GitLab (GTLB) Q1 2025 earnings summary

Executive summary

• Q1 FY25 revenue grew 33% year-over-year to $169.2 million, with significant margin expansion and positive operating and adjusted free cash flow for the first time in Q1.

• Dollar-based net retention rate was 129%, driven by seat expansion and price increases, with $100,000+ ARR customers increasing 35% year-over-year to 1,025.

• Customer base expanded to 8,976 with ARR of at least $5,000 (up 21% YoY).

• Strong adoption of AI-powered features and security/compliance capabilities, with notable customer wins and upgrades to the Ultimate tier.

• Completed acquisitions of Oxeye and Rezilion to enhance security offerings.

Financial highlights

• Q1 FY25 revenue was $169.2 million, up 33% year-over-year; non-GAAP gross margin was 91%, and GAAP gross margin was 89%.

• Adjusted free cash flow was $37.4 million (22% margin), a significant improvement from negative $11.2 million in the prior year.

• Q1 non-GAAP operating loss was $3.8 million (including a $15 million one-time Summit expense), improved from a $15 million loss last year.

• Cash and cash equivalents at quarter-end were $420.3 million, up from $318.4 million YoY.

• Total RPO grew 48% year-over-year to $681.2 million; cRPO grew 34% to $436.1 million.

Outlook and guidance

• Q2 FY25 revenue guidance: $176.0M–$177.0M; non-GAAP operating income: $10.0M–$11.0M; non-GAAP EPS: $0.09–$0.10.

• FY25 revenue guidance: $733.0M–$737.0M (26–27% growth), absorbing a $4M SSP headwind.

• FY25 non-GAAP operating income expected at $34.0M–$38.0M; non-GAAP EPS of $0.34–$0.37.

• JiHu (China JV) non-GAAP expenses forecast at $14 million for FY25, down from $18 million in FY24.

• Management expects continued investment in R&D and sales to drive long-term growth, with short-term profitability impacted by these investments.