Group 1: Climate Change Costs - A study indicates that households in the 10% of U.S. counties most affected by climate change incur an average of $1,300 annually in extra costs, while the nationwide average ranges from $400 to $900 [1] - The study attributes increased costs to more frequent natural disasters, higher insurance premiums, and rising expenses for housing, energy, and food [1] - Lower-income households are disproportionately affected by these climate change-related costs [1] Group 2: Sandisk Stock Performance - Sandisk shares have declined by 6.5% after joining the S&P 500, marking a 14% drop for the week and a loss of about one-third of their value since reaching an all-time high on November 12 [1] - Despite the recent decline, Sandisk's shares have increased over 400% since being spun off from Western Digital in February [1] Group 3: Pure Storage Financial Results - Pure Storage's stock fell 13% after reporting a fiscal 2026 third-quarter GAAP profit of $0.16 per share, below the expected $0.23 per share [1] - Revenue for the quarter was $964.5 million, a 16% year-over-year increase, and the company raised its full-year revenue forecast to between $3.63 billion and $3.64 billion [1] Group 4: GitLab Financial Results - GitLab's stock dropped 9% despite reporting a revenue increase of 25% to $244.4 million and lifting its full-year outlook [1] - The company reported a GAAP Q3 loss of $0.05 per share, compared to a profit of $0.17 a year ago, while adjusted earnings of $0.25 per share exceeded estimates [1] - GitLab has revised its full-year adjusted EPS forecast to a range of $0.88 to $0.89, up from $0.82 to $0.83 [1]

Core Insights - GitLab reported third-quarter fiscal 2026 non-GAAP earnings of 25 cents per share, exceeding the Zacks Consensus Estimate by 25% and up from 23 cents per share in the same quarter last year [1] - Total revenues reached $244.35 million, surpassing the consensus mark by 2.41% and reflecting a 25% year-over-year increase, driven by strong demand for its DevSecOps platform [1] Revenue Breakdown - Subscription revenues, which include self-managed and SaaS, accounted for 91.4% of total revenues, increasing 27.4% year over year to $223.3 million, beating the Zacks Consensus Estimate by 3.92% [2] - SaaS revenues contributed 31% to total revenues and surged 36% year over year, fueled by the adoption of GitLab Dedicated, AI integration, and expanding customer engagement [2] Customer Metrics - Customers with more than $5K of Annual Recurring Revenue (ARR) rose to 10,475, a 10% increase year over year [3] - Customers with more than $100K of ARR increased to 1,405, up 23% year over year, indicating GitLab's success in attracting and retaining large enterprise customers [3] - The dollar-based Net Retention Rate was 119% in the reported quarter [3] - Total Remaining Performance Obligation (RPO) surged 27% year over year to $1 billion, with current RPO increasing 28% year over year to $659.1 million [3] Operating Expenses - Non-GAAP research & development expenses rose 13.2% year over year to $53.2 million [4] - Sales and marketing expenses increased 12% year over year to $87.6 million [4] - General and administrative expenses grew 17% year over year to $32 million [4] - Non-GAAP operating income was $43.7 million, compared to $25.9 million in the year-ago quarter [4] Financial Position - As of October 31, 2025, cash and cash equivalents and short-term investments totaled $1.20 billion, up from $1.16 billion as of July 31, 2025 [5] - Cash flow from operations for the reported quarter was $31.4 million, down from $49.4 million in the previous quarter [5] - Adjusted free cash flow was $27.24 million, compared to $49.4 million as of July 31, 2025 [5] Future Guidance - For the fourth quarter of fiscal 2026, GitLab expects revenues between $251 million and $252 million, indicating approximately 19% year-over-year growth [6] - Non-GAAP operating income for the fourth quarter is expected to be in the range of $38-$39 million, with non-GAAP earnings projected between 22 cents and 23 cents per share [8] - For fiscal 2026, GitLab anticipates revenues between $946 million and $947 million, reflecting a growth of approximately 25% year over year [8]

