GitLab earnings and guidance were strong. His stock is on the rise.

DevOps platforms, or development and operations teams, work together throughout the lifecycle of software applications.

The time of dreams

Text size


GitLab

shares rose 9% on Tuesday, after beating analysts’ expectations and forecasts for its fiscal 2022 results.

The DevOps software company reported a fourth-quarter loss of $45.8 million, or 32 cents per share, compared with a loss of $120 million, or $2.31 per share, last year. The company’s adjusted loss, excluding stock-based compensation expense and other items, was 16 cents per share. That compares to 46 cents per share last year.

Following its premarket gains of 21%, the stock was up 9% in the early morning to hit $35.89.


GitLab

(ticker: GTLB) the stock has fallen 58% so far this year, compared to a 20% drop in the


Nasdaq.

The company’s revenue reached $77.8 million, compared to $46.1 million in the year-ago quarter. Analysts interviewed by


set of facts

expected a loss of 25 cents per share on revenue of $70.3 million.

For the first quarter of 2023, GitLab forecasts an adjusted loss of 28 cents to 27 cents per share on revenue of $77 million to $78 million for the first quarter, and an adjusted loss of $1.02 to 97 cents per share. action on revenue of $385.5 million to $390.5 million for the year. Analysts had expected a loss of 30 cents per share on revenue of $72.8 million for the first quarter and a loss of $1.04 per share on revenue of $336.6 million for the ‘year.

DevOps platforms, or development and operations teams, work together throughout the lifecycle of software applications, from development and testing to deployment and operations, rather than having development and operations teams work together. operating separately. GitLab’s widespread growth and optimism stems from companies wanting to use DevOps platforms rather than DIY DevOps comprised of different tools, CEO Sid Sijbrandij said Monday.

It’s that growth that could fuel the company’s stock, Truist analysts wrote in a research report on Tuesday.

“The company continued to show exceptional growth driven by both new customer acquisition and upselling to its existing base,” Joel P. Fishbein Jr. said in the report. He rates the stock long with a new price target of $105 from its previous $175.

The reduction reflects the change in discount rate assumptions since GitLab’s IPO, Fishbein said. Despite the strong quarter, the changes triggered a revaluation of shares given the company’s lack of profitability, he said, for several years to come.

That being said, Fishbein generally remains optimistic about the company and its stock.

“We remain confident in GTLB’s growth prospects and believe it has a track to beat and grow as the world transitions to a DevOps platform vision,” Fishbein said.

Write to Logan Moore at logan.moore@barrons.com.

Comments are closed.