Gitlab (US:GTLB) ZACKS·2025-09-04 17:31Core Insights - GitLab reported second-quarter fiscal 2026 non-GAAP earnings of 24 cents per share, exceeding the Zacks Consensus Estimate by 50%, and up from 15 cents per share in the same quarter last year [1][7] - Total revenues reached $236 million, surpassing the consensus mark by 4.14% and reflecting a year-over-year increase of 29.2%, driven by strong demand for its DevSecOps platform [1][7] Revenue Breakdown - Subscription revenues, which include self-managed and SaaS, accounted for 90.1% of total revenues, increasing by 30.3% year over year to $212.7 million, beating the Zacks Consensus Estimate by 3.93% [2] - SaaS revenues contributed 30% to total revenues and surged 39% year over year, attributed to the adoption of GitLab Dedicated, AI integration, and expanding customer engagement [2] Customer Metrics - Customers with more than $5K of Annual Recurring Revenue (ARR) rose to 10,338, an 11% increase year over year [3] - Customers with more than $100K of ARR increased to 1,344, marking a 25% year-over-year growth, indicating GitLab's success in attracting and retaining large enterprise customers [3] - The dollar-based Net Retention Rate was reported at 121% for the quarter [3] - Total Remaining Performance Obligation (RPO) surged 32% year over year to $988.2 million, with current RPO increasing 31% year over year to $621.6 million [3] Operating Expenses - Non-GAAP research & development expenses rose 16.8% year over year to $52.3 million [4] - Sales and marketing expenses increased by 15.5% year over year to $89.6 million [4] - General and administrative expenses grew 20.7% year over year to $30.2 million [4] - Non-GAAP operating income was $39.6 million, a significant improvement from a loss of $18.2 million in the previous year [4] Financial Position - As of July 31, 2025, cash and cash equivalents and short-term investments totaled $1.16 billion, up from $1.10 billion as of April 30, 2025 [5] - The company generated a cash flow from operations of $49.4 million, a turnaround from an operating cash outflow of $106.3 million in the previous quarter [5] - Adjusted free cash flow was reported at $46.5 million, down from $104.1 million as of April 30, 2025 [5] Future Guidance - For Q3 fiscal 2026, GitLab expects revenues between $238 million and $239 million, indicating approximately 23% year-over-year growth [8] - Non-GAAP operating income for Q3 is anticipated to be in the range of $31-$32 million, with earnings expected between 19 cents and 20 cents per share [8] - For the full fiscal 2026, GitLab projects revenues between $936 million and $942 million, reflecting a growth of approximately 24% year over year [8][9] - Non-GAAP operating income for fiscal 2026 is expected to be between $133 million and $136 million, with earnings projected between 82 cents and 83 cents per share [9]