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GitLab GTLB shares have jumped 20.6% in the trailing six-month period, outperforming the Zacks Computer & Technology sector’s return of 2.8% and the Zacks Internet Software industry’s appreciation of 12.5%.
The outperformance can be attributed to GTLB’s expanding clientele and solid adoption of its AI-powered DevSecOps platform.
GTLB outperformed its competitor in the DevOps industry, including Microsoft MSFT, which is also making strong efforts through its acquisition of GitHub and continued advancements in cloud computing, AI and software development tools. Microsoft shares have lost 8.1% over the trailing six-month period.
In the third quarter of fiscal 2025, GitLab reported a 31% year-over-year increase in revenues, amounting to $196 million, reflecting robust demand for its platform and solutions. This growth was largely driven by the expanded adoption of its premium products, such as GitLab Ultimate and Duo, as well as increased SaaS adoption.
GTLB Shares Beat Sector, Industry
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GTLB Expands Clientele With Strong DevSecOps Partnerships
GitLab’s prospects ride on an expanding clientele, driven by the strong adoption of its DevSecOps platform.
The company’s rich partner base, which includes cloud platforms like Alphabet’s GOOGL Google Cloud and Amazon AMZN cloud arm Amazon Web Services (“AWS”), is helping GTLB rapidly expand its footprint among large enterprise customers.
In the third quarter of fiscal 2025, customers with more than $5K of Annual Recurring Revenues (ARR) increased 16% year over year to 9,519. Customers with more than $100K of ARR jumped 31% year over year to 1,144. Moreover, the dollar-based Net Retention Rate was 124% in the reported quarter.
In December 2024, GitLab announced an integrated offering with AWS, combining GitLab Duo with Amazon Q to enhance DevSecOps workflows. This collaboration introduces autonomous AI agents to streamline software development, optimize code and improve security, enabling organizations to deliver secure software faster and more efficiently.
Integration of Google Cloud services with GitLab’s DevSecOps platform enhances developer productivity by streamlining authentication, accelerating application deployment and improving the developer experience.
Strong Portfolio Boosts GitLab’s Prospects
GitLab is leveraging AI to boost the potency of its portfolio, with the introduction of AI-powered tools like GitLab Duo Pro and Duo Enterprise. These tools have helped improve developer productivity by offering code generation and assistance, further strengthening GitLab’s position in the developer community.
GitLab expanded its portfolio in the third quarter of fiscal 2025 by announcing the general availability of Advanced SAST for Ultimate customers. By integrating Oxeye technology, GitLab enhanced vulnerability detection in first-party code, making it an even more robust offering for developers seeking security at scale.
The company also gained traction in the public sector, securing contracts with government agencies like the U.S. General Services Administration and providing compliant DevSecOps solutions for sensitive environments.