GTLB · GitLab Inc.

GitLab delivered a strong first quarter with revenue of $264.2 million, up 23% year-over-year, driven by subscription revenue growth and an 18% increase in customers with over $100,000 in ARR. GAAP gross margin was 86%, down from 88% a year ago, while non-GAAP gross margin was 88% (down from 90%), reflecting higher infrastructure costs. Non-GAAP operating margin improved to 14% from 12%, showing operating leverage as sales and marketing efficiency improved. GAAP net loss narrowed to $5.0 million from $35.9 million, and non-GAAP net income rose to $39.0 million from $29.4 million. Cash flow generation was robust, with operating cash flow of $149.2 million and adjusted free cash flow of $146.7 million. The company also repurchased approximately 2.4 million shares during the quarter. Management highlighted strong traction with GitLab Duo Agent Platform and deepening AI integrations. Subsequent to the quarter, the board approved a restructuring plan to reduce the workforce by about 14% and exit 22 countries, expected to incur $30 million to $35 million in pre-tax charges, primarily in Q2 FY2027. This strategic realignment aims to optimize execution and long-term growth. For Q2 FY2027, GitLab guided revenue of $272-$274 million and non-GAAP diluted EPS of $0.17-$0.18, and for the full year, revenue of $1.112-$1.118 billion and non-GAAP diluted EPS of $0.79-$0.82.