Core Insights - GitLab Inc. reported revenue of $244.35 million for the quarter ended October 2025, marking a year-over-year increase of 24.6% and exceeding the Zacks Consensus Estimate by 2.41% [1] - The company's EPS for the same period was $0.25, compared to $0.23 a year ago, resulting in an EPS surprise of 25% over the consensus estimate of $0.20 [1] Revenue Breakdown - Revenue from License-self-managed and other was $21.09 million, below the average estimate of $23.78 million, with a year-over-year change of +1.5% [4] - Subscription revenue from self-managed and SaaS totaled $223.26 million, surpassing the estimated $214.84 million, reflecting a year-over-year increase of 27.4% [4] - Subscription-SaaS revenue was reported at $76.88 million, exceeding the estimate of $74.13 million [4] - License-self-managed revenue was $15.53 million, below the average estimate of $17.45 million [4] - Subscription-self-managed revenue reached $146.38 million, compared to the average estimate of $140.85 million [4] - Revenue from License-Professional services and other was $5.57 million, below the average estimate of $6.31 million [4] Stock Performance - GitLab's shares have returned -6.7% over the past month, contrasting with the Zacks S&P 500 composite's -0.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - GitLab's stock has experienced a significant decline despite reporting strong earnings, primarily due to conservative guidance for the upcoming quarter [1][5]. Financial Performance - GitLab reported a 25% year-over-year revenue growth for Q3, achieving $244.4 million in sales, surpassing analyst expectations of $239.3 million [2][3]. - The company reported non-GAAP earnings of $0.26 per share, but under GAAP, it recorded a loss of $0.05 per share, indicating a negative operating profit margin of 5% [2][5]. Guidance and Market Reaction - For Q4, GitLab's guidance is for earnings of $0.22 to $0.23 per share, with revenue expectations of $251 million to $252 million, which aligns closely with Wall Street's expectations [5][6]. - The stock price fell by 17.2% following the earnings report, reflecting investor concerns over the guidance provided [1][4]. Valuation Metrics - Post-decline, GitLab's stock appears to be fairly valued with a market cap of approximately $6.2 billion and a price-to-free cash flow ratio of 25.5x, based on trailing free cash flow of $242 million [6].

Core Viewpoint - GitLab's stock dropped 10.6% in pre-market trading, reflecting concerns over its conservative revenue guidance for Q4, influenced by U.S. government shutdown and related efficiency measures [1] Financial Performance - GitLab expects Q4 revenue to be between $251 million and $252 million, with earnings per share projected at 22 to 23 cents, aligning closely with analyst expectations [1]

Core Insights - The software company is experiencing ongoing weakness in its public sector segment [1] Group 1 - The company continues to see challenges in its public sector business [1]

Market Overview - U.S. stock futures were higher, with Dow futures gaining around 0.1% on Wednesday [1] GitLab Inc (NASDAQ:GTLB) - GitLab reported quarterly earnings of $0.25 per share, beating the analyst estimate of $0.20 [2] - Quarterly revenue was $244.35 million, surpassing the Street estimate of $239.63 million [2] - Despite the positive earnings and revenue, GitLab shares fell 8% to $39.90 in pre-market trading due to fourth-quarter sales guidance being below estimates [2] Acadia Healthcare Company Inc (NASDAQ:ACHC) - Acadia Healthcare's shares fell 22.7% to $12.74 in pre-market trading after the company cut its full-year 2025 guidance [4] - The reduction in guidance was attributed to larger expenses related to patient-related litigation [4] TryHard Holdings Limited (NASDAQ:THH) - TryHard Holdings experienced a decline of 16.6% to $18.70 in pre-market trading after a significant increase of 50% on Tuesday [4] Pure Storage Inc (NYSE:PSTG) - Pure Storage shares fell 11.8% to $83.50 in pre-market trading following the release of quarterly results [4] Box Inc (NYSE:BOX) - Box's shares decreased by 7.1% to $28.05 in pre-market trading after posting in-line earnings for the third quarter but issuing fiscal 2026 EPS guidance below analyst estimates [4] Okta, Inc. (NASDAQ:OKTA) - Okta's shares declined 3.5% to $79.03 in pre-market trading after the company reported third-quarter results [4] Erasca, Inc. (NASDAQ:ERAS) - Erasca's shares fell 2.8% to $2.81 in pre-market trading after a 4% decline on Tuesday [4] CrowdStrike Holdings, Inc. (NASDAQ:CRWD) - CrowdStrike reported better-than-expected financial results for the third quarter and raised its full-year guidance, but shares slipped 2.1% to $505.79 in pre-market trading [4]

