GitLab (GTLB) Q3 2023 Earnings
Did GTLB Beat Earnings? Q3 2023 Results
Yes. GitLab reported Q3 2023 earnings of $-0.10 a share on Dec 5, 2022, beating the $-0.15 consensus estimate by 33.3%. Revenue was $113.0M against a $106.1M estimate.
GitLab posted a notably strong third quarter of fiscal 2023, beating Wall Street on both the top and bottom lines as 69.1% year-over-year revenue growth to $112.98 million came in ahead of the $106.05 million consensus estimate. The DevOps platform also reported a non-GAAP loss of $0.10 per share, clearing the $0.15 consensus estimate by 33.33%, with the improvement driven in large part by a roughly 1,700 basis point year-over-year gain in non-GAAP operating margin as the company scaled its subscription business, which alone contributed $98.44 million in revenue. Management attributed the momentum to enterprises consolidating fragmented development toolchains onto a single platform, a trend CEO Sid Sijbrandij argued is accelerating amid cost-cutting pressures across the industry. Customers spending more than $100,000 in annual recurring revenue grew 49% to 638, underscoring durable expansion within the installed base. Looking ahead, GitLab guided Q4 revenue of $119.00 million to $120.00 million, with full fiscal year 2023 revenue expected in the range of $420.50 million to $421.50 million.
- 69% year-over-year organic revenue growth
- Non-GAAP operating margin improved by approximately 1,700 basis points year-over-year
- Dollar-based net retention rate exceeded 130%
- Customers with more than $5,000 ARR increased to 6,469, up 59% year-over-year
- Customers with more than $100,000 ARR increased to 638, up 49% year-over-year
“Companies cannot afford to slow down their software innovation. In today's turbulent economic climate, they are turning to solutions like GitLab to reduce costs, drive efficiencies, fuel a fast pace of innovation, and meet customer demands. Our Q3 business results demonstrate GitLab's value proposition as a mission critical DevSecOps platform for software innovation is resonating.”
GitLab CEO, on the earnings call
What Was GitLab's Outlook in Q3 2023?
For Q4 FY2023, GitLab expects revenue of $119.0 million to $120.0 million, non-GAAP operating loss of $(27.0) million to $(26.0) million, and non-GAAP net loss per share of $(0.15) to $(0.14) assuming approximately 150 million weighted average shares outstanding. For full fiscal year 2023, the company expects revenue of $420.5 million to $421.5 million, non-GAAP operating loss of $(100.0) million to $(99.0) million, and non-GAAP net loss per share of $(0.56) to $(0.55) assuming approximately 148 million weighted average shares outstanding.
GTLB YoY Financials
| Metric | Q3 2023 | Q3 2022 | Year over year |
|---|---|---|---|
| Revenue | $113.0M | $66.8M | +69.1% |
| Gross Profit | $98.4M | $59.6M | +65.1% |
| Operating Income | −$57.0M | −$228.3M | −75.1% |
| Net Income | −$48.5M | −$58.8M | −17.5% |
GTLB Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.