GitLab (NASDAQ:GTLB) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• GitLab beat quarterly expectations, reporting adjusted EPS of $0.24 versus the $0.18 consensus estimate and revenue of $286.25 million compared with expectations of $273.13 million.
• Despite the earnings beat, shares fell 3.1% to $45.09 in midday trading. The stock has a $7.62 billion market capitalization, while analysts maintain a consensus “Hold” rating with an average price target of $42.25.
• Analyst sentiment remains mixed: BTIG raised its price target to $52 and kept a “Buy” rating, while several firms retained neutral or hold ratings. Insiders recently sold shares under pre-arranged trading plans, although institutional investors own 95.04% of the stock.

GitLab (NASDAQ:GTLB - Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.24 EPS for the quarter, beating analysts' consensus estimates of $0.18 by $0.06, FiscalAI reports. GitLab had a positive return on equity of 0.31% and a negative net margin of 2.49%.The company had revenue of $286.25 million for the quarter, compared to analyst estimates of $273.13 million.

GitLab Stock Down 3.1%

GitLab stock traded down $1.45 during mid-day trading on Tuesday, hitting $45.09. The company's stock had a trading volume of 8,297,271 shares, compared to its average volume of 5,745,249. The stock has a market capitalization of $7.62 billion, a P/E ratio of -281.81 and a beta of 0.94. GitLab has a twelve month low of $18.73 and a twelve month high of $52.38. The stock's fifty day moving average price is $35.70 and its two-hundred day moving average price is $28.72.

Trending Headlines about GitLab

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: Unusually heavy call-option activity suggests some traders are taking bullish positions ahead of earnings. Investors purchased 28,069 call options, more than triple the average daily volume of 9,066 contracts.
• Positive Sentiment: BTIG Research raised its price target from $36 to $52 and maintained a “buy” rating, implying meaningful upside from recent trading levels. GitLab Gears Up For Q2 Print; Recent Forecast Changes
• Positive Sentiment: Cantor Fitzgerald increased its price target from $35 to $50, reflecting improved expectations for GitLab’s valuation, although it retained a “neutral” rating.
• Neutral Sentiment: DA Davidson lifted its target from $35 to $45 but kept a “neutral” rating, indicating that the firm sees limited upside after the stock’s recent rally.
• Neutral Sentiment: Wall Street expects GitLab to report quarterly earnings of approximately $0.18 per share. The earnings release is the key near-term catalyst, with results and management’s outlook likely to determine the next direction for GTLB.

Insider Buying and Selling at GitLab

In other news, Director Sytse Sijbrandij sold 116,200 shares of the firm's stock in a transaction on Monday, June 15th. The stock was sold at an average price of $28.44, for a total transaction of $3,304,728.00. Following the completion of the sale, the director directly owned 14,902,051 shares of the company's stock, valued at $423,814,330.44. This trade represents a 0.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Simon Mundy sold 8,725 shares of GitLab stock in a transaction on Friday, August 7th. The stock was sold at an average price of $38.00, for a total value of $331,550.00. Following the completion of the transaction, the chief accounting officer owned 105,332 shares in the company, valued at $4,002,616. The trade was a 7.65% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 10.64% of the company's stock.

Institutional Trading of GitLab

A number of hedge funds have recently bought and sold shares of GTLB. AQR Capital Management LLC increased its position in shares of GitLab by 766.3% in the fourth quarter. AQR Capital Management LLC now owns 5,433,375 shares of the company's stock worth $203,915,000 after acquiring an additional 4,806,163 shares in the last quarter. Atreides Management LP boosted its stake in GitLab by 867.3% in the 2nd quarter. Atreides Management LP now owns 3,938,198 shares of the company's stock worth $177,652,000 after purchasing an additional 3,531,070 shares during the period. FIL Ltd acquired a new stake in GitLab during the 4th quarter valued at $36,460,000. Carmignac Gestion raised its stake in GitLab by 95.5% during the 4th quarter. Carmignac Gestion now owns 1,310,000 shares of the company's stock valued at $49,164,000 after purchasing an additional 640,000 shares during the period. Finally, Manchester Global Management UK Ltd purchased a new stake in shares of GitLab in the second quarter valued at $26,254,000. 95.04% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities analysts have commented on GTLB shares. Morgan Stanley raised their target price on shares of GitLab from $29.00 to $30.00 and gave the company an "equal weight" rating in a research note on Wednesday, June 3rd. Bank of America boosted their target price on GitLab from $38.00 to $45.00 and gave the stock a "neutral" rating in a report on Wednesday, August 19th. TD Cowen lifted their price target on GitLab from $29.00 to $42.00 and gave the company a "hold" rating in a research report on Thursday, August 27th. Wolfe Research reissued an "outperform" rating and issued a $36.00 price objective on shares of GitLab in a research note on Wednesday, June 3rd. Finally, BTIG Research upped their price objective on GitLab from $36.00 to $52.00 and gave the company a "buy" rating in a report on Monday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eighteen have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $42.25.

GitLab Company Profile

GitLab Inc NASDAQ: GTLB is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.

The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.

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