What happened
Shares of GitLab (GTLB 6.78%) climbed 7.8% on Tuesday after the software development company delivered strong growth metrics and an optimistic sales forecast for the year ahead.
So what
GitLab's revenue rocketed 69% year over to $77.8 million in its fiscal 2022 fourth quarter, which ended on Jan. 31. The gains were driven by a combination of new customer wins and higher sales to existing clients.
Customers generating more than $5,000, $100,000, and $1 million grew 67%, 74%, and 95%, respectively, compared to the year-ago quarter. Better still, GitLab's dollar-based net retention rate, which measures sales to existing customers during a 12-month period compared to the prior year, checked in at over 152%.
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Still, GitLab is not yet profitable based on generally accepted accounting principles (GAAP). It produced an operating loss of $40.6 million in the fourth quarter.
However, the company's adjusted loss per share, which excludes stock-based compensation and other costs, narrowed to $0.16 from $0.46 in the prior-year period.
Now what
GitLab's DevOps platform combines software development and information technology operations to help companies build, test, and launch applications faster than they otherwise could. Judging by GitLab's impressive customer growth, those benefits are clearly resonating with a growing number of businesses.
Its guidance suggests as much. Management expects the company's revenue to grow by roughly 54% to between $385.5 million and $390.5 million in fiscal 2023.
Chief financial officer Brian Robins said, "We believe we are addressing a large and early-stage market opportunity, and we remain focused on executing to drive sustainable growth and improving profitability over the long term."
