GitLab : Fourth Quarter 2025 Earnings Release

Published: 2025-03-03 19:25:03 ET GTLB

NEWS RELEASE

GitLab Reports Fourth Quarter and Full Fiscal Year

2025 Financial Results

3/3/2025

Fourth Quarter Fiscal Year 2025 Highlights:

Total revenue of $211.4 million, up 29% year-over-year

GAAP operating margin of (7)%; non-GAAP operating margin of 18%

Operating cash

Fiscal Year 2025 Highlights:

Total revenue of $759.2 million, up 31% year-over-year

GAAP operating margin of (18)%; non-GAAP operating margin of 10%

Operating cash

SAN FRANCISCO--(BUSINESS WIRE)-- All-Remote- GitLab Inc. (NASDAQ: GTLB), the most comprehensive AI-

powered DevSecOps platform, today reported

results for its fourth quarter and full

ended January 31, 2025.

"This quarter's results demonstrate the power of GitLab's innovative DevSecOps platform," said Bill Staples, GitLab

chief executive oGitLab

platform and GitLab Duo, customers can leverage AI that fully takes advantage of the GitLab platform which

ensures their software quality, security, privacy, compliance, and governance requirements are met to deliver

secure software faster."

"We reported a very strong fourth quarter for

and meaningful operating margin expansion," said Brian Robins, GitLab chief

we saw

signi

helping

them to deliver on some of their most complex software demands."

GitLab Names Chief Revenue O

GitLab announced that Ian Steward will join the company as Chief Revenue O

Steward joins from Tricentis, where he serves as CRO. He has spent his career driving revenue growth with a strong

analytical and operational bias. He brings a wealth of experience working with developers and IT organizations to

help them realize value.

Interim CRO, and Chief Marketing and Strategy O

FY26, enabling a smooth transition. Ashley has decided to pursue an opportunity outside the company following

the CRO transition. We are grateful for her many contributions over the past three years and wish her continued

success.

GitLab Appoints New Member to Board of Directors

The company announced the appointment of David Henshall to its board of directors on March 3, 2025. Henshall

will also join the board's Audit Committee. Henshall served as President and Chief Executive O

member of the board of directors of Citrix Systems, Inc., from 2017 to 2021. Prior to this role, he served in various

other roles at Citrix, including Chief Financial Oat the

company. For more information on GitLab's Board of Directors, please visit

https://about.gitlab.com/company/team/board-of-directors/.

Fourth Quarter Fiscal Year 2025 Financial Highlights (in millions, except per share data and

percentages):

Q4 FY 2025

Q4 FY 2024

Y/Y Change

Revenue

211.4

163.8

29%

GAAP Gross margin

89%

90%

Non-GAAP Gross margin

91%

92%

GAAP Operating margin

(7)%

(21)%

Non-GAAP Operating margin

18%

GAAP Operating loss

(15.4)

(34.9)

19.5

Non-GAAP Operating income

37.4

13.2

24.2

GAAP Net income (loss) attributable to GitLab

10.8

(36.9)

47.7

Non-GAAP Net income attributable to GitLab

56.7

25.0

31.7

GAAP Net income (loss) per share attributable to GitLab, basic

0.07

(0.24)

0.31

GAAP Net income (loss) per share attributable to GitLab, diluted

0.06

(0.24)

0.30

Non-GAAP Net income per share attributable to GitLab, basic

0.35

0.16

0.19

Non-GAAP Net income per share attributable to GitLab, diluted

0.33

0.15

0.18

GAAP net cash provided by operating activities

63.2

24.9

38.3

Non-GAAP adjusted free cash

62.1

24.5

37.6

Fiscal Year 2025 Financial Highlights (in millions, except per share data and percentages):

FY 2025

FY 2024

Y/Y Change

Revenue

759.2

579.9

31%

GAAP Gross margin

89%

90%

Non-GAAP Gross margin

91%

GAAP Operating margin

(18)%

(32)%

Non-GAAP Operating margin

10%

(0.2)%

GAAP Operating loss

(138.8)

(187.4)

48.6

Non-GAAP Operating income (loss)

77.6

(1.4)

79.0

GAAP Net loss attributable to GitLab

(2.4)

(425.7)

423.3

Non-GAAP Net income attributable to GitLab

124.8

32.6

92.2

GAAP Net loss per share attributable to GitLab, basic

(0.02)

(2.76)

2.74

GAAP Net loss per share attributable to GitLab, diluted

(0.02)

(2.76)

2.74

Non-GAAP Net income per share attributable to GitLab, basic

0.78

0.21

0.57

Non-GAAP Net income per share attributable to GitLab, diluted

0.74

0.20

0.54

GAAP net cash provided by (used in) operating activities

(64.0)

35.0

(99.0)

Non-GAAP adjusted free cash

120.0

33.4

86.6

A reconciliation between GAAP and non-GAAP

titled "Non-GAAP Financial Measures."

