Salesforce shares plummeted as much as 17% in extended trading on Wednesday after the cloud software vendor reported weaker-than-expected revenue and issued guidance that trailed Wall Street’s expectations.

Here’s how the company did, compared to the LSEG consensus:

• Earnings per share: $2.44 adjusted vs. $2.38 expected
• Revenue: $9.13 billion vs. $9.17 billion expected

Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue.

Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier, Salesforce said in a statement. It is the first time since 2006 that Salesforce fell short on revenue, according to LSEG data.

Salesforce saw budget scrutiny and longer deal cycles than usual during the quarter, president and operating chief Brian Millham told analysts on a conference call. Management implemented go-to-market changes that cut into bookings, Millham said.

All five of Salesforce’s product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million.

Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago.

Salesforce lifted its earnings forecast for the 2025 fiscal year. The company now expects adjusted earnings of $9.86 to $9.94 per share, compared to $9.68 to $9.76 three months ago. Its revenue guidance remains at $37.7 billion to $38 billion. Analysts polled by LSEG were looking for $9.76 in adjusted earnings per share and $38.08 billion in revenue.

Amy Weaver, Salesforce’s finance chief, said she expects deal compression and slowing projects in the professional services business through the current fiscal year.

During the quarter, Salesforce started selling its Einstein Copilot assistant sales and customer service representatives. The company also said all paid Slack customers were gaining access to artificial intelligence features such as conversation summaries and daily recaps. The Wall Street Journal reported that Salesforce was in talks to buy data-integration company Informatica, but weeks later, the newspaper said talks had collapsed.

Weaver said Salesforce acquisitions would need “a clear timeline to value accretion.”

Before the after-hours move, Salesforce shares were up 3.5% so far this year, trailing the S&P 500 index, which is up around 11% during the same period. A drop of this magnitude on Thursday would mark Salesforce’s worst day on the market since the 2008 financial crisis.

— CNBC’s Robert Hum contributed to this report.

WATCH: Salesforce bets even bigger on artificial intelligence

Apple shares popped 6% Friday after the company reported better-than-expected second-quarter earnings and the largest-ever stock buyback program. It was the best day for the stock since Nov. 30, 2022.

The iPhone maker announced Thursday it would repurchase $110 billion of its shares, the biggest buyback in U.S. history, surpassing Apple’s prior repurchases. The company posted earnings of $1.53 per share on revenue of $90.75 billion, exceeding analysts’ estimates of earnings of $1.50 per share on revenue of $90.01 billion, according to LSEG.

But overall sales decreased 4% and iPhone sales dropped 10% year over year during the quarter, indicating flagging demand for the smartphone’s latest generation. Apple CEO Tim Cook told CNBC that quarterly sales suffered from a difficult comparison to the year-earlier period.

Analysts at Bank of America reiterated their buy rating of Apple stock, calling it a top pick, and raised their price target to $230 from $225 in a Friday investor note, writing that they expect the company to roll out generative artificial intelligence features for the iPhone this year.

“Apple is growing iPhones in Mainland China, estimate revisions are turning positive and GenAI features will drive a strong upgrade cycle,” they wrote.

JPMorgan analysts, maintaining an overweight rating, lifted their price target for Apple to $225 from $210 on Thursday, pointing to “resilient” year-over-year iPhone revenues and “expectations of an upgrade cycle-led tailwind in iPads” ahead of Apple’s product launch event next week.

“All in all, while modest revenue growth year-over-year might not be the ideal outcome,” they wrote, “it now provides visibility into higher revenue opportunities in the coming years with tailwinds from product cycles across hardware devices as well as an AI-led smartphone cycle further boosting growth.”

Morgan Stanley analysts retained their overweight rating of Apple and hiked their price target to $216 from $210 on Friday, citing the company’s quarterly performance, year-over-year growth in iPhone shipments to China in March, stock buyback and hints at AI updates to come.

“It’s hard not to get more bullish here,” they wrote.

