Latest news with #GitLabDuo
Yahoo
2 days ago
- Business
- Yahoo
Gitlab Shares Fall Despite Q1 Earnings Beat, Revenues Up Y/Y
GitLab GTLB reported first-quarter fiscal 2026 non-GAAP earnings of 17 cents per share, beating the Zacks Consensus Estimate by 13.33%. The company reported earnings of 3 cents per share in the year-ago revenues of $214.4 million beat the consensus mark by 0.91% and rallied 27% year over year. The upside can be attributed to strong demand for its DevSecOps shares dropped 13.01% in pre-market trading due to mounting competition in AI code generation and lingering public sector uncertainty. Subscriptions, self-managed and SaaS (90.7% of total revenues) revenues increased 28.6% year over year to $194.5 million, beating the Zacks Consensus Estimate by 3.33%. License, self-managed and other revenues (9.3% of total revenues) rose 11.2% year over year to $20 revenues contributed 30% to total revenues and surged 35% year over year, driven by the strong adoption of GitLab Dedicated, AI integration and expanding customer engagement. GitLab Inc. price-consensus-chart | GitLab Inc. Quote Customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,104, up 13% year over year. Customers with more than $100K of ARR increased to 1,288, up 26% year over year, demonstrating GTLB's ability to attract and retain large enterprise dollar-based Net Retention Rate was 122% in the reported Remaining Performance Obligation (RPO) surged 40% year over year to $955.1 million. The current RPO increased 34% to $584.8 the reported quarter, GitLab announced the general availability of GitLab 18, featuring major innovations across core DevOps workflows, security and compliance, and AI capabilities natively integrated into the platform. The company also announced the general availability of GitLab Duo with Amazon Q for Ultimate self-managed customers on AWS and achieved FedRAMP Moderate Authority to Operate for GitLab Dedicated for Government, under the sponsorship of the GSA. On a non-GAAP basis, research & development expenses increased 22.3% year over year to $51.1 million. Sales and marketing expenses were up 15.1% to $85.5 million. General and administrative expenses declined 25.3% to $30.7 million in the reported income was $26.1 million on a non-GAAP basis compared with the year-ago quarter's loss of $3.8 million. As of April 30, 2025, cash and cash equivalents and short-term investments were $11.05 billion compared with $9.92 billion as of Jan. 31, the reported quarter, the company generated a cash flow from the operation of $106.3 million compared with an operating cash outflow of $63.2 million in the previous of April 30, 2025, the adjusted free cash flow was $104.1 million compared with $62.1 million as of Jan. 31, 2025. For the second quarter of fiscal 2026, GitLab expects revenues between $226 million and $227 million, indicating approximate growth of 24% year over year. The Zacks Consensus Estimate for revenues is currently pegged at $225.27 operating income is expected to be in the range of $23-$24 million for the fiscal second fiscal second quarter earnings are expected to be between 16 cents per share and 17 cents per share. The consensus mark for the same is pinned at 15 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)For fiscal 2026, GitLab expects revenues between $936 million and $942 million, indicating growth of approximately 24% year over year. The Zacks Consensus Estimate for the same is pegged at $936.51 operating income is expected to be in the range of $117-$121 million for fiscal 2026. Non-GAAP earnings are expected to be between 74 cents per share and 75 cents per share. The consensus mark for fiscal 2026 earnings is pinned at 70 cents per share. Currently, Gitlab has a Zacks Rank #2 (Buy).Karooooo KARO, Amphenol APH and Pegasystems PEGA are some other top-ranked stocks in the broader Zacks Computer & Technology Amphenol and Pegasystems sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks shares have appreciated 32.8% in the year-to-date (YTD) period. The Zacks Consensus Estimate for KARO's fiscal 2026 earnings has been revised upward by 2 cents to $1.82 in the past 30 days, suggesting year-over-year growth of 11.66%.Amphenol shares have returned 33.2% YTD. The Zacks Consensus Estimate for APH's 2025 earnings is pegged at $2.66 per share, up by a penny over the past 30 days, suggesting a growth of 40.74%.PEGA shares have gained 8.7% YTD. The Zacks Consensus Estimate for PEGA's 2025 earnings is pegged at $3.61 per share, implying a rise of 19.14% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report Karooooo Ltd. (KARO) : Free Stock Analysis Report GitLab Inc. (GTLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
GitLab Inc (GTLB) Q1 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic AI ...
