GitLab Inc. Q2 FY2026 earnings call

• Strong second quarter results with revenue up 29% y/y to $236M and non-GAAP operating margin at 17%. - Maintaining revenue outlook while raising non-GAAP operating profit. - First objective: Adding new paying customers, with sales-led growth (CRO leading initiatives like global new business team) and product-led growth (new CPO and marketing officer). - Second objective: Helping customers realize value faster with dual sales and product-led strategies. - Third objective: Accelerating customer-focused innovation in DevOps, security, and AI, with 72 new features across paid tiers. - Leadership changes: New CRO, CPO, and CFO transitions.

GitLab Inc. reported second quarter revenue of $236 million, a 29% year-over-year increase. GitLab Inc. Ultimate contributed to a significant new customer win with Chaos, a provider of visualization and design solutions. GitLab Inc. dedicated contributed approximately $50 million in ARR, growing 92% year over year. GitLab Inc. Ultimate represents 53% of total ARR.

• Third quarter 2026 revenue expected $238M-$239M (23% y/y growth). - Full-year 2026 revenue expected $930M-$942M (24% y/y growth). - Raised non-GAAP operating profit outlook, maintaining full-year revenue guidance due to go-to-market changes and SMB softness.

• Competitive environment with new AI coding tools. - Potential impacts of AI if not capitalized on. - SMB softness persisting due to price sensitivity and smaller business size.

Q: Rob Owens from Piper Sandler asked about executive turnover and growth guidance.

A: Bill Staples talked about stability and scale with new executives, Brian Robbins discussed guidance and execution.

Q: Matt Hedberg from RBC asked about go-to-market changes.

A: Bill Staples explained new business division, enterprise sales motion, and sales capacity changes.

Q: Koji Ikeda from Bank of America asked about SMB softness.

A: Brian Robbins mentioned SMB is ~8% of revenue, price sensitive, and they're testing pricing.

Q: Derrick Wood from TD Cowen asked about competitive defensibility.

A: Bill Staples said GitLab Inc. is additive to AI tools, not a threat.

Q: Sanjit Singh from Morgan Stanley asked about new business growth.

A: Bill Staples discussed focus on new customer acquisition.

Q: Brian Essex from JPMorgan asked about product and marketing leadership.

A: Bill Staples explained product-led and sales-led growth approach.

Q: Gray Powell from BTIG asked about go-to-market mechanics.

A: Bill Staples talked about compensation and specialization.

Q: Mike Kikos from Needham asked about go-to-market incentives.

A: Bill Staples discussed alignment of compensation.

Q: Jonathan Rookhiver from Cantor Fitzgerald asked about Duo Agent platform.

A: Bill Staples talked about Duo Agent platform innovation and feedback.

Q: Damon Coggin from Barclays asked about growth drivers.

A: Brian Robbins discussed SaaS vs self-managed, one-time items, and guidance construction.