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.
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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.