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. 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. 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: 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. Q: Can you explain the growth dynamics, given the fiscal Q1 results and the outlook for the year? A: Brian Robins, CFO: The quarter's results were as expected, with a mix favoring SaaS and back-end weighted linearity. The guidance remains unchanged, assuming consistent macroeconomic conditions. The growth in RPO, CRPO, and billings indicates strong underlying demand, despite a slightly narrower beat compared to previous quarters. Q: How is AI adoption affecting job growth in the software developer market, and what are the implications for GitLab? A: Bill Staples, CEO: AI is seen as a productivity enhancer rather than a job threat. Historically, advances in productivity have led to more opportunities. AI will likely increase the number of code creators and the volume of code, benefiting GitLab. Brian Robins, CFO, added that developer hiring is turning positive, and GitLab's market opportunity remains vast. Q: How does GitLab plan to capture value from AI-driven enhancements, given the current pricing model? A: Bill Staples, CEO: GitLab is focusing on creating value through AI by enhancing collaboration between humans and agents, maintaining security and privacy, and leveraging its unified platform for better context and outcomes. The introduction of Duo Chat and code suggestions in Premium and Ultimate tiers is part of a strategy to lower adoption barriers and provide a smooth upgrade path to more advanced AI capabilities. Q: What are the key differentiators in GitLab 18, and why were certain features included without additional charges? A: Bill Staples, CEO: GitLab 18 introduces centralized artifact management, improved CICD pipelines, and enhanced security features. The inclusion of Duo Chat and code suggestions in Premium and Ultimate tiers aims to eliminate adoption barriers and provide a seamless upgrade path. The strategy is to offer a friction-free AI experience, encouraging broader adoption and eventual upgrades to more comprehensive solutions. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
GTLB Q1 Earnings Call: AI Growth and Product Expansion Highlight Strategic Direction
Software development tools maker GitLab (NASDAQ:GTLB) announced better-than-expected revenue in Q1 CY2025, with sales up 26.8% year on year to $214.5 million. The company expects next quarter's revenue to be around $226.5 million, close to analysts' estimates. Its non-GAAP profit of $0.17 per share was 11.8% above analysts' consensus estimates. Is now the time to buy GTLB? Find out in our full research report (it's free). Revenue: $214.5 million vs analyst estimates of $213 million (26.8% year-on-year growth, 0.7% beat) Adjusted EPS: $0.17 vs analyst estimates of $0.15 (11.8% beat) Adjusted Operating Income: $26.12 million vs analyst estimates of $22.62 million (12.2% margin, 15.5% beat) The company reconfirmed its revenue guidance for the full year of $939 million at the midpoint Management raised its full-year Adjusted EPS guidance to $0.75 at the midpoint, a 6.4% increase Operating Margin: -16.1%, up from -31.7% in the same quarter last year Net Revenue Retention Rate: 122%, down from 123% in the previous quarter Annual Recurring Revenue: $809.3 million at quarter end, up 33.8% year on year Billings: $222.2 million at quarter end, up 35.4% year on year Market Capitalization: $8.01 billion GitLab's first quarter results reflected growing adoption of its AI-driven DevSecOps platform, as management cited strong engagement from both new and existing enterprise customers. CEO Bill Staples emphasized the company's unique position as an AI-native, cloud-agnostic platform, capable of supporting diverse development environments. The launch of new features in GitLab 18, including expanded artifact management and enhanced security tools, was positioned as a key factor in driving customer value. Staples also pointed to rapid uptake of AI capabilities, noting a 35% quarter-over-quarter increase in customers purchasing GitLab Duo. CFO Brian Robins attributed operating leverage improvements to a continued shift toward SaaS and a remote-first cost structure, while noting some price sensitivity at the lower end of the customer base. Looking ahead, management's guidance is anchored by expectations of sustained AI adoption and continued product innovation across the platform. Staples described the company's focus on integrating agentic AI—software agents that can automate complex tasks—as a core pillar for future growth, highlighting the upcoming launch of GitLab Duo Workflow. The company aims to lower barriers to entry for AI tools by embedding core features into Premium and Ultimate tiers, with the goal of broadening usage and creating upgrade paths to higher-value offerings. Robins cautioned that the macroeconomic environment remains unchanged from prior quarters but expressed confidence in the company's ability to expand operating margins while investing in platform