Additional Financial Highlights:

Customers with more than $5,000 of ARR reached 9,893, an increase of 15% year-over-year.

Customers with more than $100,000 of ARR reached 1,229, an increase of 29% year-over-year.

Customers with more than $1M of ARR increased to 123, up 28% from Q4 of

Dollar-Based Net Retention Rate was 123%.

Total RPO grew 40% year-over-year to $945.0 million, while cRPO grew 35% to $579.2 million.

Business Highlights:

Announced the general availability of GitLab Duo Self-Hosted, which allows customers to maintain full control

over their data privacy, security, and the deployment of LLMs.

Announced the private beta of GitLab Duo Work

Recognized as a Gartner® Peer Insights™ Customers' Choice in the 2025 Voice of the Customer for DevOps

Platforms Report .

Named Ian Steward as Chief Revenue O

Announced the appointment of David Henshall to GitLab's board of directors.

First Quarter and Fiscal Year 2026 Financial Outlook

This afternoon's

projected tax rate. This rate re

the

conclusion of our bilateral advance pricing agreement. It does not imply an incremental increase in our actual cash

taxes paid. This rate could change for various reasons including signi

geographic earnings mix,

tax law or tax rate changes in the jurisdictions in which we operate.

For the

(in millions, except share and per share data) :

Q1 FY 2026

FY 2026

Guidance

Revenue

$212.0

- $213.0

$936

- $942

Non-GAAP operating income

$21.0

- $22.0

$109

- $114

Non-GAAP diluted net income per share assuming approximately 172 million and 173 million weighted average

$0.14

- $0.15

$0.68

- $0.72

shares outstanding during Q1 FY 2026 and FY 2026, respectively.

These statements are forward-looking and actual results may di

the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual

results to di

A reconciliation of GAAP to non-GAAP

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

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.

__________

Gartner®, Voice of the Customer for DevOps Platforms, Peer Contributors, 24 February 2025

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its a

internationally, and PEER INSIGHTS is a registered trademark of Gartner, Inc. and/or its a

Gartner Peer Insights content consists of the opinions of individual end users based on their own experiences, and

should not be construed as statements of fact, nor do they represent the views of Gartner or its aGartner

does not endorse any vendor, product or service depicted in this content nor makes any warranties, expressed or

implied, with respect to this content, about its accuracy or completeness, including any warranties of

merchantability or

The Gartner content described herein (the "Gartner Content") represents research opinion or viewpoints published,

as part of a syndicated subscription service, by Gartner, Inc. ("Gartner"), and is not a representation of fact. Gartner

Content speaks as of its original publication date (and not as of the date of this Earnings Press Release), and the

opinions expressed in the Gartner Content are subject to change without notice.

Revision of Previously Issued Financial Statements:

Certain prior period amounts included in this release have been revised. During the current reporting period, the

Company identiof

liabilities incurred at the formation of our GitLab Information Technology (Hubei) Co., LTD Joint Venture in China

("JiHu"), for the FY 2023, FY 2024 and FY 2025 quarterly and annual

were not

material to the prior periods and do not a

income, or non-

GAAP net income. A quanti

line item will be

included in the Company's Annual Report on Form 10-K for the year ended January 31, 2025.

Conference Call Information

GitLab will host a conference call today, March 03, 2025, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its fourth

quarter and full

Interested parties may register for the call in advance by visiting https://bit.ly/4ggCwB0. A live webcast of this

conference call will be available on GitLab's investor relations website (ir.gitlab.com), and a replay will also be

archived on the website for one year.

About GitLab

GitLab is the most comprehensive AI-powered DevSecOps platform for software innovation. GitLab enables

organizations to increase developer productivity, improve operational e

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

information,

may be helpful to investors because it provides consistency and comparability with past

performance.

However, non-GAAP

has

limitations as an analytical tool, and should not be considered in isolation or as a substitute for

information presented in accordance with GAAP. Reconciliations of non-GAAP

most

directly comparable

press

release following the accompanying

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, changes

in the fair value of acquisition related contingent consideration, 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. 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 e

due to the uncertainty of

expenses that may be incurred in the future. Investors are encouraged to review the related GAAP

measures and the reconciliation of these non-GAAP

directly comparable GAAP

business.

Adjusted Free Cash Flow

Adjusted free cash

activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments

related to BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free

cash

amount of cash generated from our operations that, after the investments in property and equipment, any non-

recurring income tax payments 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

One limitation of adjusted free cash

commitments.

