GitLab Stock Rises on Strong Earnings and Raised Outlook

GitLab shares surged on Wednesday after the software development platform reported second-quarter earnings and revenue that exceeded analyst expectations, driven by strong customer acquisition and accelerating growth in annual recurring revenue. The company also raised its full-year outlook, citing record gross bookings and increased demand for its artificial intelligence-powered tools. The stock jumped in early trading, with one source reporting a 21% premarket increase to $54.53, while another noted a 14% rise to $51.42 during the regular session. The gains came after GitLab announced that its fiscal second-quarter revenue, which ended July 31, rose 21% year over year to $286.3 million. This result surpassed the consensus analyst estimate of $273.1 million. Adjusted earnings per share came in at 24 cents, well above the 18-cent forecast. CEO Bill Staples described the quarter as exceptional, highlighting that the company delivered its largest gross bookings quarter on record. Net annual recurring revenue grew more than 40% year over year, marking the second-highest quarterly growth rate in the last four years.