GitLab Stock Pops After Q3 Results And Guidance Surpass Estimates: The Details

GitLab Inc. GTLB shares are trading higher in Monday's after-hours session after the company reported better-than-expected third-quarter financial results and issued fourth-quarter and full-year 2024 adjusted earnings per share and sales guidance above estimates.

What To Know: GitLab posted earnings of nine cents per share, exceeding the Street's estimate of losses of one cent per share.

Quarterly sales of $149.70 million clocked in above analyst expectations of $141.49 million, a 32% increase from the same period last year.

The company also reported that customers with more than $5,000 of ARR increased by 26% year-over-year, to 8,175.

GitLab sees fourth-quarter earnings between eight cents and nine cents per share, versus the estimate of losses of one cent. Fourth-quarter revenue is estimated to be between $157 million and $158 million, versus the $150.24 million estimate.

Full-year 2024 earnings are anticipated to be between 12 cents and 13 cents per share, versus the estimate of losses of six cents. Full-year revenue is expected to be between $573 million and $574 million, versus the $558.14 million estimate.

"We delivered a strong quarter, which was driven by the continued adoption of our DevSecOps Platform," said Sid Sijbrandij, GitLab CEO and co-founder.

"GitLab is the only DevSecOps company that integrates security, compliance, and AI into one platform. With enterprises facing complexity from all directions, they need a partner to help them realize business value. GitLab helps improve developer productivity and reduces software spend, which is why our customers report seeing 7x faster cycle times with GitLab."

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GTLB Price Action: Shares of GTLB were up 16.1% at $61.45 in the after-hours session at the time of publication, according to Benzinga Pro. 

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