GitLab experienced a significant after-hours plunge of 8.58% on Tuesday following the release of its fourth-quarter financial results.
The company reported strong Q4 performance, with non-GAAP earnings per share of $0.31 beating the consensus estimate of $0.23, and revenue of $260.4 million surpassing the expected $252.2 million. GitLab also announced a new $400 million share repurchase program authorized by its board.
However, investor sentiment turned negative as the company's guidance for fiscal year 2027 fell short of analyst expectations. GitLab projected adjusted EPS in the range of $0.76 to $0.80, below the consensus estimate of approximately $1.03 to $1.05, and revenue guidance of $1.10 billion to $1.12 billion, which also missed the expected $1.12 billion to $1.13 billion range.