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GitLab GTLB is set to release its fourth-quarter fiscal 2025 results on March 3, 2025.
The company anticipates fourth-quarter fiscal 2025 revenues between $205 million and $206 million, indicating 25-26% year-over-year growth. Non-GAAP earnings per share are anticipated to be between 22 cents and 23 cents.
The Zacks Consensus Estimate for revenues is pegged at $205.64 million, indicating an increase of 25.56% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 23 cents per share over the past 30 days, indicating growth of 53.33% from the year-ago quarter's reported figure.
GitLab Inc. Price and EPS Surprise
GitLab Inc. price-eps-surprise | GitLab Inc. Quote
The company beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 89.06%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Let us see how things might have shaped before the announcement.
Key Factors to Note Ahead of GTLB’s Q4 Earnings
GitLab’s fourth-quarter performance is expected to have benefited from the continued integration of AI capabilities into its platform. By embedding advanced AI-driven features, the company aims to enhance automation and improve developer productivity. These innovations are likely to have contributed to attracting new customers and strengthening retention in the to-be-reported quarter.
GitLab Duo Pro and Enterprise have continued to gain momentum, helping customers to increase productivity and save time. Furthermore, the bundled offering with Amazon Q has significantly improved developer efficiency. This initiative is expected to have strengthened its fourth-quarter fiscal 2025 results, reinforced competitive position and driven growth in the rapidly evolving AI market.
By adapting to the evolving needs of enterprise clients, GitLab has focused on expanding its presence, strengthening customer relationships and driving greater adoption. This strategic approach is expected to have driven higher annual recurring revenues and supported sustained growth in the quarter under review.
In the third quarter of fiscal 2025, GitLab's SaaS offerings contributed 29% of total revenues, growing 44% year over year, highlighting strong adoption of its cloud solutions. A key milestone was the launch of GitLab Advanced SaaS and the strong momentum of GitLab Ultimate. This growth is expected to benefit fiscal fourth-quarter results, driven by the growing demand for cloud-based DevSecOps solutions.
However, GitLab's cash flow from operations is likely to have been affected by tax agreements with the U.S. Internal Revenue Service and the Dutch tax authority (Netherlands). As part of these bilateral Advanced Pricing Agreements, the company made a one-time tax payment of $188 million to the Dutch tax authority. Consequently, these negotiations are expected to have impacted GitLab.