Core Insights - GitLab Inc. (NASDAQ: GTLB) is a mid-cap technology firm leading in the DevSecOps platform approach for software development and delivery, but it has not performed well for its shareholders this year [1] Company Overview - GitLab is recognized for its innovative contributions to the DevSecOps sector, which integrates security into the software development lifecycle [1] Shareholder Performance - The company has faced challenges in delivering value to its shareholders in the current year, indicating potential issues in financial performance or market conditions [1]

Core Insights - GitLab (GTLB) is experiencing strong demand for its DevSecOps platform, driven by partnerships with major cloud providers like Google Cloud, AWS, and Zscaler, which enhance its reach among large enterprise customers [1][4][12] Group 1: Partnerships and Integrations - GitLab announced the general availability of GitLab Duo with Amazon Q, integrating AI agents to accelerate development and streamline security processes [2] - The collaboration with Google Cloud is improving developer productivity by enhancing authentication and application deployment [3] - Zscaler's selection of GitLab as a partner reinforces its position in the DevSecOps market by enhancing security and expanding enterprise adoption [4] Group 2: Customer Growth and Market Position - In Q1 FY26, GitLab saw a 13% year-over-year increase in customers with over $5K in Annual Recurring Revenue (ARR), reaching 10,104, and a 26% increase in customers with over $100K in ARR, totaling 1,288 [5][12] - GitLab operates in a highly competitive environment, facing significant competition from Microsoft, Atlassian, and other DevSecOps platforms [6][7][8] Group 3: Financial Performance and Valuation - GitLab's shares have declined by 18.6% year to date, contrasting with a 10.6% return in the broader Zacks Computer & Technology sector [10] - The forward 12-month Price/Sales ratio for GitLab is 7.21X, higher than the industry average of 5.90X, indicating a premium valuation [13] - The Zacks Consensus Estimate for Q2 FY26 earnings is 16 cents per share, reflecting a 6.67% year-over-year increase, while the estimate for FY26 earnings is 75 cents per share, suggesting a 1.35% growth [15]

Summary of Key Points Core Viewpoint - The market has reached new highs, but several growth stocks remain down 20% or more from their all-time highs, presenting attractive investment opportunities. Group 1: Advanced Micro Devices (AMD) - AMD is down 35% from its high but is gaining traction in the AI inference market, which is expected to surpass AI training in size over time [3][5] - The company reported a 57% increase in data center revenue last quarter, contributing to a total revenue growth of 36% [5] - AMD's strategy does not require it to surpass Nvidia in the GPU market; a modest share can drive significant growth from its smaller base [5] Group 2: GitLab - GitLab's stock is down 65% from its high, yet it plays a crucial role in secure software development with its DevSecOps platform [6][8] - The company experienced a 27% year-over-year revenue growth last quarter, with a dollar-based net retention rate of 122% [7] - Concerns about AI reducing the number of coders are unfounded, as AI has led to increased software development and coder numbers [8] Group 3: e.l.f. Beauty - e.l.f. Beauty's stock is down 40% from its high, with a recent revenue growth slowdown to 4% in fiscal Q4 [9] - The $1 billion acquisition of Hailey Bieber's Rhode brand, which has $212 million in annual sales, could significantly accelerate growth [10] - e.l.f. has opportunities for market share expansion in mass-market cosmetics and potential growth in skincare and other categories [11] Group 4: Dutch Bros - Dutch Bros is down 21% from its high and is in the early stages of a multi-year growth story, targeting 2,029 shops by 2029 [12][14] - The company reported a 4.7% increase in same-store sales last quarter, with company-owned comps climbing 6.9% [13] - Dutch Bros is exploring mobile ordering and food items to enhance sales, recognizing the importance of food offerings in driving revenue [13] Group 5: Cava Group - Cava Group's stock is down 43% from its high, but it has achieved four consecutive quarters of double-digit same-store sales growth, including 10.8% last quarter [15] - The company is expanding rapidly, adding 15 new restaurants last quarter and planning to open 64 to 68 new locations this year [17] - Cava's expansion strategy, particularly its recent push into the Midwest, positions it for significant growth ahead [17]

