User Growth and Customer Base - GitLab has over 50 million registered users, with more than 50% of Fortune 100 companies as customers[127] - Base Customers increased to 10,104 as of April 30, 2025, from 8,976 as of April 30, 2024, representing a 13% increase[134] - Customers with ARR of $100,000 or more rose to 1,288 as of April 30, 2025, up from 1,025 as of April 30, 2024, a 26% increase[145] - The number of customers with ARR over $100,000 increased to 1,288 as of April 30, 2025, up from 1,025 in the same period of 2024[164] Financial Performance - Total revenue increased by $45.3 million, or 27%, to $214.5 million for the three months ended April 30, 2025, compared to $169.2 million for the same period in 2024[163] - Subscription revenue from self-managed and SaaS grew by $43.3 million, or 29%, reaching $194.5 million for the three months ended April 30, 2025[163] - Gross profit for the three months ended April 30, 2025, was $189.5 million, with a gross margin of 88%, down from 89% in the same period of 2024[165] - Net loss attributable to GitLab was $35.9 million for the three months ended April 30, 2025, compared to a net loss of $55.2 million for the same period in 2024[161] Expenses and Investments - Research and development expenses increased by $11.3 million, or 21%, to $65.4 million for the three months ended April 30, 2025[169] - Sales and marketing expenses rose by $15.2 million, or 16%, to $107.6 million for the three months ended April 30, 2025[167] - General and administrative expenses decreased by $6.4 million, or 11%, to $51.1 million for the three months ended April 30, 2025[171] - Stock-based compensation expense increased by $13.6 million, or 32%, to $55.8 million for the three months ended April 30, 2025[173] - GitLab plans to continue investing in research and development, expecting R&D expenses to increase in absolute terms in future periods[133] - Sales and marketing expenses are expected to increase in absolute dollars as GitLab invests in its sales and marketing organization[154] Cash Flow and Liquidity - Cash, cash equivalents, and short-term investments totaled $1.1 billion as of April 30, 2025, compared to $992.4 million as of January 31, 2025, indicating a strong liquidity position[181] - Net cash provided by operating activities was $106.3 million for the three months ended April 30, 2025, a significant increase from $38.1 million in the same period of 2024[183] - Cash used in investing activities was $81.9 million for the three months ended April 30, 2025, primarily for purchases of short-term investments[187] - Adjusted free cash flow for the three months ended April 30, 2025, was $104.1 million, compared to $37.4 million in the same period of 2024[191] Market Strategy and Partnerships - The company employs a "land and expand" strategy, focusing on increasing usage of The DevSecOps platform among existing customers[136] - The company aims to build and maintain successful partnerships and alliances to expand its market reach and drive brand awareness[138] - GitLab's open-core business model allows for community contributions, with nearly 900 contributors making over 3,000 merge requests in 2024[128] Retention and Interest Rates - Dollar-Based Net Retention Rate was 122% as of April 30, 2025, down from 129% in the previous year[136][143] - The Dollar-Based Net Retention Rate was 122% for the three months ended April 30, 2025, down from 129% in the same period of 2024[163] - Interest income decreased by 10% to $10.9 million for the three months ended April 30, 2025, compared to $12.0 million in the same period of 2024, primarily due to lower interest rates[175] - As of April 30, 2025, a hypothetical 1% change in interest rates would result in a fair value change of approximately $5.3 million in the company's investment portfolio[197] Foreign Exchange and Taxation - Foreign exchange losses increased significantly to $9.95 million for the three months ended April 30, 2025, compared to $0.79 million in the same period of 2024, reflecting the revaluation of non-functional currency denominated monetary assets and liabilities[176] - Provision for income taxes decreased by 80.4% to $2.54 million for the three months ended April 30, 2025, down from $12.98 million in the same period of 2024, with an effective tax rate increase of approximately 22.9%[177] - The company has $58.3 million in cash and cash equivalents denominated in currencies other than the U.S. dollar, which may be significantly impacted by fluctuations in foreign currency exchange rates[199]

