GitLab Earnings: What To Look For From GTLB

Jabin Bastian /
2022/03/14 7:54 am EDT
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Software development tools maker GitLab (NASDAQ:GTLB) will be reporting results today afternoon. Here's what you need to know.

Last quarter GitLab reported revenues of $66.8 million, up 51.3% year on year, beating analyst revenue expectations by 12.8%. It was an incredible quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

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 59.2% year on year to $70.2 million, Adjusted loss is expected to come in at -$0.25 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 since going public on average by 12.8%.

Looking at GitLab's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. JFrog delivered top-line growth of 38.7% year on year, beating analyst estimates by 2.06% and Cloudflare reported revenues up 53.7% year on year, exceeding estimates by 4.72%. JFrog traded up 4.25% on the results, Cloudflare was up 6.46%. Read our full analysis of JFrog's results here and Cloudflare's results here.

Tech stocks have been under pressure since the end of last year and software stocks have been swept alongside with it, with share price down on average 18.1% over the last month. GitLab is down 49.6% during the same time, and is heading into the earnings with analyst price target of $100.4, compared to share price of $36.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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