— CNBC’s Michael Bloom contributed to this report.

Samsung Electronics on Tuesday said operating profit for the first quarter jumped 932.8% as memory chip prices rebounded on the back of AI optimism.

Here are Samsung’s first-quarter results versus LSEG estimates:

• Revenue: 71.92 trillion Korean won (about $52.3 billion), vs. 71.04 trillion Korean won
• Operating profit: 6.61 trillion Korean won, vs. 5.94 trillion Korean won

Samsung’s revenue for the quarter ending March jumped 12.81% from a year ago, while operating profit soared 932.8% in the same period.

The figures were in line with the company’s guidance earlier this month, where Samsung said operating profit in the January-March quarter likely rose to 6.6 trillion Korean won, up 931% from a year ago. The firm expected first quarter revenue at 71 trillion won.

The South Korean electronics giant saw record losses in 2023 as the industry reeled from a post-Covid slump in demand.

“The company posted KRW 71.92 trillion in consolidated revenue on the back of strong sales of flagship Galaxy S24 smartphones and higher prices for memory semiconductors. Operating profit increased to KRW 6.61 trillion as the Memory Business returned to profit by addressing demand for high value-added products,” Samsung Electronics said in a statement on Tuesday.

Citi analysts said they see upside for Samsung’s NAND flash memory business as a result of AI computing demand. In a note on April 5, they reiterated their “buy” rating on the firm with a target price of 120,000 won — a 56% upside from the closing price of 76,700 won on Monday.

NAND is another staple memory chip alongside DRAM.

“We expect storage (HDD) to be the next bottleneck in AI computing, especially in AI training, and foresee Samsung Electronics to be one of the key beneficiaries of SSD demand momentum for AI training,” said the Citi analysts.

Samsung is the world’s largest manufacturer of dynamic random-access memory chips (DRAM), which are commonly found in a wide range of consumer devices including smartphones and computers.

Samsung said it expects the second quarter to be driven mostly by demand for generative AI, while mobile demand remains stable. Meanwhile, it expects PC demand to be impacted by slow seasonality, which could lead to customers adjusting inventories before new product launches in the second half of 2024.

Samsung said its semiconductor business logged a 1.91 trillion Korean won in operating profit in the first quarter, as compared to a loss of 4.58 trillion won in the same period a year ago and a loss of 2.18 trillion Korean won in the fourth quarter.

“We assume the earnings surprise was driven by higher memory price hike on AI-driven strong upturn cycle. We anticipate the company will guide for positive memory market outlook and emphasize its readiness in AI era including HBM (12H HBM3E, HBM4) and foundry/packaging solution,” said SK Kim of Daiwa Capital Markets in emailed comments to CNBC on Monday, ahead of the earnings release.

As AI models become more complex and datasets become larger, these models need memory chips with higher capacities and faster speeds to cater to these workloads.

Kim said in an April 5 report he expects another price hike on memory chips to drive Samsung’s second-quarter earnings on the back of an AI boom and the earthquake in Taiwan.

“Especially, we expect more upside in prices resulting from the earthquake in Taiwan,” said Kim, adding that the earthquake in early April temporarily impacted TSMC‘s and Micron‘s production.

To meet AI demand, Samsung said it started mass producing HBM3E 8H and V9 NAND in April. It plans to mass produce HBM3E 12H products and a 128GB product based on 1b nanometer 32GB DDR5 within the second quarter.

Despite macroeconomic uncertainty and geopolitical tensions, the firm expects the operational environment to “remain positive with demand” – bolstered by generative AI – in the second half of the year.

Samsung also said development of 3-nanometer and 2-nanometer processes is “progressing smoothly.” Samsung kicked off mass production of 3-nanometer chips in 2022 and plans to start mass producing 2-nanometer chips in 2025.

Strong sales of Samsung’s latest smartphone series Galaxy S24 helped to lift revenue and operating profit of the mobile business, the firm said. AI features on the S24 such as Circle to Search were popular among customers.

