Software development tools maker GitLab (NASDAQ:GTLB) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
GitLab beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $211.4 million, up 29.1% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations significantly and EPS guidance for next quarter missing analysts’ expectations significantly.
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 25.9% year on year to $213 million, slowing from the 33.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GitLab has missed Wall Street’s revenue estimates twice over the last two years.
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 22%, beating analysts’ expectations by 4.4%, and Fastly reported revenues up 8.2%, topping estimates by 4.8%. JFrog traded up 10.9% following the results while Fastly was also up 26.8%.
Read our full analysis of JFrog’s results here and Fastly’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 2.6% on average over the last month. GitLab is down 5.4% during the same time and is heading into earnings with an average analyst price target of $70.36 (compared to the current share price of $49.27).
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