GitLab stock declines even as first results as public company top Street view

GitLab Inc. shares pulled back in the extended session Monday after the DevOps software company's first results as a public company and outlook topped Wall Street expectations.

GitLab $(GTLB)$ shares declined 6.98% after hours, following a 1.3% rise in the regular session to close at $89.16. Shares closed up nearly 16% from their initial public offering price of $77 back in mid-October.

The company reported a third-quarter loss of $41.2 million, or 62 cents a share, compared with $28.6 million, or 57 cents a share, in the year-ago period. The adjusted loss, which excludes stock-based compensation expenses and other items, was 34 cents a share, compared with 44 cents a share in the year-ago period.

Revenue rose to $66.8 million to $42.2 million in the year-ago quarter.

Analysts surveyed by FactSet had forecast a loss of 48 cents a share on revenue of $59.3 million.

"Customers use GitLab for their most immediate needs and then expand usage over time," said Sid Sijbrandij, GitLab chief executive, in a statement. "This enables them to quickly modernize their software development to meet the demands of digital acceleration. As we look to the fourth quarter and fiscal 2023, we see continued strong momentum toward our large addressable market."

GitLab forecast a loss of 26 cents to 25 cents a share on revenue of $69.5 million to $70.5 million for the fourth quarter, and $1.43 to $1.42 a share on revenue of $244 million to $245 million for the year.

Analysts had estimated a loss of 27 cents a share on revenue of $63.9 million for the fourth quarter, and $1.52 a share on revenue of $231.2 million for the year.