Gitlab Inc (NASDAQ:GTLB) stock rose 5.57% (As on September 7, 11:35:17 AM UTC-4, Source: Google Finance) after the company posted a narrower-than-expected loss for the second quarter of FY 23. Gitlab has also issued better-than-expected guidance for third-quarter per-share losses and revenue. The company has added the largest number of base customers ever in a single quarter. The company ended 2Q with over 5,800 customers with ARR of at least $5,000, compared to over 5,100 customers in the prior quarter, and over 3,600 customers in the prior year. This represents a year-over-year growth rate of approximately 61%. Currently, customers with >$5,000 in ARR represent approximately 95% of the total ARR. At the end of the second quarter of FY 2023, the company had 593 customers with ARR of at least $100,000, compared to 545 customers in the prior quarter, and 383 customers in the second quarter of FY 2022. This represents a year-over-year growth rate of approximately 55%. Dollar-Based Net Retention Rate above 130% in Q2 of fiscal year 2023. The company has released GitLab version 15 bringing forward new cutting edge DevOps capabilities in one platform. Additional releases in the quarter include 15.1 and 15.2, marking 130 consecutive months of innovation as of July 31, 2022. GitLab has partnered with Dynatrace, LaunchDarkly, Split, Flagsmith, and CloudBees to launch OpenFeature, the new standard for feature flagging and management solutions. The company’s New and expansion customers included KeyBank, Indeed, and Worldline. The largest number of new base customers has been added ever in a single quarter. The company has also added a substantial number of new team members, and continue to hire across the organization. The non-GAAP operating margin has improved by 1,500 basis points year over year to (27)%.

GTLB in the second quarter of FY 23 has reported the adjusted loss per share of 15 cents, beating the analysts’ estimates for the adjusted loss per share of 23 cents. The company had reported the adjusted revenue growth of 74 percent to $101 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $94.44 million.

GitLab Inc expects Q3 2023 EPS to be in the range of ($0.16)-($0.15), versus the consensus of ($0.25). GitLab Inc expects Q3 2023 revenue to be in the range of $105-106 million, versus the consensus of $103.41 million.

GitLab Inc expects FY2023 EPS expects to be in the range of ($0.67)-($0.64), versus the consensus of ($0.89). GitLab Inc expects FY2023 revenue to be in the range of $411-414 million, versus the consensus of $402.75 million.