However, the firm warned that smartphone demand and shipments could decline in the second quarter because of seasonality.

But the smartphone market could see a rebound in the second half of the year from “stabilizing consumer sentiment, the expansion of AI products and services, and economic growth in emerging markets.”

Samsung said it will continue to expand Galaxy AI to existing and new flagship products to drive further growth.

Many countries in the world are racing to manufacture advanced semiconductors.

Earlier this month, the Biden administration agreed to grant Samsung up to $6.4 billion of funding to create new manufacturing capacity to produce chips in Texas. Micron and TSMC are also poised to receive grants to boost chipmaking in the U.S. after decades of chip production moving to Asia.

Samsung and TSMC are set to face competition from Japan’s Rapidus Corporation, which was recently granted $3.89 billion in additional subsidies from the Japanese government to mass produce 2-nanometer chips from 2027.

There are rising concerns that Samsung Electronics risks losing its leading position to rivals like SK Hynix, the world’s no. 2 memory chip maker.

SK Hynix on March 19 said it became the first in the industry to mass produce HBM3E, the next-generation of high bandwidth memory chips used in AI chipsets. SK Hynix is the primary supplier of HBM3 chips to Nvidia’s AI chipsets.

Mehdi Hosseini, senior tech hardware analyst of Susquehanna International Group, pointed out in early April that Samsung used to be the market leader in memory, smartphones and display innovations.

Now, Samsung is only “benefiting from the cycle recovery,” he added.

In the first quarter, Samsung managed to regain the top spot in smartphone shipments after losing the crown to Apple in 2023, according to International Data Corp.

Tesla reported a 9% drop in first-quarter revenue on Tuesday, the biggest decline since 2012, and missed analysts’ estimates, as the electric vehicle company weathers the effect of ongoing price cuts.

The stock jumped in extended trading after CEO Elon Musk told investors that production of new affordable EV models could begin sooner than expected.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

• Earnings per share: 45 cents adjusted vs. 51 cents expected
• Revenue: $21.30 billion vs. $22.15 billion expected

Revenue declined from $23.33 billion a year earlier and from $25.17 billion in the fourth quarter. Net income dropped 55% to $1.13 billion, or 34 cents a share, from $2.51 billion, or 73 cents a share, a year ago.

The drop in sales was even steeper than the company’s last decline in 2020, which was due to disrupted production during the Covid-19 pandemic. Tesla’s automotive revenue declined 13% year over year to $17.38 billion in the first three months of 2024.

Musk said on the call that the company plans to start production of new models in “early 2025, if not late this year,” after previously expecting to begin in the second half of 2025. Musk also touted Tesla’s investments in artificial intelligence infrastructure, and said the company is in talks with “one major automaker” to license its driver assistance system, which is marketed in the U.S. as the Full Self-Driving, or FSD, option.

In its shareholder deck, Tesla reiterated a pessimistic outlook for 2024, telling investors that “volume growth rate may be notably lower than the growth rate achieved in 2023.”

Prior to the 11% jump after hours, Tesla shares were down more than 40% this year, reaching their lowest since January 2023, on concerns about weak deliveries, competition in China and the company’s ongoing price cuts. Earlier this month, Tesla reported an 8.5% year-over-year decline in vehicle deliveries for the first quarter.

The company said in the deck that it’s accelerating the launch of “new vehicles, including more affordable models,” that will “be able to be produced on the same manufacturing lines” as Tesla’s current lineup. Tesla is aiming to “fully utilize” its current production capacity and to achieve “more than 50% growth over 2023 production” before investing in new manufacturing lines.

Also in the deck, Tesla showed off screens of a robotaxi-based ride-hailing service. The company has been promising a self-driving vehicle for years without delivering on Musk’s promise.

Sales growth across EVs is slowing, and Tesla and key rivals have been slashing EV prices to try to spur demand. Tesla’s gross profits plummeted 18% in the first quarter, partly due to price cuts this year.

