Gitlab Inc. Q4 FY2025 earnings call

• Bill welcomed Ian Stewart as CRO, who will join later this quarter. Ashley Kramer will remain as interim CRO through Q1 FY2026.
• Q4 was a strong finish with revenue up 29% YOY to $211 million, non-GAAP operating margin at 18%.
• Key themes from customer meetings: GitLab's comprehensive platform drives productivity, DevSecOps momentum, and AI evaluation by customers.
• FY2026 plan focuses on adding new paying customers, expansion motions, and innovation in DevOps, security, and AI.
• Wins in Q4 include deals with Anthropic, a global cybersecurity company, and the French state's investment arm, among others.
• Duo Workflow entered private beta, with plans to move to public beta in summer.

In Q4 FY2025, revenue reached $211.4 million, a 29% year-over-year increase. Ultimate was a key segment, reaching 50% of total ARR. GitLab Dedicated grew approximately 90% year over year in Q4. Duo also had strong performance, with Duo Enterprise and Duo Workflow initiatives. The cohort of customers with ARR of at least $5,000 contributed over 95% of total ARR in Q4, and the larger customer cohort of $100,000 plus in ARR increased 29% to 1,229, including 123 customers of $1 million or more in ARR.

• First quarter FY2026: Total revenue expected $212M-$213M (25%-26% YOY growth), non-GAAP operating income $21M-$22M, non-GAAP net income per share $0.14-$0.15.
• Full year FY2026: Total revenue expected $936M-$942M (~24% YOY growth), non-GAAP operating income $109M-$114M, non-GAAP net income per share $0.68-$0.72.
• Note: Non-recurring $15M global gathering cost in Q1 FY2025 won't recur, and a 22% long-term non-GAAP projected tax rate is included due to BAPA with IRS Netherlands.

Q: Derek Wood asked about balance of growth investments vs margin expansion.

A: Brian Robbins said growth is prioritized responsibly, with investments in sales capacity and engineering, and margin improvement through execution.

Q: Greg Moskowitz asked about upselling to Duo Pro/Enterprise.

A: Bill said AI is essential in developer experience, and developers will use AI in software creation.

Q: Pinjalim Bora asked about NRR and pricing.

A: Brian Robbins said pricing impact was exceeded, consistent spending environment, and guidance built from multiple angles.

Q: Ryan McWilliams asked about public sector business.

A: Brian Robbins said pubsec makes up ~12% of ARR, with no extra conservatism baked into guidance.

Q: Nick Altman asked about dedicated SKU drivers.

A: Bill said dedicated's single-tenant SaaS offering is a competitive advantage, driving ultimate upgrades for certain verticals.