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GitLab (GTLB) Posts Gain in Q4, Beats Revenue Estimates
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GitLab (GTLB - Free Report) reported non-GAAP earnings of 15 cents per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate of 8 cents. The company reported a loss of 3 cents in the year-ago quarter.
Total revenues of $163.8 million beat the consensus mark by 3.83% and rallied 33.3% year over year. The upside can be attributed to the continued adoption of GitLab's DevSecOps Platform.
Top-Line Details
Subscriptions- self-managed and SaaS (86.7% of total revenues) revenues increased 35.2% year over year to $142 million. License- self-managed and other revenues (13.3% of total revenues) rose 21.9% year over year to $21.8 million.
Customers with more than $5K of Annual Recurring Revenues (ARR) increased to 8,602, up 23% year over year. Customers with more than $100K of ARR increased to 955, up 37% year over year. Customers with more than $1M of ARR increased to 96, up 52% year over year.
The Ultimate tier continued to be Gitlab’s fastest-growing tier, representing 50% of ARR in the fourth quarter primarily driven by customer victories in security and compliance applications.
The dollar-based Net Retention Rate was 130% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 55% year over year to $674 million. The current RPO increased by 40% to $430 million.
In the fourth quarter, GitLab's captivating platform attracted major enterprises like Barclays, T-Mobile, and Oxa, showcasing increased adoption driven by heightened security measures, modernized tools, and innovative offerings such as Remote Development Workspaces and GitLab Duo.
GitLab's AI tool, GitLab Duo, gained traction among customers aiming to enhance productivity and ensure code quality and security, with the introduction of organizational controls in GitLab Duo Pro priced at $19 per user per month, contributing to revenue growth.
Operating Details
Fourth-quarter fiscal 2024 non-GAAP gross margin expanded 150 basis points from the year-ago quarter’s levels to 92%. The year-over-year upside was backed by higher growth in low-margin SaaS revenues.
On a non-GAAP basis, research & development expenses increased 14% year over year to $38.5 million. Sales and marketing expenses were up 7.4% to $73.4 million. General and administrative expenses rose 11.2% to $24.8 million in the reported quarter.
On a non-GAAP basis, operating profit was $13.2 million compared with the year-ago quarter’s loss of $13.8 million.
Balance Sheet
As of Jan 31, 2023, cash and cash equivalents and short-term investments were $103.6 million compared with $989.6 million as of Oct 31, 2023.
The company generated a cash flow of $24.5 million in fourth quarter fiscal 2024.
Guidance
For the first quarter of fiscal 2025, GitLab expects revenues between $165 million and $166 million, indicating growth rate of 30-31% year over year.
Non-GAAP operating loss is expected to be $12-$13 million for the fiscal first quarter. Non-GAAP loss is expected between 4 cents per share and 5 cents.
Zacks Rank & Stocks to Consider
Currently, Gitlab has a Zacks Rank #3 (Hold).
Gitlab’s shares have gained 18.3% year to date compared with the Zacks Computer & Technology sector’s increase of 9.8%.
Kanzhun (BZ - Free Report) , Blink Charging (BLNK - Free Report) and Adobe (ADBE - Free Report) are some top-ranked stocks that investors can consider in the broader sector.
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GitLab (GTLB) Posts Gain in Q4, Beats Revenue Estimates
GitLab (GTLB - Free Report) reported non-GAAP earnings of 15 cents per share in fourth-quarter fiscal 2024, beating the Zacks Consensus Estimate of 8 cents. The company reported a loss of 3 cents in the year-ago quarter.
Total revenues of $163.8 million beat the consensus mark by 3.83% and rallied 33.3% year over year. The upside can be attributed to the continued adoption of GitLab's DevSecOps Platform.
Top-Line Details
Subscriptions- self-managed and SaaS (86.7% of total revenues) revenues increased 35.2% year over year to $142 million. License- self-managed and other revenues (13.3% of total revenues) rose 21.9% year over year to $21.8 million.
Customers with more than $5K of Annual Recurring Revenues (ARR) increased to 8,602, up 23% year over year. Customers with more than $100K of ARR increased to 955, up 37% year over year. Customers with more than $1M of ARR increased to 96, up 52% year over year.
GitLab Inc. Price, Consensus and EPS Surprise
GitLab Inc. price-consensus-eps-surprise-chart | GitLab Inc. Quote
The Ultimate tier continued to be Gitlab’s fastest-growing tier, representing 50% of ARR in the fourth quarter primarily driven by customer victories in security and compliance applications.
The dollar-based Net Retention Rate was 130% in the reported quarter.
Total Remaining Performance Obligation (RPO) surged 55% year over year to $674 million. The current RPO increased by 40% to $430 million.
In the fourth quarter, GitLab's captivating platform attracted major enterprises like Barclays, T-Mobile, and Oxa, showcasing increased adoption driven by heightened security measures, modernized tools, and innovative offerings such as Remote Development Workspaces and GitLab Duo.
GitLab's AI tool, GitLab Duo, gained traction among customers aiming to enhance productivity and ensure code quality and security, with the introduction of organizational controls in GitLab Duo Pro priced at $19 per user per month, contributing to revenue growth.
Operating Details
Fourth-quarter fiscal 2024 non-GAAP gross margin expanded 150 basis points from the year-ago quarter’s levels to 92%. The year-over-year upside was backed by higher growth in low-margin SaaS revenues.
On a non-GAAP basis, research & development expenses increased 14% year over year to $38.5 million. Sales and marketing expenses were up 7.4% to $73.4 million. General and administrative expenses rose 11.2% to $24.8 million in the reported quarter.
On a non-GAAP basis, operating profit was $13.2 million compared with the year-ago quarter’s loss of $13.8 million.
Balance Sheet
As of Jan 31, 2023, cash and cash equivalents and short-term investments were $103.6 million compared with $989.6 million as of Oct 31, 2023.
The company generated a cash flow of $24.5 million in fourth quarter fiscal 2024.
Guidance
For the first quarter of fiscal 2025, GitLab expects revenues between $165 million and $166 million, indicating growth rate of 30-31% year over year.
Non-GAAP operating loss is expected to be $12-$13 million for the fiscal first quarter. Non-GAAP loss is expected between 4 cents per share and 5 cents.
Zacks Rank & Stocks to Consider
Currently, Gitlab has a Zacks Rank #3 (Hold).
Gitlab’s shares have gained 18.3% year to date compared with the Zacks Computer & Technology sector’s increase of 9.8%.
Kanzhun (BZ - Free Report) , Blink Charging (BLNK - Free Report) and Adobe (ADBE - Free Report) are some top-ranked stocks that investors can consider in the broader sector.
BZ currently sports Zacks Rank#1 (Strong Buy), while BLNK and ADBE carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kanzhun’s shares have declined 3.8% year to date. BZ is scheduled to release fourth-quarter 2023 results on Mar 12.
Blink Charging’s shares have declined 10.3% year to date. BLNK is set to report its fourth-quarter 2023 results on Mar 14.
Adobe’s shares have declined 4.8% year to date. ADBE is set to release its fourth-quarter fiscal 2024 results on Mar 14.