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Gitlab (GTLB)
NASDAQ:GTLB
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Gitlab
(NASDAQ:GTLB)
72Outperform
Positive Factors
New Strategies
GitLab is enhancing its focus on new logo acquisition with new strategies and incentives, potentially boosting bookings.
Revenue Growth
GitLab reported another good quarter, as revenue growth of 29% came in nicely above the forecast.
User Growth
GTLB now has more than 50 million registered users, an increase from more than 40 million in the previous quarter.
Negative Factors
Cost Increase
The increase in cost of revenue in FY25 was primarily due to a significant rise in third-party hosting costs for SaaS and cloud usage.
Price Target Adjustment
The price target was modestly lowered to $72 from $80.
Share Price Decline
With GTLB shares down approximately 25% from a previous high, the current risk/reward is considered attractive.
Gitlab (GTLB) vs. S&P 500 (SPY)
Market Cap
$8.82B
Dividend YieldN/A
Average Volume (3M)2.68M
Price to Earnings (P/E)―
Beta (1Y)1.37
Revenue Growth30.93%
EPS Growth99.45%
CountryUS
Employees2,375
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.33
Shares Outstanding145,834,730
10 Day Avg. Volume2,007,172
30 Day Avg. Volume2,684,438
Financial Highlights & Ratios
PEG Ratio-15.20
Price to Book (P/B)10.28
Price to Sales (P/S)0.00
P/FCF Ratio-119.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$73.95Price Target Upside38.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering22
Gitlab Business Overview & Revenue Model
Company DescriptionGitLab Inc. (GTLB) is a leading provider of a comprehensive DevOps platform that combines software development, security, and operations into a single application. The company operates in the software development sector, offering a platform that enables teams to collaborate effectively throughout the software development lifecycle, from planning and development to security and deployment. GitLab's core product, the GitLab DevOps Platform, is designed to enhance productivity, reduce cycle times, and provide a seamless workflow for developers and organizations.
How the Company Makes MoneyGitLab makes money primarily through a subscription-based revenue model. The company offers its platform in different tiers, including free, premium, and ultimate versions, each providing varying levels of features and support. Organizations can choose the plan that best suits their needs, with higher-tier plans offering advanced features and premium support. Additionally, GitLab generates revenue from its professional services, which include training, consulting, and implementation support for companies adopting their platform. Key partnerships with cloud providers and integration with popular development tools further enhance GitLab's value proposition, contributing to customer acquisition and retention.
Gitlab Key Performance Indicators (KPIs)
Any
Total Customers
Counts the total number of customers, reflecting the company's market reach, customer acquisition success, and potential for future revenue growth.
Counts the total number of customers, reflecting the company's market reach, customer acquisition success, and potential for future revenue growth.
Data provided by:
Main Street Data
Main Street DataGitlab Financial Statement Overview
Summary
Gitlab is experiencing strong revenue growth and maintains a solid equity base with no debt, minimizing financial risk. However, it faces challenges with sustained negative cash flows and net losses, impacting overall financial health.Income Statement
Gitlab's revenue has shown consistent growth over the years, with a TTM revenue of $759 million, up from $579 million in the previous year. The gross profit margin remains strong at 88.8% for TTM, indicating efficient cost management. However, the company continues to post negative EBIT and net income margins, reflecting ongoing challenges in achieving profitability despite the revenue growth.75
Positive
Balance Sheet
The balance sheet reflects a solid equity position with stockholders' equity at $780 million and no total debt, minimizing financial risk. The equity ratio is strong at 55.7%, which indicates a healthy balance of equity to total assets. However, the company has struggled with negative net income, impacting return on equity.65
Positive
Cash Flow
Gitlab's cash flow from operations turned negative in the TTM period at -$63.97 million, a decline from positive cash flow in the previous year. Free cash flow also decreased to -$67.74 million. The company needs to improve its cash generation capabilities to support growth and operational needs.60
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 759.25M | 579.91M | 424.34M | 252.65M | 152.18M | Gross Profit |
| 674.11M | 520.20M | 372.66M | 222.67M | 133.71M | EBIT |
| -142.72M | -187.44M | -211.41M | -128.96M | -213.88M | EBITDA |
| -142.72M | -180.91M | -205.82M | -127.75M | -213.66M | Net Income Common Stockholders |
| -6.33M | -424.17M | -180.70M | -157.56M | -192.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 992.38M | 1.04B | 936.65M | 934.70M | 282.85M | Total Assets |
| 1.40B | 1.32B | 1.17B | 1.09B | 362.57M | Total Debt |
| 392.00K | 410.00K | 1.13M | 0.00 | 0.00 | Net Debt |
| -227.26M | -287.59M | -294.27M | -884.67M | -282.85M | Total Liabilities |
| 577.96M | 699.93M | 344.48M | 292.17M | 593.79M | Stockholders Equity |
| 775.91M | 571.17M | 771.02M | 774.87M | -231.22M |
| Cash Flow | Free Cash Flow | |||
| -67.74M | 33.44M | -83.48M | -53.35M | -74.51M | Operating Cash Flow |
| -63.97M | 35.04M | -77.41M | -49.81M | -73.58M | Investing Cash Flow |
| -30.49M | -86.24M | -605.69M | -53.90M | -842.00K | Financing Cash Flow |
| 32.62M | 45.23M | 97.48M | 701.18M | 12.95M |
Gitlab Technical Analysis
Positive
53.36
Price Trends
48.13
Positive
56.08
Negative
55.10
Negative
Market Momentum
1.22
Negative
66.04
Neutral
96.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GTLB, the sentiment is Positive. The current price of 53.36 is above the 20-day moving average (MA) of 46.71, above the 50-day MA of 48.13, and below the 200-day MA of 55.10, indicating a neutral trend. The MACD of 1.22 indicates Negative momentum. The RSI at 66.04 is Neutral, neither overbought nor oversold. The STOCH value of 96.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GTLB.
