GitLab exceeded sales and earnings expectations, but forward guidance caused stock sell-off

From Yahoo Finance: 2025-06-11 10:49:00

GitLab exceeded sales and earnings expectations in its fiscal Q1 report, but its forward guidance led to a stock sell-off. The company’s revenue grew by 26.8% year over year, driven by increased spending from existing and new clients. Despite strong performance, adjusted gross margin slipped to 90%. For Q2, GitLab forecasts earnings per share between $0.16 and $0.17 on sales of $226 million to $227 million. The company’s full-year guidance for adjusted earnings per share is between $0.74 and $0.75, outperforming Wall Street’s expectations. Despite the stock’s recent decline, long-term investors may see this as a buying opportunity.

Read more: Why GitLab Stock Is Plummeting Today