GitLab’s Performance and Outlook
GitLab (NASDAQ: GTLB) reported a 25% revenue growth to $244.4 million in its third quarter, but its overall growth rate has slowed, leading to a 33% drop in stock value throughout the previous year, according to S&P Global Market Intelligence. Concerns over customer retention and competition from Microsoft-owned GitHub have contributors worried, particularly as AI capabilities reshape the DevSecOps landscape.
The stock is currently trading at a price-to-sales ratio of 6, the lowest it’s been in recent years. Investors remain cautious as GitLab adjusts its strategy for the evolving AI sector and works to assure stakeholders of its profitability moving forward.
