Latest news with #GitLabDuo
Yahoo
3 days ago
- Business
- Yahoo
GTLB vs. PEGA: Which Enterprise Automation Stock Is a Better Buy Now?
GitLab GTLB and Pegasystems PEGA are major players in the enterprise automation space, each offering distinct platforms that help organizations streamline software development and business operations. GitLab streamlines software development workflows through DevOps automation, while Pegasystems delivers AI-powered low-code workflow automation and decision-management the Grand View Research report, the global autonomous enterprise market size was estimated at $49.25 billion in 2024 and is expected to register a CAGR of 16.2% from 2025 to 2030. Both Gitlab and PEGA are likely to benefit from the significant growth opportunity highlighted by the rapid pace of or PEGA — Which of these enterprise automation stocks has the greater upside potential? Let's find out. The Case for GTLB GitLab is benefiting from strong demand for its DevSecOps platform. Its solutions, such as GitLab Ultimate, Dedicated, and GitLab Duo, play a significant role in driving customer adoption and expanding existing customer relationships. Gitlab's expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the first quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB's ability to attract and retain large enterprise expanding portfolio has been a major growth driver. In the first quarter of fiscal 2026, GitLab announced the general availability of GitLab 18, featuring major innovations across core DevOps workflows, security and compliance, and AI capabilities natively integrated into the platform. GitLab Duo Workflow, a secure agentic AI, which is in beta, is expected to improve GitLab's footprint across the SDLC. The Case for PEGA Pegasystems is benefiting from strong demand for its GenAI Blueprint solution, which is an agent that uses AI to combine the company's best practices, as well as clients' and partners' knowledge, to design enterprise workflow applications. More than 1,000 new Blueprints are being created every week, more than double from a few months Gen AI blueprint is being widely adopted by tech giants like Accenture, Cognizant, Infosys, Capgemini, TCS, and Wipro for client engagements. In the second quarter of 2025, PEGA saw a 16% year-over-year rise in ACV to $1.51 billion, driven by strong demand for Pega GenAI Blueprint. Pega's expanding portfolio has been noteworthy. In June 2025, PEGA announced Powered by Pega Blueprint, a solution enabling system integrators to integrate their own intellectual property and industry expertise into Pega's AI-driven workflow designer. This helps partners deliver faster, more customized enterprise transformation and drive greater client success. Price Performance and Valuation of GTLB and PEGA In the year-to-date period, GitLab shares have lost 16.4% while Pegasystems shares have appreciated 23.5%. The underperformance of GitLab can be attributed to challenging macroeconomic uncertainties and increased competition in the AI-enabled DevSecOps increase in PEGA's shares can be attributed to its expanding portfolio and the growing popularity of its Gen AI Blueprint. GTLB and PEGA Stock Performance Image Source: Zacks Investment Research Valuation-wise, GTLB and PEGA shares are currently overvalued as suggested by a Value Score of terms of the forward 12-month Price/Sales, GitLab shares are trading at 7.55X, which is higher than PEGA's 5.68X. GTLB and PEGA Valuation Image Source: Zacks Investment Research How Do Earnings Estimates Compare for GTLB & PEGA? The Zacks Consensus Estimate for GTLB 2025 earnings is pegged at 75 cents per share, which has remained unchanged over the past 30 days, indicating a 1.35% rise year over year. GitLab Inc. Price and Consensus GitLab Inc. price-consensus-chart | GitLab Inc. Quote The Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $1.84 per share, which has declined 1.2% over the past 30 days, indicating a 21.85% increase year over year. Pegasystems Inc. Price and Consensus Pegasystems Inc. price-consensus-chart | Pegasystems Inc. Quote GTLB's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 37.64%. PEGA's earnings beat the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 66.66%. The average surprise of PEGA is higher than that of GTLB. Conclusion While both GitLab and Pegasystems are poised to benefit from enterprise automation growth, PEGA currently offers stronger momentum, higher earnings growth, and broader adoption of its GenAI GTLB's strong growth, AI-powered DevSecOps platform, and solid partnerships, the company faces challenges from one-time expenses, such as the global Summit event and ongoing costs related to its China joint venture, Jihu, which add pressure to its margins. Currently, PEGA sports a Zacks Rank #1 (Strong Buy), making the stock a stronger pick than GTLB, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pegasystems Inc. (PEGA) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
5 days ago
- Business
- Yahoo
GitLab's Partner Base Expands: Is Growth Thesis Strengthening?
