GitLab beats Q4 profit estimates, issues better-than-feared guidance; shares up

Published 04/03/2025, 11:12
© Reuters.

Investing.com -- Gitlab Inc (NASDAQ:GTLB) reported fiscal Q4 2025 earnings above Wall Street expectations on Monday, but its full-year profit forecast fell short of estimates. The company’s shares climbed more than 1% in premarket trading Tuesday. 

The DevOps platform provider posted adjusted quarterly earnings per share (EPS) of $0.33, beating analysts’ estimates of $0.23.

Revenue rose to $211.4 million for the quarter ended Jan. 31, also surpassing expectations of $206.15 million.

GitLab expects adjusted earnings per share of $0.14 to $0.15, for the first quarter of fiscal 2026, which is in line with the consensus estimate of $0.15. It forecast revenue of $212 million to $213 million, compared with analysts’ average estimate of $212.4 million.

However, the company’s full-year fiscal 2026 earnings guidance of $0.68 to $0.72 per share came in below analysts’ expectation of $0.81. It projected revenue between $936 million and $942 million, compared to the consensus projection of $941.8 million.

"After two of the cleanest quarters in our coverage, F4Q was a little mixed as the outperformance to revenue ticked down but the revenue guidance for next year was better than feared," Wolfe Research analysts said in a post-earnings note.

"However, with the potential for high-20s growth this year and shares trading at a discount to growth peers, we reiterate our OP rating but lower our PT to $69 (from
$78 prior)," they added.

Separately, Barclays analysts noted that while GitLab’s Q4 revenue beat was slightly below investor expectations, the company’s fiscal 2026 guidance came in slightly better than the more bearish investor projections ahead of the print. 

"The FY26 guide was the main pain point for investors, and we believe investors leave this earnings feeling better about mid-to-high 20% rev. growth for GTLB," analysts led by Ryan MacWilliams said.

"That said, we believe the investor debate is on FY26 upside from here as GTLB begins to lap more material pricing comps and faces stronger competition from old (GitHub) and new competitors."

Pratyush Thakur contributed to this report. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.