GitLab (GTLB) 3 Sep 24 2025 Q2 Earnings call transcript

In GitLab's recent earnings call for the second quarter of Fiscal Year 2025, the company's leadership team shared insights into its market-leading DevSecOps platform and its AI capabilities, providing a comprehensive update on its financial performance and future outlook. Here are the key takeaways from the call.

Financial Highlights and Market-Leading Position

GitLab reported a 31% year-over-year increase in revenue to $183 million, driven by new logos and expansions by existing customers. This strong performance was accompanied by a non-GAAP operating margin of 10%, a significant increase from the previous year. The company's focus on customer-specific business outcomes and its market-leading DevSecOps platform have positioned it well for continued growth.

Customer Success Stories and Market Trends

GitLab shared several success stories from its customer base, highlighting the productivity and security benefits of its DevSecOps platform, particularly with the integration of AI capabilities. The company's focus on real results and use cases for AI has resonated with customers, leading to increased adoption and larger deal sizes.

Strategic Approach to AI and Market Opportunities

GitLab's strategic approach to AI integration throughout the software development life cycle sets it apart from competitors. Its customers are excited about the tangible productivity and security benefits, particularly the 90% reduction in time spent on tool chain operations and 50% faster vulnerability detection. This strategic focus on AI has positioned GitLab to capitalize on the growing trend in the sector.

Future Outlook and Guidance

Looking ahead, GitLab is optimistic about its ability to drive customer success and leverage AI to accelerate business outcomes. The company is expected to continue to consolidate vendors and reduce total cost of ownership for its customers, particularly in the public sector and financial services. GitLab also announced its achievement of the in-process designation for FedRAMP moderate, further solidifying its position in these industries.

In summary, GitLab's second quarter earnings call provided a positive outlook for the company's financial health and growth prospects. Its focus on customer success, strategic approach to AI, and market-leading position in the DevSecOps sector position it well for continued success in the coming quarters.