GitLab ( NASDAQ: GTLB ) shares jumped more than 14% on Wednesday after the DevOps software company reported second-quarter results that beat expectations and raised its fiscal year revenue guidance.
For the period ending July 31, GitLab ( GTLB ) said it lost 15 cents per share, excluding one-time items, on $101.04M in revenue. Analysts were expecting an adjusted loss of 23 cents per share on $94.44M in sales.
In addition, the company said its customers with more than $5,000 in annual recurring revenue rose 61% year-over-year to nearly 5,700, and those with more than $100,000 in annual recurring revenue rose 55% year-over-year to 593.
As a result, GitLab ( 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.
GitLab ( GTLB ) also expects full-year adjusted losses to be between 64 and 67 cents per share, compared to a prior outlook of a loss between 89 and 93 cents per share. Analysts expect the company to lose 65 cents per share, excluding one-time items.
"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, who has a buy rating on GitLab ( GTLB ), said in a research note, following the results.
Earlier this month, J.P. Morgan downgraded GitLab ( GTLB ), citing a stretched valuation for the valuation for the DevOps company .
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Why did GitLab stock jump today? Full-year revenue raise boosts investor optimism