Gitlab Inc. Q1 FY2026 earnings call

Key Points - Bill Staples highlighted first quarter revenue growth of 27% to $215 million and non-GAAP operating margin of 12%. Emphasized the AI-native DevSecOps platform's value, unique capabilities like cloud agnosticism and unified data store. Mentioned product launches in GitLab 18, including centralizing artifact management, deepening security capabilities, and natively integrating AI. Discussed Duo adoption with 35% QoQ increase in new Duo customers, partnerships with AWS, and GitLab Duo Workflow beta with 82% of private beta users satisfied. - Brian Robbins noted 27% revenue growth, DBNRR of 122%, RPO growing 40% YOY to $955.1 million, cRPO growing 34% YOY to $584.8 million, non-GAAP gross margin of 90%, and non-GAAP operating income of $26.1 million. Provided update on JiHu, with FY '26 expenses forecasted at $18 million.

First quarter revenue increased 27% year-over-year to $215 million. Ultimate represents 52% of total ARR. SaaS is 30% of total revenue and grew 35% year-over-year. Dedicated achieved FedRAMP Moderate authorization. The larger customer cohort of $100,000-plus in ARR increased 26% year-over-year to 1,288. Dollar-based net retention rate (DBNRR) was 122% in Q1, driven by seat expansion, increased customer yield, and tier upgrades.

Second Quarter FY '26 - Expected total revenue: $226 million to $227 million (24% YOY growth). - Expected non-GAAP operating income: $23 million to $24 million. - Expected non-GAAP net income per share: $0.16 to $0.17 (assuming 171 million weighted average diluted shares). ### Full Year FY '26 - Expected total revenue: $936 million to $942 million (24% YOY growth). - Expected non-GAAP operating income: $117 million to $121 million. - Expected non-GAAP net income per share: $0.74 to $0.75 (assuming 172 million weighted average diluted shares).

Risks - Macro-economic uncertainties that could impact customer spending. - Competition in the AI coding assistant space, with customers testing multiple vendors. - Potential impact of evolving market conditions on the company's ability to maintain growth and margins.

Q: On AI experimentation and winning the market, how does GitLab ensure it's winning?

A: Bill Staples stated GitLab Duo wins against competitors in customer bake-offs, and positive feedback on Duo Workflow beta.

Q: On free cash flow in Q1, was there anything one-time?

A: Brian Robbins explained Q4 is seasonally strong and Q1 free cash flow was from normal business operations.

Q: On new customer adds and pricing changes, any commentary?

A: Brian Robbins discussed new customer add breakdown, including customers expanding into 5,000 ARR bucket and price sensitivity in SMB/mid-market not impacting financials.

Q: On AI impact on developer jobs, what's the outlook?

A: Bill Staples and Brian Robbins stated AI increases productivity, leads to more code and users, sustaining engineer jobs.

Q: On GitLab 18 enhancements and value capture, details?

A: Bill Staples mentioned GitLab 18 centralizes artifact management, improves CI/CD, deepens security, and natively integrates AI, with unlock of Duo Chat/Code Suggestions for no friction adoption.