Latest news with #GitLabInc
Yahoo
a day ago
- Business
- Yahoo
GitLab's (GTLB) Strategic AI Moves Are Fueling a Bullish Outlook
GitLab Inc. (NASDAQ:) is one of the . On June 25, Bank of America Securities analyst Koji Ikeda maintained a 'Buy' rating on the stock and set a price target of $72.00. Ikeda's Buy rating reflects GitLab's strategic positioning and growth potential. The stock has been gaining attention, particularly due to the integration of AI capabilities throughout its DevSecOps workflows. This is especially true with version 18.0, which includes Duo features in Premium and Ultimate tier subscriptions. These changes could help the company monetize by reaching more users. The enhancements are anticipated to boost GitLab's revenue growth trajectory, with GitLab poised to be a long-term leader in the $53 billion DevSecOps market. Moreover, the company's focus on its AI agentic offering, especially the Duo Agent Platform, is expected to enhance developer productivity by automating a substantial portion of development workflows. GitLab also focuses on security and compliance, making it a suitable choice for enterprises that seek comprehensive solutions. Furthermore, more companies are hiring software developers once again, which supports the demand for GitLab's seat-based pricing model. All of these factors reinforce the firm's Buy rating and the price objective of $72. GitLab Inc. (NASDAQ:GTLB) develops software for the software development lifecycle in the US, Europe, and the Asia Pacific. While we acknowledge the potential of GTLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None.
Yahoo
4 days ago
- Business
- Yahoo
GitLab Inc. (GTLB): A Bull Case Theory
We came across a bullish thesis on GitLab Inc. (GTLB) on High Growth Investing's Substack by Stefan Waldhauser. In this article, we will summarize the bulls' thesis on GTLB. GitLab Inc. (GTLB)'s share was trading at $41.23 as of 13th June. GTLB's trailing and forward P/E were 458.11 and 54.95 respectively according to Yahoo Finance. A software engineer working on coding a mobile app from their workstation. GitLab stands out in the DevSecOps landscape by positioning itself as an AI-native platform built for enterprise-grade needs in an increasingly regulated and cloud-diverse world. Unlike GitHub, which is deeply embedded within Microsoft's Azure ecosystem, GitLab offers cloud neutrality with the flexibility to run across AWS, Azure, GCP, or on-premises environments. This appeals especially to government entities and organizations requiring dedicated SaaS instances, with GitLab recently achieving FedRAMP certification—a move that unlocks large-scale federal contracts. GitLab Duo, the company's AI-native suite, embeds contextual intelligence throughout the software lifecycle. Features like Duo Workflow and Duo Enterprise aim to automate multi-step developer tasks, offer test generation and root cause analysis, and ease deployment, all signaling GitLab's evolution from a DevOps tool to the operational backbone of modern software factories. Despite a deceleration in revenue growth from 36% in FY24 to an expected 25% in FY26, GitLab's fundamentals remain strong with a near 90% gross margin and improving cash flow now that a major tax-related one-time hit is behind it. At a $41 share price, the stock trades at 6x forward sales—its lowest valuation since IPO—yet remains attractively priced relative to SaaS peers. Alphabet's venture arm, GV recently exited its stake, dampening takeover speculation, but GitLab's strategic value appears undiminished. With a growing foothold among enterprise customers and an increasingly integrated AI product suite, GitLab is positioned as a long-term structural winner in software development. Investors betting on the future of AI-enabled DevSecOps may find GitLab's current valuation an appealing entry point. Previously, we covered a on GitLab Inc. by Compounding Your Wealth in April 2025, emphasizing strong financials, enterprise traction, and AI-led product growth. A follow-up thesis by Stefan Waldhauser in June 2024 highlighted GitLab's AI-native platform, cloud neutrality, and strategic value in regulated sectors, positioning the company as a long-term DevSecOps leader at a historically low valuation. GitLab Inc. (GTLB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held GitLab Inc. (GTLB) at the end of the first quarter which was 51 in the previous quarter. While we acknowledge the risk and potential of GTLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. 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
Yahoo
18-06-2025
- Business
- Yahoo
Canaccord Maintains Buy on GitLab (GTLB), Cuts PT
GitLab Inc. (NASDAQ:GTLB) is one of the 10 stocks that Jim Cramer and analysts are watching. On June 12, Canaccord cut the stock's price target on the company from $78 to $76 while maintaining a Buy rating. The firm noted that the company delivered solid Q1 results, with revenue growing 27% and stronger-than-expected profits driven by 12% operating margins, marking a 1,440 basis point improvement from last year. Canaccord sees growing momentum in AI-driven code development as a sign of ongoing investment in DevSecOps platforms and considers GitLab (NASDAQ:GTLB) a leading player in this space. A team of software engineers working together in an open office, developing innovative solutions. On June 11, Cramer showed bearish sentiment toward GitLab Inc. (NASDAQ:GTLB) and the broader enterprise software industry, as he said: 'Yeah, I thought that GitLab, frankly, I was prepared for disappointment, and I got it. This kind of collaborative software, enterprise software stock, I don't want right now… You know, I like an Oracle, which is going up, but that's data center. I don't want, I just do not want enterprise software. I think they're all too expensive.' GitLab (NASDAQ:GTLB) provides a platform that helps organizations plan, build, secure, and launch software. The company supports every step of the development process and also offers training and support services. While we acknowledge the potential of GTLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. 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
