DevSecOps platform provider GitLab (NASDAQ: GTLB) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
GitLab beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $214.5 million, up 26.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ billings estimates.
Is GitLab a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GitLab’s revenue to grow 24.3% year on year to $227 million, slowing from the 30.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GitLab has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.
Looking at GitLab’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. JFrog delivered year-on-year revenue growth of 23.5%, beating analysts’ expectations by 3.5%, and Cloudflare reported revenues up 27.8%, topping estimates by 2.3%. JFrog traded up 12.4% following the results while Cloudflare was down 3.5%.
Read our full analysis of JFrog’s results here and Cloudflare’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 3.2% on average over the last month. GitLab is up 9.3% during the same time and is heading into earnings with an average analyst price target of $62.30 (compared to the current share price of $48.24).
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