Core Insights - GitLab (GTLB) is experiencing strong demand for its DevSecOps platform, with significant contributions from solutions like GitLab Ultimate, Dedicated, and GitLab Duo, leading to increased customer adoption and relationship expansion [1][10] - The company's financial performance reflects this demand, with total revenues of $214.4 million in the first quarter of fiscal 2026, marking a 27% year-over-year increase [1] Customer Growth - GitLab's expanding clientele is evident, with customers generating over $5K in Annual Recurring Revenue (ARR) increasing to 10,104, a 13% year-over-year rise [2] - Customers with more than $100K in ARR grew to 1,288, up 26% year-over-year, indicating GitLab's success in attracting and retaining large enterprise customers [2] Product Innovations - The company announced the general availability of GitLab 18, which includes major innovations in core DevOps workflows, security, compliance, and AI capabilities [3] - GitLab Duo with Amazon Q was also launched for Ultimate self-managed customers on AWS, alongside achieving FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government [3] Strategic Partnerships - GitLab benefits from a robust partner network, including major cloud platforms like Google Cloud and Amazon Web Services (AWS), which aids in expanding its presence among large enterprises [4] Competitive Landscape - GitLab operates in a highly competitive environment, facing significant competition from Microsoft, Atlassian, and other DevSecOps platforms [5][6][7] - Microsoft has strengthened its position through the integration of GitHub and Azure DevOps, making it a formidable rival for GitLab [6] Stock Performance and Valuation - GitLab's shares have declined by 17.7% year to date, contrasting with a 7% return from the broader Zacks Computer & Technology sector [8] - The stock is trading at a premium, with a forward 12-month Price/Sales ratio of 7.51X compared to the industry average of 5.74X, and it currently holds a Value Score of F [11] Earnings Estimates - The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is 16 cents per share, reflecting a 6.67% year-over-year increase [13] - The consensus for fiscal 2026 earnings is set at 75 cents per share, indicating a 1.35% year-over-year growth [13]

Company Overview - GitLab is a U.S.-based company that provides an end-to-end software development platform, with 81% of its revenues coming from U.S. accounts, 16% from Europe, and 2% from Asia Pacific [1] Competitive Position - The company's DevSecOps platform differentiates itself from its main competitor, although specific details on the differentiation are not provided in the text [1]

Core Insights - GitLab reported first-quarter fiscal 2026 non-GAAP earnings of 17 cents per share, exceeding the Zacks Consensus Estimate by 13.33% and up from 3 cents per share in the same quarter last year [1] - Total revenues reached $214.4 million, surpassing the consensus mark by 0.91% and reflecting a year-over-year increase of 27%, driven by strong demand for its DevSecOps platform [1][7] Revenue Breakdown - Subscription revenues, which include self-managed and SaaS, accounted for 90.7% of total revenues, increasing by 28.6% year over year to $194.5 million, beating the Zacks Consensus Estimate by 3.33% [3] - SaaS revenues contributed 30% to total revenues and surged 35% year over year, attributed to the strong adoption of GitLab Dedicated, AI integration, and expanding customer engagement [3] Customer Metrics - Customers with more than $5K of Annual Recurring Revenue (ARR) rose to 10,104, a 13% increase year over year [4] - Customers with more than $100K of ARR increased to 1,288, up 26% year over year, indicating GitLab's success in attracting and retaining large enterprise customers [4] - The dollar-based Net Retention Rate was 122% in the reported quarter [4] Performance Obligations - Total Remaining Performance Obligation (RPO) surged 40% year over year to $955.1 million, with current RPO increasing 34% to $584.8 million [4] Product Innovations - GitLab announced the general availability of GitLab 18, featuring major innovations in core DevOps workflows, security, compliance, and AI capabilities [5] - The company also launched GitLab Duo with Amazon Q for Ultimate self-managed customers on AWS and achieved FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government [5] Operating Expenses - Non-GAAP research & development expenses increased by 22.3% year over year to $51.1 million, while sales and marketing expenses rose 15.1% to $85.5 million [6] - General and administrative expenses decreased by 25.3% to $30.7 million, resulting in an operating income of $26.1 million compared to a loss of $3.8 million in the previous year [6] Cash Flow and Balance Sheet - As of April 30, 2025, cash and cash equivalents and short-term investments totaled $11.05 billion, up from $9.92 billion as of January 31, 2025 [7] - The company generated a cash flow from operations of $106.3 million in the reported quarter, compared to an operating cash outflow of $63.2 million in the previous quarter [8] Guidance - For Q2 fiscal 2026, GitLab expects revenues between $226 million and $227 million, indicating approximately 24% year-over-year growth [9] - Non-GAAP operating income is anticipated to be in the range of $23-$24 million for the fiscal second quarter [9] - For fiscal 2026, GitLab projects revenues between $936 million and $942 million, also indicating growth of approximately 24% year over year [10]