GitLab’s weak earnings guidance is hurting its shares

Shares of GitLab Inc. fell 22% in after-hours trading Monday after the company posted quarterly results that beat analysts’ estimates but provided weak guidance.

GitLab GTLB,
+1.58%
reported a fiscal fourth-quarter net loss of $37.6 million, or 23 cents per share, compared with a net loss of $42.1 million, or 26 cents per share, in the same quarter a year ago. Adjusted earnings were 15 cents per share.

Revenue rose 33% to $163.8 million from $122.9 million in the year-ago quarter.

Analysts polled by FactSet had expected average net income of 8 cents a share on revenue of $157.9 million.

GitLab expects full-year adjusted earnings of 19 cents per share to 23 cents per share, while analysts at FactSet expect 35 cents per share.

In a conference call with analysts, GitLab Chief Financial Officer Brian Robins pointed to cautious guidance on customer churn and attrition.

GitLab shares have risen 45% this year, while the broader S&P 500 index SPX,
-0.12%
increased by 27%.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *