GitLab Inc shares rocketed close to 30% in Tuesday pre-market trade after the company posted first-quarter revenue that beat expectations, as well as a smaller-than-expected loss.
The company posted revenue of $126.9 million for the quarter, up 45% from 1Q 2023, beating the Zacks Consensus Estimate by about 8%. Its underlying (non-GAAP) loss per share narrowed to $0.06 from $0.18 versus the Zacks Consensus Estimate of a loss of $0.14.
In a statement, the company’s CEO and co-founder Sid Sijbrandij commented: “With AI revolutionizing how companies develop, secure, and operate software, we believe GitLab is positioned as the leading AI-powered DevSecOps platform.”
DevSecOps refers to the practice of integrating security testing at every stage of the software development process.
“Today, we deliver more AI-powered capabilities to customers than any other DevSecOps platform,” Sijbrandij said.
“Our vision builds on that foundation to encompass the full software development lifecycle - from planning and development to security, deployment, and maintenance.”
The company attributed a 1,700 basis point improvement in its underlying (non-GAAP) operating margin to its focus on addressing customer priorities and improving operating efficiency.
“Against a backdrop of macroeconomic uncertainty, customers are looking to our AI-powered DevSecOps platform to drive efficiencies, increase productivity, and accelerate their pace of innovation,” the company’s chief financial officer Brian Robins added.
“We are poised to make the most of the estimated $40B total addressable market opportunity before us.”
Contact the author at stephen.gunnion@proactiveinvestors.com