Why Gitlab (GTLB) Stock Is Getting Obliterated After Hours

GitLab Inc GTLB shares are trading lower by 35.27% to $28.87 Monday after hours after the company issued weak revenue guidance.

What Happened: GitLab reported quarterly losses of 3 cents per share which beat the analyst consensus estimate of a loss of 14 cents.

The company reported quarterly sales of $122.90 million which beat the analyst consensus estimate of $119.56 million by 2.8%. This sales figure is a roughly 58% increase over sales of $77.80 million in the same period last year.

Gitlab said it sees first-quarter adjusted EPS of a loss of 15 cents vs. the analyst consensus estimate of a loss of 16 cents. The company sees first-quarter revenue in the range of $117 million-$118 million, versus the analyst consensus estimate of $126.33 million.

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Gitlab meanwhile sees FY24 adjusted EPS as high as a loss of 29 cents to as low as a loss of 24 cents, versus the analyst consensus estimate of a loss of 52 cents. The company also sees FY24 revenue in the range of $529 million to $533 million, which is lower than the analyst consensus estimate of $586.14 million.

What Else: "Our fourth quarter results demonstrate our continued focus on growth while driving improvements in the unit economics of the business," said Brian Robins, CFO, GitLab Inc.

"Revenue of $122.9 million grew 58% organically, and our non-GAAP operating margin improved by approximately 2,400 basis points year-over-year. We see significant opportunities ahead, and we're confident in the value that GitLab provides to customers."

According to data from Benzinga Pro, GTLB has a 52-week high of $70.96 and a 52-week low of $30.74.