GitLab GTLB is benefiting from strong demand for its DevSecOps platform. Its rich partner network, which includes cloud platforms such as Alphabet's Google Cloud and Amazon's cloud arm, Amazon Web Services (AWS), and Zscaler has been a major growth driver. These platforms are helping it expand its footprint among large enterprise April 2025, GitLab announced the general availability of GitLab Duo with Amazon Q, integrating Amazon Q's AI agents into its DevSecOps platform to accelerate development, modernize legacy code, and streamline security and code reviews. The integration of GitLab's DevSecOps platform with Alphabet's Google Cloud services is enhancing developer productivity by streamlining authentication, boosting application deployment and improving the developer experience. This collaboration between GitLab and Alphabet ensures a more seamless and efficient development a cloud security leader, selected GitLab in a competitive process, forming a partnership. This reinforces GTLB's position in DevSecOps by enhancing security, streamlining workflows and expanding its enterprise expanding clientele and market leadership in the DevSecOps platform category are contributing to its growth prospects. In the first quarter of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB's ability to attract and retain large enterprise customers. GitLab Suffers From Stiff Competition GitLab operates in a highly competitive environment. It faces stiff competition from Microsoft MSFT, its principal rival in the DevSecOps space. Other competitors include Atlassian TEAM and other DevSecOps platforms that specialize in various stages of the software development has a strong focus on DevSecOps, integrating security into the software development lifecycle. It strengthens its position through the seamless integration of GitHub and Azure DevOps. Microsoft also partners with other companies to provide comprehensive DevSecOps solutions, like Contrast Security. Atlassian is expanding its footprint in the DevSecOps space through its robust suite of tools like Jira, Bitbucket, and Bamboo, which provides a strong foundation for development and DevOps workflows, including CI/CD. Atlassian is actively advancing DevSecOps through partnerships and integrations, notably with the recent addition of security integrations to Jira and its Open DevOps initiative. This includes collaborations with companies like Snyk, Mend, Lacework, Stackhawk, and JFrog to aggregate vulnerability data within Jira, making it easier to prioritize and address security issues within the DevOps workflow. Gitlab's Share Price Performance, Valuation and Estimates GitLab's shares have lost 18.6% year to date against the broader Zacks Computer & Technology sector's return of 10.6%. GitLab Stock's Performance Image Source: Zacks Investment Research GitLab stock is trading at a premium, with a forward 12-month Price/Sales of 7.21X compared with the industry's 5.90X. GTLB has a Value Score of F. GitLab Valuation Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is currently pegged at 16 cents per share, which has remained unchanged over the past 30 days. This indicates a 6.67% increase year over year. GitLab Inc. Price and Consensus GitLab Inc. price-consensus-chart | GitLab Inc. Quote The consensus mark for fiscal 2026 earnings is pegged at 75 cents per share, which has remained unchanged over the past 30 days, suggesting 1.35% year-over-year currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Forbes
14-07-2025
- Business
- Forbes
How CTOs Can Rein In Vibe Coding Cybersecurity Risks
Founder & CEO of Excellent Webworld. A tech innovator with 12+ years of experience in IT, leading 900+ successful projects globally. In 2025, "vibe coding"—creating software simply by describing your requirements in plain English (i.e., writing a prompt)—has become the IT industry's biggest buzzword. AI tools like Cursor, Lovable and Firebase AI have democratized software creation, enabling even nontechnical users to launch apps and prototypes at unprecedented speed. Andrej Karpathy, who coined the term "vibe coding" in February 2025, explains: "It's not really coding—I just see stuff, say stuff, run stuff, and copy paste stuff, and it mostly works." While AI-generated code delivers speed and faster time to market, a darker reality is emerging: The same ease that lets anyone spin up a website in minutes allows cybercriminals to do the same. For example: • In 2025, attackers exploited GitLab Duo's AI coding assistant through hidden prompts, causing AI-generated code to leak private source and inject malicious HTML. • Similarly, a Stanford student used prompt injection on Bing Chat to