Latest news with #GTLB
Yahoo
12-06-2025
- Business
- Yahoo
GitLab price target lowered to $75 from $80 at Truist
Truist lowered the firm's price target on GitLab (GTLB) to $75 from $80 and keeps a Buy rating on the shares. The company delivered Q1 results above the guidance range, though the beat was lighter than what investors were looking for, putting pressure on shares afterhours, the analyst tells investors in a research note. The company continued to demonstrate momentum with newer offerings however as they adjust packaging, showcasing their ability to leverage their enterprise foothold into extended sales opportunities, Truist added. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on GTLB: Disclaimer & DisclosureReport an Issue Morning Movers: SailPoint surges following first quarter earnings GitLab Delays Quarterly Report Filing GitLab downgraded to Neutral at Goldman Sachs on slowing growth GitLab price target lowered to $60 from $70 at Cantor Fitzgerald GitLab downgraded to Neutral from Buy at Goldman Sachs
Yahoo
11-06-2025
- Business
- Yahoo
GTLB Q1 Earnings Call: AI Growth and Product Expansion Highlight Strategic Direction
Software development tools maker GitLab (NASDAQ:GTLB) announced better-than-expected revenue in Q1 CY2025, with sales up 26.8% year on year to $214.5 million. The company expects next quarter's revenue to be around $226.5 million, close to analysts' estimates. Its non-GAAP profit of $0.17 per share was 11.8% above analysts' consensus estimates. Is now the time to buy GTLB? Find out in our full research report (it's free). Revenue: $214.5 million vs analyst estimates of $213 million (26.8% year-on-year growth, 0.7% beat) Adjusted EPS: $0.17 vs analyst estimates of $0.15 (11.8% beat) Adjusted Operating Income: $26.12 million vs analyst estimates of $22.62 million (12.2% margin, 15.5% beat) The company reconfirmed its revenue guidance for the full year of $939 million at the midpoint Management raised its full-year Adjusted EPS guidance to $0.75 at the midpoint, a 6.4% increase Operating Margin: -16.1%, up from -31.7% in the same quarter last year Net Revenue Retention Rate: 122%, down from 123% in the previous quarter Annual Recurring Revenue: $809.3 million at quarter end, up 33.8% year on year Billings: $222.2 million at quarter end, up 35.4% year on year Market Capitalization: $8.01 billion GitLab's first quarter results reflected growing adoption of its AI-driven DevSecOps platform, as management cited strong engagement from both new and existing enterprise customers. CEO Bill Staples emphasized the company's unique position as an AI-native, cloud-agnostic platform, capable of supporting diverse development environments. The launch of new features in GitLab 18, including expanded artifact management and enhanced security tools, was positioned as a key factor in driving customer value. Staples also pointed to rapid uptake of AI capabilities, noting a 35% quarter-over-quarter increase in customers purchasing GitLab Duo. CFO Brian Robins attributed operating leverage improvements to a continued shift toward SaaS and a remote-first cost structure, while noting some price sensitivity at the lower end of the customer base. Looking ahead, management's guidance is anchored by expectations of sustained AI adoption and continued product innovation across the platform. Staples described the company's focus on integrating agentic AI—software agents that can automate complex tasks—as a core pillar for future growth, highlighting the upcoming launch of GitLab Duo Workflow. The company aims to lower barriers to entry for AI tools by embedding core features into Premium and Ultimate tiers, with the goal of broadening usage and creating upgrade paths to higher-value offerings. Robins cautioned that the macroeconomic environment remains unchanged from prior quarters but expressed confidence in the company's ability to expand operating margins while investing in platform enhancements and go-to-market capabilities. Management credited first quarter performance to rapid AI feature adoption, strategic product launches, and increased traction among large enterprise customers. AI-driven platform differentiation: GitLab's unified DevSecOps approach, with integrated AI tools across the software development lifecycle, was cited as a primary factor in winning competitive evaluations and expanding existing customer deployments. Product launch momentum: The release of GitLab 18 introduced centralized artifact management and improved CI/CD (continuous integration/continuous deployment) pipelines, features that management described as highly requested by enterprise clients seeking greater speed and security in software delivery. Security and compliance focus: Deeper security capabilities, such as enhanced vulnerability dashboards and custom compliance frameworks, continued to drive adoption of the Ultimate tier, especially among highly regulated industries. Flexible AI packaging: The decision to include Duo Chat and Code Suggestions in both Premium and Ultimate tiers, with usage limits, was intended to reduce friction for AI adoption and expand the addressable customer base, with an upgrade path to Duo Pro and Duo Enterprise for more advanced needs. Strong customer expansion: Management highlighted several large customers increasing their commitments, especially in the public sector and financial services, with GitLab Dedicated (a single-tenant SaaS solution) gaining momentum following FedRAMP Moderate authorization, supporting growth in security-conscious segments. GitLab's outlook relies on continued enterprise adoption of AI features, ongoing product enhancements, and expansion of its customer base through flexible packaging and go-to-market partnerships. Accelerating AI feature integration: Management expects the upcoming launch of GitLab Duo Workflow to support broader automation and agentic AI use cases, which could increase platform stickiness and drive higher seat expansion within existing accounts. Evolving customer segmentation: By making advanced AI tools available in both Premium and Ultimate tiers, the company aims to attract entry-level customers while providing clear upgrade incentives, though management acknowledged that price