GitLab 1Q25: Solid Beat, Bullish AI Outlook, but Valuation Remains Rich

Jun 4, 2024

GitLab reported strong 1Q25 results, with revenue and profitability exceeding estimates driven by Ultimate tier adoption and margin expansion.

The company raised its fiscal 2025 outlook, absorbing SSP headwinds, and highlighted growing momentum in its AI offerings. However, billings growth slightly missed expectations at 21% YoY.

At current valuation (EV/ Sales 2025e of 10x) it is maybe not enough to push the stock higher….

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ABCD Tech Investing

GitLab 1Q25: Solid Beat, Bullish AI Outlook, but Valuation Remains Rich