Gitlab Inc (NASDAQ:GTLB), the most comprehensive AI-powered DevSecOps platform, stock rose 1.62% (As on March 5, 11:15:12 AM UTC-4, Source: Google Finance) after the company beat expectations on earnings and revenue as it delivered its fourth-quarter financial results, swinging to a profit in the process. GitLab was able to deliver a net profit of $10.8 million in the quarter, swinging from a $36.9 million loss in the year-ago quarter. In the quarter, customers with more than $5,000 of ARR reached 9,893, an increase of 15% year-over-year. Customers with more than $100,000 of ARR reached 1,229, an increase of 29% year-over-year. Customers with more than $1M of ARR increased to 123, up 28% from Q4 of fiscal year 2024. Dollar-Based Net Retention Rate was 123%. Total RPO grew 40% year-over-year to $945.0 million, while cRPO grew 35% to $579.2 million. In the quarter, the company has generated operating cash flow of $63.2 million and non-GAAP adjusted free cash flow of $62.1 million
Moreover, the company announced the general availability of GitLab Duo Self-Hosted, which allows customers to maintain full control over their data privacy, security, and the deployment of LLMs. The company has also announced the private beta of GitLab Duo Workflow.
GTLB in the fourth quarter of FY 25 has reported the adjusted earnings per share of 33 cents, beating the analysts’ estimates for the adjusted earnings per share of 23 cents. The company had reported the adjusted revenue growth of 29 percent to $211.4 million in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $206.2 million.
Looking to the current quarter, Gitlab issued a conservative forecast, saying it hopes for earnings of between 14 and 15 cents per share on revenue of $212 million to $213 million. Wall Street is looking for a bit more with its forecast of 15 cents on sales of $213.6 million.
For the full year fiscal 2025, GitLab sees earnings of between 68 and 72 cents per share on revenue of $936 million to $942 million. That compares somewhat poorly with Wall Street’s forecast of 80 cents per share in earnings and $938.9 million in sales.
On the other hand, GitLab said it has hired Ian Steward as its new chief revenue officer, replacing the interim CRO Ashley Kramer, who will continue to serve as chief marketing and strategy officer. In addition, the company named David Henshall, a former president and CEO of Citrix Systems Inc., to its board.