GitLab shares took a big tumble following the release of its fiscal 4Q earnings on Monday, which saw its revenue forecasts lag estimates.
During the three-month period to end January 31, 2023, the DevSecOps platform reported total revenue of $122.9 million, up 58% year-over-year and ahead of the $119.6 million average analyst estimate.
The firm’s GAAP net loss per share of came in at $0.26 or $0.03 loss on a non-GAAP basis, again beating consensus estimates of a $0.14 loss.
But it was the full-year revenue guidance of between $529 to $533 million that spooked investors, many of whom were hoping to see that figure around 10% higher.
Shares responded accordingly and dropped nearly 32% afterhours, falling from a closing price of $44.60 to nearly $30.40 after the bell on Monday.
“Now more than ever, it is critical for companies to show an immediate return on their software investments,” said Sid Sijbrandij, CEO of GitLab, in a statement accompanying the results.
“With our DevSecOps platform, our customers are consolidating tools, reducing integration costs, increasing productivity, and accelerating their revenue by deploying their software faster. We believe we are well positioned to continue to demonstrate significant value to our customers in the current macroeconomic environment.”
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