Shares of DevOps company GitLab went into orbit in yesterday's extended trading session thanks to quarterly results and guidance that easily beat Wall Street’s expectations. GitLab’s stock had declined more than 7% during the regular trading session to a low of $38.33. However, it quickly ignited on the back of the report, rising more than 20% after-hours.

Gitlab said that revenue in the quarter jumped 69% to $113 million, which beat the consensus of $106 million. Gitlab's net retention rate in the quarter was 130%, showing existing customers increased spending by 30% over the last four quarters, and the number of customers with annual recurring revenue above $100,000 increased by 49%, showing it continued to gain traction with its largest customers.

Gitlab also raised its guidance for the year, calling for revenue of $420.5 million – $421.5 million, or 67% revenue growth. For the fourth quarter, it called for revenue of $119 million-$120 million, or 54% growth at the midpoint, which is even with analyst estimates. On the earnings call, the company also "soft-guided" to the fiscal 2024 analyst consensus at $586.8 million, which represents 42% revenue growth, and said it expected to be free-cash-flow breakeven by fiscal 2025.