RBC Capital analysts provided their outlook on GitLab Inc. (NASDAQ:GTLB) ahead of the upcoming Q4/23 earnings announcement next week.
Given challenging macros, the analysts expect limited upside to the results. Q4 job postings were down 19% quarter-over-quarter while thus far in Q1, postings are down 79% quarter-over-quarter.
The analysts said the focus of earnings includes headwinds to the business, an RIF, a Premium-tier price increase, thoughts on Al/GitHub Copilot, and fiscal 2024 guidance.
While the analysts previously reduced their revenue estimates following the RIF, they are now increasing them slightly as they think the price increase likely points to an approximately 40% revenue growth in 2024.
Overall, the analysts remain bullish on the company’s long-term opportunity to consolidate DevSecOps spending. RBC Capital reiterated its Outperform rating but raised its price target to $60 from $50 on higher estimates.