Shares of GitLab (GTLB) jumped 3.6% in early trading on Wednesday after the tech firm posted a surprising quarterly profit on soaring sales of its information technology (IT) security platform.
Key Takeaways
- GitLab posted a surprise profit in its fiscal 2024 second quarter on a jump in sales of its IT security platform.
- The company reported large increases in customers with annual recurring revenue.
- GitLab’s estimate for current-quarter revenue also exceeded analysts’ estimates.
GitLab reported fiscal 2024 second-quarter earnings per share (EPS) of 1 cent. Analysts had been anticipating a loss. Revenue was up 38% to $139.6 million, also more than expected.
The company said that customers with annual recurring revenue (ARR) of more than $5,000 rose by 33%, and those with ARR of more than $100,000 increased 37%.
Chief Financial Officer (CFO) Brian Robins said the company is pleased with its “continued business momentum” as it shows that the value of GitLab’s DevSecOps platform is “resonating in the market.”
The company anticipates current-quarter revenue of between $140 million and $141 million, beating estimates.
GitLab shares have rallied after hitting an all-time low in May. They’re up about 15% for the year.
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