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Software development tools maker GitLab (NASDAQ:GTLB) will be reporting results tomorrow afternoon. Here’s what you need to know.
GitLab beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $169.2 million, up 33.3% year on year. It was a weak quarter for the company, with a miss of analysts’ billings estimates and ARR (annual recurring revenue) estimates.
Is GitLab a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting GitLab’s revenue to grow 26.9% year on year to $177.2 million, slowing from the 38.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GitLab has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.4% on average.
Looking at GitLab’s peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. HashiCorp delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 5.1%, and JFrog reported revenues up 22.4%, in line with consensus estimates. HashiCorp’s stock price was unchanged after the results, while JFrog was down 27.4%.
Read the full analysis of HashiCorp’s and JFrog’s results on StockStory.
There has been positive sentiment among investors in the software development segment, with share prices up 10.2% on average over the last month. GitLab is up 12% during the same time and is heading into earnings with an average analyst price target of $62.8 (compared to the current share price of $47.8).
