GitLab had dollar-based net retention rate above 130% in latest quarter
Shares of GitLab Inc. dipped slightly in after-hours action Tuesday, though the software company topped expectations with its latest financial results and outlook.
The company generated a fiscal second-quarter net loss of $59.0 million, or 40 cents a share, compared with a loss of $40.2 million, or 75 cents a share, in the year-prior quarter.
On an adjusted basis, GitLab GTLB, -1.88% lost 15 cents a share, compared with 49 cents a year earlier. Analysts tracked by FactSet had been modeling a 23-cent adjusted loss per share.
Revenue increased to $101.0 million from $58.1 million, while the FactSet consensus called for $94.4 million.
“We continue to see strong momentum in our business, and our second-quarter results indicate that the market is embracing our One DevOps Platform leadership position,” Chief Executive Sid Sijbrandij said in a statement.
The company had a dollar-based net retention rate above 130% in its fiscal second quarter.
For the fiscal third quarter, GitLab executives anticipate $105 million to $106 million in revenue, along with an adjusted per-share loss of 15 cents to 16 cents. Analysts tracked by FactSet were looking for $103.4 million in revenue and a 25-cent adjusted loss per share.
Looking at the full fiscal year, executives project $411 million to $414 million in revenue and a per-share loss of 64 cents to 67 cents on an adjusted basis. The FactSet consensus was for $402.8 million in revenue and an 89-cent adjusted loss per share.
“Guidance was raised for Q3 and FY/23 for revenue as well as better-than-expected profitability,” RBC Capital Markets analyst Matthew Hedberg wrote in a note to clients, while noting that “given the recent execution,” GitLab’s outlook still looked “conservative.”
After falling more than 7% immediately after the earnings report was released, shares clawed back to end after-hours trading down just 0.3%. Shares had gained 19% over the past three months through Tuesday’s close, while the S&P 500 SPX, -0.41% was down about 5% over the same span.
The company went public last October.