GitLab Inc. (NASDAQ: GTLB) is scheduled to report its fourth quarter and full fiscal year 2025 financial results on Monday, March 3, 2025, after U.S. markets close. The company will host a conference call and webcast on the same day at 4:30 p.m. EST / 1:30 p.m. PST to discuss the financial results.
The consensus among Wall Street analysts is a "moderate buy" rating for GitLab stock.
In this analysis, we examine GitLab (NASDAQ:GTLB) from both fundamental and technical perspectives.
GitLab Inc. is a company that operates and develops GitLab, an open-core DevSecOps software platform for developing, securing, and operating software. Founded in 2014, GitLab started as an open-source project in 2011 by Ukrainian developer Dmytro Zaporozhets and Dutch developer Sytse Sijbrandij.
Key Information
Headquarters: San Francisco, California, United States
Founded: 2011 (project), 2014 (company)
Employees: 1001-5000 across 6 continents
Industry: IT Services and IT Consulting
Stock Symbol: GTLB (NASDAQ)
Product and Services
GitLab offers a comprehensive AI-powered DevSecOps platform that enables organizations to:
Increase developer productivity
Improve operational efficiency
Reduce security and compliance risk
Accelerate digital transformation
The platform includes features such as distributed version control, access control, bug tracking, task management, and wikis for every project.
Company Growth and Adoption
Over 40 million registered users, including 1 million active licensed users
More than 50% of Fortune 100 companies use GitLab
Went public on NASDAQ in October 2021
Remote Work Culture
GitLab is known as one of the largest all-remote companies globally, with team members in over 65 countries. The company has been a pioneer in promoting remote work practices and even released guides on all-remote work during the COVID-19 pandemic.
Recent Developments
In May 2023, GitLab launched "GitLab 16.0," an AI-driven DevSecOps solution with over 55 new features
As of July 2024, GitLab was reportedly exploring a potential sale after attracting acquisition interest. GitLab continues to evolve its platform, focusing on AI-powered solutions to help organizations ship better, more secure software faster.
Potential sale
As of March 2025, GitLab Inc. has not been sold, but there were reports in July 2024 about the company exploring a potential sale. Here are the key details:
In July 2024, GitLab was reportedly considering a sale after attracting acquisition interest from several companies.
The company, valued at approximately $8 billion at the time, was working with investment bankers to oversee the sale process.
Cloud monitoring firm Datadog was mentioned as one of the interested parties. Other potential acquirers mentioned include Google's parent company Alphabet, which already owns a 22% stake in GitLab.
GitLab's consideration of a sale came amid a surge in tech sector deal-making, driven by advancements in AI and cloud computing.
Despite the sale rumors, GitLab continued to operate independently and report its financial results. In December 2024, the company announced its Q3 FY2025 results, with revenue reaching $196 million, a 31% year-over-year increase.
As of the latest available information, no sale has been confirmed, and GitLab remains a publicly traded company on NASDAQ under the ticker GTLB.
It's worth noting that the situation may have evolved since these reports, and as of March 2025, GitLab is still scheduled to announce its Q4 and full fiscal year 2025 results on March 3, 2025.
Fundamental Analysis of GTLB
GitLab Inc. has demonstrated strong financial performance and growth in recent quarters. Here's a fundamental analysis of the company based on its latest financial results and key metrics:
Revenue Growth
GitLab has shown consistent revenue growth:
Q3 FY 2025 revenue reached $196.0 million, up 31% year-over-year.
Total revenue for FY 2024 was $546.2 million, representing a 36% year-over-year growth.
The company's subscription revenue, which accounts for 88.7% of total revenue, grew 41% year-over-year in FY 2024.
Profitability
GitLab has been improving its profitability metrics:
Q3 FY 2025 non-GAAP operating margin reached 13%, up from 3% in the same quarter last year.
Non-GAAP net income for Q3 FY 2025 was $39.1 million, compared to $14.4 million in Q3 FY 2024.
The company reported a GAAP net income of $29.6 million in Q3 FY 2025, a significant improvement from a net loss of $285.2 million in the same period last year.
Customer Growth and Retention
Enterprise customer count expanded to 7,165 customers.
Net dollar retention rate remained strong at 130%.
Financial Health
GitLab's balance sheet appears strong:
As of December 31, 2024, the company had $916.97 million in cash.
Total assets were $1.25 billion, with total liabilities of $482.42 million.
The company has no debt, resulting in a 0% debt-to-equity ratio.
Market Position and Growth Drivers
GitLab's AI-powered DevSecOps platform is driving demand and customer adoption.
The company's end-to-end platform approach addresses customers' needs for faster and more secure software development
Future Outlook
For Q4 FY 2025, GitLab expects:
Revenue between $205.0 million and $206.0 million.
Non-GAAP operating income between $28.0 million and $29.0 million.
Non-GAAP diluted net income per share between $0.22 and $0.23.
For the full FY 2025, the company projects:
Revenue between $753 million and $754 million.
Non-GAAP operating income between $69 million and $70 million.
Non-GAAP diluted net income per share between $0.63 and $0.64.
GitLab's strong revenue growth, improving profitability, solid customer retention, and healthy balance sheet indicate a positive fundamental outlook. The company's focus on AI-powered solutions and platform approach positions it well for continued growth in the DevSecOps market.
Technical Analysis of GTLB
GitLab (GTLB) stock is currently showing mixed technical signals, with a slight bearish bias. The stock closed at $60.21 on February 28, 2025, which is in the middle of its 52-week range of $40.72 to $76.41.
Daily Chart
Weekly Chart
Moving Averages
Short-term moving averages indicate a sell signal, with the stock price below both the 8-day and 20-day SMAs, it generally indicates a short-term downtrend or bearish sentiment for the stock.
The 50-day EMA at $58.05 is below the current price, it generally indicates a bullish trend in the market.
Longer-term moving averages present a bullish picture, with the 100-day and 200-day SMAs below the current price.
Oscillators and Momentum
The Relative Strength Index (RSI) (14,70,30)
Daily: 37.74, indicates that the asset is approaching oversold territory, but has not yet reached the traditional oversold threshold. It is generally considered bearish, but not extremely so.
Weekly: 2.887, indicates a nearly neutral market condition, with a slight bearish bias.
The Moving Average Convergence Divergence (MACD) (12,6,9)
Daily: -1.167, generating a sell signal and indicates bearish momentum.
Weekly: 2.887, by itself doesn't provide enough context for a complete interpretation; it is above zero, which is generally considered bullish.
The Commodity Channel Index (CCI) (14,-100,100)
Daily: -110.43, suggests a potential buy signal, indicating oversold conditions, indicates a strong bearish trend.
Weekly: -52.83, indicates a bearish sentiment in the market, but it's not yet in extreme territory.
Price Action and Volatility
The stock is trading below its lower Bollinger Band, which could indicate oversold conditions but also continued weakness.
Recent price action shows a downtrend in the short and intermediate terms.