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GitLab Shares Drop By Over 38% After Disappointing Forecast


  • GitLab shares dropped by over 38% after it announced disappointing projections for the future.
  • Despite beating analysts’ expectations with a 58% YoY revenue growth in the quarter that ended in January 2023, GitLab’s projections for its fiscal first quarter and 2024 fiscal year were lower than expected.
  • The company had also let go of 7% of its workers in February 2023, and its shares had dropped by more than 27% in the past six months.


Open source software company GitLab saw its shares price dropped by more than 38% after it gave disappointing projections for its future.


The freemium platform was founded by Ukrainian developer Dmitriy Zaporozhets and Dutch developer Sytse Sijbrandij and launched in 2014.


In its recent call, the company announced that its revenue grew by 58% year over year in the quarter that ended in January 2023. This beat analysts expectations of $119.6 million by $3.3 million.


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However, it called for loss adjustment of 14 cents to 15 cents per share on $117 million to $118 million in revenue in its fiscal first quarter. And for its 2024 fiscal year, GitLab projects an adjusted loss of 24 cents to 29 cents per share and $529 million to $533 million in revenue.


Meanwhile, analysts had expected an adjusted loss of 16 cents per share and revenue of $126.2 million for its fiscal first quarter and 54 cents per share and $586.4 million in revenue for 2024 fiscal year.


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GitLab had secured an IPO and debuted on Nasdaq in 2021 with a growth of 69% but the euphoria surrounding the moment died down quickly as its stock fell by 48% in 2022 due to the harsh economic climate in the tech industry.


With more than 1,630 employees, as of January 2022, all working remotely, GitLab still had to let go of 7% (or 130) of its workers in February 2023. In the past six months, the company has suffered a share drop of more than 27%.


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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.