GitLab (GTLB) Q3 Earnings: What To Expect

Adam Hejl /
2022/12/05 4:17 am EST

Software development tools maker GitLab (NASDAQ:GTLB) will be announcing earnings results today after market close. Here's what you need to know.

Last quarter GitLab reported revenues of $101 million, up 73.8% year on year, beating analyst revenue expectations by 6.99%. It was a very strong quarter for the company, with exceptional revenue growth and a solid beat of analyst estimates.

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 58.8% year on year to $106 million, in line with the 58.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 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 10.6%.

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 34% year on year, beating analyst estimates by 1.88% and Datadog reported revenues up 61.3% year on year, exceeding estimates by 5.37%. JFrog traded flat on the results, Datadog was up 4.87%. Read our full analysis of JFrog's results here and Datadog's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 14.1% over the last month. GitLab is up 13.5% during the same time, and is heading into the earnings with analyst price target of $65.50, compared to share price of $41.33.

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.