reveal hidden system instructions, exposing sensitive internal data. A direct result of AI-generated responses trusting manipulated user prompts. Urgent action is needed to safeguard digital assets. In this article, I'll share my thoughts on the dark side of vibe coding based on my readings and analysis and why business leaders must rethink their cybersecurity strategies. How Vibe Coding Accelerates Cyberattacks AI-powered vibe coding tools often import external software components automatically. However, these components aren't always thoroughly checked, creating significant business risks. Some of these software components may even be malicious in disguise. Hackers use "slopsquatting" and "typosquatting," or uploading fake software packages with names nearly identical to trusted ones. If a company's AI tool pulls in one of these malicious packages, it can trigger data breaches, system failures or costly downtime. Another significant threat is that, as a recent study found, major AI code tools produce insecure code. Nearly 48% of AI-generated code snippets had exploitable vulnerabilities. These aren't just theoretical risks. One prominent case involved the Storm-2139 cybercrime group, which hijacked Azure OpenAI accounts by exploiting stolen API credentials. They bypassed Microsoft's security measures, generating policy-violating and potentially harmful outputs at scale. As a result, security teams are facing large consequences from AI coding. For example, a recent survey found that, while accidentally installing malicious code was relatively rare, 60% of these incidents were rated as highly significant when they did occur. The Human Factor: Overreliance And Erosion Of Security Skills Vibe coding enables people without technical backgrounds—business managers, marketers and more—to build apps using AI tools. However, many lack cybersecurity training, so critical safety steps are often skipped. This problem grows when teams trust AI-generated code too much, believing it's safe just because a machine produced it. As organizations lean on AI, they risk losing essential security skills and oversight. Without human review and ongoing training, hidden threats can slip through, putting the entire business at risk. In my experience advising digital transformation projects, I've seen teams skip code reviews when using AI tools, assuming the technology is infallible. This overconfidence can be costly; one overlooked vulnerability can compromise an entire system. The Real-World Business Impact Of Security Breaches From Vibe Coding Compliance violations will likely grow as AI-generated code can fail to meet stringent regulatory standards. With the advent of the EU AI Act and stricter U.S. cybersecurity frameworks, regulators now require organizations to demonstrate robust controls over AI-generated software. Noncompliance can mean monetary penalties, restricted market access and lasting reputational damage that can be very difficult to overcome. For enterprise leaders, the message is clear: Unchecked AI-generated code introduces systemic vulnerabilities that threaten financial performance and long-term resilience, which are crucial for any organization to thrive in today's digital economy. What Business Leaders Must Do To Prevent This Nightmare? Business leaders face a crossroads as AI-enabled "vibe coding" reshapes software development. The convenience and speed are undeniable, as are the hidden cybersecurity risks. To protect your organization, take these proactive steps: • Deploy automated security scanning tools to catch vulnerabilities in real time. • Mandate human code reviews for all AI-generated outputs. • Schedule regular, independent security audits to detect hidden threats. • Embed security checks throughout the software development life cycle. • Educate all teams about the risks of AI-driven code to build a security-first culture. • Closely monitor AI tool usage; treat every new code as a potential risk. • Establish clear policies for AI code adoption and escalation protocols. These steps must be continuous, not just periodic, to keep pace with evolving threats. As AI redefines what's possible, those prioritizing security will not only mitigate risk but also unlock new growth opportunities. Companies that thrive will treat cybersecurity as a catalyst for innovation, embedding trust and resilience into every digital initiative. The choice is clear: Lead the charge in securing the AI-driven era, or risk being left vulnerable. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Yahoo
14-06-2025
- Business
- Yahoo
GitLab Stock Drops on Conservative Guidance. Here's Why This Pullback Looks Like a Buying Opportunity.
