Why is GitLab Inc. (GTLB) stock up 9%?

July 05, 2022 09:13 AM PDT

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Versha Jain

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Versha Jain - Financial Journalist
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Versha is a post-graduate in finance and has vast experience in the retail banking and education sectors. She also holds a keen interest in development work. At Kalkine, she writes on stock markets, companies, equities, and IPOs, etc....
Sanjeeb Baruah

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Sanjeeb Baruah - Financial Journalist
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Sanjeeb is a senior journalist who has been in the media for nearly two decades. He wrote on various topics, from politics, international relations, business to wildlife. At Kalkine, he writes on stock markets, companies, equities, and IPOs, etc....
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Highlights:

GitLab Inc. (NASDAQ: GTLB) offers organizations DevOps, an open-source platform.

Its current market capitalization is US$8.7 billion.

The GTLB stock fell 32.54% YTD and 47.69% in one year.

GitLab Inc. (NASDAQ: GTLB) stock grew 9.03% to US$59.26 at 10:56 am ET on Tuesday.

The California-based technology company works in an all-remote model. GitLab Inc. provides the open-source DevOps platform to deliver software to organizations.

DevOps helps users collaborate and streamline workflows to build and deploy Google cloud applications.

Last month, it was awarded the Google Cloud Partner of the Year award for the second consecutive year for application development.

GitLab, founded in 2014, has around 30 million users and one million active license users worldwide. It is a pioneer in remote work and employs over 1,700 people in 65 countries.

Companies using the GitLab platform can create, deliver, and manage code faster and turn their business vision into reality. As an open-source platform, its community is ever-growing, with thousands of developers and millions of users constantly delivering new DevOps innovations.

Financials:

For the quarter ended April 30, 2022, the company earned a revenue of US$87.4 million compared to US$49.9 million in the previous year.

It booked a net loss attributable to the company of US$26.1 million or US$0.18 per share diluted compared to the net loss of US$27.9 million or US$0.53 per share diluted for the same quarter a year ago.

Its cash and cash equivalents almost remained the same at US$887.5 million as of April 30, 2022, compared to US$884.7 million as of January 31, 2022.

Its current market capitalization is US$8.7 billion. The GTLB stock traded in the range of US$137.00 to US$30.74 in the last 52 weeks.

Bottom line:

The GTLB stock fell 32.54% YTD and 47.69% in one year, while at the same time, the NASDAQ 100 Technology Sector Index declined approximately 34.51% YTD and 27.72% in one year.

The high-interest rate environment has hit the technology sector hard this year. Thus, investors should spend on stocks only after analyzing the companies and the external factors.