GitLab shares climbed after the company raised its full year outlook on better-than-expected second-quarter results.

The stock gained 20% to $54 in premarket trading Wednesday. Through the previous close, shares were up 25% this year.

The coding and software development platform now expects annual sales to be $1.129 billion to $1.133 billion, up from its previous guidance of $1.11 billion to $1.12 billion.

It also raised its outlook for adjusted earnings per share to a range of 85 cents to 87 cents, up from 79 cents to 82 cents.

The outlook came after second-quarter revenue jumped 21% to $286.3 million, ahead of the $273.1 that analysts were forecasting, according to FactSet.

Adjusted earnings per share were 24 cents, while analysts had been expecting 18 cents.

GitLab had record gross bookings, while net annual recurring revenue growth exceeded 40%, Chief Executive Bill Staples said. AI is driving more software creation and more work through the development cycle, he added.

"We believe this creates a significant opportunity for GitLab as humans and agents increasingly build software together," Staples said.

For the current third quarter, GitLab anticipates $281 million to $283 million in revenue and 19 cents to 20 cents in adjusted earnings per share, both of which are roughly in line with Wall Street estimates.