Particle.news

GitLab Beats Q2 Estimates, Raises Full‑Year Revenue Forecast

Strong bookings and early uptake of its Flex and AI tools pushed recurring revenue higher and lifted guidance while questions about cash flow and GAAP losses remain.

Overview

  • GitLab reported Q2 fiscal 2027 revenue of $286.3 million, roughly 21% growth, and raised its full‑year revenue guide to about $1.129 billion–$1.133 billion after the results on Wednesday.
  • Net annual recurring revenue growth accelerated about 42% year over year and dollar‑based net retention rose to 117%, supported by record gross bookings and a surge in first orders to about 1,700.
  • Management said more than 130 customers committed over $20 million to the new Flex plan in its first six weeks and that AI-related products such as Duo Agent, Orbit, and Secrets Manager showed early commercial traction.
  • Financial detail was mixed because non‑GAAP operating income rose to $42.6 million while GAAP operating and net losses widened and adjusted free cash flow dropped sharply to $9.8 million.
  • Investors pushed the stock up about 21% premarket and analysts upgraded cautiously, with William Blair citing the need to prove Flex and AI bookings are durable and warning of stiff competition from larger code tools providers.