Stock Track | GitLab Plunges 5.22% After-Hours on Workforce Reduction and Lower-Than-Expected Q2 EPS Guidance

Stock Track
06/03

GitLab, Inc. (GTLB) experienced a significant after-hours plunge of 5.22% following the release of its first-quarter fiscal 2027 financial results.

The company reported quarterly earnings and revenue that exceeded analyst expectations. Adjusted earnings per share came in at $0.23, beating the consensus estimate of $0.21, while revenue of $264.2 million surpassed the forecast of $254.6 million.

However, investor sentiment turned negative as GitLab announced a major restructuring plan, including a reduction of its full-time workforce by approximately 14% (350 employees) and an exit from 22 countries to reduce its geographic footprint by about 37%. The company expects to incur pre-tax restructuring charges of $30 million to $35 million. Furthermore, GitLab's guidance for the second quarter projected adjusted EPS in the range of $0.17 to $0.18, which fell short of the consensus estimate of $0.19, contributing to the stock's decline in the extended trading session.

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