GitLab stock surges more than 10% on earnings beat, raised outlook

GitLab stock surges more than 10% on earnings beat, raised outlook

GitLab Inc. shares surged in the extended session Monday after the DevOps software company reported quarterly results that topped Wall Street expectations, and hiked its outlook.

GitLab GTLB, -2.66% shares rallied more than 10% after hours, following a 2.7% decline in the regular session to close at $39.84.

The company reported a first-quarter loss of $26.1 million, or 18 cents a share, compared with a loss of $27.9 million, or 53 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 18 cents a share, compared with 44 cents a share in the year-ago period.

Revenue rose to $87.4 million from $49.9 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast a loss of 27 cents a share on revenue of $78.1 million.

“While accelerating revenue growth, we were also able to show significant operating leverage,” said Sid Sijbrandij, GitLab chief executive and co-founder, in a statement. “Underpinning this acceleration in growth was a higher velocity of new customer wins, as well as seat expansion and tier upgrades of existing customers. As we look forward, we are seeing continued strong momentum for customers adopting our One DevOps platform.”

GitLab forecast an adjusted loss of 24 cents to 23 cents a share on revenue of $93.5 million to $94.5 million for the second quarter.

The company hiked its outlook for the year, forecasting an adjusted loss of 93 cents to 89 cents on revenue of $398 million to $402 million, up from a previous adjusted loss of $1.02 to 97 cents a share on revenue of $385.5 million to $390.5 million for the year.

Analysts had estimated a loss of 25 cents a share on revenue of $90.4 million for the second quarter, and a loss of 96 cents a share on revenue of $389.3 million for the year.

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