DevSecOps platform provider GitLab (NASDAQ: GTLB) will be reporting earnings this Tuesday after market close. Here’s what to look for.
GitLab beat analysts’ revenue expectations last quarter, reporting revenues of $264.2 million, up 23.1% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ billings estimates.
Is GitLab a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting GitLab’s revenue to grow 15.7% year on year, slowing from the 29.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. GitLab has a history of exceeding Wall Street’s expectations.
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. JFrog delivered year-on-year revenue growth of 28.7%, beating analysts’ expectations by 5.2%, and Fastly reported revenues up 23.3%, topping estimates by 5.3%. JFrog traded up 7.8% following the results while Fastly was down 12.9%.
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 14.2% on average over the last month. GitLab is up 26% during the same time and is heading into earnings with an average analyst price target of $38.48 (compared to the current share price of $44.86).
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