Shares of GitLab (GTLB) fell sharply Wednesday, a day after the software-development platform provider posted a wider-than-expected net loss and soft revenue outlook.

The San Francisco, Calif.-based firm on Tuesday reported fiscal 2026 first-quarter adjusted earnings per share of $0.17 on revenue that surged 27% year-over-year to $214.5 million. Analysts surveyed by Visible Alpha had expected $0.15 and $213 million, respectively.

However, GitLab posted a GAAP loss of $35.9 million, or $0.22 per share, wider than the loss of $23 million, or $0.14 per share, expected by analysts.

GitLab expects second-quarter revenue of $226 million to $227 million and full-year revenue of $936 million to $942 million. The midpoints of both were marginally above Visible Alpha consensus, but may have disappointed some investors.

GitLab shares sank 10% in recent trading, leaving them down about 22% this year.

Read the original article on Investopedia