Market Overview - U.S. stock futures are higher, with Dow futures gaining approximately 0.1% on Wednesday [1] GitLab Inc (NASDAQ:GTLB) - GitLab reported quarterly earnings of $0.25 per share, surpassing the analyst estimate of $0.20 [2] - Quarterly revenue reached $244.35 million, exceeding the Street estimate of $239.63 million [2] - Despite the positive earnings and revenue, GitLab shares fell 8% to $39.90 in pre-market trading due to fourth-quarter sales guidance being below estimates [2] Acadia Healthcare Company Inc (NASDAQ:ACHC) - Acadia Healthcare's shares dropped 22.7% to $12.74 in pre-market trading after the company reduced its full-year 2025 guidance [4] - The reduction was attributed to increased expenses related to patient-related litigation, leading to updates in professional and general liability reserves [4] TryHard Holdings Limited (NASDAQ:THH) - TryHard Holdings experienced a decline of 16.6% to $18.70 in pre-market trading after a significant increase of 50% on the previous day [4] Pure Storage Inc (NYSE:PSTG) - Pure Storage shares fell 11.8% to $83.50 in pre-market trading following the release of its quarterly results [4] Box Inc (NYSE:BOX) - Box's shares decreased by 7.1% to $28.05 in pre-market trading after posting in-line earnings for the third quarter but providing fiscal 2026 EPS guidance below analyst estimates [4] Okta, Inc. (NASDAQ:OKTA) - Okta's shares declined 3.5% to $79.03 in pre-market trading after the company reported third-quarter results [4] Erasca, Inc. (NASDAQ:ERAS) - Erasca's shares fell 2.8% to $2.81 in pre-market trading, following a 4% decline on the previous day [4] CrowdStrike Holdings, Inc. (NASDAQ:CRWD) - CrowdStrike's shares slipped 2.1% to $505.79 in pre-market trading despite reporting better-than-expected financial results for the third quarter and raising its full-year guidance [4]

Group 1 - GitLab reported total revenues of $244.4 million for its fiscal 2026 third quarter, reflecting a 25% year-over-year increase [3] - The appointment of Jessica Ross as the new CFO is part of a series of senior management changes at GitLab under CEO Bill Staples [3][7] - Ross will replace James Shen, who served as interim CFO since September, and will return to his role as vice president of finance [7] Group 2 - Jessica Ross will receive an initial annual base salary of $505,000 and a signing cash bonus of $150,000 [5] - Ross has over 25 years of experience in finance and operational leadership, previously serving as CFO at Frontdoor and holding senior roles at Salesforce [5][6] - GitLab's leadership emphasizes the company's readiness to assist organizations in navigating complexities related to AI, security, and modern software delivery [5][7]

Core Insights - GitLab reported strong financial results for the third quarter of fiscal year 2026, achieving a 25% year-over-year revenue growth, totaling $244.4 million [2][3][4] - The company is focused on sustainable growth and strategic investments while maintaining positive cash flow [2][3] - GitLab's non-GAAP operating margin improved to 18%, compared to a loss of 5% in GAAP terms [3][5] Financial Highlights - Total revenue reached $244.4 million, up 25% from $196.0 million in the same quarter last year [3][4] - GAAP operating margin was (5)%, while non-GAAP operating margin was 18% [3][5] - Non-GAAP net income attributable to GitLab was $43.5 million, compared to $39.1 million a year ago, reflecting a 4.4 million increase [5] - Operating cash flow was $31.4 million, with non-GAAP adjusted free cash flow at $27.2 million [3][4] Customer Metrics - Customers with more than $5,000 of Annual Recurring Revenue (ARR) increased by 10% year-over-year, reaching 10,475 [9] - Customers with more than $100,000 of ARR grew by 23% year-over-year, totaling 1,405 [9] - The Dollar-Based Net Retention Rate was reported at 119% [9] Business Developments - GitLab appointed Jessica Ross as Chief Financial Officer, effective January 15, 2026, bringing over 25 years of experience [6][10] - The company was recognized as a leader in the Gartner Magic Quadrant for DevOps Platforms for the third consecutive year [10] - GitLab expanded its Duo Agent Platform with new AI capabilities and enhanced application security features [10]