Gitlab Shares Surge As Q1 Results Surpass Street Expectations

Gitlab Inc GTLB reported first-quarter FY23 revenue growth of 75% year-over-year to $87.4 million, beating the consensus of $77.81 million.
Adjusted EPS was $(0.18), compared to $(0.44) a year ago, above the consensus of $(0.27).
Adjusted gross margin expanded 200 bps to 89%.
The company recorded an adjusted operating loss of $42.9 million, an increase from the prior year’s loss of $26 million.
GTLB’s customers with more than $5,000 of ARR increased to 5,168, up 64% Y/Y. Customers with more than $100,000 of ARR increased to 545, up 68% Y/Y.
The dollar-Based Net Retention Rate was above 130% for the quarter.
GTLB’s net cash used in operating activities was $28.16 million for Q1, compared to $21.52 million a year ago.
2Q23 Outlook: Gitlab expects revenue of $93.5 million - $94.5 million vs. consensus of $89.68 million, and Adjusted EPS of $(0.24) - $(0.23) vs. consensus of $(0.25).
FY23 Outlook: Gitlab expects revenue of $398 million - $402 million vs. consensus of $389.86 million, and Adjusted EPS of $(0.93) - $(0.89) vs. consensus of $(0.97).
Price Action: GTLB shares are trading higher by 10.9% at $44.17 during the post-market session on Monday.

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