Additionally, adjusted free 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 re

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 di

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 e

our revenue growth rate in the future;

our ability to achieve and sustain pro

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;

our incorporation of arti

our transparency;

our publicly available company Handbook;

customers staying on our free self-managed or SaaS product o

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 e

general economic conditions (including changes in interest rates, inbudget,

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 di

statements contained in this release are included under the caption "Risk Factors" and elsewhere in the

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 re

required by law.

Operating Metrics

Annual Recurring Revenue ("ARR"): We de

subscription agreements, including our self-managed and SaaS o

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 o

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.

GitLab Inc.

Condensed Consolidated Balance Sheets

(in thousands, except per share data)

(unaudited)

January

(1)

ASSETS

31, 2025

31, 2024

CURRENT ASSETS:

Cash and cash equivalents

227,649

287,996

Short-term investments

764,728

748,289

Accounts receivable, net of allowance for doubtful accounts of $991 and $673 as of January 31, 2025 and January 31,

2024, respectively

264,565

166,731

Deferred contract acquisition costs, current

38,964

32,300

40,411

49,143

Prepaid expenses and other current assets

Total current assets

1,336,317

1,284,459

Property and equipment, net

4,013

2,954

Operating lease right-of-use assets

381

405

Goodwill

16,139

8,145

Intangible assets, net

17,834

1,733

Deferred contract acquisition costs, non-current

20,142

19,317

4,437

4,390

Other non-current assets

1,399,263

1,321,403

TOTAL ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:

Accounts payable

7,519

1,738

Accrued expenses and other current liabilities

50,788

301,262

Accrued compensation and bene

40,233

35,809

442,599

338,348

Deferred revenue, current

Total current liabilities

541,139

677,157

Deferred revenue, non-current

26,369

23,794

6,557

14,060

Other non-current liabilities

574,065

715,011

TOTAL LIABILITIES

STOCKHOLDERS' EQUITY:

Preferred stock, $0.0000025 par value; 50,000 shares authorized as of January 31, 2025 and January 31, 2024; no shares

issued and outstanding as of January 31, 2025 and January 31, 2024

Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized as of January 31, 2025 and January 31, 2024;

144,444 and 114,670 shares issued and outstanding as of January 31, 2025 and January 31, 2024, respectively

Class B Common stock, $0.0000025 par value; 250,000 shares authorized as of January 31, 2025 and January 31, 2024;

19,469 and 42,887 shares issued and outstanding as of January 31, 2025 and January 31, 2024, respectively

Additional paid-in capital

1,952,031

1,718,661

Accumulated de

(1,163,722)

(1,161,288)

(8,508)

2,398

Accumulated other comprehensive income (loss)

779,801

559,771

Total GitLab stockholders' equity

45,397

46,621

Noncontrolling interests

825,198

606,392

TOTAL STOCKHOLDERS' EQUITY

$ 1,399,263

$ 1,321,403

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

__________

(1)

As of January 31, 2025 and January 31, 2024, the consolidated balance sheet includes assets of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD ("JiHu"), of $46.5 million and $51.2 million, respectively, and liabilities of $10.3 million and $10.1 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.

GitLab Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

Three Months Ended

Fiscal Year Ended

January 31,

2025

2024

2025

2024

Revenue:

Subscription-self-managed and SaaS

185,562

142,026

675,179

506,306

25,869

21,753

84,070

73,600

License-self-managed and other

Total revenue

211,431

163,779

759,249

579,906

Cost of revenue:

Subscription-self-managed and SaaS

17,277

12,165

64,916

45,486

5,592

3,824

20,224

14,222

License-self-managed and other

22,869

15,989

85,140

59,708

Total cost of revenue

188,562

147,790

674,109

520,198

Gross pro

Operating expenses:

Sales and marketing

98,753

90,762

384,295

356,393

Research and development

62,885

52,388

239,652

200,840

42,370

39,523

188,985

150,405

General and administrative

204,008

182,673

812,932

707,638

Total operating expenses

(15,446)

(34,883)

(138,823)

(187,440)

Loss from operations

Interest income

10,292

11,813

47,735

39,114

4,017

(11,451)

9,187

(12,241)

Other income (expense), net

Loss before income taxes and loss from equity method investment

(1,137)

(34,521)

(81,901)

(160,567)

Loss from equity method investment, net of tax

(1,416)

(3,824)

(11,344)

2,035

(76,674)

265,145

Provision for (bene

10,207

(37,972)

(5,227)

(429,536)

Net income (loss)

(577)

(1,104)

(2,793)

(3,859)

