Key Takeaways GitLab posted second-quarter earnings and revenue that exceeded forecasts as artificial intelligence (AI) product demand boosted sales. The software-development provider also raised its full-year guidance. Co-founder and CEO Sid Sijbrandij said organizations need faster software solutions to compete in the AI arena. GitLab (GTLB) shares soared Wednesday, a day after it posted better-than-expected results and raised its guidance, becoming the latest tech firm to benefit from the soaring demand ...

Olemedia/E+ via Getty Images The GitLab Investment Thesis GitLab Inc (NASDAQ:GTLB) is a company with significant growth potential due to its market position and a potential TAM of more than $40 billion. At the time of my last article, however, the stock had taken a big hit after guidance came in worse than expected. Fortunately, the stock was able to bounce back from the weaker-thanexpected guidance and even raised guidance above what was expected at the time. The first half of the fiscal year was also very ...

Financial Data and Key Metrics Changes - In Q2 FY25, revenue increased by 31% year-over-year to $183 million, driven by new customer acquisitions and existing customer expansions [4][17] - Non-GAAP operating margin improved significantly, rising over 1,300 basis points year-over-year to 10% [4][19] - Dollar-based net retention rate (DBNRR) was 126%, supported by seat expansion, increased customer yield, and tier upgrades [17][33] - Non-GAAP gross margins were reported at 91% for the quarter, with SaaS revenue growing by 46% year-over-year [18][19] Business Line Data and Key Metrics Changes - GitLab Ultimate now represents 47% of total annual recurring revenue (ARR), with significant growth in larger customer cohorts [12][17] - The company reported a total remaining performance obligation (RPO) growth of 51% year-over-year to $747.9 million [18] - The number of customers with ARR of at least $5,000 increased by approximately 19% year-over-year, totaling 9,314 [17] Market Data and Key Metrics Changes - GitLab was recognized as a Leader in the 2024 Gartner Magic Quadrant for AI Code Assistants and DevOps Platforms, highlighting its competitive position in the market [8][9] - The company noted a significant increase in deal sizes, with large enterprises adopting AI capabilities [6][12] Company Strategy and Development Direction - GitLab's strategy focuses on integrating AI throughout the software development lifecycle to enhance productivity and security [5][12] - The company aims to consolidate toolchains for customers, which is seen as a significant opportunity for growth [10][12] - GitLab is positioning itself as a vendor-agnostic platform, emphasizing its comprehensive capabilities and security features [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive customer success and leverage AI for business outcomes in the second half of FY25 [15][20] - The macroeconomic environment remains cautious, but the company is focused on delivering quick time to value for customers [16][26] - Management anticipates continued growth in revenue and operating income for FY25, with guidance for Q3 revenue between $187 million and $188 million [20][65] Other Important Information - The company achieved the "In Process" designation for FedRAMP Moderate, enhancing its offerings for public sector clients [14] - Non-GAAP operating income for Q2 was $18.2 million, a significant improvement from a loss of $4.3 million in the same quarter last year [19] Q&A Session Summary Question: Update on go-to-market strategy and leadership transition - Management noted a smooth transition to new leadership and emphasized the quality of candidates for the new role [23] Question: Insights on operating margin and growth prioritization - Management confirmed that growth remains the top priority while responsibly increasing operating leverage [25] Question: Differences in macro environment between quarters - No significant changes were observed between Q1 and Q2; the spending environment remains cautious [26][27] Question: Interest in non-coding AI tools - Management acknowledged growing interest in AI throughout the software lifecycle, beyond just coding [28] Question: Market share dynamics with competitors - Management believes both GitLab and GitHub are benefiting from a shift towards platform solutions, with GitLab positioned well in the market [31][32] Question: Impact of pricing changes on net retention rate - Management expressed confidence in the stability of the net retention rate and noted ongoing expansion among historical cohorts [33] Question: AI adoption metrics among customers - Management indicated that AI adoption is still in early stages, with enterprises cautiously integrating AI into their workflows [51] Question: Expectations for Duo Enterprise adoption - Management expects AI to contribute significantly to growth in FY26 and beyond, with strong early performance from Duo [70]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40895 GITLAB INC. (Exact name of registrant as specified in its charter) Delaware 47-1861035 (State or oth ...

GitLab Inc. (GTLB) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.01 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this company would post a loss of $0.04 per share when it actually produced earnings of $0.03, delivering a surprise of 175%. Over the last four quarters, the company has surpas ...

Exhibit 99.1 GitLab Reports Second Quarter Fiscal Year 2025 Financial Results Second Quarter Fiscal Year 2025 Highlights: • Total revenue of $182.6 million, up 31% year-over-year • Significant year-over-year GAAP and Non-GAAP operating margin expansion • Operating cash flow of $11.7 million and Non-GAAP adjusted free cash flow of $10.8 million San Francisco (September 3, 2024) -All-Remote-GitLab Inc. (NASDAQ: GTLB), the most comprehensive AI-powered DevSecOps platform, today reported financial results for i ...

GitLab (GTLB) shares have plunged 25.3% year to date (YTD), underperforming the Zacks Computer & Technology sector's growth of 21.7% and the Zacks Internet Software industry's return of 14.5%. The underperformance in GitLab shares can be attributed to modest top-line growth expectations in fiscal 2025 due to the challenging macroeconomic environment. It also includes a $4 million headwind related to GTLB's stand-alone selling price analysis. Although the latest products like GitLab Duo and GitLab Duo Pro bo ...

SAN FRANCISCO, Aug. 28, 2024 (GLOBE NEWSWIRE) -- All Remote - GitLab Inc., (NASDAQ: GTLB), the most comprehensive AI-powered DevSecOps platform, today announced that GitLab Chief Financial Officer Brian Robins will present at the Piper Sandler Growth Frontiers Conference in Nashville, Tenn, on Tuesday, September 10th, 2024. The fireside chat is scheduled for 1:00 p.m. Central Time and will be webcast live at the following link: https://event.webcasts.com/starthere.jsp?ei=1683706&tp_key=38e2d90b5d A link to ...

End-to-end AI add-on supports DevSecOps teams at every stage of the software development lifecycle GitLab recently recognized as a Leader in the first-ever 2024 Gartner® Magic Quadrant™ for AI Code Assistants SAN FRANCISCO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- All Remote - GitLab Inc., the most comprehensive AI-powered DevSecOps platform, today announced the general availability of the GitLab Duo Enterprise add-on for $39 per user per month. The add-on is available to Ultimate customers through all GitLab depl ...

SAN FRANCISCO, Aug. 22, 2024 (GLOBE NEWSWIRE) -- All Remote -- GitLab Inc., the most comprehensive AI-powered DevSecOps platform, today announced it was named a Leader in the first-ever 2024 Gartner Magic Quadrant for AI Code Assistants1. The Magic Quadrant, which evaluated 12 vendors, recognized GitLab as a Leader based on "Completeness of Vision" and "Ability to Execute." According to Gartner, "Leaders in the Magic Quadrant for AI Code Assistants excel in delivering comprehensive AI-powered capabilities t ...