Shares of GitLab (NASDAQ: GTLB) were up 13.5% as of 11:50 a.m. ET Tuesday after the software development, security, and operations (DevSecOps) platform provider announced strong third-quarter 2023 results.
For its third quarter ended Oct. 31, 2023, GitLab's revenue grew 32% year over year to $149.7 million, translating to adjusted (non-GAAP) net income of $14.4 million, or $0.09 per share. Analysts, on average, were expecting a net loss of $0.01 per share on revenue of $141 million.
GitLab saw strong adoption from both small and large clients alike. The number of customers generating at least $5,000 of annual recurring revenue (ARR) increased 26% year over year, to 8,175, while the number generating over $100,000 of ARR grew 37% to 874. GitLab's dollar-based net retention rate (DBNRR) also expanded by 4 percentage points sequentially, to 128%, meaning existing customers spent an average of 28% more on GitLab's solutions after their first year.
Source Fool.com