Financial Data and Key Metrics Changes - First quarter revenue increased by 27% year over year to $215 million, with a non-GAAP operating margin of 12% [7][23] - Non-GAAP gross margin was 90% for the quarter, with non-GAAP operating income of $26.1 million compared to a loss of $3.8 million in the same quarter last year [26][27] - Adjusted free cash flow reached $104.1 million, representing a record adjusted free cash flow margin of 49% [29] Business Line Data and Key Metrics Changes - The number of customers with ARR of at least $5,000 increased to 10,104, contributing over 95% of total ARR [24] - The larger customer cohort with ARR of $100,000 plus increased by 26% year over year, reaching 1,288 [24] - Dollar-based net retention rate (DBNRR) was 122%, driven by seat expansion (80%), increased customer yield (5%), and tier upgrades (15%) [25] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) grew by 40% year over year to $955.1 million, while current RPO (CRPO) grew by 34% year over year to $584.8 million [25] - SaaS revenue accounted for 30% of total revenue and grew by 35% year over year [26] Company Strategy and Development Direction - The company positions itself as the only AI-native, cloud-agnostic, model-neutral DevSecOps platform, emphasizing its unique capabilities in the software development lifecycle [8][9] - The strategic focus includes enhancing security capabilities and integrating AI throughout the platform to drive maximum ROI for customers [11][12] - The company aims to unlock productivity improvements through human and agent collaboration, with plans to introduce new AI capabilities in the upcoming GitLab 18 launch event [22][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable growth and enhance profitability despite evolving market conditions [23][28] - The outlook for the second quarter expects total revenue of $226 million to $227 million, representing a growth rate of approximately 24% year over year [28] - Management noted that the macroeconomic environment remains cautious, but demand for the platform continues to be strong [108] Other Important Information - The company achieved FedRAMP moderate authorization for its dedicated SaaS solution, which is expected to benefit its public sector business [19] - GitLab Duo's adoption continues to grow, with a 35% increase in customers purchasing GitLab Duo quarter over quarter [16] Q&A Session Summary Question: Customer conversations regarding AI - Management noted that AI is a central topic in customer discussions, with teams looking to leverage AI for productivity and innovation [36] Question: Growth metrics and deal linearity - Management confirmed that the quarter's performance was consistent with expectations, with a mix favoring SaaS and back-end weighted linearity [42][43] Question: Customer additions and pricing changes - Management indicated that while there was a deceleration in new customer additions, the financial impact was minimal, and the focus remains on increasing the volume of new orders [50][51] Question: Impact of AI on developer job growth - Management believes that AI will increase the number of code creators and overall code volume, sustaining demand for developers [58][62] Question: Enhancements with GitLab 18 - Management highlighted significant innovations in GitLab 18, including improved security features and AI capabilities, which will be showcased in the upcoming launch event [100][102]

Financial Data and Key Metrics Changes - First quarter revenue increased by 27% year over year to $215 million, with a non-GAAP operating margin of 12% [5][24] - Non-GAAP gross margin was 90% for the quarter, with non-GAAP operating income of $26.1 million compared to a loss of $3.8 million in the same quarter last year [28][29] - Adjusted free cash flow reached $104.1 million, representing a record adjusted free cash flow margin of 49% [31] Business Line Data and Key Metrics Changes - The SaaS segment accounted for 30% of total revenue, growing 35% year over year [28] - The number of customers with ARR of at least $5,000 reached 10,104, contributing over 95% of total ARR [25] - The dollar-based net retention rate (DBNRR) was 122%, driven by seat expansion (80%), increased customer yield (5%), and tier upgrades (15%) [26][27] Market Data and Key Metrics Changes - Total remaining performance obligations (RPO) grew by 40% year over year to $955.1 million, while current RPO (CRPO) grew by 34% year over year to $584.8 million [27] - The larger customer cohort of $100,000+ in ARR increased by 26% year over year, reaching 1,288 [25] Company Strategy and Development Direction - The company positions itself as the only AI-native, cloud-agnostic, model-neutral DevSecOps platform, emphasizing its unique capabilities in the software development lifecycle [6][7] - GitLab aims to enhance its AI capabilities and integrate them throughout the platform, focusing on security and compliance as key drivers for adoption [10][22] - The company is expanding its market presence through partnerships, such as with AWS, to enhance customer engagement and showcase its solutions [13][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate sustainable growth and enhance profitability despite evolving market conditions [24][30] - The outlook for the second quarter expects total revenue of $226 million to $227 million, representing a growth rate of approximately 24% year over year [30] - Management noted that the macroeconomic environment remains cautious, but demand for the platform continues to be strong [104] Other Important Information - GitLab achieved FedRAMP moderate authorization for its dedicated SaaS solution, which is expected to boost its public sector business [19] - The company is on track to launch GitLab Duo Workflow, an AI solution, in the upcoming months [13][33] Q&A Session Summary Question: Customer Conversations on AI - Management noted that AI is a central topic in customer discussions, with teams looking to leverage AI for productivity and innovation [38] Question: Growth Metrics and Deal Linearity - Management confirmed that the quarter's performance was consistent with expectations, with a mix favoring SaaS and back-end weighted linearity [44][45] Question: Customer Additions and Pricing Changes - Management indicated that while there was a deceleration in new customer additions, it did not impact financials significantly [49][51] Question: AI's Impact on Developer Job Growth - Management believes that AI will increase the number of code creators and overall code volume, benefiting GitLab's business model [60][61] Question: Enhancements with GitLab 18 - Management highlighted the focus on creating value through AI integration and enhancing collaboration between humans and agents [68][70]

