GitLab Shares Slide 14% Despite Q3 Beat and Higher Full-Year Revenue Guidance

Core Insights - GitLab Inc. shares fell 14% intra-day despite stronger-than-expected Q3 results and an increased full-year revenue outlook [1] Financial Performance - Non-GAAP EPS was reported at $0.25, exceeding analyst estimates by $0.05 [1] - Revenue increased by 25% year-over-year to $244.4 million, surpassing the consensus estimate of $239.09 million [1] - Non-GAAP operating margin improved to 18%, up from 13% in the prior-year quarter [2] - Operating cash flow was reported at $31.4 million, with adjusted free cash flow at $27.2 million, indicating enhanced operational efficiency [2] Customer Growth - The number of large customers grew to 1,405, each generating over $100,000 in ARR, reflecting a 23% increase from the previous year [2] - The Dollar-Based Net Retention Rate remained strong at 119%, indicating effective upselling and platform adoption [2] Revenue Guidance - The full-year revenue guidance was raised to $946–$947 million, compared to the previous range of $936–$942 million, adding approximately $5.5 million at the midpoint [3] - For Q4, revenue is guided at $251–$252 million, representing a 19% year-over-year increase and aligning closely with the midpoint consensus estimate of $251.5 million [3]