On December 4, 2023, GitLab Inc (GTLB, Financial) released its 8-K filing, detailing its financial results for the third quarter of fiscal year 2024, which ended on October 31, 2023. The company, known for its comprehensive DevSecOps platform, reported a substantial year-over-year revenue increase, signaling strong business momentum and market adoption of its integrated platform.
Financial Performance Overview
GitLab Inc (GTLB, Financial) reported a total revenue of $149.7 million for the third quarter, marking a 32% increase from the same period in the previous fiscal year. The GAAP operating margin stood at (27)%, while the non-GAAP operating margin was reported at 3%. The GAAP net loss per share was $(1.84), but the company achieved a non-GAAP net income per share of $0.09.
Income Statement and Balance Sheet Highlights
The company's GAAP gross margin improved to 90% from 87% year-over-year, and the non-GAAP gross margin increased to 91% from 89%. GitLab Inc (GTLB, Financial) managed to reduce its GAAP operating loss to $40.3 million, down from $57.0 million in the prior year. The non-GAAP operating income was $4.7 million, a significant improvement from a non-GAAP operating loss of $21.6 million in the third quarter of the previous fiscal year.
The balance sheet shows GitLab Inc (GTLB, Financial) with $285.3 million in cash and cash equivalents and $704.3 million in short-term investments. Total assets amounted to $1.23 billion, while total liabilities and stockholders' equity stood at $1.23 billion, indicating a balanced financial position.
Customer Growth and Product Development
GitLab Inc (GTLB, Financial) experienced robust customer growth, with customers contributing more than $5,000 in Annual Recurring Revenue (ARR) increasing to 8,175, a 26% rise from the previous year. Customers with more than $100,000 in ARR grew by 37% to 874. The Dollar-Based Net Retention Rate was a healthy 128% for the quarter.
Product development highlights included updates to GitLab Duo, the company's suite of AI capabilities, and the launch of a new self-serve portal to enhance the customer onboarding experience. GitLab Inc (GTLB, Financial) also received recognition as the 2023 Google Cloud Technology Partner of the Year for DevOps, Application Development.
Forward Outlook
For the fourth quarter and fiscal year 2024, GitLab Inc (GTLB, Financial) expects revenue to be between $157.0 million to $158.0 million and $573.0 million to $574.0 million, respectively. The company anticipates non-GAAP operating income to be in the range of $5.0 million to $6.0 million for Q4 and a non-GAAP operating loss of $(10.0) million to $(9.0) million for the full fiscal year. Non-GAAP net income per share is estimated to be between $0.08 to $0.09 for Q4 and $0.12 to $0.13 for FY 2024.
GitLab Inc (GTLB, Financial) continues to demonstrate financial resilience and strategic growth in a competitive market. The company's focus on expanding its customer base and enhancing its DevSecOps platform has yielded positive results, as evidenced by the improved non-GAAP operating income and sustained revenue growth. Investors and stakeholders can anticipate GitLab's continued investment in key product areas and its commitment to responsible growth as it moves forward.
For a more detailed analysis and further information, readers are encouraged to review the full earnings report and financial statements.
Explore the complete 8-K earnings release (here) from GitLab Inc for further details.
