GitLab Inc.

Q1 revenue was $264 million, up 23% year over year and 4 points ahead of guide. Non-GAAP operating income was $38 million versus $26 million a year ago, with non-GAAP operating margin at 14%, up roughly 200 basis points year over year. Non-GAAP gross margin was 88%; adjusted free cash flow was $147 million, with a 56% margin. Dollar-based net retention was 117%; gross RPO grew 18% to $1.1 billion and current RPO grew 24% to $724 million. For guidance, Q2 FY27 revenue is expected at $272 million to $274 million, with non-GAAP operating income of $30 million to $32 million and non-GAAP EPS of $0.17 to $0.18. Full-year FY27 revenue is guided to $1.112 billion to $1.118 billion, with non-GAAP operating income of $135 million to $141 million and non-GAAP EPS of $0.79 to $0.82. Gross margin for the full year is expected to be 85% to 87%. Management said it expects profitability to trough in Q3 due to restructuring-related investment timing.

Bill Staples framed the quarter as proof that the market opportunity is shifting toward agentic engineering and that GitLab is positioning itself as the enterprise platform for that transition. He emphasized strong signal in enterprise demand, higher first-order growth, surging platform activity, and early consumption traction for Duo Agent platform, while arguing that GitLab’s cloud-neutral, governance-heavy architecture is a key differentiator. His tone was confident and expansive, with repeated references to massive opportunity, structural tailwinds, and upcoming product announcements at Transcend.

Jessica Ross said revenue outperformance was helped by $2 million of nonrecurring overages and early renewals, but also noted pressure from layoffs in customer bases and M&A-related contraction, especially in the price-sensitive cohort that is about 20% of ARR. She highlighted strong enterprise metrics, including 1,519 customers paying more than $100,000 annually, gross retention above 90%, 10,831 customers paying at least $5,000 in ARR, and $1.36 billion in cash and investments. She also detailed the Act 2 plan: roughly 14% or 350 employees impacted, 22 countries exited, $30 million to $35 million in pretax restructuring charges, and about $19 million expected in Q2, while saying most savings will be reinvested into people, technology, and process.

Analysts pressed on competitive wins versus GitHub, and Bill said GitLab saw a small but meaningful improvement in historical win rates and a notable increase in enterprises adopting GitLab as a platform. Questions also focused on guidance conservatism, where Jessica pointed to ongoing macro softness, pressure in the price-sensitive cohort, no assumed material FY27 revenue from Duo Agent platform, and potential disruption from the restructuring. Other key topics included monetization of nontechnical users, with management saying those users are increasingly asking for seats and that the existing seat-based model still applies, and deal duration, where management said shorter terms reflect market uncertainty and changing developer unit economics.