After discussing operational challenges in the first quarter, including Red Sea supply chain disruptions, Musk said on the call that, “We think Q2 will be a lot better.”

Tesla said total sales included revenue from earlier sales of its FSD option. The release of a feature called Autopark in North America allowed the company to recognize the deferred revenue.

Chris Redl, autos analyst at Siena Capital, estimates that Tesla recognized as much as $700 million in deferred revenue in the quarter from FSD. That’s roughly 4.3% of Tesla’s automotive revenue after stripping out regulatory credits.

Tesla embarked on a massive restructuring this month, with two executives, Drew Baglino and Rohan Patel, resigning. Musk said last week in a companywide memo that the automaker was cutting more than 10% of its global workforce.

Capital expenditures rose to $2.77 billion, up 34% from a year earlier.

Free cash flow turned negative in the quarter, with the company reporting a deficit of $2.53 billion. A year ago, Tesla reported free cash flow of $441 million, a number that reached $2.06 billion in the fourth quarter. Tesla attributed the negative figure to a $2.7 billion buildup in inventory and $1 billion in capital expenditures on “AI infrastructure.”

Revenue in Tesla’s energy division increased 7% to $1.64 billion, while services and other revenue rose 25% to $2.29 billion compared to the same period last year.

Musk was asked on the earnings call if he has any intention to leave Tesla given his many jobs, including leading SpaceX, controlling X (formerly Twitter) and running other businesses.

Musk didn’t provide an answer, but said he spends the majority of his time at work, rarely even takes off a Sunday afternoon and will work to make sure Tesla is “very prosperous.”

At the conclusion of the call, Tesla’s Martin Viecha, vice president of investor relations, said that he’s leaving the company in a couple months after seven years. Musk thanked him.

Correction: A prior version of this story had an incorrect figure for automotive sales.

WATCH: The fact that Musk was right about EVs doesn’t mean he’s going to be right now

Nvidia reported fourth fiscal quarter earnings that beat Wall Street’s forecast for earnings and sales, and said revenue during the current quarter would be better than expected, even against elevated expectations for massive growth.

Nvidia shares rose about 10% in extended trading.

Here’s what the company reported compared with what Wall Street was expecting for the quarter ending in January, based on a survey of analysts by LSEG, formerly known as Refinitiv:

• Earnings per share: $5.16 adjusted vs. $4.64 expected
• Revenue: $22.10 billion vs. $20.62 billion expected

Nvidia said it expected $24.0 billion in sales in the current quarter. Analysts polled by LSEG were looking for $5.00 per share on $22.17 billion in sales. 

Nvidia has been the primary beneficiary of the recent technology industry obsession with large artificial intelligence models, which are developed on the company’s pricey graphics processors for servers.

Nvidia CEO Jensen Huang addressed investor fears that the company may not be able to keep up this growth or level of sales for the whole year on a call with analysts.

“Fundamentally, the conditions are excellent for continued growth” in 2025 and beyond, Huang told analysts. He says demand for the company’s GPUs will remain high due to generative AI and an industry-wide shift away from central processors to the accelerators that Nvidia makes.

Nvidia reported $12.29 billion in net income during the quarter, or $4.93 per share, up 769% versus last year’s $1.41 billion or 57 cents per share. 

Nvidia’s total revenue rose 265% from a year ago, based on strong sales for AI chips for servers, particularly the company’s “Hopper” chips such as the H100, it said.

“Strong demand was driven by enterprise software and consumer internet applications, and multiple industry verticals including automotive, financial services and health care,” the company said in commentary provided to investors.

Those sales are reported in the company’s Data Center business, which now comprises the majority of Nvidia’s revenue. Data center sales were up 409% to $18.40 billion. Over half the company’s data center sales went to large cloud providers.

Nvidia said its data center revenue was hurt by recent U.S. restrictions on exporting advanced AI semiconductors to China.