enhancements and go-to-market capabilities. Management credited first quarter performance to rapid AI feature adoption, strategic product launches, and increased traction among large enterprise customers. AI-driven platform differentiation: GitLab's unified DevSecOps approach, with integrated AI tools across the software development lifecycle, was cited as a primary factor in winning competitive evaluations and expanding existing customer deployments. Product launch momentum: The release of GitLab 18 introduced centralized artifact management and improved CI/CD (continuous integration/continuous deployment) pipelines, features that management described as highly requested by enterprise clients seeking greater speed and security in software delivery. Security and compliance focus: Deeper security capabilities, such as enhanced vulnerability dashboards and custom compliance frameworks, continued to drive adoption of the Ultimate tier, especially among highly regulated industries. Flexible AI packaging: The decision to include Duo Chat and Code Suggestions in both Premium and Ultimate tiers, with usage limits, was intended to reduce friction for AI adoption and expand the addressable customer base, with an upgrade path to Duo Pro and Duo Enterprise for more advanced needs. Strong customer expansion: Management highlighted several large customers increasing their commitments, especially in the public sector and financial services, with GitLab Dedicated (a single-tenant SaaS solution) gaining momentum following FedRAMP Moderate authorization, supporting growth in security-conscious segments. GitLab's outlook relies on continued enterprise adoption of AI features, ongoing product enhancements, and expansion of its customer base through flexible packaging and go-to-market partnerships. Accelerating AI feature integration: Management expects the upcoming launch of GitLab Duo Workflow to support broader automation and agentic AI use cases, which could increase platform stickiness and drive higher seat expansion within existing accounts. Evolving customer segmentation: By making advanced AI tools available in both Premium and Ultimate tiers, the company aims to attract entry-level customers while providing clear upgrade incentives, though management acknowledged that price sensitivity may continue to affect smaller accounts. Macro and competitive dynamics: While the macroeconomic environment is described as stable, management flagged ongoing experimentation among customers with multiple AI tools as a competitive reality, requiring GitLab to maintain rapid innovation and prove value relative to both established players and new entrants like Cursor and Windsurf. Going forward, the StockStory team will focus on (1) the adoption rate of GitLab Duo Workflow as it enters public beta and general availability, (2) continued expansion of GitLab Dedicated in regulated industries following FedRAMP authorization, and (3) the success of new AI feature packaging in driving seat expansion and upgrades. Progress in international markets and feedback from enterprise customers on GitLab 18 enhancements will also be key indicators of execution. GitLab currently trades at a forward price-to-sales ratio of 8.1×. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
3 days ago
- Business
- Business Wire
GitLab Reports First Quarter Fiscal Year 2026 Financial Results
SAN FRANCISCO--(BUSINESS WIRE)-- All-Remote- GitLab Inc. (NASDAQ: GTLB), the most comprehensive, intelligent DevSecOps platform, today reported financial results for its first quarter fiscal year of 2026, ended April 30, 2025. 'First quarter fiscal year 2026 results underscore the power of our AI-native DevSecOps platform to help customers deliver mission-critical software. We're giving every developer the AI-driven edge they need to innovate faster and more efficiently,' said Bill Staples, GitLab chief executive officer. "As AI transforms development practices, our unified platform enables organizations to integrate these capabilities within a framework that helps maintain enterprise controls and deliver the required scalability and security.' 'I am pleased with our team's execution which resulted in 27% revenue growth in the first quarter, significant year-over-year operating margin expansion, and record adjusted free cash flow,' said Brian Robins, GitLab chief financial officer. 