GitLab Swings to 4Q Profit, Beats Earnings Estimates
Monday, Mar 3, 2025 4:42 pm ET
3min read GitLab Inc. (NASDAQ: GTLB), the leading AI-powered DevSecOps platform, reported strong financial results for the fourth quarter of fiscal year 2025, marking a significant turnaround from previous quarters. The company's revenue grew 29% year-over-year to $211.4 million, while non-GAAP operating margin expanded to 18%, compared to a GAAP operating margin of -7% in the same period last year. This impressive performance was driven by several key factors.
Firstly, GitLab's comprehensive platform strategy resonated with enterprise customers, leading to a 29% increase in customers spending over $100,000 annually, reaching 1,229 customers. Additionally, the company saw a 28% increase in customers spending over $1 million, reaching 123 customers. This growth in larger customers contributed to GitLab's revenue growth and improved profitability.
Secondly, GitLab's strategic focus on AI has differentiated the company in the DevSecOps space. The general availability of gitlab Duo Self-Hosted directly addresses enterprise concerns around data privacy, security, and control over LLM deployments. This offering, combined with the private beta of GitLab Duo Workflow, has driven demand for GitLab's platform and contributed to the company's strong financial performance.
Thirdly, GitLab's commitment to responsible growth and delivering value to customers has resulted in a high Dollar-Based Net Retention Rate of 123%. This indicates that existing customers are expanding their usage substantially, validating GitLab's platform approach and the value it delivers to enterprise customers.
GitLab's fourth quarter fiscal year 2025 results demonstrate the power of its innovative AI-powered DevSecOps platform. The company's ability to drive revenue growth, expand operating margins, and maintain high customer satisfaction and retention rates is a testament to its strategic focus on AI and enterprise customers. As GitLab continues to invest in product innovation and expand its customer base, investors can expect the company to maintain its strong financial performance and continue to deliver value to shareholders.
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