GitLab soars 15% post Q3 beat & guidance raise, marking a robust quarter according to analysts. The reported EPS of $0.09 surpassed the consensus estimate of ($0.01), with revenue at $149.7 million, beating the expected $141.53 million.
CFO Brian Robins states, “Revenue grew 32% YoY, showcasing our market-leading platform approach.” The company achieved over 2,200 basis points of non-GAAP operating margin expansion, demonstrating responsible growth.
The number of customers with more than $5,000 of ARR surged to 8,175, a remarkable 26% YoY growth. Additionally, customers with more than $100,000 of ARR increased to 874, marking a 37% YoY rise.
Looking forward to Q4/24, GitLab anticipates an EPS range of $0.08-$0.09, surpassing the consensus estimate of ($0.01). Revenue is expected to be in the range of $157-$158 million, compared to the consensus of $150.24 million.
For the full year, GitLab projects an EPS of $0.12-$0.13, exceeding the consensus estimate of ($0.06), and revenue at $573-$574 million, compared to the consensus of $558.14 million.
Bank of America analysts, bullish on GitLab, raised the price target to $74 per share from $62. They reiterated a Buy rating, emphasizing the strong DevSecOps platform value proposition.
“We reiterate Buy, raising our PO to $74 (from $62) on a good F3Q24 result that displayed revenue and operating margin upside, and a healthy FY24 guidance raise, which is consistent with our preview,” they stated.
They believe GitLab’s robust DevSecOps platform positions it well, expecting sales cycles to normalize as the macroeconomic environment improves. The outlook is positive, making GitLab an attractive investment in the current market scenario.
In this context, 4xPip recommends keeping a close eye on GitLab’s performance and considering it for potential investment opportunities. The market dynamics are evolving, and GitLab’s success in Q3 indicates resilience and adaptability. For further insights and guidance, consult with 4xPip‘s trading experts.
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Conclusion:
GitLab’s stellar Q3 performance indicates a robust market presence and growth potential. Investors should monitor its evolving trajectory.
