Core Insights - GitLab reported strong financial results for the third quarter of fiscal year 2026, achieving a 25% year-over-year revenue growth, totaling $244.4 million [2][3][4] - The company is focused on sustainable growth and strategic investments while maintaining positive cash flow [2][3] - GitLab's non-GAAP operating margin improved to 18%, compared to a loss of 5% in GAAP terms [3][5] Financial Highlights - Total revenue reached $244.4 million, up 25% from $196.0 million in the same quarter last year [3][4] - GAAP operating margin was (5)%, while non-GAAP operating margin was 18% [3][5] - Non-GAAP net income attributable to GitLab was $43.5 million, compared to $39.1 million a year ago, reflecting a 4.4 million increase [5] - Operating cash flow was $31.4 million, with non-GAAP adjusted free cash flow at $27.2 million [3][4] Customer Metrics - Customers with more than $5,000 of Annual Recurring Revenue (ARR) increased by 10% year-over-year, reaching 10,475 [9] - Customers with more than $100,000 of ARR grew by 23% year-over-year, totaling 1,405 [9] - The Dollar-Based Net Retention Rate was reported at 119% [9] Business Developments - GitLab appointed Jessica Ross as Chief Financial Officer, effective January 15, 2026, bringing over 25 years of experience [6][10] - The company was recognized as a leader in the Gartner Magic Quadrant for DevOps Platforms for the third consecutive year [10] - GitLab expanded its Duo Agent Platform with new AI capabilities and enhanced application security features [10]

Financial Data and Key Metrics Changes - Revenue for Q3 FY26 reached $244 million, representing a 25% year-over-year growth, exceeding guidance by two points [5][25] - Non-GAAP operating margin improved to 18%, five points above Q3 guidance [5] - Non-GAAP gross margin was reported at 89% for the quarter [26] - Dollar-based net retention rate (DBNRR) stood at 119% [25] - Total remaining performance obligations (RPO) grew 27% year-over-year to $1 billion [25] - Cash and investments at the end of the quarter totaled $1.2 billion [28] Business Line Data and Key Metrics Changes - GitLab Ultimate now accounts for 54% of total annual recurring revenue (ARR) and was involved in seven of the top ten net ARR deals this quarter [14] - SaaS revenue represented approximately 31% of total revenue, growing 36% year-over-year [26] - The larger customer cohort (ARR of $100,000+) increased by 23% year-over-year, reaching 1,405 [25] Market Data and Key Metrics Changes - Strong international results were noted, although there was softness in the U.S. public sector due to slower decision-making related to the government shutdown [15] - GitLab was recognized as a Leader in the 2025 Gartner Magic Quadrant for DevOps Platforms and AI Code Assistants [15] Company Strategy and Development Direction - The company aims to expand its customer base, particularly in mid-market and enterprise segments, leveraging AI mandates to attract new clients [15][18] - GitLab is focusing on enhancing its platform capabilities, particularly through the Duo Agent platform, which is expected to drive new revenue streams [12][14] - The strategy includes transitioning from a pure seat-based model to a hybrid model that incorporates usage-based pricing [49][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to capitalize on the growing demand for AI in software development [6][18] - The lingering effects of the U.S. government shutdown are anticipated to impact deal dynamics in the federal business into Q4 [29] - The company remains optimistic about long-term growth despite current market challenges, particularly in the SMB segment [28][95] Other Important Information - The company is preparing for the general availability of the Duo Agent platform, which is expected to enhance customer engagement and operational efficiency [14][72] - A new Chief Financial Officer, Jessica Ross, will join the company in January [24] Q&A Session Summary Question: Insights on fourth quarter guidance and subscription revenue growth - Management acknowledged a deceleration in subscription revenue growth and highlighted ongoing challenges in the public sector impacting guidance [33][35] Question: Progress on first-order business and expected timeline for results - Management indicated that hiring a global leader for new business acquisition is underway, with expected results in the latter half of FY 2027 [39][40] Question: Impact of federal sector challenges on revenue retention - Management confirmed that public sector challenges are ongoing but emphasized the long-term potential of their public sector strategy [44][45] Question: Customer activity and AI tool usage - Management noted that AI tool usage is widespread among customers, enhancing their overall engagement with GitLab [98] Question: SMB segment performance and strategies - Management highlighted that SMB weakness is a small part of their overall revenue and attributed it to price sensitivity and scrutiny during renewals [95]

