DevOps specialist GitLab Inc. (GTLB) is set to open 10% higher this morning after the company reported a strong third quarter for 2024, with a notable 31% increase in revenue year-over-year to $196 million. The company exceeded its revenue and profitability guidance, achieving a non-GAAP operating margin of 13.2%, and reported significant growth in its SaaS revenue and customer base.
GitLab also raised its guidance for the full fiscal year, with the company forecasting adjusted earnings between $0.63 and $0.64 per share, well above the prior range of $0.45 to $0.47. Management hiked its full-year revenue forecast to a range between $753 million and $754 million, compared to previous guidance for $742 million to $744 million.
The software company also said that Bill Staples will take the reins as its new CEO, replacing Sid Sijbrandij, who will transition to the executive chairman role.
Bullish analysts have rushed to raise their price targets on GTLB after earnings, with multiple firms - including KeyBanc, RBC Capital, and Mizuho - all hiking their estimates to $80. RBC analysts led by Matthew Hedberg called GitLab “a favorite growth idea,” and expect a “seamless transition” under new CEO Staples.
GLTB is on pace to challenge its July highs around $75, thanks to today’s pre-market gains. Heading into the Q3 earnings report, options traders were watching this level closely; the Dec. 6 75-strike call is the site of peak open interest for this week’s expiration.
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