GitLab reported third-quarter adjusted earnings per share of $-0.10 and revenue of $113 million. Both figures turned out to be better than Wall Street expectations for $-0.15 and $106 million in sales. GTLB stock had already sold off more than 7% on Monday, so the shock of considerably better-than-predicted results worked wonders in the post-market session with shares rising above $45.
Management also cheered on the stock by guiding for between $119 and $120 million in sales for the fourth quarter. The guidance on adjusted EPS though was somewhat worse at $-0.14 to $-0.15 compared with Q3.
“Our third quarter results continue to demonstrate our ability to drive high growth with improving margins,” said GitLab CFO Brian Robins.
In addition to the headline figures, GitLab improved its adjusted operating margins by 17% and reported a dollar-based net retention rate above 130%, which has become the industry gold standard.
As a top DevOps platform, executives at GitLab pointed to a high percentage of recent corporate survey respondents reporting impending adoption of DevOps platforms despite the worrying macro picture.
In addition to 69% revenue growth reported in the third quarter, GitLab showcased the total number of its customers with more than $5,000 a year in recurring revenue spend growing 59% YoY to 6,469. On top of that, clients spending more than $100,000 per year on the GitLab platform in recurring revenue rose 49% YoY to 638.
GitLab Inc. is an open-core company that operates GitLab, a DevOps software package that combines the ability to develop, secure, and operate software in a single application. The open-source software project was created by Ukrainian developer Dmitriy Zaporozhets and Dutch developer Sytse Sijbrandij.