- GitLab reported smaller losses and better-than-expected revenue in its fiscal fourth quarter, but its fiscal 2024 revenue forecast was weak.
- The company will implement a price increase in April.
People celebrate Gitlab’s IPO on the Nasdaq, October 14, 2021.
GitLab shares plummeted as much as 38% in extended trading after the source code management software vendor issued full-year revenue estimates that fell short of expectations.
Here’s how the company did it:
- merits: Loss of 3 cents per share, adjusted, vs. loss of 14 cents per share as expected by analysts, according to Refinitiv.
- Gain: $122.9 million, versus $119.6 million as analysts expected, according to Refinitiv.
Sales rose 58% year over year in the quarter ended Jan. 31, according to a statement.
GitLab called for a tax-adjusted first-quarter loss of 14 cents to 15 cents per share on $117 million to $118 million in revenue. Analysts polled by Refinitiv had expected an adjusted loss of 16 cents per share and revenue of $126.2 million.
For fiscal year 2024, the company sees an adjusted loss of 24 cents to 29 cents per share and $529 million to $533 million in revenue. That equates to a 25% growth in the mid-range. The consensus among analysts surveyed by Refinitiv was an adjusted loss of 54 cents per share and $586.4 million in revenue.
During the quarter, Gitlab said the premium service tier will increase from $19 to $29 per month in April. GitLab said last month it would cut 130 employees, or about 7% of its workforce.
The company’s shares debuted on Nasdaq in 2021, when revenue growth was 69%. Last year, the stock fell 48% as investors walked out of money-losing technology companies. Prior to the after-hours drop, the stock fell nearly 2% in 2023.
WATCH: We’re very pleased with our ability to hire and who we’ve been able to hire with, says GitLab’s CEO
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