GitLab Shares Soar as AI Demand Booms

Jun 01, 2023

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

GitLab

GitLab (GTLB) is the latest tech company with shares that got a big boost from booming demand for artificial intelligence (AI) products.

GitLab's DevSecOps platform helps companies develop, secure, and operate software, and boasted about its potential in the AI market as it reported better-than-expected quarterly results and raised its guidance.

The firm posted a fiscal 2024 first quarter loss of $0.06 per share, less than half the loss anticipated. Revenue jumped 45.2% to $126.9 million.

CEO Sid Sijbrandij said that GitLab continues to focus on incorporating AI throughout its DevSecOps platform, and is "innovating at a fast pace." He said that in the first quarter the company delivered five new AI features, and five more last month.

CFO Brian Robins said with current economic uncertainty, "customers are looking to our AI-powered DevSecOps platform to drive efficiencies, increase productivity, and accelerate their pace of innovation." He added that GitLab is poised to "make the most of the $40 billion total addressable market before us."

The company now sees full-year revenue of $541 million to $543 million, up from the earlier $529 million to $533 million. It expected a per share loss of $0.14 to $0.18 rather than the previous $0.24 to $0.29 loss. In addition, its current quarter sales outlook of $129 million to $130 million exceeded analysts’ forecasts.

Shares of GitLab soared more than 30% in early trading on Tuesday following the news, putting them in positive territory for the year.

YCharts

GitLab. "GitLab Reports First Quarter Fiscal Year 2024 Financial Results."