Financial Data and Key Metrics Changes - Revenue for Q3 FY26 grew 25% year over year to $244 million, exceeding guidance by two points [5][25] - Non-GAAP operating margin reached 18%, five points above guidance [5] - Non-GAAP gross margin was 89% for the quarter, with non-GAAP operating income of $43.7 million compared to $25.9 million in Q3 of the previous year [26][27] - Dollar-based net retention rate (DBNRR) was 119%, with total remaining performance obligations (RPO) growing 27% year over year to $1 billion [25][26] Business Line Data and Key Metrics Changes - GitLab Ultimate now represents 54% of total annual recurring revenue (ARR) and was involved in seven of the top ten net ARR deals this quarter [14] - SaaS revenue grew 36% year over year, now representing approximately 31% of total revenue [26] - The larger customer cohort of $100,000+ in ARR increased 23% year over year, reaching 1,405 [25] Market Data and Key Metrics Changes - Stronger international results were noted, although there was softness in the U.S. public sector due to slower decision-making related to the government shutdown [15] - GitLab was recognized as a Leader in the 2025 Gartner Magic Quadrant for DevOps Platforms and AI Code Assistants [15] Company Strategy and Development Direction - The company aims to add more new paying customers, particularly in the mid-market and enterprise segments, leveraging AI mandates to drive demand [15][18] - GitLab is focusing on a hybrid seat plus usage-based business model with the introduction of the Duo Agent platform [49][50] - The company is investing in core DevOps, security, and AI to accelerate customer-focused innovation [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position to capitalize on the growing importance of AI in software development [6][7] - The lingering effects of the U.S. government shutdown are expected to impact deal dynamics in the federal business into Q4 [29][66] - The company anticipates total revenue of $251-$252 million for Q4 FY26, representing a year-over-year growth rate of approximately 19% [29] Other Important Information - The company ended the quarter with $1.2 billion in cash and investments, providing flexibility for continued investment in AI capabilities and platform enhancements [28] - A new Chief Financial Officer, Jessica Ross, will join the company in January [24] Q&A Session Summary Question: Insights on fourth quarter guidance and subscription revenue growth - Management acknowledged the deceleration in subscription revenue growth and the impact of public sector softness on guidance [33][35] Question: Progress on first-order business and expected timeline for results - Management indicated that a new global leader focused on acquiring new business has been hired, with results expected in the latter half of FY27 [39][40] Question: Impact of federal sector on revenue and retention rates - Management confirmed that public sector remains a significant part of ARR, with ongoing challenges due to the government shutdown affecting deal dynamics [44][66] Question: Convergence of platform activity and revenue growth - Management noted that the shift to a hybrid business model with Duo Agent platform is expected to help align activity with revenue growth [49][50] Question: SMB market weakness and potential strategies - Management stated that SMB represents a small portion of revenue, with ongoing scrutiny affecting renewals, but emphasized the importance of a strong free offering [95] Question: Customer usage of AI tools and its impact on growth - Management confirmed that AI tool usage is widespread among customers, with many implementing multiple AI tools alongside GitLab [99]

Financial Data and Key Metrics Changes - Revenue grew 25% year over year to $244 million, exceeding Q3 guidance by two points [4] - Non-GAAP operating margin reached 18%, five points above Q3 guidance [4] - Non-GAAP gross margin was 89% for the quarter, with a non-GAAP operating income of $43.7 million compared to $25.9 million in Q3 of the previous year [22] - Dollar-based net retention rate (DBNRR) was 119%, with total remaining performance obligations (RPO) growing 27% year over year to $1 billion [21][22] Business Line Data and Key Metrics Changes - GitLab Ultimate now represents 54% of total annual recurring revenue (ARR) and was involved in seven of the top ten net ARR deals this quarter [11] - SaaS revenue grew 36% year over year, now representing approximately 31% of total revenue [22] - The larger customer cohort of $100,000 plus in ARR increased 23% year over year, reaching 1,405 [21] Market Data and Key Metrics Changes - Engagement metrics across GitLab.com SaaS customer base increased significantly, with CI pipelines, deployments, and releases up about 35%-45% year over year [8] - The company experienced stronger international results, although there was softness in the U.S. public sector due to slower decision-making related to the government shutdown [12] Company Strategy and Development Direction - The company aims to add more new paying customers, particularly in the mid-market and enterprise segments, leveraging AI mandates to drive demand [12] - GitLab is focused on a cohesive workflow across developer, security, and operations teams, enhancing its platform to provide intelligent orchestration across the software lifecycle [10][12] - The Duo Agent platform is positioned as a solution to the AI paradox, aiming to drive new revenue streams beyond traditional seat-based models [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver high-quality, secure software, emphasizing the critical nature of their offerings in a rapidly evolving AI landscape [5][6] - The lingering effects of the U.S. government shutdown are expected to impact deal dynamics in the federal business into Q4, but the long-term public sector thesis remains intact [24][32] - The company is optimistic about its growth trajectory, with a forecast of total revenue for FY26 expected to be between $946-$947 million, representing a growth rate of approximately 25% year over year [24] Other Important Information - GitLab was named a Leader in the 2025 Gartner Magic Quadrant for DevOps Platforms and AI Code Assistants for the third and second consecutive years, respectively [12] - The company ended the quarter with $1.2 billion in cash and investments, providing flexibility for continued investment in AI capabilities and platform enhancements [23] Q&A Session Summary Question: Subscription revenue growth guidance for Q4 - Management acknowledged the deceleration in subscription revenue growth from 30% to 27% and discussed the impact of public sector softness and the government shutdown on the demand environment [27][28] Question: Progress on first-order business - Management noted that while progress is being made, it is still not at the desired level, with a new global leader hired to focus on acquiring new business [29][30] Question: Impact of federal sector on license line and retention rate - Management confirmed that public sector remains a significant part of ARR and acknowledged disruptions from the government shutdown affecting deal dynamics [32] Question: AI tool usage among customers - Management indicated that AI tool usage is pervasive across the customer base, with many implementing multiple AI tools as part of their strategy [57] Question: SMB market weakness - Management stated that SMB represents a small portion of revenue and highlighted price sensitivity and scrutiny during renewals as contributing factors to the observed weakness [56]

