GitLab (GTLB, Financial) has successfully obtained the Authority to Operate at a Moderate impact level from the Federal Risk and Authorization Management Program (FedRAMP). This achievement was made possible with the backing of the General Services Administration. FedRAMP establishes a unified method for deploying secure and compliant cloud-based products and services throughout the federal landscape.
In earning this authorization, GitLab undertook a comprehensive evaluation that required adherence to rigorous standards, which involved implementing essential security measures, undergoing regular audits, and maintaining continuous oversight. The FedRAMP-approved GitLab Dedicated for Government offers a robust DevSecOps platform that combines features such as data residency, system isolation, and private networking to ensure essential security and compliance demands are met.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 26 analysts, the average target price for GitLab Inc (GTLB, Financial) is $73.01 with a high estimate of $90.00 and a low estimate of $45.00. The average target implies an upside of 49.15% from the current price of $48.95. More detailed estimate data can be found on the GitLab Inc (GTLB) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, GitLab Inc's (GTLB, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for GitLab Inc (GTLB, Financial) in one year is $94.83, suggesting a upside of 93.73% from the current price of $48.95. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the GitLab Inc (GTLB) Summary page.
GTLB Key Business Developments
Release Date: March 03, 2025
- Revenue: $211.4 million for Q4, a 29% increase year over year.
- Non-GAAP Operating Margin: 17.7% for Q4, an increase of 960 basis points year over year.
- Non-GAAP Gross Margin: 91% for Q4.
- Adjusted Free Cash Flow: $62.1 million for Q4, compared to $24.5 million in the prior-year period.
- Dollar-Based Net Retention Rate (DBNRR): 123% for Q4.
- Total RPO: $945 million, a 40% increase year over year.
- CRPO: $579.2 million, a 35% increase year over year.
- Customers with ARR of $100,000+: 1,229, a 29% increase year over year.
- Full Year FY25 Revenue: $759.2 million, a 31% increase year over year.
- Full Year FY25 Non-GAAP Operating Margin: 10.2%, an increase of 1,050 basis points year over year.
- Full Year FY25 Adjusted Free Cash Flow: $120 million, a 259% increase.
- Guidance for Q1 FY26 Revenue: $212 million to $213 million, representing 25% to 26% growth year over year.
- Guidance for Full Year FY26 Revenue: $936 million to $942 million, approximately 24% growth year over year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- GitLab Inc (GTLB, Financial) reported a 29% year-over-year increase in fourth-quarter revenue, reaching $211 million, surpassing expectations.
- The company's non-GAAP operating margin improved significantly, reaching 18%, an increase of 960 basis points year over year.
- GitLab Inc (GTLB) saw strong adoption of its Ultimate product, which now accounts for 50% of total ARR, driven by its security and compliance features.
- The company experienced a record quarter for net adds of customers with over $100,000 in ARR, indicating strong enterprise demand.
- GitLab Inc (GTLB) reported a 90% year-over-year growth in its Dedicated offering, highlighting its competitive advantage in providing single-tenant SaaS solutions.
Negative Points
- Despite strong results, the guidance for FY26 reflects a slower growth rate of approximately 24% year over year, indicating potential challenges in maintaining high growth.
- The company faces increasing competition in the AI and code generation market, with notable competitors like GitHub Copilot and standalone tools like Cursor.
- GitLab Inc (GTLB) is still navigating typical growing pains of a public company, with a desire to scale faster and reduce friction.
- The macroeconomic environment remains cautious, which could impact customer spending and growth prospects.
- The company's joint venture in China, JiHu, continues to incur expenses, with $18 million forecasted for FY26, compared to $13 million last year, without a clear timeline for deconsolidation.
