GitLab Q2 Earnings Call Highlights

GitLab reported revenue of $286.3 million, up 21% year over year, while non-GAAP operating income reached $42.6 million. Net ARR growth accelerated 42%, and the company raised its full-year revenue outlook to $1.129 billion-$1.133 billion. First orders more than doubled to approximately 1,700, new-logo net ARR rose 39%, and deals worth at least $500,000 increased more than 150%. Dollar-based net retention improved to 117%, while current RPO grew 20% to $744.7 million. More than 130 customers committed over $20 million to GitLab Flex within its first six weeks, helping paid consumption run rate rise to more than $40 million. Duo Agent Platform paid consumption grew about 50% sequentially, though broader Flex adoption could shift up to $13 million of fiscal 2027 revenue into future periods.

GitLab NASDAQ: GTLB reported second-quarter fiscal 2027 revenue of $286.3 million, up 21% from a year earlier, as the company cited record gross bookings, accelerating net annual recurring revenue growth and increased demand for its software development platform. Non-GAAP operating income was $42.6 million, representing a 15% operating margin, compared with $39.6 million a year earlier. Chief Executive Officer Bill Staples said the company’s sales organization delivered its largest gross bookings quarter on record, while net ARR increased more than 40% year over year.

Chief Financial Officer Jessica Ross said net ARR grew 42% year over year, marking the company’s second-highest quarterly growth rate in the last four years. Revenue exceeded the company’s prior guidance by roughly five percentage points, according to Ross.

GitLab said first-order activity strengthened during the quarter. The company recorded approximately 1,700 first orders, more than double the figure from a year earlier, while new-logo net ARR increased 39%. First-order net ARR rose nearly 40%, Staples said.

The company said more than half of its current revenue base exceeding a $1 billion run rate originated from customers whose initial order was below $5,000. Staples said this supports GitLab’s strategy of acquiring customers early and expanding relationships over time.

Large customer activity also contributed to the quarter’s performance. Ross said deals valued at $500,000 or more rose more than 150% year over year, while public-sector activity “rebounded meaningfully.” The company expects public-sector buying patterns to continue normalizing through the second half of the fiscal year.

GitLab increased account executive capacity by approximately 30% year over year, while productivity per representative improved about 10%, according to Staples. He also said sales attrition improved year over year for the second consecutive quarter. Dollar-based net retention was 117%, improving sequentially for the first time since 2024. Gross retention remained above 90%. Total remaining performance obligations rose 16% year over year to $1.2 billion. Current RPO increased 20% to $744.7 million. Calculated billings grew 24%, compared with 12% growth in the prior quarter.

A central focus of the call was GitLab Flex, a commercial model that allows customers to make annual or multiyear dollar commitments and allocate spending across Premium and Ultimate seats, GitLab Credits and other consumption-based offerings. Staples said that in the first six weeks after Flex entered the m...