GitLab shares sank on conservative guidance. The cybersecurity DevSecOps platform operator continues to see strong revenue growth and surging profitability. The sell-off looks like an overreaction. 10 stocks we like better than GitLab › Shares of GitLab (NASDAQ: GTLB) sank after the company issued conservative guidance. The stock is now down more than 20% on the year. However, the sell-off looks overdone for a company that has consistently delivered strong revenue growth and increasing profitability. For those unfamiliar with GitLab, it operates a DevSecOps (development, security, and operations) platform that helps customers develop software while embedding cybersecurity features into all stages of the process. The company has been an artificial intelligence (AI) beneficiary, as AI has led to customers increasing their software development. The company has also been seeing customers flock to upgrade to higher-tier platforms and GitLab Duo, an AI assistant that provides coding suggestions and automation to help speed up development. Gitlab said the big advantage of its solution is that it works within all cloud providers as well as in air-gapped environments, which are highly sensitive settings that have no access to outside networks. It said that security continues to be a key driver of adoption for its Ultimate tier, with new tools giving customers better visibility into risks to allow them to focus on what matters most, the code. Gitlab's Ultimate tier now represents 52% of total annual recurring revenue (ARR). On the AI side, it is now including GitLab Duo with both its Premium and Ultimate tiers, making it easy for developers to get started with chat and code suggestions right out of the gate. It is also now offering Duo Enterprise to Premium users, which it thinks will help expand its total addressable market. In Q1, it saw a 35% increase in customers purchasing Duo for the first time. It added that it is on track to launch its agentic AI solution, GitLab Dual Workflow, this winter. These dynamics once again led to GitLab producing strong quarterly revenue growth. For its fiscal 2026 Q1 (ended April 30, 2025), revenue jumped 27% year over year to $214.5 million. That was ahead of the company's prior forecast for revenue between $212 million and $213 million. It was the seventh straight quarter that GitLab has seen revenue growth of between 25% to 35%. Metric Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY25 Q3 FY25 Q4 FY25 Q1 FY26 Revenue growth 32% 33% 33% 31% 31% 29% 27% Data source: GitLab earnings reports. Subscription revenue climbed 29% to $194.5 million, while license revenue rose 11% to $20 million. The company continues to do a great job expanding within its existing customer base. Its dollar-based net retention was 122%. This metric measures the spending of existing customers after churn, with a number over 100% indicating that customers are increasing their spending. GitLab said seat expansion was responsible for 80% of the increase, improved customer yields contributed 5%, and upgrades to higher-tier platforms represented 15% of the rise. GitLab also continues to see strong growth with its enterprise customers. The number of customers with $100,000 or more in ARR increased by 26% to 1,288. Remaining performance obligations (RPO) soared 40% to $955.1 million, while cRPO (current RPO) jumped 34% to $584.8 million. RPO includes both revenue received from upfront payments that have yet to be recognized as revenue, as well as revenue from un-cancellable contracts. These metrics are supposed to be an indication of future growth, and some investors likely were disappointed that the strength in these metrics did not translate into increased revenue guidance. On the profitability front, GitLab's adjusted earnings per share (EPS) surged from $0.03 a year ago to $0.17. It had a gross margin of 88% in the quarter. The company generated $104.1 million in adjusted free cash flow in the quarter compared to only $37.4 million a year ago. It ended the quarter with $1.1 billion in cash and short-term investments and no debt. Looking ahead, GitLab maintained its full-year fiscal 2026 forecast for revenue of between $936 million and $942 million, representing about 24% growth. It boosted its adjusted EPS guidance to between $0.74 and $0.75, up from a prior outlook of between $0.68 and $0.72. For fiscal Q2, it forecast revenue of between $226 million and $227 million, representing growth of around 24%. It is looking for adjusted EPS in a range of $0.16 to $0.17. While investors have sold off GitLab stock this year, there is a lot to like about the stock. While there is a narrative that AI could lead to the need for fewer coders -- and less need for GitLab's solutions -- thus far, the opposite has been true. Its customers have been writing more code and expanding seats with GitLab while upgrading to its high-tier platforms. This has led the company to see consistent 25% to 40% quarterly revenue growth over the past two years. It has nearly 90% gross margins, and it's seeing its profitability skyrocket. On top of that, it's starting to generate strong free cash flow and has a rock-solid balance sheet with over $1 billion in cash and no debt. Take out the AI as a threat narrative, and investors would be falling over themselves for a stock with those underlying metrics. Instead, the stock trades at a price-to-sales multiple of 