Gitlab Inc (NASDAQ:GTLB) shares are trading higher by 21.7% at $48.50 after the company reported better-than-expected first-quarter adjusted EPS and sales results and issued second-quarter adjusted EPS and sales guidance above estimates.
GitLab reported quarterly losses of 18 cents per share which beat the analyst consensus estimate of a loss of 27 cents. The company reported quarterly sales of $87.41 million which beat the analyst consensus estimate of $77.81 million by 12%. This is a 75% increase over sales of $49.93 million in the same period last year.
Gitlab sees second-quarter sales as low as $93.5 million or as high as $94.5 million, versus the analyst consensus estimate of $89.68 million. Gitlab sees adjusted EPS as low as a loss of 23 cents per share or as high as 24 cents per share, versus the analyst consensus estimate of a loss of 25 cents. Gitlab also sees FY23 sales as low as $398 million or as high as $402 million, versus the analyst consensus estimate of $389.86 million.
"We have seen a substantial shift in how enterprises are developing, operating, and securing software by moving to a platform strategy. As a result, our One DevOps Platform is gaining momentum and broader adoption," said Sid Sijbrandij, GitLab CEO and Co-Founder.
UBS maintained a Buy rating on the stock and raised its price target from $54 to $59 following the report.
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GitLab operates on an all-remote model. The company is a technology company whose primary offering is GitLab, a complete DevOps platform delivered as a single application.
According to data from Benzinga Pro, GitLab has a 52-week high of $137.00 and a 52-week low of $30.74.
