GitLab (NASDAQ:GTLB) Posts Earnings Results, Beats Estimates By $0.03 EPS

GitLab (NASDAQ:GTLB) issued its earnings results on Tuesday. The company reported $0.23 EPS for the quarter, beating analysts’ consensus estimates of $0.20 by $0.03, FiscalAI reports. GitLab had a negative net margin of 2.49% and a positive return on equity of 0.32%. The business had revenue of $264.16 million for the quarter, compared to the consensus estimate of $254.23 million. During the same quarter last year, the firm posted $0.17 EPS. The business’s revenue for the quarter was up 23.2% compared to the same quarter last year. GitLab updated its Q2 2027 guidance to 0.170-0.180 EPS.

Here are the key takeaways from GitLab’s conference call:

• Q1 results topped expectations, with revenue of $264 million, up 23% year over year, and non-GAAP operating income of $38 million at a 14% margin. GitLab also reported 1,519 customers paying more than $100,000 annually, up 18% year over year, and DNRR of 117%.
• Enterprise demand remained resilient, highlighted by strong gross bookings, rising first-order activity, and continued growth in GitLab Dedicated, which crossed $70 million in ARR. Management said the core DevSecOps business and large-customer cohort continue to perform well despite macro pressure.
• GitLab is leaning into AI monetization as Duo Agent Platform showed an early strong start, generating more net new ARR in its first quarter than Duo Pro and Duo Enterprise had in any prior quarter combined. Management said it is shifting Duo subscriptions toward a consumption-based model and will introduce GitLab Flex to mix seats and credits.
• Management remains cautious on the macro environment, citing pressure in the price-sensitive cohort, more seat contraction tied to layoffs, M&A-related churn, and potential near-term disruption from the restructuring. The company also said it is assuming no material FY2027 revenue contribution from Duo Agent Platform yet.
• GitLab raised full-year guidance to $1.112 billion-$1.118 billion in revenue and $135 million-$141 million in non-GAAP operating income, while maintaining strong gross margins and cash generation. The company ended Q1 with $1.36 billion in cash and investments and plans to reinvest restructuring savings into product, people, and AI-related initiatives.

GitLab Price Performance

Shares of GTLB stock opened at $30.93 on Thursday. The firm has a market cap of $5.26 billion, a P/E ratio of -193.31 and a beta of 0.96. GitLab has a 1-year low of $18.73 and a 1-year high of $52.38. The firm has a fifty day moving average of $23.67 and a two-hundred day moving average of $30.24.

Insider Buying and Selling at GitLab

In other GitLab news, Director Matthew Jacobson sold 700,109 shares of the firm’s stock in a transaction on Thursday, March 19th. The shares were sold at an average price of $22.95, for a total transaction of $16,067,501.55. Following the completion of the transaction, the director directly owned 325 shares of the company’s stock, valued at $7,458.75. This trade represents a 99.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Sytse Sijbrandij sold 116,200 shares of the firm’s stock in a transaction on Monday, May 18th. The stock was sold at an average price of $24.85, for a total transaction of $2,887,570.00. Following the transaction, the director directly owned 15,018,251 shares of the company’s stock, valued at approximately $373,203,537.35. This represents a 0.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,392,308 shares of company stock valued at $31,654,249. 10.64% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Guggenheim Capital LLC boosted its holdings in shares of GitLab by 14.6% in the 4th quarter. Guggenheim Capital LLC now owns 5,959 shares of the company’s stock valued at $224,000 after buying an additional 761 shares during the period. Elevation Point Wealth Partners LLC bought a new stake in shares of GitLab during the 4th quarter worth about $217,000. CIBC Asset Management Inc bought a new stake in shares of GitLab during the 4th quarter worth about $212,000. Prelude Capital Management LLC bought a new stake in shares of GitLab in the 3rd quarter worth approximately $202,000. Finally, Wilmington Savings Fund Society FSB raised its holdings in shares of GitLab by 4,900.0% in the 4th quarter. Wilmington Savings Fund Society FSB now owns 3,500 shares of the company’s stock worth $131,000 after purchasing an additional 3,430 shares in the last quarter. 95.04% of the stock is owned by institutional investors and hedge funds.

Key GitLab News

Here are the key news stories impacting GitLab this week:

• Positive Sentiment: GitLab delivered a Q1 beat on both earnings and revenue, with revenue up 23.2% year over year, and management raised fiscal 2027 guidance above Wall Street expectations, which signals improving demand and execution.
• Positive Sentiment: Several analysts turned more constructive after the report, including BTIG, Needham, and DA Davidson, and JPMorgan lifted its price target to $32 while DA Davidson raised its target to $35, suggesting increased confidence in the stock’s upside.
• Positive Sentiment: Unusually large call-option volume indicates traders are positioning for a bigger move higher, often a sign of speculation around near-term catalysts.
• Neutral Sentiment: GitLab also highlighted traction in its AI-related products, including the GitLab Duo Agent Platform, which could support longer-term growth but is still early in commercialization.
• Negative Sentiment: Despite the strong results, the stock fell after GitLab announced a restructuring plan that includes cutting about 14% of its workforce and exiting 22 countries, which investors may view as evidence of cost pressure and strategic disruption.
• Negative Sentiment: TD Cowen kept a Hold rating and set a $29 target, signaling some caution even after the earnings beat and helping cap enthusiasm around the shares.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Morgan Stanley raised their target price on shares of GitLab from $29.00 to $30.00 and gave the company an “equal weight” rating in a research note on Wednesday. Needham & Company LLC raised their target price on shares of GitLab from $32.00 to $38.00 and gave the company a “buy” rating in a research note on Wednesday. Bank of America reaffirmed a “neutral” rating on shares of GitLab in a research note on Wednesday. Sanford C. Bernstein dropped their price target on shares of GitLab from $70.00 to $60.00 and set an “outperform” rating on the stock in a research note on Wednesday, March 4th. Finally, Royal Bank Of Canada lifted their price target on shares of GitLab from $25.00 to $29.00 and gave the stock a “sector perform” rating in a research note on Wednesday. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, nineteen have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $37.81.

GitLab Company Profile

GitLab Inc (NASDAQ: GTLB) is a leading provider of a unified DevOps platform designed to streamline the software development lifecycle. Founded in 2011 by Dmitriy Zaporozhets and Sid Sijbrandij, the company initially gained recognition for its open-source Git repository manager. Over time, GitLab expanded its offerings to encompass planning, source code management, continuous integration/continuous deployment (CI/CD), security testing, and monitoring in a single application. This integrated approach enables development teams to collaborate efficiently, reduce toolchain complexity, and accelerate release cycles.

The GitLab platform is offered through both cloud-hosted and self-managed deployment models, catering to organizations of all sizes.