'GitLab's platform approach continues to drive momentum across the business, and, with our GitLab 18 release, we offer the most comprehensive, intelligent DevSecOps platform in the market.' First Quarter Fiscal Year 2026 Financial Highlights (in millions, except per share data and percentages): A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled 'Non-GAAP Financial Measures.' Additional Financial Highlights: Customers with more than $5,000 of ARR reached 10,104, an increase of 13% year-over-year. Customers with more than $100,000 of ARR reached 1,288, an increase of 26% year-over-year. Dollar-Based Net Retention Rate was 122%. Total RPO grew 40% year-over-year to $955.1 million, while cRPO grew 34% to $584.8 million. Business Highlights: Announced GitLab 18, including major new innovations across core DevOps workflows, security and compliance processes, and AI capabilities natively integrated into the platform. Announced the general availability of GitLab Duo with Amazon Q, which embeds Amazon Q's autonomous agents directly into the GitLab DevSecOps platform for GitLab Ultimate self-managed customers on Amazon Web Services (AWS). Achieved Authority to Operate status at the Moderate impact level from the Federal Risk and Authorization Management Program (FedRAMP) for GitLab Dedicated for Government under the sponsorship of the General Services Administration (GSA). Named a Leader in the Forrester Wave™: DevOps Platforms, Q2 2025 report. Received the 2025 Google Cloud Technology Partner of the Year Award in the Application Development - DevOps category for the fifth consecutive year. Second Quarter and Fiscal Year 2026 Financial Outlook For the second quarter and fiscal year 2026, GitLab Inc. expects (in millions, except share and per share data): These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements. A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below in Non-GAAP Financial Measures. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating income (loss) and net income (loss) per share to the corresponding GAAP measures is not available. Conference Call Information GitLab will host a conference call today, June 10, 2025, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its first quarter fiscal year 2026 financial results and its guidance for the second quarter and full fiscal year 2026. Interested parties may register for the call in advance by visiting A live webcast of this conference call will be available on GitLab's investor relations website ( and a replay will also be archived on the website for one year. About GitLab GitLab is the most comprehensive, intelligent DevSecOps platform for software innovation. GitLab enables organizations to increase developer productivity, improve operational efficiency, reduce security and compliance risk, and accelerate digital transformation. More than 50 million registered users and more than 50% of the Fortune 100 trust GitLab to ship better, more secure software faster. Non-GAAP Financial Measures GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, equity method investment loss and impairment, acquisition related expenses, charitable donation of common stock, restructuring charges, a non-recurring income tax adjustment related to bilateral advance pricing agreement ('BAPA') negotiations, non-recurring charges associated with the formation of our GitLab Information Technology (Hubei) Co., LTD Joint Venture in China ('JiHu'), and other expenses that the Company believes are not indicative of its ongoing operations. In addition to these exclusions, effective Q1 FY26 we utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision which reflects the new location of GitLab's intellectual property in the U.S. following the conclusion of our bilateral advance pricing agreements. For FY26, we have determined the projected non-GAAP tax rate to be 22%. Shares used for net income per share on a non-GAAP basis include incremental dilutive shares related to restricted stock units, options, and shares issuable under GitLab Inc.'s 2021 Employee Stock Purchase Plan that are anti-dilutive on a GAAP basis. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. Adjusted Free Cash Flow Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to BAPA or minus any non-recurring income tax refunds related to BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments or refunds related to BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period. Forward-Looking Statements This press release and the accompanying earnings call contain 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following: our ability to effectively manage our growth; our revenue growth rate in the future; our ability to achieve and sustain profitability, our business, financial condition, and operating results; security and privacy breaches; intense competition in our markets and loss of market share to our competitors; our ability to respond to rapid technological changes; the market for our services may not grow; a decline in our customer renewals and expansions; fluctuations in our operating results; our incorporation of artificial intelligence features into our products; our transparency; our publicly available company Handbook; customers staying on our free self-managed or SaaS product offering; our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption; our hiring model; the effects of ongoing armed conflict in different regions of the world on our business; and general economic conditions (including changes in interest rates, inflation, tariffs, uncertainty of the federal budget, increased volatility in the capital markets, and instability in the global banking sector) and slow or negative growth of our markets. Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption 'Risk Factors' and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law. Operating Metrics Annual Recurring Revenue ('ARR'): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue ('MRR') and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services. Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end ('Prior Period ARR'). We then calculate the ARR from these customers as of the current period end ('Current Period ARR'). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate. April 30, 2025 (1) (1) ASSETS CURRENT ASSETS: Cash and cash equivalents $ 255,719 $ 227,649 Short-term investments 849,113 764,728 Accounts receivable, net of allowance for doubtful accounts of $1,154 and $991 as of April 30, 2025 and January 31, 2025, respectively 201,408 264,565 Deferred contract acquisition costs, current 35,455 38,964 Prepaid expenses and other current assets 39,066 40,411 Total current assets 1,380,761 1,336,317 Property and equipment, net 4,856 4,013 Operating lease right-of-use assets 329 381 Goodwill 16,029 16,139 Intangible assets, net 15,819 17,834 Deferred contract acquisition costs, non-current 19,830 20,142 Other non-current assets 4,366 4,437 TOTAL ASSETS $ 1,441,990 $ 1,399,263 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 11,288 $ 7,519 Accrued expenses and other current liabilities 66,308 54,680 Accrued compensation and benefits 28,119 40,233 Deferred revenue, current 450,668 442,599 Total current liabilities 556,383 545,031 Deferred revenue, non-current 25,981 26,369 Other non-current liabilities 7,029 6,557 TOTAL LIABILITIES 589,393 577,957 STOCKHOLDERS' EQUITY: Preferred stock, $0.0000025 par value; 50,000 shares authorized as of April 30, 2025 and January 31, 2025; no shares issued and outstanding as of April 30, 2025 and January 31, 2025 — — Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized as of April 30, 2025 and January 31, 2025; 145,894 and 144,444 shares issued and outstanding as of April 30, 2025 and January 31, 2025, respectively — — Class B Common stock, $0.0000025 par value; 250,000 shares authorized as of April 30, 2025 and January 31, 2025; 19,203 and 19,469 shares issued and outstanding as of April 30, 2025 and January 31, 2025, respectively — — Additional paid-in capital 2,013,228 1,952,031 Accumulated deficit (1,203,489 ) (1,167,614 ) Accumulated other comprehensive loss (1,459 ) (8,508 ) Total GitLab stockholders' equity 808,280 775,909 Noncontrolling interests 44,317 45,397 TOTAL STOCKHOLDERS' EQUITY 852,597 821,306 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,441,990 $ 1,399,263 __________ (1) As of April 30, 2025 and January 31, 2025, the condensed consolidated balance sheet includes assets of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD ('JiHu'), of $45.0 million and $46.5 million, respectively, and liabilities of $10.2 million and $10.3 million, respectively. The assets of JiHu can be used only to settle obligations of JiHu and creditors of JiHu do not have recourse against the general credit of GitLab Inc. Expand GitLab Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended April 30, 2025 2024 Revenue: Subscription—self-managed and SaaS $ 194,481 $ 151,179 License—self-managed and other 20,028 18,008 Total revenue 214,509 169,187 Cost of revenue: Subscription—self-managed and SaaS 19,268 13,839 License—self-managed and other 5,767 4,937 Total cost of revenue 25,035 18,776 Gross profit 189,474 150,411 Operating expenses: Sales and marketing 107,587 92,424 Research and development 65,410 54,140 General and administrative 51,087 57,487 Total operating expenses 224,084 204,051 Loss from operations (34,610 ) (53,640 ) Interest income 10,862 12,030 Other expense, net (9,971 ) (889 ) Loss before income taxes (33,719 ) (42,499 ) Provision for income taxes 2,539 12,977 Net loss $ (36,258 ) $ (55,476 ) Net loss attributable to noncontrolling interest (383 ) (243 ) Net loss attributable to GitLab $ (35,875 ) $ (55,233 ) Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted: $ (0.22 ) $ (0.35 ) Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted: 164,491 158,157 Expand GitLab Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended April 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss, including amounts attributable to noncontrolling interest. $ (36,258 ) $ (55,476 ) Adjustments to reconcile net loss to net cash provided by operating activities: Stock-based compensation expense 55,827 42,252 Charitable donation of common stock 1,739 2,957 Amortization of intangible assets 2,020 1,087 Depreciation expense 556 937 Amortization of deferred contract acquisition costs 13,899 11,109 Net amortization of premiums or discounts on short-term investments (2,996 ) (4,900 ) Unrealized foreign exchange loss, net 9,901 720 Other non-cash expense, net 208 412 Changes in assets and liabilities: Accounts receivable 65,928 31,072 Prepaid expenses and other current assets 1,527 10,362 Deferred contract acquisition costs (8,126 ) (8,540 ) Other non-current assets 379 (419 ) Accounts payable 3,586 1,336 Accrued expenses and other current liabilities 9,979 20,023 Accrued compensation and benefits (13,084 ) (13,152 ) Deferred revenue 1,205 (4,448 ) Other non-current liabilities 12 2,806 Net cash provided by operating activities 106,302 38,138 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short-term investments. (245,952 ) (144,392 ) Proceeds from maturities of short-term investments 163,606 254,687 Proceeds from sales of short-term investments 1,367 — Purchases of property and equipment. (912 ) (700 ) Payments for business combination, net of cash acquired — (20,210 ) Net cash provided by (used in) investing activities (81,891 ) 89,385 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases 3,328 5,093 Net cash provided by financing activities 3,328 5,093 Impact of foreign exchange on cash and cash equivalents 331 (290 ) Net increase in cash and cash equivalents. 