Financial Performance - The company reported revenue of $244 million, representing a 25% year-over-year growth rate[7, 41] - The Q3 FY26 Non-GAAP operating margin was 18%[7, 41] - The Q3 FY26 Non-GAAP adjusted free cash flow margin was 11%[7, 41] - Adjusted Free Cash Flow was $27 million[41] - The company's dollar-based net retention rate was 119%[7] - The company has provided revenue guidance for Q4 FY2026 of $2510 million to $2520 million and full fiscal year 2026 revenue guidance of $946 million to $947 million[52] Customer Base - The company has 10,475 base customers[7] - The company has 1,405 customers with over $100K in ARR[7] - 54% of total ARR is from GitLab Ultimate as of Q3 FY26[15] Product and Recognition - GitLab Ultimate is the company's AI-native enterprise-grade DevSecOps solution[15] - GitLab received Gartner recognition in the 2025 Magic Quadrant for DevOps Platforms and AI Code Assistants[20, 21]

Core Insights - GitLab has appointed Jessica Ross as Chief Financial Officer, effective January 15, 2026, succeeding Interim CFO James Shen [1][2] - The company reported a strong momentum with a 25% revenue growth in the third quarter of fiscal year 2026 [2] Company Overview - GitLab is recognized as the most comprehensive, intelligent DevSecOps platform, aimed at enhancing software innovation and operational efficiency [5] - The platform is trusted by over 50 million registered users, including more than 50% of the Fortune 100 companies [5] Leadership and Experience - Jessica Ross brings over 25 years of experience in finance and operational leadership, having held senior roles at Frontdoor and Salesforce [3][4] - The leadership team believes Ross's experience in driving growth and operational excellence will support GitLab's expansion and market leadership [3]

Core Insights - GitLab reported a strong financial performance for Q3 FY 2026, achieving a 25% year-over-year revenue growth, totaling $244.4 million [2][3][7] - The company is focused on sustainable growth and strategic investments while generating free cash flow [2][3] - GitLab appointed Jessica Ross as the new Chief Financial Officer, effective January 15, 2026, bringing over 25 years of experience [4][8] Financial Highlights - Revenue for Q3 FY 2026 was $244.4 million, up from $196.0 million in Q3 FY 2025, representing a 25% increase [3][7] - GAAP gross margin decreased slightly to 87% from 89% year-over-year, while non-GAAP gross margin also decreased to 89% from 91% [3] - GAAP operating margin improved to (5)% from (15)% year-over-year, and non-GAAP operating margin increased to 18% from 13% [3][7] - Non-GAAP operating income rose to $43.7 million from $25.9 million, a $17.8 million increase [3] - GAAP net loss attributable to GitLab was $(8.3) million, compared to a profit of $29.1 million in the previous year [3][7] Operational Metrics - The number of customers with more than $5,000 of Annual Recurring Revenue (ARR) reached 10,475, a 10% increase year-over-year [7] - Customers with more than $100,000 of ARR increased by 23% to 1,405 [7] - The Dollar-Based Net Retention Rate was reported at 119% [7] - Total Remaining Performance Obligations (RPO) grew 27% year-over-year to $1.0 billion, while current RPO (cRPO) increased by 28% to $659.1 million [7] Business Developments - GitLab was recognized as a Leader in the Gartner Magic Quadrant for DevOps Platforms for the third consecutive year and for AI Code Assistants for the second consecutive year [8] - The company expanded its GitLab Duo Agent Platform with new AI capabilities and enhanced application security features [8]