“We understood what the restrictions are, reconfigured our products in a way that is not software hackable in any way, and that took some time so we reset our product offering to China,” Huang said. “Now we’re sampling to customers in China.”

Nvidia Chief Financial Officer Colette Kress said that while the company had improved supply of its AI GPUs, it still expected them to be in short supply, especially the next-generation chip, called B100, expected to ship later this year.

“We are delighted that supply of Hopper architecture products is improving,” Kress said on a call with analysts. “Demand for Hopper remains very strong. We can expect our next-generation products to be supply constrained as demand far exceeds supply.”

“Whenever we have new products, as you know, it ramps from zero to a very large number and you can’t do that overnight,” Huang said.

The company’s gaming business, which includes graphics cards for laptops and PCs, was merely up 56% year over year to $2.87 billion. Graphics cards for gaming used to be Nvidia’s primary business before its AI chips started taking off, and some of Nvidia’s graphics cards can be used for AI.

Nvidia’s smaller businesses did not show the same meteoric growth. Its automotive business declined 4% to $281 million in sales, and its OEM and other business, which includes crypto chips, rose 7% to $90 million. Nvidia’s business making graphics hardware for professional applications rose 105% to $463 million.

Amazon on Thursday reported fourth-quarter results that sailed past analysts’ estimates, and gave strong guidance for the current quarter. The stock climbed more than 8% in extended trading.

Here are the results:

• Earnings per share: $1.00 vs. 80 cents expected by LSEG, formerly known as Refinitiv
• Revenue: $170 billion vs. $166.2 billion expected by LSEG

Wall Street is also watching several other numbers in the report:

• Amazon Web Services: $24.2 billion vs. $24.2 billion, according to StreetAccount
• Advertising: $14.7 billion vs. $14.2 billion, according to StreetAccount

Amazon said first-quarter sales will be between $138 billion and $143.5 billion, representing growth of 8% to 13%. Analysts were expecting revenue of $142.1 billion, according to Refinitiv.

Amazon easily topped Wall Street’s expectations for earnings, indicating that CEO Andy Jassy’s efforts to rein in costs are paying off. Net income surged to $10.6 billion, or $1.00 per share, compared to $278 million, or 3 cents per share, a year earlier.

The company laid off 27,000 employees between late 2022 and mid-2023, and ended some of its more unproven bets. It has continued to look for ways to trim expenses in other areas, such as its fulfillment business. In January, it announced cuts in Prime Video, MGM Studios and Twitch, among other units.

Amazon CFO Brian Olsavsky told reporters on Thursday that the company will continue to take a careful approach on new investments, but that it doesn’t see 2024 “as a year of efficiency type thing.”

“We’re going to continue to invest in new things and new areas and things that are resonating with customers,” Olsavsky said. “Where we can find efficiencies and do more with less, we’re going to do that as well.”

Revenue jumped 14% to $170 billion in the fourth quarter. The period reflects results from the holiday shopping season and Amazon’s October Prime Day event, both of which the company said exceeded its expectations.

“This Q4 was a record-breaking Holiday shopping season and closed out a robust 2023 for Amazon,” Jassy said in a statement. “As we enter 2024, our teams are delivering at a rapid clip, and we have a lot in front of us to be excited about.”

Sales at Amazon Web Services climbed 13% in the fourth quarter to $24.2 billion, in line with Wall Street’s forecast. That marks a slight uptick from the previous quarter, when sales expanded 12%, but it’s a deceleration from the year-ago period, when sales grew 20%.

For the past year, growth in AWS has slowed, as businesses trimmed their cloud spend. But Olsavsky said the company is seeing those cost optimizations diminish, and new workloads are picking up. He said there has been “a lot of interest” in AWS’ generative artificial intelligence products, such as “Q,” an AI chatbot for businesses.

Jassy said on a conference call with analysts that generative AI services remain a “relatively small” business, but the company believes they could drive “tens of billions of dollars” in revenue within the next several years.

