Earnings To Watch: GitLab (GTLB) Reports Q3 Results

Petr Huřťák /
2023/12/03 2:00 am EST

Software development tools maker GitLab (NASDAQ:GTLB) will be reporting earnings results today. Here's what to look for.

Last quarter GitLab reported revenues of $139.6 million, up 38.1% year on year, beating analyst revenue expectations by 7.5%. It was a strong quarter for the company, with an impressive beat of analysts' revenue estimates. Looking ahead, full-year revenue guidance came in higher than Wall Street's estimates. On the other hand, its net revenue retention fell.

Is GitLab buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting GitLab's revenue to grow 24.8% year on year to $141 million, slowing down from the 69.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

GitLab Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 8.4%.

Looking at GitLab's peers in the software development segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. JFrog delivered top-line growth of 23.1% year on year, beating analyst estimates by 1.2% and Dynatrace reported revenues up 25.9% year on year, exceeding estimates by 2.1%. JFrog traded up 10.8% on the results, Dynatrace was up 9.0%.

Read our full analysis of JFrog's results here and Dynatrace's results here.

There has been positive sentiment among investors in the software development segment, with the stocks up on average 14.3% over the last month. GitLab is up 28.7% during the same time, and is heading into the earnings with analysts' average price target of $59.2, compared to share price of $53.4.

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The author has no position in any of the stocks mentioned.