• GitLab reported third quarter results late Monday.
  • GTLB stock ran up 19.5% based on solid revenue results ahead of expectations.
  • GitLab reported a beat on top and bottom lines for Q3.
  • NASDAQ Composite dropped 1.9% in Monday's regular session, and GTLB lost more than 7%.

GitLab (GTLB) surged 19.5% in Monday's afterhours session after the programming and developer platform reported Q3 revenue well above Wall Street consensus. The surge, if it can be retained in Wednesday's regular session, would push GTLB above the descending top trendline that has kept the share price falling since August. The impressive rally was doubly watched, because the market was so pessimistic to start the week. The NASDAQ lost 1.9% in Monday's session.

GitLab stock news

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 stock forecast

The most important part of the GTLB rally is that the price broke straight through the descending trend line that has existed since late August. A close above that trendline would signal a continuance of the present rally. From here bulls will produce a trial run at $47.50, $50 and $52. These levels have coincided with both resistance and support thresholds over the past eight months. The Moving Average Convergence Divergence (MACD) indicator was already in a bullish crossover pattern, so the possibility is there for a larger move to the upside if the market allows. 

GTLB 1-day stock chart

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD remains unnerved above 0.6900 amid US-Sino woes, Aussie data

AUD/USD remains unnerved above 0.6900 amid US-Sino woes, Aussie data

AUD/USD is holding steady above 0.6900, consolidating the bounce amid the upbeat Australian Retail Sales data. The Aussie remains unnerved by the looming US-China tensions, with Chinese stocks down over 1% so far. Pre-RBA anxiety also keep AUD bulls on the edge. 

AUD/USD News

USD/JPY consolidates the rally below 132.50 on BoJ nominaton reports

USD/JPY consolidates the rally below 132.50 on BoJ nominaton reports

USD/JPY is consolidating the opening gap rally that hit a high near 132.50 in Asia this Monday. The Japanese yen remains heavy amid a Bloomberg report that Masayoshi Amamiya as the next BoJ Governor would be bullish for bonds and weigh on the yen and local financial stocks.

USD/JPY News

Gold bounces off $1,860 support amid Fed, China concerns

Gold bounces off $1,860 support amid Fed, China concerns

Gold price (XAU/USD) consolidates the recent losses as it prints mild gains around $1,875 during early Monday, printing the first positive day in three around the one-month low. The precious metal cheers the US Dollar’s inability to stay firmer ahead of this week’s key events.

Gold News

Why Bitcoin is still in a bear market and what this means for BTC price

Why Bitcoin is still in a bear market and what this means for BTC price

Bitcoin is currently in a bear market, according to analysts, despite the massive rally of January. The selling pressure on the asset has reduced, with miner inflow to exchanges declining to multi-year lows. Despite the bullish catalysts, analysts are waiting a year post the 2022 bear market rally to conclude that the bearish phase is now behind us. 

Read more

Week Ahead – RBA next to hike

Week Ahead – RBA next to hike

After the past week’s central bank bonanza, things will quieten down in the coming days, although not completely, as the Reserve Bank of Australia will keep the rate hike theme running.

Read more

Forex MAJORS

Cryptocurrencies

Signatures