GitLab Q2 revenue rises 21% to $286M amid GAAP loss
Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K
Rhea-AI Filing Summary
GitLab Inc. (GTLB) reported second quarter fiscal 2027 results with revenue of $286.3 million, up 21% year-over-year, driven by subscription and license growth. GAAP results showed a net loss of $36.8 million and a GAAP operating margin of (20)%, while non-GAAP operating margin was 15% with non-GAAP net income of $42.1 million.
Operating cash flow was $(3.1) million and non-GAAP adjusted free cash flow was $9.8 million, both down versus the prior year period. GitLab reported a Dollar-Based Net Retention Rate of 117%, total RPO of $1.2 billion, current RPO of $744.7 million, and repurchased about 3.5 million shares in the quarter.
For Q3 FY 2027, GitLab expects revenue of $281–$283 million and non-GAAP operating income of $35–$37 million. For full-year FY 2027, it guides to revenue of $1.129–$1.133 billion and non-GAAP diluted EPS of $0.85–$0.87. The company also disclosed that Chief Accounting Officer Simon Mundy will resign effective September 16, 2026, with CFO Jessica Ross assuming the additional role of principal accounting officer.
Positive
- Revenue grew 21% year-over-year to $286.3 million, indicating continued top-line expansion.
- Non-GAAP operating income reached $42.6 million with a 15% non-GAAP operating margin, reflecting profitable operations on a non-GAAP basis.
- Dollar-Based Net Retention Rate was 117%, showing meaningful expansion within the existing customer base.
- Total RPO of $1.2 billion and cRPO of $744.7 million provide visibility into future recurring revenue.
- GitLab repurchased approximately 3.5 million shares during the quarter, returning capital to shareholders.
- FY 2027 guidance calls for $1.129–$1.133 billion in revenue and $0.85–$0.87 non-GAAP diluted EPS, implying ongoing scale with non-GAAP profitability.
Negative
- GAAP net loss widened to $36.8 million from $9.2 million a year earlier, and GAAP operating margin declined from (8)% to (20)%.
- GAAP operating cash flow swung to $(3.1) million from $49.4 million, and non-GAAP adjusted free cash flow declined to $9.8 million from $46.5 million.
- GAAP gross margin fell to 84% from 88%, and non-GAAP gross margin decreased to 86% from 90%, indicating higher cost of revenue.
- Stock-based compensation was $75.0 million in the quarter, a substantial non-cash expense impacting GAAP profitability.
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