Gitlab Shares Gain as Q4 Earnings Beat Estimates & Revenues Rise Y/Y

GitLab GTLB reported non-GAAP earnings of 33 cents per share in fourth-quarter fiscal 2025, beating the Zacks Consensus Estimate by 43.48%. The bottom line soared 120% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Total revenues of $211.4 million beat the consensus mark by 2.82% and rallied 29.1% year over year. The upside can be attributed to strong demand for its DevSecOps platform and AI-driven solutions.Following the results, GTLB shares rose 1.16% in the pre-market trading, driven by positive financial results and outlook.GTLB’s Top-Line DetailsSubscriptions- self-managed and SaaS (87.8% of total revenues) revenues increased 30.7% year over year to $185.6 million, beating the Zacks Consensus Estimate by 2.22%. License- self-managed and other revenues (12.2% of total revenues) rose 18.9% year over year to $25.9 million.GitLab Inc. Price, Consensus and EPS Surprise  GitLab Inc. price-consensus-eps-surprise-chart | GitLab Inc. QuoteSaaS revenues contributed 29% to total revenues and rallied 36% year over year, driven by the strong adoption of GitLab Dedicated, AI integration and expanding customer engagement.Customers with more than $5000 of Annual Recurring Revenues (ARR) increased to 9,893, up 15% year over year. Customers with more than $100 thousand of ARR increased to 1,229, up 29% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.The dollar-based net retention rate was 123% in the reported quarter.Total Remaining Performance Obligation (RPO) jumped 40% year over year to $945 million. The current RPO increased 35% to $579.2 million.In the reported quarter, the company announced the general availability of GitLab Duo Self-Hosted and the private beta of GitLab Duo Workflow, reinforcing GTLB's commitment to innovation in the DevSecOps space.Gitlab’s Operating DetailsThe fourth-quarter fiscal 2025 non-GAAP gross margin was flat year over year at 91%, reflecting improved operational efficiency and cost management.On a non-GAAP basis, research and development expenses increased 23.1% year over year to $47.4 million. Sales and marketing expenses grew 9.1% to $80.1 million. General and administrative expenses rose 12.3% to $27.9 million in the reported quarter.Operating income was $37.4 million on a non-GAAP basis compared with the year-ago quarter’s $13.2 million. The operating margin expanded 960 bps (basis points) year over year to 17.7%.GTLB’s Balance Sheet & Cash FlowAs of Jan. 31, 2025, cash and cash equivalents, and short-term investments were $9.92 billion compared with $9.16 billion as of Oct. 31, 2024.In the reported quarter, the company generated a cash flow from the operation of $63.2 million compared with $177 million in the previous quarter.As of Jan. 31, 2025, the adjusted free cash flow was $62.1 million compared with $9.7 million as of Oct. 31, 2024.Gitlab Provides Q1 & FY26 GuidanceFor the first quarter of fiscal 2026, GTLB expects revenues between $212 million and $213 million, indicating year-over-year growth of 25-26%. The Zacks Consensus Estimate for revenues is pegged at $211.88 million.Non-GAAP operating income is expected to be $21-$22 million for the fiscal first quarter.Non-GAAP fiscal first-quarter earnings per share are expected between 14 cents and 15 cents. The consensus mark for the same is pinned at 14 cents.For fiscal 2026, GitLab expects revenues between $936 million and $942 million, indicating year-over-year growth of 24%. The Zacks Consensus Estimate for the same is pegged at $931.75 million.Non-GAAP operating income is expected to be $109-$114 million for the fiscal first quarter. Non-GAAP earnings per share are expected between 68 cents and 72 cents. The consensus mark for fiscal 2026 earnings is pinned at 74 cents.GTLB’s Zacks Rank & Stocks to ConsiderCurrently, Gitlab has a Zacks Rank #3 (Hold).CrowdStrike CRWD, Guidewire Software GWRE and Marvell Technology MRVL are some better-ranked stocks in the broader sector.CrowdStrike, Guidewire Software and Marvell Technology each carry a Zacks Rank 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.CrowdStrike’s shares have gained 12.9% year to date. CRWD is scheduled to release fourth-quarter fiscal 2025 results on March 4.Guidewire Software shares have risen 16.5% year to date. GWRE is set to report second-quarter fiscal 2025 results on March 6.Marvell Technology’s shares have declined 21.8% year to date. MRVL is set to report third-quarter fiscal 2025 results on March 5.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Guidewire Software, Inc. (GWRE): Free Stock Analysis Report CrowdStrike (CRWD): Free Stock Analysis Report GitLab Inc. (GTLB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks