NASDAQ$GTLB

GitLab · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

GitLab's Q3 2023 financial results were reported, demonstrating strong revenue growth and improved margins.

GitLab reported a 69% year-over-year increase in revenue, reaching $113.0 million in Q3 2023. The company's dollar-based net retention rate exceeded 130%, and non-GAAP operating margin improved significantly. GitLab also provided guidance for Q4 2023, projecting revenue between $119.0 and $120.0 million.

  • Total revenue reached $113.0 million, up 69% year-over-year.
  • GAAP operating margin was (50)%, while non-GAAP operating margin was (19)%.
  • GAAP net loss per share was $(0.33), and non-GAAP net loss per share was $(0.10).
  • Dollar-Based Net Retention Rate remained above 130%.

Headline financials

Total Revenue

$113M

Previous: $66.8M+69.1%
EPS (adj)

-$0.10

Previous: -$0.34+70.6%
Customers >$5K ARR

6.5K

Previous: 6.5K+0.0%
Customers >$100K ARR

638

Previous: 638+0.0%
Dollar-Based Net Retention Rate

130.0%

Previous: 130.0%+0.0%
Capital Expenditures

-$5.02M

No prior period
Free Cash Flow

-$53.5M

Previous: -$41.2M-29.7%
Net Income

-$48.5M

Previous: -$41.2M-17.5%
Operating Income

-$57M

Previous: -$32.5M-75.0%
Gross Profit

$98.4M

Previous: $59.6M+65.1%
Cash & Equivalents

$372M

Previous: $825M-54.9%
Total Assets

$1.12B

Previous: $1.03B+8.9%
Stock-Based Comp

$33.7M

Previous: $8.58M+292.9%

Revenue & EPS history

GitLab · Revenue · Quarterly

$113M

Q3 2023+69.1%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

GitLab · $113M total across 2 segments · Q3 2023

  • Subscription—self-managed and SaaS
    $98.4M+64.7%
  • License—self-managed and other
    $14.5M+107.0%

Forward guidance

GitLab expects revenue between $119.0 and $120.0 million for the fourth quarter of fiscal year 2023. They also anticipate a non-GAAP operating loss between $(27.0) and $(26.0) million, and a non-GAAP net loss per share between $(0.15) and $(0.14).

Tailwinds

  • Revenue between $119.0 - $120.0 million
  • Non-GAAP operating loss between $(27.0) - $(26.0) million
  • Non-GAAP net loss per share between $(0.15) - $(0.14)
  • Approximately 150 million weighted average shares outstanding as of Q4 FY2023
  • Guidance excludes stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, and equity investment (gain) loss.

Headwinds

  • Non-GAAP operating loss is still expected
  • Non-GAAP net loss per share is still expected
  • Actual results may differ materially as a result of many factors
  • These are forward-looking statements
  • A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+2.6%

Avg return

Earnings day

+5.4%

Avg return

5 days after

+1.6%

Avg return

30 days after

52%

12 / 23 earnings

Positive

+37.7%

Q1 2024

Best reaction

-23.4%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-7.2%-7.9%-15.5%
Q3 2026-12.8%-9.9%-16.6%
Q2 2026-7.3%+2.7%+0.0%
Q1 2026-0.1%+2.7%+2.3%
Q4 2025+11.6%+0.2%-24.4%
Q3 2025+0.9%-7.5%-10.2%
Q2 2025+14.7%+12.0%+2.9%
Q1 2025-5.2%-7.6%+12.7%
Q4 2024-19.7%-21.3%-22.9%
Q3 2024+12.4%+12.8%+11.2%
Q2 2024+1.7%+6.5%-9.4%
Q1 2024+37.7%+39.9%+50.3%
Q4 2023-23.4%-16.8%-23.6%
Q3 2023+1.6%+12.4%+3.1%
Q2 2022+16.6%+30.2%+12.1%
Q2 2023+12.1%+20.0%+17.5%
Q1 2022+26.4%+12.8%+48.3%
Q1 2023+24.6%+9.8%+36.8%
Q1 2020-7.1%+2.0%-15.0%
Q4 2022+0.5%+76.9%+43.3%
Q4 2021-5.4%-15.9%-21.6%
Q3 2021-5.4%-15.9%-21.6%
Q3 2022-7.1%-14.8%-21.7%
Q2 2021
Q1 2021

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