GitLab Inc (NASDAQ:GTLB) reported stronger-than-expected Q2 results and raised its full-year outlook to send its shares 6.1% higher in early New York trade.
The company reported earnings per share of $0.01, which is $0.04 better than the analyst estimate. Additionally, GitLab's revenue for the quarter amounted to $139.6 million, surpassing the consensus estimate of $129.8M.
“GitLab’s strong quarter is a result of our focus on creating a differentiated and innovative DevSecOps platform and executing on a strong go-to-market motion,” said Sid Sijbrandij, GitLab CEO and co-founder.
Looking ahead to the third quarter of 2024, GitLab expects an EPS in the range of -$0.02 and -$0.01, better than the consensus estimate of -$0.04. The company also anticipates third-quarter revenue to be in the range of $140M to $141M, exceeding the consensus estimate of $138.1M.
For the full fiscal year 2024, GitLab forecasts a loss per share of 8 cents to 5 cents, while analysts were looking for a loss per share of $0.14. The company also expects full-year revenue to be in the range of $555M to $557M, surpassing the consensus estimate of $542.8M.
Mizuho analysts reiterated a Neutral rating and raised the price target by $6 to $51 per share.
“We're encouraged by the execution improvement from GTLB over the past two quarters. That said, and despite our enthusiasm for GTLB's platform, we continue to have concerns that the upside drivers over the NTM may be limited,” they said.
TD Cowen analysts also hiked the price target with the new objective sitting at $63 per share.
“We think GTLB's DevSecOps value prop is resonating well and helping it navigate through macro pressures. We are encouraged by Q/Q stabilization in contractions & improvements in expansions & there are several newer tailwinds emerging in the qtrs ahead,” the analysts wrote in a report.