• Revenue: $214.5 million, a 27% increase year-over-year.

• Non-GAAP Operating Margin: 12.2%, compared to negative 2.3% in the previous year.

• Adjusted Free Cash Flow: $104.1 million, with a margin of 49%.

• Non-GAAP Gross Margin: 90% for the quarter.

• Dollar-Based Net Retention Rate (DBNRR): 122%.

• Total Annual Recurring Revenue (ARR): 10,104 customers with ARR of at least $5,000.

• Customers with $100,000+ ARR: Increased 26% year-over-year to 1,288.

• Guidance for Q2 FY26 Revenue: $226 million to $227 million.

• Guidance for FY26 Revenue: $936 million to $942 million.

• Cash and Investments: $1.1 billion at the end of the quarter.

• Warning! GuruFocus has detected 4 Warning Signs with GTLB.

Release Date: June 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GitLab Inc (NASDAQ:GTLB) reported a 27% year-over-year increase in revenue, reaching $215 million for the first quarter.

• The company achieved a non-GAAP operating margin of 12%, highlighting significant year-over-year operating margin expansion.

• GitLab Inc (NASDAQ:GTLB) continues to see strong adoption of its AI-native DevSecOps platform, with strategic differentiators like cloud agnosticism and comprehensive solutions across the software development lifecycle.

• The company launched GitLab 18, introducing new product capabilities that enhance core DevOps, security, and AI functionalities.

• GitLab Inc (NASDAQ:GTLB) achieved FedRAMP Moderate authorization, which is expected to boost its public sector business with its Dedicated offering.

Negative Points

• The company's Q1 beat was described as one of the 'skinniest' since its IPO, indicating tighter performance margins.

• There was a noted deceleration in sequential customer adds, particularly in the $100,000 ARR cohort.

• GitLab Inc (NASDAQ:GTLB) experienced a back-end weighted linearity in the quarter, which could indicate potential challenges in deal closures.

• The company faces price sensitivity at the low end of the market, impacting new customer additions.

• Concerns were raised about the potential impact of AI on job growth in the software developer market, which could affect demand for GitLab's services.

Q & A Highlights

Q: How are customer conversations evolving with the rapid advancements in AI, particularly regarding code suggestion and completion? A: Bill Staples, CEO: Every customer conversation touches on AI. Customers are eager to use AI to enhance productivity, innovation, and quality. The market is rapidly evolving with new tools and techniques. Customers often experiment with multiple AI tools, including GitLab Duo, to find the best fit. This experimentation ultimately benefits GitLab, as more code creation leads to increased demand for GitLab's comprehensive platform for testing, validation, and deployment.