GitLab raises full-year 2027 revenue guidance after Q2 results

GitLab (NASDAQ: GTLB ) released second-quarter financial results and hosted an earnings call on Tuesday.

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The full earnings call is available at Summary GitLab Inc reported Q2 FY27 revenue of $286.3 million, up 21% year over year, and a non-GAAP operating income of $42.6 million, with a 15% operating margin.

The company achieved its largest gross bookings quarter in history, with net ARR growth exceeding 40% year over year.

GitLab introduced its Flex model, allowing customers to allocate their spending across various products, which secured over $20 million in commitments from more than 130 customers in its first six weeks.

The company highlighted its AI strategy, noting significant growth in AI-related product adoption, including GitLab Orbit and Duo Agent Platform.

Management emphasized the positive impact of increased sales capacity and productivity, alongside improvements in retention and customer growth metrics.

GitLab raised its full-year revenue guidance to $1.129 billion to $1.133 billion, representing 18% to 19% year over year growth, despite potential revenue recognition impacts from Flex.

The company plans to focus on expanding its product portfolio and monetization vectors, including AI and consumption-based models.

GitLab's gross margin was 86.5%, with SaaS revenue growing 36% year over year, driven by GitLab Dedicated and Duo.

Full Transcript OPERATOR Good day everyone, and welcome to today's GitLab Inc's second quarter fiscal year 2027 conference call.

At this time, all participants are in a listen-only mode.

Later, you will have the opportunity to ask questions during the question-and-answer session.

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And if you're joining via phone, you may press star nine to ask a question.

Please note this call is being recorded.

It is now my pleasure to turn the conference over to Nick Edwards.

Nick Edwards, VP of Finance Strategy and Operations Good afternoon and welcome to GitLab Inc's second quarter 2027 financial results earnings call.

I'm Nick Edwards, VP of Finance Strategy and Operations, and with me are Bill Staples, our CEO, and Jessica Ross, our CFO.

During this afternoon's call, we will provide an overview of the business, commentary on our second quarter and full year results, and guidance for the second quarter and fiscal year 2027.

In addition to our prepared remarks on this call, additional information can be found in our shareholder letter, press release, investor presentation, and SEC filings on our investor relations website at ir.GitLab.com.

Before we begin, I'll cover the Safe Harbor Statement.

I would like to direct you to the cautionary statement regarding forward-looking statements on page two of our presentation and in our earnings release issued earlier today, both of which are available under the Investor Relations section of our website.

The presentation and earnings release include a discussion of certain risks, uncertainties, assumptions, and other factors that could cause our results to differ from those expressed in any forward-looking statements within the meaning of the Private Securities Litigation Reform Act.

As is customary, the content of today's call and presentation will be governed by this language.

In addition, during today's call we will be discussing certain non-GAAP financial measures.

These non-GAAP financial measures exclude certain unusual or non-recurring items that management believes impact the comparability of the periods referenced.

Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measure.

I will now turn the call over to Bill.

Bill Staples, Chief Executive Officer Thanks, Nick, and good afternoon everyone.

Q2 was an exceptional quarter.

Let me start with just some of the highlights.

Revenue was $286.3 million, up 21% year over year, and non-GAAP operating income was $42.6 million, representing a 15% operating margin.