28,070 132,326 Cash and cash equivalents at beginning of period 227,649 287,996 Cash and cash equivalents at end of period $ 255,719 $ 420,322 Expand GitLab Inc. Reconciliation of GAAP to Non-GAAP (in thousands, except per share data) (unaudited) Three Months Ended April 30, 2025 2024 Gross profit on GAAP basis $ 189,474 $ 150,411 Gross margin on GAAP basis 88 % 89 % Stock-based compensation expense 1,929 1,855 Amortization of acquired intangibles 2,020 1,087 Gross profit on non-GAAP basis $ 193,423 $ 153,353 Gross margin on non-GAAP basis 90 % 91 % Sales and marketing on GAAP basis $ 107,587 $ 92,424 Stock-based compensation expense (22,091 ) (17,397 ) Restructuring charges — (730 ) Sales and marketing on non-GAAP basis $ 85,496 $ 74,297 Research and development on GAAP basis $ 65,410 $ 54,140 Stock-based compensation expense (14,272 ) (12,336 ) Research and development on non-GAAP basis $ 51,138 $ 41,804 General and administrative on GAAP basis $ 51,087 $ 57,487 Stock-based compensation expense (17,535 ) (10,664 ) Restructuring charges — (276 ) Charitable donation of common stock (1,739 ) (2,957 ) Acquisition related expenses (183 ) (2,051 ) Other non-recurring charges (963 ) (473 ) General and administrative on non-GAAP basis $ 30,667 $ 41,066 Loss from operations on GAAP basis $ (34,610 ) $ (53,640 ) Stock-based compensation expense 55,827 42,252 Amortization of acquired intangibles 2,020 1,087 Restructuring charges — 1,006 Charitable donation of common stock 1,739 2,957 Acquisition related expenses 183 2,051 Other non-recurring charges 963 473 Income (loss) from operations on non-GAAP basis $ 26,122 $ (3,814 ) Other expense, net on GAAP basis $ (9,971 ) $ (889 ) Foreign exchange losses, net 9,954 785 Other non-recurring charges 170 174 Other income, net on non-GAAP basis $ 153 $ 70 Net loss attributable to GitLab common stockholders on GAAP basis $ (35,875 ) $ (55,233 ) Stock-based compensation expense 55,827 42,252 Amortization of acquired intangibles 2,020 1,087 Restructuring charges — 1,006 Charitable donation of common stock 1,739 2,957 Acquisition related expenses 183 2,051 Foreign exchange losses 9,954 785 Income tax adjustment (1) (5,631 ) 8,922 Other non-recurring charges 1,133 647 Net income attributable to GitLab common stockholders on non-GAAP basis $ 29,350 $ 4,474 GAAP net loss per share, basic and diluted $ (0.22 ) $ (0.35 ) Non-GAAP net income per share, basic $ 0.18 $ 0.03 Non-GAAP net income per share, diluted $ 0.17 $ 0.03 Shares used in per share calculation - basic on GAAP basis 164,491 158,157 Effect of dilutive securities 5,669 8,767 Shares used in per share calculation - diluted on non-GAAP basis 170,160 166,924 (1) Income tax adjustment in Q1 FY2025 consists primarily of one-time charges associated with the formation of Jihu and BAPA negotiations, while in Q1 FY2026, it primarily reflects an assumed provision for income taxes based on our long-term projected tax rate of 22%. 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Yahoo
4 days ago
- Business
- Yahoo
Scotiabank Trims GitLab (GTLB) PT, Maintains Outperform Rating
GitLab Inc. (NASDAQ:GTLB) is one of the 10 tech stocks on Wall Street's radar right now. On June 6, Scotiabank cut its price target on GitLab Inc. (NASDAQ:GTLB) to $67 from $80 ahead of its earnings (Q1 FY2026), but maintained an Outperform rating on the stock. The firm described its recent internal reviews as steady, and noted some traction with GitLab Duo but also some signs of weakness in the broader market. Scotiabank does not expect Q1 to provide a major catalyst, yet sees the stock as fairly priced. It is also important to note that AWS has expanded its partnerships with GitLab and has integrated GitLab Duo into its offerings. Phone with stocks chart GitLab Inc. (NASDAQ:GTLB) is expected to post its Q1 2026 results on June 10. After posting its FQ4 2026 earnings in March, the company provided revenue guidance of $212 - $ 213 million and non-GAAP operating income to be around $21 - $22 million. For the full year, the company expects to report a revenue between $936 and $942 million. GitLab Inc. (NASDAQ:GTLB) provides a unified platform that supports the full software development lifecycle, helping teams plan, build, secure, and deploy applications across multiple cloud environments. Additionally, the company offers training and professional services. While we acknowledge the potential of GTLB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
