GitLab Inc (GTLB) Reports 32% Revenue Growth in Q3 FY 2024
GitLab Inc (NASDAQ:GTLB) announced a 32% year-over-year increase in quarterly revenue, reaching $149.7 million.
Non-GAAP operating income improved significantly to $4.7 million, compared to a loss of $21.6 million in the same quarter last year.
The company reported a GAAP net loss per share of $(1.84), but a non-GAAP net income per share of $0.09.
Customer growth remained strong with those contributing more than $5,000 in ARR up by 26% and those above $100,000 in ARR increasing by 37%.
On December 4, 2023, GitLab Inc (NASDAQ:GTLB) released its 8-K filing, detailing its financial results for the third quarter of fiscal year 2024, which ended on October 31, 2023. The company, known for its comprehensive DevSecOps platform, reported a substantial year-over-year revenue increase, signaling strong business momentum and market adoption of its integrated platform.
Financial Performance Overview
GitLab Inc (NASDAQ:GTLB) reported a total revenue of $149.7 million for the third quarter, marking a 32% increase from the same period in the previous fiscal year. The GAAP operating margin stood at (27)%, while the non-GAAP operating margin was reported at 3%. The GAAP net loss per share was $(1.84), but the company achieved a non-GAAP net income per share of $0.09.
Income Statement and Balance Sheet Highlights
The company's GAAP gross margin improved to 90% from 87% year-over-year, and the non-GAAP gross margin increased to 91% from 89%. GitLab Inc (NASDAQ:GTLB) managed to reduce its GAAP operating loss to $40.3 million, down from $57.0 million in the prior year. The non-GAAP operating income was $4.7 million, a significant improvement from a non-GAAP operating loss of $21.6 million in the third quarter of the previous fiscal year.
The balance sheet shows GitLab Inc (NASDAQ:GTLB) with $285.3 million in cash and cash equivalents and $704.3 million in short-term investments. Total assets amounted to $1.23 billion, while total liabilities and stockholders' equity stood at $1.23 billion, indicating a balanced financial position.
Customer Growth and Product Development
GitLab Inc (NASDAQ:GTLB) experienced robust customer growth, with customers contributing more than $5,000 in Annual Recurring Revenue (ARR) increasing to 8,175, a 26% rise from the previous year. Customers with more than $100,000 in ARR grew by 37% to 874. The Dollar-Based Net Retention Rate was a healthy 128% for the quarter.
Product development highlights included updates to GitLab Duo, the company's suite of AI capabilities, and the launch of a new self-serve portal to enhance the customer onboarding experience. GitLab Inc (NASDAQ:GTLB) also received recognition as the 2023 Google Cloud Technology Partner of the Year for DevOps, Application Development.
Forward Outlook
For the fourth quarter and fiscal year 2024, GitLab Inc (NASDAQ:GTLB) expects revenue to be between $157.0 million to $158.0 million and $573.0 million to $574.0 million, respectively. The company anticipates non-GAAP operating income to be in the range of $5.0 million to $6.0 million for Q4 and a non-GAAP operating loss of $(10.0) million to $(9.0) million for the full fiscal year. Non-GAAP net income per share is estimated to be between $0.08 to $0.09 for Q4 and $0.12 to $0.13 for FY 2024.
GitLab Inc (NASDAQ:GTLB) continues to demonstrate financial resilience and strategic growth in a competitive market. The company's focus on expanding its customer base and enhancing its DevSecOps platform has yielded positive results, as evidenced by the improved non-GAAP operating income and sustained revenue growth. Investors and stakeholders can anticipate GitLab's continued investment in key product areas and its commitment to responsible growth as it moves forward.
For a more detailed analysis and further information, readers are encouraged to review the full earnings report and financial statements.
Explore the complete 8-K earnings release (here) from GitLab Inc for further details.
This article first appeared on GuruFocus.
