Gitlab  Shares soared 31% on Tuesday after the code-deployment software provider reported a loss that was less than analysts expected, while also reporting an improved full-year forecast.

The stock enjoyed its best day since GitLab’s 2021 Nasdaq debut. That’s still down about 65% from its peak in November that year, the month tech stocks hit record highs. After that, investors started pulling money out of riskier assets due to concerns about slowing growth and rising interest rates.

GitLab said revenue for the first quarter of the fiscal year ended April 30 jumped 45% to $126.9 million from $87.4 million a year earlier. The company reported an adjusted loss of 6 cents per share. statement, Analysts polled by Refinitiv had expected sales of $117.8 million and an adjusted loss of 14 cents per share.

GitLab’s net loss widened to $52.9 million from $26.6 million in the year-ago quarter.

For the 2024 fiscal year, GitLab sees an adjusted loss per share of 14 cents to 18 cents on revenue of $541 million to $543 million. Analysts had expected an adjusted loss of 26 cents per share and sales of $532.6 million. In March, GitLab called for an adjusted per-share loss of 24 cents to 29 cents on revenue of $529 million to $533 million.

During the quarter, GitLab raised Its premium tier costs from $19 to $29 per user per month.

“To date, customer churn is unchanged for premium customers who renewed in April,” Brian Robbins, head of finance at GitLab, said on Monday’s call with analysts. He said average annual recurring revenue per customer “grew in line with our expectations.”

GitLab CEO Sid Sijbrandij said more revenue could come from the generative artificial intelligence add-on, which would cost $9 per user per month on annual billing.

Sijbrandij, who co-founded the company a decade ago, had some encouraging personal news to share. Three months after announcing that he had chosen to undergo treatment for osteosarcoma, Sijbrandij said on the call that “there is no sign of detectable disease,” adding that he was focused on the company’s future and “his position as CEO and chairman.” Excited to retain the role”.

There are still challenges in business. Robbins said sales cycles took longer than usual during the quarter and customers reduced the number of seats they purchased.

But the financial data prompted several analysts to raise their price targets on GitLab stock.

“The quarter was stronger than most expected, and the company was able to maintain a very positive and conservative outlook — in contrast to the previous quarter,” Piper Sandler analysts Rob Owens and Ethan Weeks wrote in a note to clients.

Analysts have a Buy rating on the company’s stock and raised their price target from $50 to $52. GitLab shares closed at $46.44.