 2025, GitLab expects revenue between $187.0 million and $188.0 million[7]