Yahoo Finance

• Revenue: $211.4 million for Q4, a 29% increase year over year.

• Non-GAAP Operating Margin: 17.7% for Q4, an increase of 960 basis points year over year.

• Non-GAAP Gross Margin: 91% for Q4.

• Adjusted Free Cash Flow: $62.1 million for Q4, compared to $24.5 million in the prior-year period.

• Dollar-Based Net Retention Rate (DBNRR): 123% for Q4.

• Total RPO: $945 million, a 40% increase year over year.

• CRPO: $579.2 million, a 35% increase year over year.

• Customers with ARR of $100,000+: 1,229, a 29% increase year over year.

• Full Year FY25 Revenue: $759.2 million, a 31% increase year over year.

• Full Year FY25 Non-GAAP Operating Margin: 10.2%, an increase of 1,050 basis points year over year.

• Full Year FY25 Adjusted Free Cash Flow: $120 million, a 259% increase.

• Guidance for Q1 FY26 Revenue: $212 million to $213 million, representing 25% to 26% growth year over year.

• Guidance for Full Year FY26 Revenue: $936 million to $942 million, approximately 24% growth year over year.

• Warning! GuruFocus has detected 3 Warning Signs with GTLB.

Release Date: March 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• GitLab Inc (NASDAQ:GTLB) reported a 29% year-over-year increase in fourth-quarter revenue, reaching $211 million, surpassing expectations.

• The company's non-GAAP operating margin improved significantly, reaching 18%, an increase of 960 basis points year over year.

• GitLab Inc (NASDAQ:GTLB) saw strong adoption of its Ultimate product, which now accounts for 50% of total ARR, driven by its security and compliance features.

• The company experienced a record quarter for net adds of customers with over $100,000 in ARR, indicating strong enterprise demand.

• GitLab Inc (NASDAQ:GTLB) reported a 90% year-over-year growth in its Dedicated offering, highlighting its competitive advantage in providing single-tenant SaaS solutions.

Negative Points

• Despite strong results, the guidance for FY26 reflects a slower growth rate of approximately 24% year over year, indicating potential challenges in maintaining high growth.

• The company faces increasing competition in the AI and code generation market, with notable competitors like GitHub Copilot and standalone tools like Cursor.

• GitLab Inc (NASDAQ:GTLB) is still navigating typical growing pains of a public company, with a desire to scale faster and reduce friction.

• The macroeconomic environment remains cautious, which could impact customer spending and growth prospects.

• The company's joint venture in China, JiHu, continues to incur expenses, with $18 million forecasted for FY26, compared to $13 million last year, without a clear timeline for deconsolidation.