Core Insights - GitLab Inc. is a significant player in the DevSecOps platform industry, providing tools for software development, security, and operations [1] - The company is set to release its quarterly earnings on December 2, 2025, with Wall Street anticipating an earnings per share of $0.20 and projected revenue of $239.3 million [1][5] - The upcoming financial results will cover the third quarter of fiscal year 2026, ending on October 31, 2025, and will be disclosed after U.S. markets close [2] Financial Metrics - GitLab's price-to-sales ratio is 7.79, indicating that investors are willing to pay $7.79 for every dollar of sales, reflecting confidence in the company's revenue-generating potential [3][5] - The enterprise value to sales ratio is slightly lower at 7.49, suggesting a similar valuation perspective [3] - GitLab's enterprise value to operating cash flow ratio is high at 153.49, indicating a high valuation relative to its cash flow, which may imply expectations of significant future growth [4] - The current ratio of 2.60 demonstrates GitLab's strong ability to cover short-term liabilities with short-term assets, showcasing financial stability [4][5]

Core Insights - GitLab and Atlassian are pivotal in the enterprise DevSecOps and software workflow landscape, aiding engineering teams in planning, building, securing, and shipping software at scale as AI transforms code management [1][2] - The DevSecOps market is projected to grow from $10 billion in 2025 to $37 billion by 2035, with a CAGR of 14%, indicating a shift towards secure, integrated, automation-heavy DevOps tools [2] GitLab Overview - GitLab offers a unified, security-native DevSecOps platform that integrates source code, CI/CD automation, vulnerability scanning, policy enforcement, and deployment into a single environment, addressing multi-tool sprawl [4][5] - The platform's AI integration enhances automation, contextual code suggestions, and security remediation within CI/CD pipelines, reducing manual steps and accelerating secure releases [5][6] - GitLab's fiscal 2026 EPS is estimated at 83 cents, reflecting a 12.16% year-over-year increase, driven by rising demand for integrated DevSecOps automation [6] Atlassian Overview - Atlassian provides a complementary approach to DevSecOps, focusing on coordination, governance, and workflow orchestration through tools like Jira, Bitbucket, and Confluence [7][8] - Recent AI enhancements in Atlassian's tools improve issue detection, workflow optimization, and auditability, which are crucial for maintaining governance in fast-paced development cycles [9][10] - The fiscal 2026 EPS estimate for Atlassian is $4.70, indicating a 27.72% year-over-year increase, showcasing its role as a governance backbone in modern DevSecOps [10] Performance Comparison - Year-to-date, GitLab shares have declined by 24.5%, while Atlassian shares have dropped by 40.8%, indicating steadier demand for GitLab's security-native platform compared to Atlassian's broader suite [11] - GitLab trades at a forward price-to-sales ratio of 6.5X, slightly above Atlassian's 5.64X, reflecting its focused approach to end-to-end DevSecOps and stronger AI monetization potential [14] Conclusion - Both GitLab and Atlassian benefit from the increasing adoption of DevSecOps, but GitLab's unified architecture and deeper AI integration provide a competitive edge in the current market [18]

Company Overview - JFrog Ltd. is a leading provider of a unified DevOps, DevSecOps, and MLOps platform, aiming to deliver software seamlessly from development to production [2][8] - The company operates under a "Liquid Software" vision, offering a Software Supply Chain Platform that ensures software is built, managed, and distributed quickly and securely [2][8] - JFrog's platform includes integrated security features to identify and mitigate threats and vulnerabilities, supporting organizations in their digital transformation efforts [2] Upcoming Investor Conferences - JFrog will present at three major investor conferences in Q4 2025: - UBS Global Technology and AI Conference on December 2nd at 7:55 a.m. PDT [3] - Raymond James TMT and Consumer Conference on December 8th at 11:20 a.m. PDT [3] - Barclays 23rd Annual Global Technology Conference on December 10th at 1:20 p.m. PDT [3] Recognition and Achievements - JFrog has been named GitHub's 2025 Tech Partner of the Year, highlighting its exceptional performance and commitment to enhancing customer value through its partnership with GitHub [7]