In This Article:
GitLab GTLB reported non-GAAP earnings of 33 cents per share in fourth-quarter fiscal 2025, beating the Zacks Consensus Estimate by 43.48%. The bottom line soared 120% year over year.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $211.4 million beat the consensus mark by 2.82% and rallied 29.1% year over year. The upside can be attributed to strong demand for its DevSecOps platform and AI-driven solutions.
Following the results, GTLB shares rose 1.16% in the pre-market trading, driven by positive financial results and outlook.
GTLB’s Top-Line Details
Subscriptions- self-managed and SaaS (87.8% of total revenues) revenues increased 30.7% year over year to $185.6 million, beating the Zacks Consensus Estimate by 2.22%. License- self-managed and other revenues (12.2% of total revenues) rose 18.9% year over year to $25.9 million.
GitLab Inc. Price, Consensus and EPS Surprise
GitLab Inc. price-consensus-eps-surprise-chart | GitLab Inc. Quote
SaaS revenues contributed 29% to total revenues and rallied 36% year over year, driven by the strong adoption of GitLab Dedicated, AI integration and expanding customer engagement.
Customers with more than $5000 of Annual Recurring Revenues (ARR) increased to 9,893, up 15% year over year. Customers with more than $100 thousand of ARR increased to 1,229, up 29% year over year, demonstrating GTLB’s ability to attract and retain large enterprise customers.
The dollar-based net retention rate was 123% in the reported quarter.
Total Remaining Performance Obligation (RPO) jumped 40% year over year to $945 million. The current RPO increased 35% to $579.2 million.
In the reported quarter, the company announced the general availability of GitLab Duo Self-Hosted and the private beta of GitLab Duo Workflow, reinforcing GTLB's commitment to innovation in the DevSecOps space.
Gitlab’s Operating Details
The fourth-quarter fiscal 2025 non-GAAP gross margin was flat year over year at 91%, reflecting improved operational efficiency and cost management.
On a non-GAAP basis, research and development expenses increased 23.1% year over year to $47.4 million. Sales and marketing expenses grew 9.1% to $80.1 million. General and administrative expenses rose 12.3% to $27.9 million in the reported quarter.
Operating income was $37.4 million on a non-GAAP basis compared with the year-ago quarter’s $13.2 million. The operating margin expanded 960 bps (basis points) year over year to 17.7%.
GTLB’s Balance Sheet & Cash Flow
As of Jan. 31, 2025, cash and cash equivalents, and short-term investments were $9.92 billion compared with $9.16 billion as of Oct. 31, 2024.
In the reported quarter, the company generated a cash flow from the operation of $63.2 million compared with $177 million in the previous quarter.
As of Jan. 31, 2025, the adjusted free cash flow was $62.1 million compared with $9.7 million as of Oct. 31, 2024.