GitLab (GTLB, Financial) just lit up Wall Street with a blowout Q3 FY 2025, smashing expectations and fueling a stock rally. Revenue shot up 31% year-over-year to hit $196 million, outpacing analyst predictions of nearly $188 million. Earnings per share? A crisp $0.23, blowing past forecasts by $0.08 and marking a whopping 156% surge. The secret sauce? GitLab's all-in-one DevSecOps platform, which is becoming the go-to for over half of the Fortune 100. Oh, and did we mention that operating margins hit 13%, up from just 3% last year? Investors are clearly paying attention—the stock is up over 8% in premarket trading.
But the big news doesn't stop there. GitLab just upped its full-year guidance to $753–$754 million in revenue and adjusted EPS of $0.63–$0.64, leaving its previous targets in the dust. This kind of confidence comes with good reason: customer growth is on fire, especially for big spenders. Accounts shelling out more than $100K annually jumped 31% year-over-year. And GitLab isn't just resting on its laurels—it's doubling down on innovation with AI-powered upgrades and tighter security features, plus some heavy-hitting partnerships with AWS. Still, not everything's rosy. Cash usage skyrocketed this quarter, signaling a potential speed bump as GitLab chases growth in a crowded field.
Adding to the drama, co-founder and CEO Sid Sijbrandij announced he's stepping down to focus on his cancer treatment, handing the reins to Bill Staples, former CEO of New Relic. While this leadership shake-up adds a layer of uncertainty, it doesn't overshadow GitLab's momentum. Investors are buzzing about how the company's AI and security plays could redefine the DevSecOps space—and keep GitLab charging ahead in 2025 and beyond.
