GitLab (NASDAQ:GTLB) is trending on social media and is soaring about 30% today as investors rally behind “the next AI play.” GTLB stock is rallying and is being seen by many as one of the next hot AI stocks to buy after the company reported stronger-than-expected fiscal first-quarter results yesterday after the market close.
Moreover, GTLB touted its own artificial intelligence (AI) credentials yesterday, possibly adding to investors’ excitement about its outlook. GitLab’s platform “helps companies develop, secure, and operate software,” Barron’s reported.
Q1 Results Beat Expectations
GitLab reported Q1 revenue of $127 million, $9 million above analysts’ average estimate. Its earnings per share, excluding certain items, came in at 6 cents, 8 cents above the mean outlook. The company’s sales soared 45% versus the same period a year earlier.
Moreover, GTLB provided Q2 revenue guidance of $129 million to $130 million, well above the mean outlook of $127 million. Finally, the firm’s operating margin, excluding certain items, soared 17 percentage points versus the same period a year earlier.
GitLab Touts Its AI Credentials
Speaking on GTLB’s Q1 earnings call, its CEO, Sid Sijbrandij, said:
“AI represents a major shift for our industry [and] fundamentally changes the way that software is developed, and we believe it will accelerate our ability to help organizations make software faster.”
GitLab is looking to integrate AI “throughout (its) platform,” and the company added “five new AI features” last quarter and another five such features in the first two weeks of last month, the CEO reported. The company’s fiscal Q1 ended on April 30.
The Performance of GTLB Stock
Heading into today, the shares were up 14% in the last month, but they had sunk 29% in the previous three months.
On the date of publication, Larry Ramer 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.
