The chart below shows how GTLB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GTLB sees a +4.23% change in stock price 10 days leading up to the earnings, and a +0.21% change 10 days following the report. On the earnings day itself, the stock moves by -0.61%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Surprise: GitLab Inc. beats earnings expectations with reported EPS of $0.33, exceeding expectations of $0.23.
Strong Revenue Growth: Q4 revenue increased 29% year over year to $211 million, surpassing expectations and demonstrating strong growth.
Improved Operating Margin: Non-GAAP operating margin reached 18%, an increase of 960 basis points year over year, indicating improved operational efficiency.
Leadership Change for Revenue Growth: The appointment of Ian Stewart as the new Chief Revenue Officer is expected to drive further revenue growth and enhance operational capabilities.
Responsible Growth Commitment: The company continues to show commitment to responsible growth while expanding its product offerings, including Ultimate, Dedicated, and GitLab Duo.
Negative
Revenue Growth Below Expectations: Revenue growth of 29% year over year, but still below expectations for some analysts who anticipated higher growth rates.
EPS Beat, Growth Challenges: Despite beating EPS expectations, the company faces challenges in maintaining consistent growth across all product lines.
Leadership Transition Concerns: The transition in leadership with the new CRO may indicate underlying issues with sales strategy or execution that need to be addressed.
Operating Margin Concerns: The non-GAAP operating margin increase of 960 basis points may mask underlying operational inefficiencies that could impact future profitability.
Sustainability of Growth Concerns: Concerns were raised about the sustainability of growth, particularly in light of competitive pressures in the market.
GitLab Inc. (NASDAQ:GTLB) Q4 2025 Earnings Call Transcript
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