Gitlab GTLB is set to release its first-quarter fiscal 2025 results on Jun 3.
The company anticipates first-quarter fiscal 2025 revenues between $165 million and $166 million, suggesting 30-31% year-over-year growth. Non-GAAP loss is anticipated between 5 cents and 4 cents.
The Zacks Consensus Estimate for revenues is pegged at $165.66 million, indicating an increase of 30.56% from the year-ago quarter’s reported figure.
The consensus mark for loss remained at 4 cents per share in the past 30 days, calling for an improvement from a loss of 6 cents in the year-ago quarter.
GitLab Inc. Price and EPS Surprise
GitLab Inc. price-eps-surprise | GitLab Inc. Quote
The company beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 319.49%.
Let’s see how things have shaped up before the announcement.
Factors Likely to Influence Q1 Results
Gitlab’s fiscal first-quarter results are expected to have benefited from improved buying behavior across all customer sizes, particularly with enterprise customers. This normalization is expected to have continued and be driven by the further adoption of their DevSecOps platform.
The company had a record quarter for net additions of customers with $100,000 and $1 million Annual Recurring Revenue (ARR) in fourth-quarter fiscal 2024. This momentum is expected to have persisted, driven by the increasing adoption of Gitlab’s DevSecOps platform among large enterprises.
The Ultimate tier, Gitlab’s top offering, is likely to have continued witnessing robust growth driven by security and compliance use cases. This tier represented more than 50% of the fourth quarter’s ARR bookings, indicating strong demand for advanced features and services.
Gitlab Duo, the company’s AI offering, is gaining traction. Features like Code Suggestions and Gitlab Duo Pro are attracting customers aiming to enhance engineering productivity and secure coding practices. The monetization of AI capabilities at $19 per user per month is expected to have attracted more customers and boost ARR.
Gitlab Dedicated, a single-tenant SaaS solution, is seeing increasing adoption among large enterprises such as Barclays and Blue Halo. This growth is expected to have continued as more organizations prioritize data isolation and residency requirements.
SaaS now represents over 25% of Gitlab’s total revenue and has grown 52% year-over-year in the fourth quarter of fiscal 2024. This growth is expected to have been a tailwind for the company in the to-be-reported quarter.
In fiscal fourth quarter, Gitlab introduced a new Enterprise Agile Planning SKU designed to streamline integration for Gitlab Ultimate customers, bringing everyone onto a single, secure platform. This offering is expected to have enhanced the overall value of the Gitlab investment.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
GTLB currently has an Earnings ESP of 0.00% and carries a Zacks Rank of #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Micron Technology MU has an Earnings ESP of +5.22% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Micron Technology shares have increased 54.2% year to date. MU is set to report its third-quarter fiscal 2024 results on Jun 26.
Bath & Body Works BBWI has an Earnings ESP of +5.23% and a Zacks Rank #2.
Bath & Body Works shares have surged 12.8% year to date. BBWI is set to report first-quarter 2024 results on Jun 4.
Broadcom AVGO has an Earnings ESP of +3.66% and a Zacks Rank #3.
Broadcom shares have rallied 24.6% year to date. AVGO is scheduled to release second-quarter fiscal 2024 results on Jun 12.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
