October 3, 2022

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GitLab’s stock makes gains after posting solid Q4 earnings results

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DevOps darling GitLab Inc. delivered fourth quarter financial results and guidance that came in above expectations today, sending its stock higher in extended trading.

The company reported a net loss of $ 23.2 million for the quarter, compared to a $ 24 million loss one year ago. Its loss before certain costs such as stock compensation came to 16 cents per share, while revenue rose 69% from a year ago to $ 77.8 million.

That was better than expected, with Wall Street analysts modeling a wider loss of 25 cents per share on revenue of $ 70.29 million.

GitLab also reported full year fiscal 2022 revenue of $ 252.7 million, up 66% from a year ago.

GitLab sells development and collaboration tools that help developers to share code and create new applications faster. It’s viewed as one of the pioneers of DevOps, enabling companies to adopt a modern strategy of rapid, continuous software updates.

GitLab Chief Executive Sid Sijbrandij (pictured) said the company was benefiting from continued strong momentum from customers.

“This growth was broad-based, driven by strong customer additions across all company sizes,” he added. “We believe these results demonstrate that the market is moving from DIY DevOps composed of different tools to a DevOps Platform. This shift enables organizations to accelerate the time-to-market of their most important software and applications, providing them with a distinct competitive advantage.

GitLab said its number of customers who deliver more than $ 5,000 in annualized recurring revenue rose 67% to 4,593 at the end of the quarter. Meanwhile, customers delivering at least $ 100,000 in ARR jumped 74%, to 492.

The company also revealed an impressive dollar-based net retention rate of over 152% at the end of the quarter. NRR is a metric that indicates how much revenue growth or churn a company has from its existing customers. Investors like to see a positive number here as it shows that a company is growing even without acquiring new customers.

During the quarter, GitLab announced it had acquired the open-source observability software startup Opstrace Inc. for an undisclosed fee. Opstrace’s observability software is used by developers to collect data that can help them to troubleshoot problems with cloud-hosted applications. GitLab said it will integrate Opstrace’s software into its flagship product, the GitLab DevOps Platform

Looking to the next quarter, GitLab said it sees a loss of 28 cents to 27 cents per share on revenue of $ 77 million to $ 78 million. That was also better than expected, with Wall Street forecasting a loss of 30 cents per share on sales of $ 72.75 million.

GitLab’s stock rose more than 9% in the after-hours session, erasing a 6% decline earlier during regular trading.

Photo: SiliconANGLE

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