Ahead of its earnings release Thursday, Amazon announced a generative AI shopping assistant, dubbed Rufus, which it’s testing among a subset of users in the U.S.

Amazon’s profitable advertising unit saw sales grow 27% year over year to $14.7 billion. Last month, the company began showing ads on Prime Video content, in a move analysts project will generate substantial new revenue for the business. Olsavsky said the company has seen “a lot of enthusiasm” from advertisers, but that Amazon plans to keep ad loads low.

Apple shares slipped 4% on Tuesday, after Barclays downgraded the stock to underweight and slightly trimmed its price target from $161 to $160.

Barclays analyst Tim Long wrote in a note to clients Tuesday that the iPhone 15’s current “lackluster” sales, specifically in China, presaged similarly weak iPhone 16 sales — weakness that Long expects will hold true for Apple’s hardware sales broadly.

“We are still picking up weakness on iPhone volumes and mix, as well as a lack of bounce-back in Macs, iPads and wearables,” Long wrote. Analysts and investors had noted specific weakness in China iPhone sales as far back as October.

Bloomberg has previously reported that the Chinese government has issued informal guidance forbidding state employees from using iPhones. The Chinese government has denied issuing such guidance.

Long expects that Apple’s lucrative services business will also see decelerated growth, in part due to regulatory scrutiny. Gross margin in Apple’s services businesses is roughly double the margin Apple makes on all its hardware products, and Apple CEO Tim Cook highlighted “better-than-expected” growth in that unit on an earlier investor call.

But Barclays doesn’t necessarily believe that growth is reliable in the long term.

“In 2024, we should get an initial determination on the Google TAC, and some app store investigations could intensify,” Long wrote, referring to the payments Google makes to Apple to retain its default search status.

Google CEO Sundar Pichai previously confirmed that the company pays 36% of its Safari search revenue to Apple. Regulators have been scrutinizing both Apple and Google and the default search status.

Read more at CNBC Pro.

Oracle shares dropped more than 9% in extended trading Monday after the software company reported fiscal second-quarter revenue and quarterly revenue guidance that fell short of Wall Street expectations.

Here’s how the company did, compared with consensus estimates from LSEG, formerly known as Refinitiv:

• Earnings per share: $1.34 per share, adjusted, vs. $1.32 per share, expected
• Revenue: $12.94 billion, vs. $13.05 billion expected

Revenue grew 5% year over year in the quarter, which ended Nov. 30, according to a statement. Net income increased 44% to $2.5 billion, or 89 cents per share, from $1.74 billion, or 63 cents a share, a year ago.

With respect to guidance, Oracle called for adjusted net income for the fiscal third quarter of $1.35 to $1.39 per share and 6% to 8% revenue growth. Analysts polled by LSEG had predicted $1.37 in adjusted earnings per share and $13.34 billion in revenue, which implies 7.6% revenue growth.

Oracle’s revenue from cloud services and license support totaled $9.64 billion, up 12% and below the StreetAccount consensus of $9.71 billion.

Revenue from cloud and on-premises licenses fell 18% to $1.18 billion, slightly lower than the $1.21 billion StreetAccount consensus.

Services revenue, at $1.37 billion, also missed consensus, which was $1.40 billion.

Oracle said cloud infrastructure revenue reached $1.6 billion during the period, up 52%. Clients included Elon Musk’s artificial intelligence startup xAI, Halliburton and Samsung.

The Musk company wanted considerably more AI chips than Oracle could supply, Oracle co-founder Larry Ellison said on a conference call with analysts. Nvidia’s graphics processing units have been in short supply across the board, and the chipmaker has been working to address the shortage.

“We did not bring up as much capacity as we could have used this past quarter, Oracle CEO Safra Catz said on the call. The company had to choose between building something small and recognizing revenue in the quarter, or going ahead with a larger buildout and waiting for capacity to become available, she said.

