GitLab Inc (NASDAQ:GTLB) stock traded higher on Wednesday after the company disclosed that its board amended its severance plan after a periodic review.

The revisions clarified that the board cannot cancel an individual's equity awards without consideration during a corporate transaction, affecting certain team members and named executive officers.

In June, GitLab reported first-quarter revenue of $169.187 million, beating analyst consensus estimates of $165.887 million. The company reported first-quarter adjusted EPS of $0.03, beating analyst estimates for a loss of $(0.04).

Revenue was up 33% on a year-over-year basis. Customers with more than $5,000 of ARR increased to 8,976, up 21% year-over-year. Customers with more than $100,000 of ARR increased to 1,025, up 35% year-over-year.

GitLab reported operating cash flow of $38.1 million in the first quarter. The company also said it generated $37.4 million of adjusted free cash flow during the quarter. GitLab ended the quarter with approximately $420.3 million in cash.

GitLab expects full-year revenue to be between $733.00 million – $737.00 million versus estimates of $731.67 million. The company expects full-year adjusted EPS of $0.34 – $0.37 versus estimates of $0.21.

Investors can gain exposure to the stock via First Trust Cloud Computing ETF (NASDAQ:SKYY) and Vanguard Information Tech ETF (NYSE:VGT).

Price Action: GTLB shares traded higher by 11.90% at $48.82 at the last check Wednesday.

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