Class A shares of GitLab ( NASDAQ: GTLB ) added as much as 7.6% to $50.98 in Wednesday mid-day trading, after the DevOps software company reported FQ2 2023 results that beat expectations and raised its fiscal year revenue guidance.
GTLB after hours on Tuesday posted quarterly non-GAAP EPS of -$0.15 which beat estimates by $0.08 . Its revenue gained 73.8% Y/Y to $101.04M, which beat by $6.6M .
The company say strong growth in its customers in the quarter, with customers with more than $5K of annual recurring revenue (ARR) increasing 61% Y/Y to 5,864 and those with more than $100K of ARR gaining 55% Y/Y to 593.
"Enterprises are navigating economic uncertainty while still needing to embrace the imperatives of digital transformation, cloud migration, and app modernization," GTLB CEO Sid Sijbrandij said in the earnings report .
GTLB raised its fiscal year revenue guidance to a range of $411M to $414M from a previous forecast of $398M to $402M. The consensus revenue estimate is $414.15M.
The company also said it expects to report a non-GAAP loss per share of $0.64 to $0.67 for the fiscal year, compared to a prior outlook of loss per share of $0.89 to $0.93. The consensus EPS estimate is -$0.65.
"GitLab reported a strong 2QF23, and was a notable outlier in the recent earnings period - delivering a true 'beat and raise' with no impact from the broader economic downturn," Needham research analyst Mike Cikos said in a research note.
The analyst kept a buy rating on the stock, but lowered the price target to $60 from $70. That represents a 26.6% upside to GTLB's last closing price of $47.40.
"GitLab is delivering high growth alongside scaling margins... Organizations are turning to GitLab as a mission-critical software which increases Developer capacity by consolidating disparate point solutions in the DevOps toolchain," Cikos said.
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GitLab stock gains ~8% after beat-and-raise quarter on strength in customers