Earnings

GitLab loses one-third of its value after software company issues weak revenue forecast

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People celebrate the Gitlab IPO at the Nasdaq, October 14, 2021.
Source: Nasdaq

GitLab shares plunged as much as 38% in extended trading after the provider of source code management software gave full-year revenue guidance that fell short of expectations.

Here’s how the company did:

  • Earnings: Loss of 3 cents per share, adjusted, vs. loss of 14 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $122.9 million, vs. $119.6 million as expected by analysts, according to Refinitiv.

Revenue increased 58% year over year in the quarter that ended Jan. 31, according to a statement.

GitLab called for a fiscal first-quarter adjusted loss of 14 cents to 15 cents per share on $117 million to $118 million in revenue. Analysts surveyed by Refinitiv had expected an adjusted loss of 16 cents per share and revenue of $126.2 million.

For the 2024 fiscal year, the company sees an adjusted loss of 24 cents to 29 cents per share and $529 million to $533 million in revenue. That works out to 25% growth at the middle of the range. The consensus among analysts polled by Refinitiv was an adjusted loss of 54 cents per share and $586.4 million in revenue.

During the quarter Gitlab said that in April its premium service tier will go up to $29 per month from $19. GitLab said last month that it was cutting 130 employees, or about 7% of its workforce.

The company’s shares debuted on Nasdaq in 2021, when revenue growth was at 69%. Last year, the stock fell 48% as investors rotated out of money-losing tech companies. Prior to the after-hours drop, the stock was down close to 2% in 2023.

WATCH: We’re very happy with our ability to hire and who we were able to hire, says GitLab CEO

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