In mid-March 2023, open-core DevOps software company GitLab released its full-year guidance for fiscal year 2024, sending the company’s stock plummeting and losing as much as 38% in extended trading. Despite exceeding some expectations, the company’s 58% year-over-year revenue increase was not enough to assuage investors’ worries about its future. For the first quarter of fiscal year 2024, the company is anticipating a loss of between 14 and 15 cents per share on revenue of just $117 million to $118 million, while Wall Street is looking for a larger loss — 16 cents per share on revenue of $126.2 million.
For the coming FY24, GitLab anticipates an adjusted loss of 24 cents to 29 cents per share and $529 million to $533 million in revenue, which would represent 25% growth at the middle of the range. Analysts polled by financial market data firm Refinitiv predicted an adjusted loss of 54 cents per share and $586.4 million in revenue. Shareholders seem to have balked on these numbers, portending a slowdown in the previously quickly-growing company.
The tech industry has experienced widespread disorder in the last year, and GitLab has been among those making significant changes in response. Recently, the company announced a 7% reduction in staff and an impending increase in the price of its premium subscription from $19 to $29 per month.