Core Insights - GitLab reported quarterly earnings of 17 cents per share, exceeding the analyst consensus estimate of 15 cents, with quarterly revenue of $214.51 million, surpassing the Street estimate of $213.16 million [1][2] Financial Performance - For the first quarter of fiscal 2026, GitLab's revenue growth reflects the effectiveness of its AI-native DevSecOps platform, which aims to enhance software delivery for customers [2] - The company anticipates second-quarter adjusted EPS between 16 and 17 cents, slightly above the 16 cent estimate, and revenue between $226 million and $227 million, compared to the $227.16 million analyst estimate [3] Customer Metrics - GitLab reported an increase in customers with more than $5,000 of ARR to 10,104, marking a 13% year-over-year growth [4] - Customers with more than $100,000 of ARR reached 1,288, reflecting a 26% year-over-year increase [4] - The Dollar-Based Net Retention Rate stood at 122% [4] Contractual Obligations - Total Remaining Performance Obligations (RPO) grew 40% year-over-year to $955.1 million, while Current Remaining Performance Obligations (cRPO) increased 34% to $584.8 million [4]

San Francisco (June 10, 2025) -All-Remote-GitLab Inc. (NASDAQ: GTLB), the most comprehensive, intelligent DevSecOps platform, today reported financial results for its first quarter fiscal year of 2026, ended April 30, 2025. "First quarter fiscal year 2026 results underscore the power of our AI-native DevSecOps platform to help customers deliver mission-critical software. We're giving every developer the AI-driven edge they need to innovate faster and more efficiently," said Bill Staples, GitLab chief execut ...

Earnings Report - GitLab Inc. is set to release its first-quarter earnings results on June 10, with expected earnings of 15 cents per share, an increase from 3 cents per share in the same period last year [1] - The projected quarterly revenue for GitLab is $213.21 million, compared to $169.19 million a year earlier [1] Recent Performance - On March 3, GitLab reported quarterly earnings of 33 cents per share, surpassing the analyst consensus estimate of 23 cents [2] - GitLab shares experienced a slight decline of 0.3%, closing at $48.64 on the preceding Monday [2] Analyst Ratings - Wells Fargo analyst Michael Turrin maintained an Overweight rating but reduced the price target from $85 to $65 [4] - Keybanc analyst Eric Heath also maintained an Overweight rating, lowering the price target from $80 to $60 [4] - DA Davidson analyst Gil Luria kept a Neutral rating and cut the price target from $60 to $45 [4] - Truist Securities analyst Joel Fishbein maintained a Buy rating while slashing the price target from $90 to $80 [4] - JP Morgan analyst Pinjalim Bora maintained a Neutral rating and reduced the price target from $65 to $62 [4]

Group 1: Cognyte Software (CGNT) - Cognyte is positioned strongly with a significant number of large, multi-million dollar contracts, supporting fiscal 2026 revenue guidance of approximately $392 million [2] - The revenue visibility from Cognyte's cRPO balance exiting fiscal 2025 is around 86%, a decrease from 89% in fiscal 2025 and 94% in fiscal 2024 [2] - Cognyte announced over $40 million in total contract value recently, with projected fiscal first-quarter revenue and adjusted EPS estimates of $94.2 million and $0.02, compared to consensus estimates of $94 million and $0.01 [3][7] Group 2: GitLab Inc (GTLB) - GitLab is expected to report sustained revenue outperformance and improving operating margins, with a potential 'catch-up trade' due to recent underperformance relative to other Data Infrastructure vendors [4] - Investor concerns focus on GitLab's competitive position against GitHub, seat growth for the Premium SKU, and long-term growth sustainability after the Premium price increase [4] - The upcoming launch of GitLab 18 in May 2025 allows Premium SKU customers to purchase Duo Enterprise without upgrading to the Ultimate SKU, raising questions about the success of up-tiering to Ultimate [5] - Management has demonstrated success in driving First Orders with Ultimate, despite investor concerns regarding the durability and pricing of AI-native capabilities in the DevSecOps ecosystem [6]