sensitivity may continue to affect smaller accounts. Macro and competitive dynamics: While the macroeconomic environment is described as stable, management flagged ongoing experimentation among customers with multiple AI tools as a competitive reality, requiring GitLab to maintain rapid innovation and prove value relative to both established players and new entrants like Cursor and Windsurf. Going forward, the StockStory team will focus on (1) the adoption rate of GitLab Duo Workflow as it enters public beta and general availability, (2) continued expansion of GitLab Dedicated in regulated industries following FedRAMP authorization, and (3) the success of new AI feature packaging in driving seat expansion and upgrades. Progress in international markets and feedback from enterprise customers on GitLab 18 enhancements will also be key indicators of execution. GitLab currently trades at a forward price-to-sales ratio of 8.1×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
Why GitLab (GTLB) Stock Is Nosediving
Shares of software development tools maker GitLab (NASDAQ:GTLB) fell 9.5% in the afternoon session after the company reported underwhelming first quarter 2025 (fiscal 2026) results: its full-year revenue guidance was in line, and investors were likely hoping for more. On the other hand, GitLab raised its full-year EPS guidance. In addition, the quarter's EPS and adjusted operating income exceeded Wall Street's estimates by a wide margin. Overall, this was a weak quarter. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GitLab? Access our full analysis report here, it's free. GitLab's shares are extremely volatile and have had 35 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock gained 22.5% on the news that the company reported a "beat and raise" quarter. GitLab beat analysts' revenue, adjusted operating income, and EPS expectations. Net revenue retention rate clocked in at 126%, indicating that customers were not only staying but also expanding their use of GTLB's services. Looking ahead, GTLB lifted its full-year revenue and earnings guidance, which came in higher than Wall Street's estimates. Zooming out, we think this was a solid quarter. GitLab is down 22% since the beginning of the year, and at $43.98 per share, it is trading 39.9% below its 52-week high of $73.14 from February 2025. Investors who bought $1,000 worth of GitLab's shares at the IPO in October 2021 would now be looking at an investment worth $423.29. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
Yahoo
07-06-2025
- Business
- Yahoo
GitLab price target lowered to $67 from $80 at Scotiabank
Scotiabank lowered the firm's price target on GitLab (GTLB) to $67 from $80 and keeps an Outperform rating on the shares. The firm would characterize its recent checks on the company as 'fine,' with building Duo adoption but pockets of weakness in the macro, the analyst tells investors. Additionally, while the firm does not see a significant positive catalyst in Q1 results, shares remain relatively undemanding. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on GTLB: Disclaimer & DisclosureReport an Issue GitLab price target lowered to $75 from $82 at TD Cowen Cathie Wood Bets Big on Taiwan Semiconductor (TSM) as AI Demand Surges Cathie Wood's ARK Investment buys 106K shares of GitLab today Microsoft (MSFT) Introduces AI Agent that Can Code for People GitLab achieves FedRAMP Moderate authorization
Yahoo
03-06-2025
- Business
- Yahoo
GitLab (GTLB): 3 Reasons We Love This Stock
GitLab's stock price has taken a beating over the past six months, shedding 28.6% of its value and falling to $45.60 per share. This was partly driven by its softer quarterly results and may have investors wondering how to approach the situation. Given the weaker price action, is now an opportune time to buy GTLB? Find out in our full research report, it's free. Founded as an open-source project in 2011, GitLab (NASDAQ:GTLB) is a leading software development tools platform. While reported revenue for a software company can include low-margin items like implementation fees, annual recurring revenue (ARR) is a sum of the next 12 months of contracted revenue purely from software subscriptions, or the high-margin, predictable revenue streams that make SaaS businesses so valuable. GitLab's ARR punched in at $742.2 million in Q4, and over the last four quarters, its year-on-year growth averaged 33.5%. This performance was fantastic and shows that customers are willing to take multi-year bets on the company's technology. Its growth also makes GitLab a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. One of the best parts about the software-as-a-service business model (and a reason why they trade at high valuation multiples) is that customers typically spend more on a company's products and services over time. GitLab's net revenue retention rate, a key performance metric measuring how much money existing customers from a year ago are spending today, was 126% in Q4. This means GitLab would've grown its revenue by 25.5% even if it didn't win any new customers over the last 12 months. Despite falling over the last year, GitLab still has an excellent net retention rate. This data point proves that the company sells useful products, and we can see that its customers are satisfied and increasing usage over time. Software is eating the world. It's one of our favorite business models because once you develop the product, it usually doesn't cost much to provide it as an ongoing service. These minimal costs can include servers, licenses, and certain personnel. GitLab's gross margin is one of the best in the software sector, an output of its asset-lite business model and strong pricing power. It also enables the company to fund large investments in new products and sales during periods of rapid growth to achieve outsized profits at scale. As you can see below, it averaged an elite 88.8% gross margin over the last year. That means GitLab only paid its providers $11.21 for every $100 in revenue. These are just a few reasons GitLab is a rock-solid business worth owning. With the recent decline, the stock trades at 8.3× forward price-to-sales (or $45.60 per share). Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
