DevSecOps platform provider GitLab (NASDAQ: GTLB) will be reporting earnings this Tuesday after the bell. Here’s what investors should know.
GitLab beat analysts’ revenue expectations last quarter, reporting revenues of $260.4 million, up 23.2% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year guidance of slowing revenue growth.
Is GitLab a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting GitLab’s revenue to grow 18.5% year on year, slowing from the 26.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. GitLab has a history of exceeding Wall Street’s expectations.
Looking at GitLab’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. JFrog delivered year-on-year revenue growth of 25.8%, beating analysts’ expectations by 4.4%, and Datadog reported revenues up 32.2%, topping estimates by 4.9%. JFrog traded up 23.7% following the results while Datadog was also up 39.3%.
Read our full analysis of JFrog’s results here and Datadog’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 9% on average over the last month. GitLab is up 27% during the same time and is heading into earnings with an average analyst price target of $30.30 (compared to the current share price of $31.24).
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