GitLab (GTLB) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue reached $264.2 million, up 23% year-over-year, with non-GAAP operating margin at 14% and adjusted free cash flow of $146.7 million.

• 1,519 customers now pay over $100,000 annually (up 18%), and 10,831 customers pay at least $5,000 in ARR (up 7%).

• Major restructuring underway: 14% workforce reduction, exit from 22 countries, and flattening management layers to focus on AI and platform innovation.

• Platform enhancements include agentic AI, new security features, and expanded integrations with Anthropic, AWS, and Google Cloud.

• Dollar-based net retention was 117%, with strong enterprise and public sector momentum.

Financial highlights

• Q1 FY27 revenue was $264.2 million, up 23% year-over-year, with non-GAAP gross margin at 88% and GAAP gross margin at 86%.

• Non-GAAP operating income was $38 million (14% margin), up from $26 million a year ago; non-GAAP net income was $39 million.

• Adjusted free cash flow was $146.7 million, with a 56% margin; operating cash flow reached $149.2 million.

• Ended quarter with $1.36 billion in cash and investments; repurchased approximately 2.4 million shares.

• Subscription revenue rose 23% to $239.3 million; license and other revenue increased 24% to $24.9 million.

Outlook and guidance

• Q2 FY27 revenue expected at $272–$274 million; non-GAAP operating income of $30–$32 million; non-GAAP EPS of $0.17–$0.18.

• FY27 revenue guidance raised to $1.112–$1.118 billion; non-GAAP operating income of $135–$141 million; non-GAAP EPS of $0.79–$0.82.

• Full-year gross margins expected between 85% and 87%; profitability to trough in Q3 due to post-restructuring investments.

• No material FY27 revenue assumed from Duo Agent Platform; focus remains on converting pilots to production.

• Liquidity is sufficient for at least the next 12 months.