GitLab (GTLB - Free Report) reported non-GAAP earnings of 1 cent per share in second-quarter fiscal 2024, which surpassed the Zacks Consensus Estimate of a loss of 3 cents. The company reported a loss of 15 cents per share in the year-ago quarter.
Total revenues of $139.6 million also beat the consensus mark by 7.65% and jumped 38.1% year over year.
Top-Line Details
Subscriptions- self-managed and SaaS (87.5% of total revenues) revenues surged 37.3% year over year to $122.1 million. License- self-managed and other revenues (12.5% of total revenues) soared 44.4% year over year to $17.5 million.
Customers with more than $5K of Annual Recurring Revenues (ARR) increased to 7,815, up 33% year over year. Customers with more than $100K of ARR increased to 810, up 37% year over year.
SaaS represents more than 25% of the total ARR.
The Ultimate tier continued to be Gitlab’s fastest growing tier, representing 42% of ARR for the second quarter of fiscal 2024 compared with 39% of ARR in the second quarter of fiscal 2023.
The dollar-based Net Retention Rate was 124% in the reported quarter.
Total Remaining Performance Obligation (RPO) grew 37% year over year to $496 million, and current RPO grew 34% to $335 million.
Operating Details
Second-quarter fiscal 2024 non-GAAP gross margin expanded 190 basis points from the year-ago quarter to 91.1%. The year-over-year growth was slightly improved by higher growth in low-margin SaaS revenues.
On a non-GAAP basis, research & development expenses increased 29.7% year over year to $36.5 million. Sales and marketing expenses were up 7.4% to $70.7 million. General and administrative expenses rose 5% to $24.2 million in the reported quarter.
On a non-GAAP basis, operating loss was $4.3 million compared with the year-ago quarter’s loss of $27.0 million.
Balance Sheet
As of Jul 31, 2023, cash and cash equivalents and short-term investments were $986.2 million.
Guidance
For the third quarter of fiscal 2024, GitLab expects revenues between $140 million and $141 million, indicating a growth rate of 24% to 25% year over year.
Non-GAAP operating loss is expected to be $6-$5 million for the fiscal third quarter. Loss is expected between 2 cents per share and 1 cent.
For fiscal 2024, GitLab expects revenues between $555 million and $557 million.
Non-GAAP operating loss is expected in the range of $33-$30 million for the fiscal year. Loss is expected between 8 cents and 5 cents.
Zacks Rank & Stocks to Consider
Currently, GitLab has a Zacks Rank #3 (Hold).
GitLab shares have gained 10% year to date compared with the Zacks Computer & Technology sector’s rally of 41.3%.
Some better-ranked stocks in the sector are Model N (MODN - Free Report) , Paylocity Holding (PCTY - Free Report) and Semantix . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Model N have declined 31.5%, while shares of Paylocity and Semantix have gained 3.7% and 30.6%, respectively, in the year-to-date period.
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GitLab (GTLB - Free Report) reported non-GAAP earnings of 1 cent per share in second-quarter fiscal 2024, which surpassed the Zacks Consensus Estimate of a loss of 3 cents. The company reported a loss of 15 cents per share in the year-ago quarter.
Total revenues of $139.6 million also beat the consensus mark by 7.65% and jumped 38.1% year over year.
Top-Line Details
Subscriptions- self-managed and SaaS (87.5% of total revenues) revenues surged 37.3% year over year to $122.1 million. License- self-managed and other revenues (12.5% of total revenues) soared 44.4% year over year to $17.5 million.
Customers with more than $5K of Annual Recurring Revenues (ARR) increased to 7,815, up 33% year over year. Customers with more than $100K of ARR increased to 810, up 37% year over year.
SaaS represents more than 25% of the total ARR.
The Ultimate tier continued to be Gitlab’s fastest growing tier, representing 42% of ARR for the second quarter of fiscal 2024 compared with 39% of ARR in the second quarter of fiscal 2023.
The dollar-based Net Retention Rate was 124% in the reported quarter.
Total Remaining Performance Obligation (RPO) grew 37% year over year to $496 million, and current RPO grew 34% to $335 million.
Operating Details
Second-quarter fiscal 2024 non-GAAP gross margin expanded 190 basis points from the year-ago quarter to 91.1%. The year-over-year growth was slightly improved by higher growth in low-margin SaaS revenues.
On a non-GAAP basis, research & development expenses increased 29.7% year over year to $36.5 million. Sales and marketing expenses were up 7.4% to $70.7 million. General and administrative expenses rose 5% to $24.2 million in the reported quarter.
On a non-GAAP basis, operating loss was $4.3 million compared with the year-ago quarter’s loss of $27.0 million.
Balance Sheet
As of Jul 31, 2023, cash and cash equivalents and short-term investments were $986.2 million.
Guidance
For the third quarter of fiscal 2024, GitLab expects revenues between $140 million and $141 million, indicating a growth rate of 24% to 25% year over year.
Non-GAAP operating loss is expected to be $6-$5 million for the fiscal third quarter. Loss is expected between 2 cents per share and 1 cent.
For fiscal 2024, GitLab expects revenues between $555 million and $557 million.
Non-GAAP operating loss is expected in the range of $33-$30 million for the fiscal year. Loss is expected between 8 cents and 5 cents.
Zacks Rank & Stocks to Consider
Currently, GitLab has a Zacks Rank #3 (Hold).
GitLab shares have gained 10% year to date compared with the Zacks Computer & Technology sector’s rally of 41.3%.
Some better-ranked stocks in the sector are Model N (MODN - Free Report) , Paylocity Holding (PCTY - Free Report) and Semantix . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Model N have declined 31.5%, while shares of Paylocity and Semantix have gained 3.7% and 30.6%, respectively, in the year-to-date period.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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