Gitlab lifts guidance as Q2 results top estimates amid margin expansion

Investing.com -- Gitlab lifted its annual guidance after reporting Tuesday better-than-expected results, as a flurry of deals and a jump in margins boosted performance. 

Gitlab Inc (NASDAQ:GTLB) was up more than 12% in afterhours trade following the results.

For fiscal 2024, the company now expects adjusted EPS between $0.45 and $0.47 up from prior guidance for adjusted EPS of $0.34 to $0.37. Revenue is expected in a range of $742 million to $744M, from $733M to $737M previously. 

The company reported Q2 adjusted earnings of $0.15 a share on revenue of $182.6M, beating Wall Street estimates for $0.10 on revenue of $176.9M.

Current remaining performance obligation, or cRPO, a key metric that measures subscription backlog expected to be recognized over the next 12 months, was $475.0B, up 42% compared to the second quarter of fiscal 2024.

"We delivered another quarter of better than 30% top-line growth and significant year-over-year operating margin expansion," the company said, as non-gaap margin swung to 22% in Q2 from negative 3% in the prior-year period.

Looking ahead of Q3, the company guided adjusted EPS in a range of $0.15 to $0.16 on revenue of $187M to $188M, compared with analyst estimates for $0.11 and $187M.