GitLab Inc (NASDAQ:GTLB) experienced remarkable growth in quarterly revenue, marking a 33% year-over-year surge to $163.8 million.
The company witnessed a substantial improvement in GAAP operating margin, which rose to (21)% from (32)% year-over-year. Moreover, the non-GAAP operating margin turned positive, reaching 8% for the quarter.
Non-GAAP net income per share stood at $0.15, contrasting with a GAAP net loss per share of $(0.23) for the fourth quarter.
Annual Performance and Customer Growth
GitLab achieved a full-year revenue of $579.9 million, demonstrating a notable 37% increase from the previous fiscal year.
The company experienced significant growth in customers across different annual recurring revenue (ARR) thresholds, with ARR exceeding $5,000 (up 23%), $100,000 (up 37%), and $1M (up 52%) from Q4 FY 2023.
Free Cash Flow and Financial Warning
Non-GAAP free cash flow for the fiscal year reached $33.4 million, showcasing a substantial improvement from the previous year.
On March 4, 2024, GitLab Inc (NASDAQ: GTLB) unveiled its 8-K filing, revealing the financial results for its fourth quarter and full fiscal year ending January 31, 2024.
The company, renowned for its all-remote model and comprehensive DevSecOps platform, GitLab, demonstrated substantial growth and enhanced financial performance, particularly in its non-GAAP operating income and revenue.
Financial Performance Overview
GitLab’s fourth-quarter revenue witnessed a significant year-over-year increase, indicating strong demand for its DevSecOps platform. The company maintained a robust GAAP gross margin at 90%, with a non-GAAP gross margin of 92%. The enhancement in operating margins reflects GitLab’s strategic emphasis on efficient scaling and delivering customer value.
For the full fiscal year, GitLab’s revenue growth was impressive at 37%, with a GAAP gross margin consistent with the quarterly performance.
The reduction in non-GAAP operating loss signifies a shift towards sustainable growth. While the GAAP net loss per share widened, primarily due to non-cash expenses, non-GAAP net income per share depicted a positive outcome.
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Strategic Business Highlights
GitLab’s strategic highlights include the introduction of new products and services like GitLab Duo Pro and the Enterprise Agile Planning SKU, aimed at enhancing customer value.
The appointment of a new CTO and recognition in industry awards underscore the company’s commitment to innovation and leadership in the DevSecOps domain.
The company’s customer base expanded notably, with increases observed across various annual recurring revenue (ARR) thresholds. The Dollar-Based Net Retention Rate of 130% in Q4 FY 2024 reflects strong customer satisfaction and expansion.
Future Outlook and Analyst Commentary
Looking forward to the first quarter and full fiscal year 2025, GitLab anticipates continued revenue growth and aims for non-GAAP operating income between $5.0 million and $10.0 million.
GitLab’s financial accomplishments in FY 2024, particularly the positive non-GAAP operating income and robust revenue growth, are pivotal for the company’s long-term strategy in the competitive software industry.
The company’s focus on integrating AI throughout the software development lifecycle positions it favorably to capitalize on the expanding market opportunity.
Investors and analysts can delve into more detailed financial information and participate in the earnings call to discuss the results and future expectations.
GitLab’s commitment to innovation and customer value, coupled with its financial performance, makes it a noteworthy entity in the DevSecOps market.
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Joel Gbolade is a seasoned financial writer with over seven years of experience in freelance content creation. Specializing in the financial niche and stock market, he has crafted engaging content for numerous websites. His background in technology extends to data processing and computer proficiency, enriching his comprehensive skill set in the financial realm.
