Software development tools maker GitLab (NASDAQ:GTLB) will be reporting earnings tomorrow afternoon. Here's what to expect.
Last quarter GitLab reported revenues of $126.9 million, up 45.2% year on year, beating analyst revenue expectations by 7.68%. It was a solid quarter for the company, with an impressive beat of analysts' revenue estimates and strong sales 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 28.5% year on year to $129.8 million, slowing down from the 73.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.
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 8.49%.
Looking at GitLab's peers in the software development segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. HashiCorp delivered top-line growth of 25.8% year on year, beating analyst estimates by 3.65%, and JFrog reported revenues up 24.1% year on year, exceeding estimates by 1.41%. HashiCorp traded flat on the results, and JFrog was up 2.2%.
Read our full analysis of HashiCorp's results here and JFrog's results here.
Investors in the software development segment have had steady hands going into the earnings, with the stocks down on average 0.59% over the last month. GitLab is up 4.24% during the same time, and is heading into the earnings with analysts' average price target of $55.7, compared to share price of $49.41.
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The author has no position in any of the stocks mentioned.