Core Insights - GitLab (GTLB) is expected to report first-quarter fiscal 2026 results on June 10, 2025, with anticipated revenues between $212 million and $213 million, reflecting a year-over-year growth of 25-26% [1][9] - Non-GAAP earnings are projected to be between 14 cents and 15 cents per share, with the Zacks Consensus Estimate for revenues at $212.52 million, indicating a 25.61% increase from the previous year [1][2] Revenue Growth Drivers - The expected performance in the first quarter is attributed to ongoing investments in innovation within GitLab's core DevOps platform, security, and AI-driven solutions [3] - The expansion of GitLab Dedicated, which grew nearly 90% year-over-year in the prior quarter, is likely to have contributed to revenue growth, appealing to customers seeking secure, single-tenant SaaS solutions [4][9] Client Expansion and Partnerships - GitLab's growing customer base, including notable clients such as Delta AirLines, NatWest Group, Alphabet, and Amazon, is anticipated to drive growth in the first quarter [5][9] - Delta AirLines' adoption of GitLab Dedicated is expected to enhance product adoption and recurring revenues [6] - NatWest Group's expanded use of GitLab Ultimate and GitLab Dedicated reflects rising demand for secure solutions in regulated sectors, likely aiding revenue momentum [7] Collaborative Initiatives - GitLab's collaboration with Amazon Q to launch an AI-powered DevSecOps solution is designed to improve the developer experience and is expected to positively impact customer engagement [8][10] - Continued collaboration with Alphabet's Google Cloud platform aims to enhance GitLab's scalability and intelligence in its offerings, further increasing customer engagement [10]

Core Viewpoint - GitLab is experiencing positive momentum in its stock performance, driven by optimistic analyst predictions ahead of its upcoming earnings report [1][2]. Group 1: Analyst Recommendations - KeyBanc's Jason Celino has reiterated an overweight (buy) recommendation for GitLab, setting a price target of $60 per share, indicating a potential upside of nearly 22% from the current stock level [2]. - The anticipation of GitLab's fiscal first quarter earnings release on June 10 has contributed to the stock's rise, outperforming the S&P 500 index [1][2]. Group 2: Revenue Growth Expectations - Celino expects GitLab to achieve year-over-year revenue growth exceeding the analyst consensus of 25.9%, driven by the adoption of its Duo and Dedicated solutions, particularly those enhanced by AI functionalities [4]. - The anticipated revenue growth is expected to positively influence GitLab's full-year guidance, with expectations for the company's projections to be raised [5]. Group 3: Market Concerns - There are concerns regarding the spending habits of public-sector clients due to recent federal government budget-tightening efforts, which could impact GitLab's performance in that segment [5]. - Despite these concerns, GitLab is viewed as resilient enough to withstand potential downturns in the public sector [6].

Core Insights - GitLab is expected to report Q1 results on June 10, with revenues projected at approximately $213 million, reflecting a 26% year-over-year increase, and earnings estimated at $0.15 per share, nearly five times higher than the previous year [2] - The company has a market capitalization of $7.4 billion, with total revenue over the past twelve months amounting to $759 million, and it reported an operational loss of $-143 million and a net income of $-6.3 million [2] - Historical data indicates a strong likelihood of positive stock performance post-earnings, with a 75% probability of a positive one-day return over the last three years [2][4] Earnings Performance - Over the last five years, GitLab has recorded 14 earnings data points, resulting in 10 positive and 4 negative one-day returns, leading to a 71% positive return rate, which increases to 75% when considering the last three years [4] - The median positive return for the 10 positive instances is 12%, while the median negative return for the 4 negative instances is -15% [4] Correlation with Peers - The performance of peer companies can influence GitLab's stock reactions following earnings announcements, with pricing potentially starting before the earnings are released [5] - Historical data shows a correlation between GitLab's post-earnings performance and that of its peers, which can provide insights for trading strategies [5]