Gitlab (US:GTLB)2025-06-10 21:32Financial 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]