GitLab (GTLB) Q4 Earnings: What To Expect

Kayode Omotosho /
2023/03/13 5:27 am EDT
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Software development tools maker GitLab (NASDAQ:GTLB) will be announcing earnings results today after market hours. Here's what to expect.

Last quarter GitLab reported revenues of $113 million, up 69.1% year on year, beating analyst revenue expectations by 6.5%. It was a 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 53.7% year on year to $119.6 million, slowing down from the 68.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.14 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 9.79%.

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 29.2% year on year, missing analyst estimates by 0.58% and Datadog reported revenues up 43.9% year on year, exceeding estimates by 4.44%. JFrog traded down 5.79% on the results, Datadog was down 6.14%. Read our full analysis of JFrog's results here and Datadog's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off this year  and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.76% over the last month. GitLab is up 4.05% during the same time, and is heading into the earnings with analyst price target of $61.7, compared to share price of $44.99.

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.