Shares of GitLab, founded by Ukrainians Dmytro Zaporozhets and Valerii Sizov, fell 38% in extended trading after the source code management software provider gave an annual revenue forecast that did not meet investors’ expectations, reports CNBC.

This is what it looks like:

Earnings: Loss of 3 cents per share, adjusted, vs. loss of 14 cents per share as expected by analysts, according to Refinitiv.

Revenue: $122.9 million, vs. $119.6 million as expected by analysts, according to Refinitiv.

Revenue rose 58% year over year in the quarter ended Jan. 31, according to messages of the company.

GitLab forecast an adjusted first-quarter loss of 14 to 15 cents per share on revenue of $117 million to $118 million. Analysts polled by Refinitiv had expected an adjusted loss of 16 cents per share and revenue in the amount of $126.2 million.

For fiscal 2024, the company forecasts an adjusted loss of 24 to 29 cents per share and revenue of $529 million to $533 million. That represents 25% growth in the middle of the range. The consensus forecast of analysts polled by Refinitiv was for an adjusted loss of 54 cents per share on revenue of $586.4 million.

During the quarter, GitLab announced that in April the premium subscription will increase to $29 per month from $19. Last month, GitLab said it was cutting 130 employees, or about 7% of its workforce.

Company shares debuted on the Nasdaq in 2021 with revenue growth of 69%. They fell 48% last year as investors pulled out of loss-making technology companies. The company’s shares were down nearly 2% in 2023 before falling in after-hours.

GitLab – a site and management system for software code repositories for Git. The company provides a central server that manages Git repositories and is used to simplify the administration tasks of many corporations around the world. GitLab has over 100,000 users and is used by large, well-known organizations such as IBM, Sony, Goldman Sachs, and NASA.