Net loss attributable to noncontrolling interest

10,784

(36,868)

(2,434)

(425,677)

Net income (loss) attributable to GitLab

Net income (loss) per share attributable to GitLab Class A and Class B common

stockholders:

0.07

(0.24)

(0.02)

(2.76)

Basic

0.06

(0.24)

(0.02)

(2.76)

Diluted

Weighted-average shares used to compute net income (loss) per share attributable to

GitLab Class A and Class B common stockholders:

163,055

156,601

160,580

154,283

Basic

170,094

156,601

160,580

154,283

Diluted

GitLab Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Three Months Ended

Fiscal Year Ended

January 31,

2025

2024

2025

2024

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss), including amounts attributable to noncontrolling interest

10,207

(37,972)

(5,227)

(429,536)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Stock-based compensation expense

46,636

43,017

185,899

163,049

Change in fair value of acquisition related contingent consideration

3,750

Charitable donation of common stock

2,956

2,675

11,827

10,700

Amortization of intangible assets

2,195

521

8,126

2,167

Depreciation expense

499

1,039

2,860

4,368

Amortization of deferred contract acquisition costs

14,064

12,397

49,714

43,463

Loss from equity method investment

776

3,824

Impairment of equity method investment

8,858

Net amortization of premiums or discounts on short-term investments

(3,813)

(5,988)

(16,746)

(20,349)

Unrealized foreign exchange loss (gain), net

(4,083)

4,194

(9,526)

4,833

Other non-cash expense, net

162

1,013

930

1,330

Changes in assets and liabilities:

Accounts receivable

(67,991)

(31,050)

(99,649)

(36,341)

Prepaid expenses and other current assets

5,927

(15,722)

8,424

(23,688)

Deferred contract acquisition costs

(22,421)

(21,340)

(58,127)

(53,100)

Other non-current assets

(1,034)

865

(183)

(309)

Accounts payable

5,472

(3,219)

5,505

(3,443)

Accrued expenses and other current liabilities

(16,647)

13,090

(257,261)

259,445

Accrued compensation and bene

13,558

12,331

4,743

15,173

Deferred revenue

74,240

50,189

108,743

79,347

3,295

(10,821)

(7,773)

5,249

Other non-current liabilities

63,222

24,853

(63,971)

35,040

Net cash provided by (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of short-term investments

(204,304)

(242,021)

(707,698)

(815,697)

Proceeds from maturities of short-term investments

183,520

207,028

708,382

734,007

Purchases of property and equipment

(1,157)

(329)

(3,765)

(1,598)

Payments for business combination, net of cash acquired

(20,210)

Payments for asset acquisition

(7,660)

Escrow payment related to business combination, after acquisition date

(2,500)

Other investing activities

(450)

457

(450)

(21,941)

(35,772)

(30,494)

(86,238)

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from the issuance of common stock upon exercise of stock options, including

early exercises, net of repurchases

6,069

9,810

23,964

32,302

Issuance of common stock under employee stock purchase plan

5,624

5,182

13,556

12,933

(4,900)

Settlement of acquisition related contingent cash consideration

11,693

14,992

32,620

45,235

Net cash provided by

(1,957)

(1,386)

1,498

(3,943)

Impact of foreign exchange on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents

51,017

2,687

(60,347)

(9,906)

176,632

285,309

287,996

297,902

Cash and cash equivalents at beginning of period

227,649

287,996

227,649

287,996

Cash and cash equivalents at end of period

GitLab Inc.

Reconciliation of GAAP to Non-GAAP

(in thousands, except per share data)

(unaudited)

Three Months Ended January

Fiscal Year Ended January

31,

2025

2024

2025

2024

Gross pro

188,562

147,790

674,109

520,198

Gross margin on GAAP basis

89%

90%

89%

90%

Stock-based compensation expense

1,998

1,640

7,922

6,400

Amortization of acquired intangibles

2,195

521

8,126

2,067

463

Restructuring charges

192,755

149,951

690,157

529,128

Gross pro

Gross margin on non-GAAP basis

91%

92%

91%

Sales and marketing on GAAP basis

98,753

90,762

384,295

356,393

Stock-based compensation expense

(18,664)

(17,184)

(72,954)

(68,766)

(188)

(1,126)

(3,811)

Restructuring charges

80,089

73,390

310,215

283,816

Sales and marketing on non-GAAP basis

Research and development on GAAP basis

62,885

52,388

239,652

200,840

Stock-based compensation expense

(15,478)

(13,887)

(58,312)

(50,804)

(393)

(2,119)

Restructuring charges

Disclaimer

Gitlab Inc. published this content on March 04, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 04, 2025 at 00:24:07.036.