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GitLab surges 18% on strong Q3 results, increased full-year revenue outlook

GitLab (NASDAQ:GTLB) shares surged nearly 18% in premarket trading on Tuesday as the DevOps software company posted third-quarter results that blew away expectations and raised its revenue forecast for the full-year.

For the period ending October 31, Gitlab (GTLB) said it lost an adjusted 10 cents per share as revenue rose 69.1% year-over-year to $112.98M. Analysts were expecting an adjusted loss of 15 cents per share on $106M.

Gitlab (GTLB), which competes with Microsoft's (MSFT) GitHub, said customers with more than $5,000 worth of annual recurring revenue rose 59% year-over-year to 6,469 and those with more than $100,000 in annual recurring revenue jumped 49% year-over-year to 638.

Looking ahead, Gitlab (GTLB) said it expects fourth-quarter revenue to be between $119M and $120M, with an adjusted loss between 15 and 14 cents per share.

For fiscal 2023, GitLab (GTLB) now expects revenue to be between $420.5 and $421.5M, with adjusted losses between 56 and 55 cents per share.

Last month, hedge fund Tiger Global disclosed that it had exited its stake in GitLab (GTLB) during the third-quarter, while making several other changes to its portfolio.