GitLab (NASDAQ:GTLB) stock is up over 20% this morning after reporting its first quarter financial results Monday afternoon. The San Francisco-based DevOps platform managed to beat a number of analyst expectations.
For GitLab’s fiscal first quarter 2023, ended April 30, the company announced handily exceeding earnings and revenue estimates. It reported a loss of $26.1 million, or 18 cents per share. This number reflects revenue of $87.4 million, a 75% jump from the same quarter last year.
Compared to the analyst predicted loss of 27 cents per share on just $78.1 million in revenue, investors should be pleased with its performance in the quarter. In addition, the company reported net dollar retention over 130%, reflecting healthy recurring revenue inflows.
GitLab Co-Founder and Chief Executive, Sid Sijbrandij, commented on the company’s earnings win:
We have seen a substantial shift in how enterprises are developing, operating, and securing software by moving to a platform strategy. As a result, our One DevOps Platform is gaining momentum and broader adoption. While accelerating revenue growth, we were also able to show significant operating leverage. Underpinning this acceleration in growth was a higher velocity of new customer wins, as well as seat expansion and tier upgrades of existing customers.
Yesterday’s earnings triumph has been a fortuitous signal for GTLB this morning.
GTLB Stock Jumps on Strong Growth
GitLab has long been considered a sort of unicorn in the software space. The company’s platform allows software developers and information technology operators to quickly and easily exchange code and seamlessly integrate new updates.
GTLB has been on something of a rollercoaster this year. The company is down 41% year-to-date, with momentary drops closer to 60%. Not for nothing, rising interest rates, record levels of inflation, and supply shortages have created a sort of perfect storm of bearish catalysts for tech and growth stocks. As such, the tech-heavy Nasdaq Composite is also down big on the year, in the red 24% at the time of writing.
GitLab’s 20% leap this morning should offer some comfort to investors that the company remains a solid long-term growth candidate despite an otherwise bearish market.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.