What To Expect From GitLab's (GTLB) Q1 Earnings

Radek Strnad /
2024/06/02 3:01 am EDT

Software development tools maker GitLab (NASDAQ:GTLB) will be reporting earnings tomorrow after market close. Here's what investors should know.

GitLab beat analysts' revenue expectations by 3.5% last quarter, reporting revenues of $163.8 million, up 33.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' billings estimates but management forecasting growth to slow.

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

This quarter, analysts are expecting GitLab's revenue to grow 30.9% year on year to $166.1 million, slowing from the 45.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.

GitLab Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GitLab has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 6.6% on average.

Looking at GitLab's peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. HashiCorp delivered year-on-year revenue growth of 16.4%, beating analysts' expectations by 4.8%, and JFrog reported revenues up 25.7%, topping estimates by 1.7%. HashiCorp's stock price was unchanged after the results, while JFrog was down 18.9%.

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

Inflation fears have put pressure on growth stocks, and while some of the software development stocks have fared somewhat better, they have not been spared, with share prices down 5.7% on average over the last month. GitLab is down 14% during the same time and is heading into earnings with an average analyst price target of $72.5 (compared to the current share price of $47.47).

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