GitLab stock has risen 21% in 6 months, fueled by expanding clientele and strong revenue growth.

From Nasdaq: 2025-01-08 11:36:00

GitLab (GTLB) shares have surged 20.6% in the last six months, outperforming the Computer & Technology sector and Internet Software industry. The growth is fueled by expanding clientele and strong adoption of its AI-powered DevSecOps platform.
GitLab outperforms competitors like Microsoft (MSFT) in the DevOps industry. In Q3 FY2025, GitLab reported a 31% YoY revenue increase to $196 million, driven by premium product adoption and increased SaaS usage.
GitLab’s partnership with Google Cloud and AWS is expanding its enterprise customer base. In Q3 FY2025, customers with over $5K ARR increased by 16%, while those with over $100K ARR rose by 31%.
GitLab leverages AI with tools like Duo Pro to enhance developer productivity. It introduced Advanced SAST for Ultimate customers and won contracts in the public sector, boosting its security offerings.
GitLab offers positive guidance for Q4 FY2025, expecting revenues of $205-206 million with non-GAAP EPS of 22-23 cents. For FY2025, revenues are projected at $753-754 million with non-GAAP EPS of 63-64 cents.
Zacks estimates a 25.56% YoY revenue growth in Q4 FY2025 and 215% YoY EPS growth for 2025. GitLab stock is deemed overvalued with a P/S ratio of 10.68X compared to the industry’s 3.10X.
Despite being overvalued, GitLab’s strong portfolio and partnerships justify its premium valuation. The stock carries a Zacks Rank #2 (Buy), indicating potential for investors. GitLab is recommended for accumulation at current levels.

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