Shares of GitLab (NASDAQ:GTLB) lost over 37% in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2023. Earnings per share came in at -$0.03, which beat analysts’ consensus estimate of -$0.14 per share. Sales increased by 58% year-over-year, with revenue hitting $133.91 million. This beat analysts’ expectations of $130.59 million.
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GitLab gained substantially in long-term customers, especially those whose annual recurring revenue (ARR) was over $1 million. Customers whose ARR was over $5,000 were up 52%, hitting 7,002 customers total. Meanwhile, customers whose ARR was over $100,000 hit 697, an increase of 42% against the same time the preceding year. Finally, customers with ARR over $1 million were up 62% against 2022’s fiscal fourth quarter, hitting 63.
Looking forward, management now expects revenue for Q1 2024 to be in the range of $117 million to $118 million. EPS is expected to be in the range of -$0.14 to -$0.15 per share.
Overall, Wall Street has a consensus price target of $62.13 on GitLab, implying 39.3% upside potential, as indicated by the graphic above.
