GitLab falls as investors unimpressed by forecast

GitLab

03/12/2025 12:36

** Shares of software development platform GitLab GTLB.O fall 8.5% to $39.52 premarket after co's forecast fails to impress

** Co sees Q4 revenue between $251-$252 mln and adj. EPS between 22-23 cents, both largely in-line with analysts' estimates - data compiled by LSEG

** Brokerages view the guidance as "conservative", as the U.S. government shutdown and Department of Government Efficiency-related restrictions weigh

** At least six brokerages cut PT on stock following results, outlook

** We expect continued deceleration to Y-o-Y revenue growth until co's go-to-market initiatives take hold - Needham

** Barclays says it would like to see more momentum from co's new business side to get more comfortable around GIT's long-term growth

** Out of 30 analysts, 22 rate the stock "strong buy" or "buy", ​eight rate it "hold"; median PT $55 - LSEG

** Up to last close, shares down 23%​ YTD

 (Reported by Anastasiia Kozlova)

 ((Anastasiia.Kozlova@thomsonreuters.com))