GitLab Reports Strong Q2 Performance with Revenue Growth and Raised Full-Year Outlook
GitLab reported second-quarter fiscal year 2027 revenue of $286.3 million, a 21% increase from the prior year. The company also raised its full-year revenue guidance to between $1.129 billion and $1.133 billion. Non-GAAP operating income reached $42.6 million with an operating margin of 15%. Net annual recurring revenue (ARR) growth accelerated by 42%, driven in part by strong enterprise demand, including a more than doubling of first orders to approximately 1,700 and new-logo net ARR rising 39%. GitLab also highlighted the adoption of its Flex model, with over $20 million committed from more than 130 customers within six weeks. Paid consumption for GitLab Flex rose above $40 million, while Duo Agent Platform saw about a 50% sequential increase in paid consumption. Dollar-based net retention improved to 117%, and current remaining performance obligations (RPO) grew by 20% year over year to $744.7 million. The company's CEO noted the success of its strategy for acquiring small initial customers with low first-order values, which later expand into larger accounts. Enterprise demand was further supported by a more than 150% increase in large deals ($500K+), and public-sector activity rebounded meaningfully.
Topics: ai flex_adoption net_arr revenue_growth