GitLab Reports Strong Q3 Results and Upbeat Guidance
GitLab (NASDAQ: GTLB) delivered strong third-quarter results that exceeded expectations, with annual recurring revenue growing at its fastest pace in years. The DevSecOps company reported a 42% year-over-year increase in new ARR, driven by robust demand for its platform and services amid the rise of AI-driven software development. Calculated billings rose 24%, while dollar-based net retention remained strong at 117%. GitLab also introduced a Flex model to improve customer flexibility and retention. Revenue climbed 21% year-over-year to $286.3 million, surpassing guidance of $272–$274 million. Subscription revenue grew by 21%, while large deals ($500K+) surged over 150%. The company raised its full-year fiscal 2027 revenue forecast to between $1.129 billion and $1.133 billion, up from previous guidance. GitLab's stock is beginning to reflect improved performance after a period of skepticism among investors.
Topics: AI integration ARR growth DevSecOps stock performance