Mid-cap software company GitLab is gitting wrecked after hours despite beating estimates. đŽ
It reported an adjusted loss per share of $0.03, while analysts expected a $0.14 loss. Revenues of $122.9 million also beat the $119.6 million expected.
So, they beat expectations. Why is it falling after hours? The company’s first-quarter and full-year revenue guidance was well below the consensus view. It now expects revenues of $529 to $533 million, while the consensus view was $586.4 million. đģ
However, its earnings per share forecasts did beat as its cost-cutting efforts drive results.
The company announced it will raise the price of its premium service tier from $19 to $29 per month in April. But it’s going to need more than that if it’s going to reaccelerate revenue growth.
Overall, the growth slowdown remains the key issue for investors. $GTLB shares have lost a third of their value after hours, trading at a fresh all-time low. đą