Shares of Gitlab (NASDAQ:GTLB) slipped in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at $0.03, which beat analysts’ consensus estimate of -$0.04 per share.
Sales increased by 33.3% year-over-year, with revenue hitting $169.19 million. This beat analysts’ expectations by $3.1 million. Revenue growth was primarily driven by an increase in large customers. Indeed, the number of clients that are providing over $5,000 of annual recurring revenue (ARR) jumped 21% year-over-year to 8,976. When looking at customers with over $100,000 of ARR, this cohort grew by 35% to 1,025.
Looking forward, management now expects revenue and adjusted earnings per share for FY 2025 to be in the ranges of $733 million to $737 million and $0.34 to $0.37, respectively. For reference, analysts were expecting $734.3 million in revenue along with an adjusted EPS of $0.24.
Insiders Are Negative on GTLB Stock
When looking at insider activity, there seems to be more selling than buying. In fact, insiders have sold $527,800 worth of shares in the past three months. As a result, confidence from within appears to be low, as the Insider Confidence Signal for GTLB stock is Negative and below the sector average, as shown in the picture below:
Is GTLB a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GTLB stock based on 19 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 33% rally in its share price over the past year, the average GTLB price target of $71.30 per share implies 52.06% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
