GitLab Inc is likely to report a continuing narrowing of its losses when it releases second-quarter results after the closing bell on Tuesday, September 5, as the company continues to gain momentum due to the sharp uptake in artificial intelligence (AI) by corporations.
The AI-powered DevSecOps (development, security, and operations) platform has already guided investors to expect an adjusted loss of between $0.02 and $0.03 for the three months to July 31, down from a $0.04 loss last year.
Analysts concur, with consensus pegged at a $0.03 loss for the quarter off of a 28% rise in year-over-year revenue to $129.79 million.
GitLab has been growing the number of customers using its services and contributing to its annual recurring revenue (ARR) streams.
In Q1, it reported a 43% increase in customers with more than $5,000 of ARR to 7,406, and a 39% rise in customers with more than $100,000 of ARR.
It also partnered with Google Cloud to expand AI-assisted capabilities with customizable foundation models and open generative AI infrastructure to deliver secure AI offerings to joint customers.
Additionally, it announced an expanded strategic collaboration with Oracle and a new AI/ML (machine learning) offering to enable customers to speed up model training and inference to drive innovation and enhance customer experiences.
Ahead of its results, GitLab’s shares closed 3.8% higher at $49.17 on Friday and gained a further 0.7% in after-hours trading.
Contact the author at stephen.gunnion@proactiveinvestors.com