CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
GTLB delivered strong Q1 results with revenue of $264.2M (+23% Y/Y) beating consensus by $9.6M and non-GAAP EPS of $0.23 exceeding expectations by $0.03. Non-GAAP operating margin expanded 200 bps to 14%, reflecting meaningful profitability improvement from 12% in the prior year. However, customer metrics showed deceleration with customers above $5K ARR growing 7% Y/Y and those above $100K ARR up 18%, both slower than prior quarter, while dollar-based net retention declined 100 bps sequentially to 117%. Management detailed its restructuring plan involving a 14% workforce reduction of 350 employees and exiting 22 countries, expecting $30-35M in pre-tax charges with $19M anticipated in Q2. The company guided FY 27 revenue of $1,112-1,118M above consensus and non-GAAP EPS of $0.79-0.82, also beating Street estimates. Strong cash generation continued with operating cash flow of $149.2M (+40% Y/Y) and the company repurchased 2.4M shares during the quarter.