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
Yahoo
12-06-2025
- Business
- Yahoo
GitLab Inc (GTLB) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
Revenue: $214.5 million, a 27% increase year-over-year. Non-GAAP Operating Margin: 12.2%, compared to negative 2.3% in the previous year. Adjusted Free Cash Flow: $104.1 million, with a margin of 49%. Non-GAAP Gross Margin: 90% for the quarter. Dollar-Based Net Retention Rate (DBNRR): 122%. Total Annual Recurring Revenue (ARR): 10,104 customers with ARR of at least $5,000. Customers with $100,000+ ARR: Increased 26% year-over-year to 1,288. Guidance for Q2 FY26 Revenue: $226 million to $227 million. Guidance for FY26 Revenue: $936 million to $942 million. Cash and Investments: $1.1 billion at the end of the quarter. Warning! GuruFocus has detected 4 Warning Signs with GTLB. Release Date: June 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GitLab Inc (NASDAQ:GTLB) reported a 27% year-over-year increase in revenue, reaching $215 million for the first quarter. The company achieved a non-GAAP operating margin of 12%, highlighting significant year-over-year operating margin expansion. GitLab Inc (NASDAQ:GTLB) continues to see strong adoption of its AI-native DevSecOps platform, with strategic differentiators like cloud agnosticism and comprehensive solutions across the software development lifecycle. The company launched GitLab 18, introducing new product capabilities that enhance core DevOps, security, and AI functionalities. GitLab Inc (NASDAQ:GTLB) achieved FedRAMP Moderate authorization, which is expected to boost its public sector business with its Dedicated offering. The company's Q1 beat was described as one of the 'skinniest' since its IPO, indicating tighter performance margins. There was a noted deceleration in sequential customer adds, particularly in the $100,000 ARR cohort. GitLab Inc (NASDAQ:GTLB) experienced a back-end weighted linearity in the quarter, which could indicate potential challenges in deal closures. The company faces price sensitivity at the low end of the market, impacting new customer additions. Concerns were raised about the potential impact of AI on job growth in the software developer market, which could affect demand for GitLab's services. Q: How are customer conversations evolving with the rapid advancements in AI, particularly regarding code suggestion and completion? A: Bill Staples, CEO: Every customer conversation touches on AI. Customers are eager to use AI to enhance productivity, innovation, and quality. The market is rapidly evolving with new tools and techniques. Customers often experiment with multiple AI tools, including GitLab Duo, to find the best fit. This experimentation ultimately benefits GitLab, as more code creation leads to increased demand for GitLab's comprehensive platform for testing, validation, and deployment. Q: Can you explain the growth dynamics, given the fiscal Q1 results and the outlook for the year? A: Brian Robins, CFO: The quarter's results were as expected, with a mix favoring SaaS and back-end weighted linearity. The guidance remains unchanged, assuming consistent macroeconomic conditions. The growth in RPO, CRPO, and billings indicates strong underlying demand, despite a slightly narrower beat compared to previous quarters. Q: How is AI adoption affecting job growth in the software developer market, and what are the implications for GitLab? A: Bill Staples, CEO: AI is seen as a productivity enhancer rather than a job threat. Historically, advances in productivity have led to more opportunities. AI will likely increase the number of code creators and the volume of code, benefiting GitLab. Brian Robins, CFO, added that developer hiring is turning positive, and GitLab's market opportunity remains vast. Q: How does GitLab plan to capture value from AI-driven enhancements, given the current pricing model? A: Bill Staples, CEO: GitLab is focusing on creating value through AI by enhancing collaboration between humans and agents, maintaining security and privacy, and leveraging its unified platform for better context and outcomes. The introduction of Duo Chat and code suggestions in Premium and Ultimate tiers is part of a strategy to lower adoption barriers and provide a smooth upgrade path to more advanced AI capabilities. Q: What are the key differentiators in GitLab 18, and why were certain features included without additional charges? A: Bill Staples, CEO: GitLab 18 introduces centralized artifact management, improved CICD pipelines, and enhanced security features. The inclusion of Duo Chat and code suggestions in Premium and Ultimate tiers aims to eliminate adoption barriers and provide a seamless upgrade path. The strategy is to offer a friction-free AI experience, encouraging broader adoption and eventual upgrades to more comprehensive solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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
