Key Points
- GitLab shares soared after the release of better-than-expected quarterly results.
- Chief Financial Officer Brian Robins said the company was “on point”; to benefit from surging demand for AI.
- The company has beefed up its guidance on AI optimism.
GitLab (GTLB) is the latest technology company whose shares have been given a strong boost by the growing demand for artificial intelligence (AI) products.
GitLab's DevSecOps platform helps enterprises to develop, secure and operate software, and boasted of its potential in the AI market by posting better-than-expected quarterly results and raising its forecast.
The firm posted a fiscal 2024 loss of $0.06 per share in the first quarter, less than half of the anticipated loss. Revenue jumped 45.2% to $126.9 million.
CEO Sid Sijbrandij said GitLab continues to focus on integrating AI into its DevSecOps platform and is “innovating at a rapid pace.” He said that in the first quarter, the company delivered five new AI features, and five more last month.
CFO Brian Robins said that with the current economic uncertainty, “customers are turning to our AI-powered DevSecOps platform to improve efficiency, increase productivity and accelerate their pace of innovation”. He added that GitLab is poised to “make the most of the $40 billion total addressable market that lies ahead of us.”
Company sees now annual revenue of $541 million to $543 million, up from the previous $529 million to $533 million. He expected a loss per share of $0.14 to $0.18 instead of the previous loss of $0.24 to $0.29. Additionally, its current quarter sales outlook of $129 million to $130 million beat analysts' forecasts.
GitLab shares soared up over 30% in early trading Tuesday after the news, putting them in positive territory for the year.
YCharts
Source: investopedia.com
