GitLab Inc Reports Strong Second Quarter Fiscal Year 2025 Results
Intellectia.AI Updated: 2024-09-03
GitLab Inc. Reports Strong Second Quarter Fiscal Year 2025 Results
SAN FRANCISCO, Sept. 03, 2024 (GLOBE NEWSWIRE) -- GitLab Inc. (NASDAQ:GTLB), the most comprehensive AI-powered DevSecOps platform, today announced its financial results for the second quarter ending July 31, 2024.
Key Financial Metrics:
| Metrics | Q2 FY2025 | Q2 FY2024 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $182.6 million | $139.4 million | +31% | $176.89 million |
| Earnings Per Share (EPS) (Non-GAAP) | $0.1 | -$0.04 | N/A | $0.1 |
GitLab outperformed expectations with a total revenue increase of 31% year-over-year (YoY) to $182.6 million, surpassing the consensus estimate of $176.89 million. The company matched the consensus estimate for non-GAAP earnings per share at $0.1.
Segment Revenue Performance:
| Segment | Q2 FY2025 Revenue | YoY Change |
|---|---|---|
| Core DevSecOps | $132.4 million | +30% |
| AI-powered Solutions | $50.2 million | +35% |
GitLab's revenue from Core DevSecOps grew by 30% YoY, emphasizing the strong adoption of its fundamental platform. Notably, revenue from AI-powered solutions increased by 35% YoY, illustrating the rising demand for integrated AI features in development operations.
Key Developments and Operational Highlights:
- Named a Leader in the first-ever 2024 Gartner® Magic Quadrant™ for AI Code Assistants.
- Launched GitLab Duo Enterprise, an end-to-end AI add-on for $39 per user per month.
- Achieved "In Process" designation at the Moderate impact level from the Federal Risk and Authorization Management Program (FedRAMP).
- Released the 8th annual Global DevSecOps Report highlighting significant improvements in developer experiences through investments in security, AI, and automation.
Comments from Company Officers:
Sid Sijbrandij, GitLab CEO and co-founder, stated, "Our results showcase the powerful combination of our end-to-end platform and AI solutions that deliver measurable benefits to our customers, driving performance and improving security. This alignment with business goals amidst intense competition is evident in our solid financial outcomes."
Brian Robins, GitLab CFO, added, "We delivered over 30% top-line growth and substantial operating margin expansion year-over-year. As we move into the second half of fiscal year 2025, our commitment to exceeding customer expectations and leveraging AI to accelerate business outcomes remains strong."
Dividends and Share Repurchase Programs:
There was no mention of dividends or share repurchase programs within the provided earnings release.
Forward Guidance:
GitLab has provided its financial outlook for the third quarter and fiscal year 2025, although specific figures were not included in this summary. Investors are encouraged to refer to the full release for detailed forward-looking statements.
Stock Price Movement:
Following the earnings release, GitLab’s stock experienced a modest increase of approximately 0.92% in aftermarket trading.
This robust financial performance underscores GitLab’s dominant position in the AI-powered DevSecOps market and affirms its strategic initiatives in accelerating digital transformation for its extensive customer base.
