GTLB - GitLab leads Tech with 33% gain after beat-and-raise in Q1

2023-06-06 12:31:40 ET

GitLab ( NASDAQ: GTLB ) is leading Technology sector gainers, up 32.8% heading into midday Tuesday after its first-quarter earnings topped analyst expectations and the company raised its full-year revenue forecast above consensus as well .

The jump marks the stock's biggest one-day gain since going public in October 2021.

The company's 45% revenue increase beat some upbeat estimates, and it was organic growth. And the company trimmed its attributable adjusted net loss to $8.8M from a year-ago loss of $26.5M.

GitLab improved operating margin by some 1,700 basis points amid a focus on efficiency. It also noted that it boosted customers with more than $5,000 in annual recurring revenue by 43%, to 7,406, and increased those customers with more than $100,000 in ARR by 39%, to 760.

And co-founder and CEO Sid Sijbrandij didn't skimp on describing GitLab's place in the hot story of the moment.

“With AI revolutionizing how companies develop, secure, and operate software, we believe GitLab is positioned as the leading AI-powered DevSecOps platform,” Sijbrandij said. “Today, we deliver more AI-powered capabilities to customers than any other DevSecOps platform. Our vision builds on that foundation to encompass the full software development lifecycle -- from planning and development to security, deployment, and maintenance."

"We are poised to make the most of the estimated $40B total addressable market opportunity before us," Chief Financial Officer Brian Robins said.

For more detail, dig into Seeking Alpha's transcript of GitLab's earnings call .

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