06:26 AM EDT, 09/04/2024 (MT Newswires) -- GitLab ( GTLB ) shares jumped early Wednesday as the code-hosting provider lifted its full-year outlook and reported stronger-than-expected fiscal second-quarter results.

The company, which operates the DevSecOps platform, now anticipates per-share adjusted earnings to come in between $0.45 and $0.47 for fiscal 2025, it said late Tuesday. The previous guidance was for adjusted EPS of $0.34 to $0.37, while the current consensus on Capital IQ is for $0.48. The stock spiked 18% in premarket activity.

Revenue is pegged at $742 million to $744 million for the ongoing fiscal year, up from the firm's prior projections of $733 million to $737 million. The Street is looking for revenue of $745.6 million.

"As we enter the second half of fiscal year 2025, I'm confident in our ability to continue to exceed customer expectations and in the opportunity we have with AI to further accelerate tangible business outcomes," Chief Financial Officer Brian Robins said in a statement.

For the three-month period ended July, GitLab's ( GTLB ) adjusted earnings advanced to $0.15 a share from $0.01 the year before, topping the market view for $0.10. Revenue climbed 31% year over year to $182.6 million, surpassing analysts' $177.2 million estimate.

"Results exceeded our expectations as we delivered another quarter of greater than 30% top line growth and significant year-over-year operating margin expansion," Robins said during an earnings call, according to a Capital IQ transcript.

Subscription revenue inclined to $163.2 million from $122.1 million last year, while license sales rose to $19.4 million from $17.5 million in the prior-year quarter. Customers with annual recurring revenue of more than $100,000 rose 33% year over year to 1,076. The company's dollar-based net retention rate was 126% during the quarter. Total remaining performance obligations increased 51% to $747.9 million.

GitLab ( GTLB ) expects adjusted EPS to be in a range of $0.15 to $0.16 and revenue between $187 million to $188 million for the ongoing quarter. The Street currently estimates normalized EPS of $0.16 and revenue of $188.3 million for the period.

Price: 52.21, Change: +7.53, Percent Change: +16.85