Stock Market News

Gitlab shares soar 15% on strong beat-and-raise quarter, margin expansion

2024.09.04 04:37

Gitlab shares soar 15% on strong beat-and-raise quarter, margin expansion

Investing.com — Gitlab lifted its annual guidance after reporting better-than-expected results on Tuesday, as a flurry of deals and a jump in margins boosted performance. 

Gitlab Inc (NASDAQ:) surged over 15% in premarket trading Wednesday. 

For fiscal 2024, the company now expects adjusted EPS between $0.45 and $0.47 up from prior guidance for adjusted EPS of $0.34 to $0.37. Revenue is expected in a range of $742 million to $744M, from $733M to $737M previously. 

The company Q2 adjusted earnings of $0.15 a share on revenue of $182.6M, beating Wall Street estimates for $0.10 on revenue of $176.9M.

Current remaining performance obligation, or cRPO, a key metric that measures subscription backlog expected to be recognized over the next 12 months, was $475.0B, up 42% compared to the second quarter of fiscal 2024.

“We delivered another quarter of better than 30% top-line growth and significant year-over-year operating margin expansion,” the company said, as non-GAAP margin swung to 22% in Q2 from negative 3% in the prior-year period.

Looking ahead of Q3, the company guided adjusted EPS in a range of $0.15 to $0.16 on revenue of $187M to $188M, compared with analyst estimates for $0.11 and $187M.

RBC Capital Markets analysts reiterated an Outperform rating on GTLB stock after the report, and raised their target price from $55 to $60. 

“We liked hearing about a stable demand environment, strength in the enterprise and Ultimate adoption, bullish leading indicators and early opportunity around GenAI,” they wrote. “FY/25 guidance was increased by more than the Q2/25 beat and could provide a path to 30% + growth, in our view.”

Analysts at Wolfe Research were similarly bullish.

“After what felt like somewhat of a false start in 1Q, GTLB delivered one of the cleaner prints across Software this earnings season,” they said in a note.

“We walk with increased confidence in underlying fundamentals, particularly so given the strong turnaround in key, forward-looking metrics, and believe the potential for M&A remains on the table.”

Yasin Ebrahim contributed to this report. 



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 84,375.61 0.16%
ethereum
Ethereum (ETH) $ 1,938.53 1.23%
tether
Tether (USDT) $ 1.00 0.00%
xrp
XRP (XRP) $ 2.39 1.03%
bnb
BNB (BNB) $ 619.24 5.03%
solana
Solana (SOL) $ 136.10 1.83%
usd-coin
USDC (USDC) $ 1.00 0.00%
cardano
Cardano (ADA) $ 0.74453 0.54%
dogecoin
Dogecoin (DOGE) $ 0.175714 2.06%
tron
TRON (TRX) $ 0.221764 0.21%
staked-ether
Lido Staked Ether (STETH) $ 1,936.44 1.38%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 84,231.57 0.32%
pi-network
Pi Network (PI) $ 1.46 3.25%
leo-token
LEO Token (LEO) $ 9.75 0.28%
chainlink
Chainlink (LINK) $ 14.01 2.08%
the-open-network
Toncoin (TON) $ 3.57 22.10%
stellar
Stellar (XLM) $ 0.274481 1.14%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,322.46 1.40%
usds
USDS (USDS) $ 1.00 0.01%
hedera-hashgraph
Hedera (HBAR) $ 0.19283 1.16%
avalanche-2
Avalanche (AVAX) $ 19.33 4.09%
shiba-inu
Shiba Inu (SHIB) $ 0.000013 0.15%
sui
Sui (SUI) $ 2.35 0.91%
litecoin
Litecoin (LTC) $ 92.30 0.76%
bitcoin-cash
Bitcoin Cash (BCH) $ 342.41 2.72%
polkadot
Polkadot (DOT) $ 4.34 3.43%
mantra-dao
MANTRA (OM) $ 6.62 5.80%
ethena-usde
Ethena USDe (USDE) $ 0.999925 0.02%
weth
WETH (WETH) $ 1,938.52 1.26%
bitget-token
Bitget Token (BGB) $ 4.47 1.75%
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00 0.12%
hyperliquid
Hyperliquid (HYPE) $ 14.27 2.87%
whitebit
WhiteBIT Coin (WBT) $ 28.89 1.56%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,060.64 1.30%
monero
Monero (XMR) $ 213.08 1.56%
uniswap
Uniswap (UNI) $ 6.26 3.61%
susds
sUSDS (SUSDS) $ 1.04 0.04%
aptos
Aptos (APT) $ 5.33 2.36%
dai
Dai (DAI) $ 1.00 0.02%
near
NEAR Protocol (NEAR) $ 2.63 0.59%
pepe
Pepe (PEPE) $ 0.000007 0.84%
internet-computer
Internet Computer (ICP) $ 5.82 2.68%
okb
OKB (OKB) $ 46.59 0.62%
ondo-finance
Ondo (ONDO) $ 0.870493 0.11%
ethereum-classic
Ethereum Classic (ETC) $ 17.94 0.60%
mantle
Mantle (MNT) $ 0.799047 9.04%
gatechain-token
Gate (GT) $ 21.59 1.84%
aave
Aave (AAVE) $ 172.73 0.80%
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 84,324.59 0.14%
official-trump
Official Trump (TRUMP) $ 12.13 0.56%