7.5 times fiscal year 2026 analyst estimates. Excluding its net cash, its enterprise value-to-sales ratio is only about 6.4 times. Overall, GitLab is a fast-growing software-as-as-service (SaaS) company flush with cash with high gross margins and strong free cash flow. While the risk of AI disruption is possible, thus far, there has been no indication that this is happening. Instead, the company is benefiting from AI. That makes the stock a buy. Before you buy stock in GitLab, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and GitLab wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Geoffrey Seiler has positions in GitLab. The Motley Fool has positions in and recommends GitLab. The Motley Fool has a disclosure policy. GitLab Stock Drops on Conservative Guidance. Here's Why This Pullback Looks Like a Buying Opportunity. was originally published by The Motley Fool Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
12-06-2025
- Business
- Yahoo
Gitlab Shares Fall Despite Q1 Earnings Beat, Revenues Up Y/Y
GitLab GTLB reported first-quarter fiscal 2026 non-GAAP earnings of 17 cents per share, beating the Zacks Consensus Estimate by 13.33%. The company reported earnings of 3 cents per share in the year-ago revenues of $214.4 million beat the consensus mark by 0.91% and rallied 27% year over year. The upside can be attributed to strong demand for its DevSecOps shares dropped 13.01% in pre-market trading due to mounting competition in AI code generation and lingering public sector uncertainty. Subscriptions, self-managed and SaaS (90.7% of total revenues) revenues increased 28.6% year over year to $194.5 million, beating the Zacks Consensus Estimate by 3.33%. License, self-managed and other revenues (9.3% of total revenues) rose 11.2% year over year to $20 revenues contributed 30% to total revenues and surged 35% year over year, driven by the strong adoption of GitLab Dedicated, AI integration and expanding customer engagement. GitLab Inc. price-consensus-chart | GitLab Inc. Quote Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB's ability to attract and retain large enterprise dollar-based Net Retention Rate was 122% in the reported Remaining Performance Obligation (RPO) surged 40% year over year to $955.1 million. The current RPO increased 34% to $584.8 the reported quarter, GitLab announced the general availability of GitLab 18, featuring major innovations across core DevOps workflows, security and compliance, and AI capabilities natively integrated into the platform. The company also announced the general availability of GitLab Duo with Amazon Q for Ultimate self-managed customers on AWS and achieved FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government, under the sponsorship of the GSA. On a non-GAAP basis, research & development expenses increased 22.3% year over year to $51.1 million. Sales and marketing expenses were up 15.1% to $85.5 million. General and administrative expenses declined 25.3% to $30.7 million in the reported income was $26.1 million on a non-GAAP basis compared with the year-ago quarter's loss of $3.8 million. As of April 30, 2025, cash and cash equivalents and short-term investments were $11.05 billion compared with $9.92 billion as of Jan. 31, the reported quarter, the company generated a cash flow from the operation of $106.3 million compared with an operating cash outflow of $63.2 million in the previous of April 30, 2025, the adjusted free cash flow was $104.1 million compared with $62.1 million as of Jan. 31, 2025. For the second quarter of fiscal 2026, GitLab expects revenues between $226 million and $227 million, indicating approximate growth of 24% year over year. The Zacks Consensus Estimate for revenues is currently pegged at $225.27 operating income is expected to be in the range of $23-$24 million for the fiscal second fiscal second quarter earnings are expected to be between 16 cents per share and 17 cents per share. The consensus mark for the same is pinned at 15 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)For fiscal 2026, GitLab expects revenues between $936 million and $942 million, indicating growth of approximately 24% year over year. The Zacks Consensus Estimate for the same is pegged at $936.51 operating income is expected to be in the range of $117-$121 million for fiscal 2026. Non-GAAP earnings are expected to be between 74 cents per share and 75 cents per share. The consensus mark for fiscal 2026 earnings is pinned at 70 cents per share. Currently, Gitlab has a Zacks Rank #2 (Buy).Karooooo KARO, Amphenol APH and Pegasystems PEGA are some other top-ranked stocks in the broader Zacks Computer & Technology Amphenol and Pegasystems sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have appreciated 32.8% in the year-to-date (YTD) period. The Zacks Consensus Estimate for KARO's fiscal 2026 earnings has been revised upward by 2 cents to $1.82 in the past 30 days, suggesting year-over-year growth of 11.66%.Amphenol shares have returned 33.2% YTD. The Zacks Consensus Estimate for APH's 2025 earnings is pegged at $2.66 per share, up by a penny over the past 30 days, suggesting a growth of 40.74%.PEGA shares have gained 8.7% YTD. The Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $3.61 per share, implying a rise of 19.14% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report Karooooo Ltd. (KARO) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