During the quarter, Oracle said it had picked up cloud business from larger rival Microsoft and announced that its database software will be available on Microsoft’s Azure public cloud. The company will turn on 20 data centers connected with Azure in the next few months, Oracle co-founder Larry Ellison said in the statement.

“I expect the OCI growth rate to be over 50% for a few years,” Ellison said on the conference call. OCI is the Oracle Cloud Infrastructure, the company’s answer to Microsoft Azure and the market-leading Amazon Web Services.

Also in the quarter, Oracle’s NetSuite division bought Australian company Next Technik, which makes field service software, for undisclosed terms.

Oracle shares are up about 41% so far this year, outperforming the S&P 500 index, which has gained 20% during the same period.

WATCH: Edward Jones says buy Oracle now

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Apple’s market cap closed at about $3 trillion for the first time since August after its shares climbed 2% to $193.42 per share on Tuesday.

Apple’s value officially crossed the $3 trillion mark for the first time in June, and briefly touched $3 trillion in December 2022 during intraday trading. Apple stock hit its all-time high July 31 and it remains the most valuable publicly traded U.S. company.

The milestone is a sign of Apple’s durability — the iPhone maker’s stock price has risen over 48% so far this year — even as the company reduces its total share count through buybacks.

Investors see Apple as a fortress with significant cash flow, globally popular products and strong shareholder return programs, even as the company struggles with slowing growth and problems in markets such as China.

In Apple’s fiscal 2023, which started in October, Apple reported $383.29 billion in total revenue, down about 3% from the prior year.

Apple also warned in November that it didn’t expect annual revenue growth in its all-important December quarter, which is the first full quarter with iPhone 15 sales. Next year, Apple will release its Vision Pro virtual reality headset, its first major computing platform since introducing the Apple Watch in 2014.

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GitLab stock jumped as much as 18% in extended trading on Monday after the developer-tools software maker announced fiscal third-quarter results and quarterly guidance that impressed Wall Street.

Here’s how the company did, compared with consensus of estimates among analysts polled by LSEG, formerly known as Refinitiv:

• Earnings: 9 cents per share, adjusted, vs. loss of 1 cent per share expected.
• Revenue: $149.7 million, vs. $141.5 million expected.

This marks the first time GitLab has posted an adjusted operating profit.

“We continue to grow responsibly and delivered over 2,200 basis points of non-GAAP operating margin expansion,” the company’s finance chief, Brian Robins, was quoted as saying in a statement.

GitLab’s revenue grew 32% year over year in the quarter, which ended on Oct. 31, according to the statement. Net loss attributed to the company came to $285.2 million, or $1.84 per share, compared with a net loss of $48.5 million, or 33 cents per share, in the year-ago quarter. GitLab made a one-time income tax adjustment during the quarter that skewed results.

The company, which went public in 2021 and runs remotely, now has 874 customers contributing over $100,000 million in annual recurring revenue, up 37% from the same quarter a year ago.

Some organizations have been moving from Microsoft-owned GitHub, Sid Sijbrandij, GitLab’s co-founder and CEO, said on a conference call with analysts. But a portion of GitLab’s small and medium-size customers are still being cautious about economic conditions, Robins said.

A planning tool that non-technical workers will be able to use won’t impact results for the coming fiscal year, but it will make a difference in subsequent years, Sijbrandij said. He said GitLab is talking with Amazon Web Services about an integration into the Amazon Q work assistant, which AWS announced last week.

For the fourth quarter of its 2024 fiscal year, GitLab called for adjusted earnings of 8 to 9 cents per share on $157.0 million to $158.0 million in revenue. Analysts polled by LSEG were looking for a net loss of 1 cent per share and $150.2 million in revenue.

Excluding the after-hours move, GitLab stock is up 16% so far this year, while the S&P 500 stock index has gained 19% over the same period.

WATCH: We’re very happy with our ability to hire and who we were able to hire, says GitLab CEO