Corrected: GitLab Q2 results top estimates as bookings, ARR growth signal momentum
CORRECTED-GitLab Q2 results top estimates as bookings, ARR growth signal momentum Corrects headline, first result driver to drop causation between results and bookings; fixes adjusted EPS to $0.24 from $0.25 in KD table
Overview
DevSecOps platform's fiscal Q2 revenue rose 21%, beating analyst expectations
Adjusted EPS for fiscal Q2 beat consensus
Company repurchased about 3.5 mln shares in the quarter
Outlook
GitLab expects Q3 revenue between $281 mln and $283 mln
Company sees full-year revenue of $1.129 bln to $1.133 bln
GitLab forecasts FY 2027 non-GAAP diluted EPS of $0.85 to $0.87
Result Drivers
ARR AND BOOKINGS GROWTH - Co reported record gross bookings and net ARR growth over 40% y/y, signaling strong momentum
CUSTOMER EXPANSION - Co cited sequential acceleration in dollar-based net retention and growth in customers with over $100,000 ARR, per CFO Jessica Ross
Company press release: ID:nBw4bgNy3a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $286.30 mln | $273.12 mln (25 Analysts) |
Q2 Adjusted EPS | Beat | $0.24 | $0.18 (26 Analysts) |
Q2 Loss Per Share |
| $0.22 |
|
Q2 Gross Margin |
| 84% |
|
Q2 Adjusted Gross Margin |
| 86% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 19 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for GitLab Inc. is $40.00, about 14.1% below its August 31 closing price of $46.54
The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 36 three months ago
Reuters Recommended Reads
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Aug 31 - China's Z.AI H1 revenue jumps on open-platform, API services growth
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)