The average of price targets set by Wall Street analysts indicates a potential upside of 27.4% in Gitlab (GTLB). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
I maintain a buy rating for GitLab stock, with a revised price target of ~$92. GTLB's revenue grew 31% y/y to $196 million in the latest quarter, with significant EBIT margin expansion and raised FY25 revenue guidance. Encouraging metrics include a 48.1% y/y increase in RPO and strong adoption of the Ultimate subscription tier, particularly in the public sector.
GitLab continues to perform exceptionally well, with strong execution and growth, but its high valuation keeps me from investing currently. Q3 results were impressive, with a 31% YoY revenue growth and raised guidance, despite a slight drop in Dollar-Based Net Retention Rate. New CEO Bill Staples brings valuable experience, and AI integration is a key focus, enhancing GitLab's competitive edge.
GTLB's third-quarter fiscal 2025 results benefit from solid subscription revenue growth driven by expanding clientele.
GitLab Inc. offers a highly differentiated AI-based DevSecOps platform, driving 30.9% revenue growth and 13.2% operating margin, with a “Buy” rating and $85 target price. Key differentiators include AI-assisted workflows, rapid innovation through open-source contributions, and strategic partnerships with major cloud providers like AWS and Alphabet. GitLab Ultimate significantly boosts bookings and ARR, with strong market adoption, projected 30% revenue growth for FY25, and consistent margin expansion.
The software company announces the departure of CEO Sid Sijbrandij, and analysts have high hopes for his successor.
GitLab, the popular developer and security platform, has named a new CEO, Bill Staples, effective immediately.
GitLab Inc. (NASDAQ:GTLB ) Q3 2025 Earnings Conference Call December 5, 2024 4:30 PM ET Company Participants Kelsey Turcotte - VP, IR Sid Sijbrandij - Co-Founder and Executive Chair of the Board Brian Robins - CFO Bill Staples - CEO Conference Call Participants Koji Ikeda - Bank of America Sanjit Singh - Morgan Stanley Matt Hedberg - RBC Joel Fishbein - Truist Kash Rangan - Goldman Sachs Shrenik Kothari - Baird Ryan MacWilliams - Barclays Michael Turrin - Wells Fargo Gray Powell - BTIG Pinjalim Bora - JPMorgan Nick Altmann - Scotiabank Operator Good day, everyone, and welcome to today's GitLab Third Quarter Fiscal Year 2025 Conference Call. At this time, all participants are in view and listen-only mode.
GitLab Inc. (GTLB) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.09 per share a year ago.
Dollar General NYSE: DG and GitLab NASDAQ: GTLB operate in different industries but offer similar value, trading near long-term lows. Both have the potential to reverse course and trend higher in 2025, but only one is a good buy for investors today.
GTLB's third-quarter fiscal 2025 results are likely to reflect the solid performance of the DevSecOps platform and an expanding clientele.
GTLB shares are riding on strong demand for Gitlab Duo and GitLab Duo Pro. However, stretched valuation should keep investors on the sidelines.