Software development tools maker GitLab (NASDAQ:GTLB) will be announcing earnings results tomorrow afternoon. Here’s what to expect.
GitLab beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $182.6 million, up 30.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
Is GitLab a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting GitLab’s revenue to grow 25.8% year on year to $188.3 million, slowing from the 32.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. GitLab has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.9% on average.
Looking at GitLab’s peers in the software development segment, some have already reported their Q3 results, giving us a hint as to what we can expect. JFrog delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 3.3%, and Bandwidth reported revenues up 27.5%, topping estimates by 6.5%. JFrog traded down 5.6% following the results while Bandwidth’s stock price was unchanged.
Read our full analysis of JFrog’s results here and Bandwidth’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 16.8% on average over the last month. GitLab is up 16.3% during the same time and is heading into earnings with an average analyst price target of $67.37 (compared to the current share price of $65.60).
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