Why GitLab Stock Soared After Earnings
Shares of GitLab (NASDAQ: GTLB) were up 23.7% as of 10:56 a.m. ET on Tuesday after the company announced better-than-expected results for the fiscal first quarter, ending in April. Revenue grew 75% year over year, while adjusted net loss per share narrowed from $0.44 in the year-ago quarter to $0.18 this year.
In a press release, CEO Sid Sijbrandij said: "We have seen a substantial shift in how enterprises are developing, operating, and securing software by moving to a platform strategy. As a result, our One DevOps Platform is gaining momentum and broader adoption."
Year to date, software-as-a-service (SaaS) stocks have been crushed over fears of slowing economic growth. But the market is missing how SaaS companies like GitLab could experience even more demand, as companies try to improve efficiency and productivity amid labor shortages.
Source Fool.com
