Shares in GitLab Inc. rose more than 5% in extended trading today after the DevOps company reported better-than-expected earnings and revenue in its most recent quarter.

For the quarter that ended July 31, GitLab reported adjusted earnings of a penny per share, up from a loss of 15 cents per share in the same quarter of last year, on revenue of $139.6 million, up 38% year-over-year. Both were beats, as analysts had expected a loss of four cents per share on revenue of $138.11 million.

As of the end of the quarter, GitLab had 7,815 base customers, including 810 customers with a turnover in excess of $100,000, up 37% year-over-year. Total users of GitLab’s platform passed 30 million users, with more than 50% of Fortune 100 now GitLab customers. The company’s revenue run rate sat at $558 million as of the end of July and its dollar-based net retention rate was 124%, meaning it’s getting significantly more business from existing customers.

Highlights in the quarter included the release in May of GitLab 16.0, which included enhanced Value Streams dashboards and improvements to artificial intelligence-powered code suggestions. The enhanced AI-powered workloads are said to strengthen software supply chain security and help customers meet complex compliance and regulatory needs.

“GitLab’s strong quarter is a result of our focus on creating a differentiated and innovative DevSecOps platform and executing on a strong go-to-market motion,” co-founder and Chief Executive Sid Sijbrandij said in the company’s earnings release. “We believe that our rapid pace of product innovation and strong customer demand position us to capture a greater share of the estimated $40 billion total addressable market opportunity.”

For its fiscal third quarter, GitLab said that it expects an adjusted loss of a penny to two cents per share on revenue of $140 million to $141 million. Analysts were expecting a loss of four cents per share on revenue of $138.11 million.

For its full fiscal year, the company expects an adjusted loss of five to eight cents per share on revenue of $555 million to $557 million, both better than an expected loss of 14 cents per share on revenue of $542.8 million.

Image: GitLab