Gitlab (NASDAQ:GTLB) is a San Fransisco-based company that develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. Shares of Gitlab have dropped 17% month-over-month as of close on Tuesday, March 5, 2024. That has pushed the stock into negative territory in the year-to-date period. Gitlab stock has been hit hard after its recent earnings release.
The company unveiled its fourth quarter (Q4) and full-year fiscal 2023 earnings on Monday, March 4. In Q4 2023, Gitlab reported total revenue of $163 million, which was up 33% compared to $122 million in the previous year. Moreover, it posted a GAAP operating loss of $34.9 million. That represented an 11% increase from a GAAP operating loss of $46.3 million in Q4 FY2022.
CEO Sid Sijbrandij said that Gitlab had moved to integrate artificial intelligence (AI) through the software development lifecycle. According to Sijbrandij, this will “allow our customers to plan, build, manage, and deliver software more efficiently.” Gitlab’s leadership hopes that this advantage will allow the company to “win the large market opportunity in front of us”.
For the full year, Gitlab delivered total revenue of $579 million – up 37% compared to $424 million for the full year in fiscal 2022. Non-GAAP free cash flow increased 37% to $24.5 million compared to negative free cash flow of $12.8 million.
Looking ahead, the company is projecting fiscal 2025 revenue between $725 million and $731 million and non-GAAP net income per share between $0.19 and $0.23 for the full year. This guidance disappointed traders, resulting in weakness for its shares in the near term.
