Needham Reiterates Hold Rating on GitLab Inc (GTLB)
Needham analyst Mike Cikos reiterated a Hold rating on GitLab Inc (NASDAQ: GTLB).
The analyst comments "GitLab reported a solid quarter with Revenue outperformance better-aligning to management's targeted ~3%-5% upside, in comparison to the skinnier beat last quarter. The company is seeing traction with Ultimate, which (1) accounted for 7 of GitLab's Top 10 deals during 2QFY25; and (2) accounted for more than 65% of dollars invested by GitLab's $100,000-plus ARR cohort in the quarter. Leading indicators such as cRPO growth of 42% and RPO growth of 51% both accelerated. DBNRR of 126% declined 3 points, with ~40% of the growth linked to Seat Expansion (from ~55% last quarter). Management commentary indicated that Churn and Contraction improved to their best levels in the last 8 quarters, where GitLab is seeing strength from the Enterprise segment."
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Shares of GitLab Inc closed at $44.68 yesterday.