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GitLab Inc. (GTLB) reported a 25% year-over-year revenue increase in Q3, but its stock declined after issuing conservative Q4 guidance. The company cited softness in the small-to-medium business (SMB) market and US public sector deal delays as primary headwinds. In a major strategic shift, GitLab is preparing to launch its Duo Agent platform with a hybrid seat-plus-usage pricing model to capitalize on increased platform activity driven by AI.
GitLab shares fell 16% despite reporting third-quarter revenue that surpassed analyst expectations. The sharp decline was driven by the company's decision to lower its forward-looking guidance for fiscal year 2026, signaling investor concern over future growth.