Gitlab Risk Analysis
Gitlab disclosed 63 risk factors in its most recent earnings report. Gitlab reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Gitlab Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.83B | ― | -10.47% | ― | 21.66% | -50.24% | |
77 Outperform | $7.25B | 110.68 | 6.40% | ― | 21.75% | 116.24% | |
72 Outperform | $8.82B | ― | -0.20% | ― | 30.93% | 99.45% | |
70 Neutral | $4.62B | ― | -6.85% | ― | 20.46% | 39.37% | |
67 Neutral | $3.12B | ― | -0.82% | 1.36% | -26.04% | 85.84% | |
63 Neutral | $4.29B | ― | -92.26% | ― | 10.94% | 4.54% | |
60 Neutral | $11.60B | 10.64 | -6.04% | 2.94% | 7.87% | -11.74% |
* Technology Sector Average
Performance Comparison
GTLB
Gitlab
53.43
-3.67
-6.43%
FROG
JFrog
42.77
8.79
25.87%
ALIT
Alight
5.85
-1.72
-22.72%
ASAN
Asana
18.10
2.29
14.48%
SRAD
Sportradar Group AG
23.43
12.95
123.57%
FRSH
Freshworks
15.74
1.80
12.91%
Gitlab Earnings Call Summary
Earnings Call Date:Mar 03, 2025
(Q4-2025)
| % Change Since: -5.14%|
Next Earnings Date:Jun 09, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with significant revenue growth and margin improvements. Notable achievements include strong customer wins and expansions, particularly in AI and GitLab Dedicated. However, challenges remain in the China joint venture and the uncertain macroeconomic environment.Q4-2025 Updates
Positive Updates
Strong Year-over-Year Revenue Growth
Fourth quarter revenue increased by 29% year over year to $211 million, exceeding expectations. Fiscal year revenue grew 31% to $759.2 million.
Record Non-GAAP Operating Margin
Non-GAAP operating margin reached a record 18% in Q4, which is an increase of 960 basis points year over year.
Significant Customer Wins and Expansions
Secured notable deals with Anthropic, AWS Professional Services, and Delta Airlines, among others. Ultimate has reached 50% of total ARR.
GitLab Duo and AI Strategy
Continued traction with GitLab Duo, particularly Duo Enterprise, with key wins including Barclays and Capgemini. Customers are actively evaluating AI tools.
Growth in GitLab Dedicated
GitLab Dedicated grew approximately 90% year over year in Q4, with notable adoption by large enterprise customers like Delta Airlines and NatWest.
Negative Updates
China Joint Venture Challenges
Non-GAAP expenses related to Jihu were $3.2 million in Q4, with ongoing challenges in deconsolidating this joint venture.
Macroeconomic Uncertainty
Guidance assumes the macroeconomic environment remains consistent, indicating potential risks in the external economic landscape.
Company Guidance
During the GitLab Q4 FY2025 earnings call, guidance was provided for Q1 and FY2026, with expectations of revenue between $212 million and $213 million for Q1, marking a 25% to 26% increase year-over-year. For FY2026, total revenue is projected to be between $936 million and $942 million, reflecting a growth rate of approximately 24% year-over-year. The company anticipates a non-GAAP operating income ranging from $21 million to $22 million for Q1, and between $109 million and $114 million for the full fiscal year. Additionally, a non-GAAP net income per share is expected to be between $0.14 and $0.15 for Q1, and $0.68 to $0.72 for FY2026, assuming 172 million and 173 million weighted average diluted shares outstanding, respectively. The guidance considers the completion of the annual stand-alone selling price analysis, with no material impact on revenue allocation, and assumes the macroeconomic environment remains consistent.Gitlab Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
GitLab Reports Strong Q4 2025 Financial Results
Positive
Mar 3, 2025
On March 3, 2025, GitLab Inc. reported strong financial results for the fourth quarter and full fiscal year 2025, with a 29% year-over-year revenue growth in Q4 and a 31% increase for the full year. The company highlighted significant demand from enterprise customers and announced the appointment of Ian Steward as Chief Revenue Officer, effective May 3, 2025, and David Henshall to its board of directors. These developments underscore GitLab’s strategic positioning as a trusted partner in the DevSecOps space, leveraging AI to meet complex software demands.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.