Good day, everyone, and welcome to today's GitLab Q3 FY25 conference call. At this time, all participants are in view and listen-only mode. Later, you will have the opportunity to ask questions during the Q&A session. If you'd like to ask a question, please use the raise hand function located in the menu of your Zoom controls at the bottom of your screen. In addition, please ensure your Zoom name reflects your full name and the firm you are joined with. And if you are joining via phone only, you may press star 9 to ask a question. Please note this call is being recorded. I will be standing by should you need any assistance, and it is now my pleasure to turn the conference over to Kelsey Turcotte.
Good afternoon. We appreciate you joining us for GitLab's Q3 FY25 financial results conference call. With me are Sid Sijbrandij, our co-founder and Executive Chair of the Board, Brian Robbins, our CFO, and Bill Staples, our newly appointed CEO. During this afternoon's call, we will introduce Bill, provide commentary on our Q3 results, and guidance for Q4 FY25. Before we begin, I'll cover the Safe Harbor Statement. I'd like to direct you to the cautionary statement regarding forward-looking statements on page two of our presentation and in our earnings release issued earlier today, both of which are available under the Investor Relations section of our website. The presentation and earnings release include a discussion of certain risks, uncertainties, assumptions, and other factors that could cause our results to differ from those expressed in any forward-looking statements within the meaning of the Private Securities Litigation Reform Act.
As is customary, the content of today's calls and presentation will be governed by this language. In addition, during today's call, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures exclude certain unusual or non-recurring items that management believes impact the comparability of the periods referenced. Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measure. I'll now turn the call over to Sid Sijbrandij. Sid?
Thank you for joining us today, and before I get to the numbers, I couldn't be more excited to welcome Bill Staples to the team. This afternoon, we announced Bill will succeed me as CEO of GitLab. He will also take a seat on the GitLab board, and I'll continue on as executive chair of the GitLab board. As I have gotten to know Bill, his passion for software and commitment to innovation makes me confident he is the right person to lead the company going forward. Over his career, Bill has an impressive track record of building and scaling enterprise software organizations. He most recently served as CEO of New Relic and held senior leadership roles at Adobe and Microsoft. I couldn't be more excited to welcome Bill to the team. Congratulations. Bill, over to you.
Thank you, Sid, and good afternoon, everyone. I'm humbled to have been asked by Sid and the board to take on the role of GitLab CEO. I've spent nearly three decades building developer platforms and tools, and I know our customer and category very well. I'm convinced that we have a significant opportunity ahead of us. We've all seen how software has changed all aspects of our lives and transformed every business into a software-driven business. However, I believe we're still in the early stages of the software transformation, which I expect AI to further accelerate. In my view, there's never been a better time to serve developers, and GitLab offers the best and most comprehensive platform to do that. We sit at the heart of the software development lifecycle, improving the development experience for everyone involved and enabling customers to create better quality software faster for enterprises.
I look forward to rolling up my sleeves, spending time with customers, partners, and you, as well as GitLab team members. Sid, I'm honored to take the helm of the company that you worked so hard to build. Thank you for entrusting me with your vision. Now, I'll turn the call back to you.
Thanks, Bill. I really look forward to working with you. Turning back to the business, I want to talk about a few things. First, our really strong Q3. Second, our competitive advantage in AI and where we are going. And finally, the tremendous momentum we are seeing with GitLab Ultimate. We executed well, and once again, we exceeded both revenue and profitability guidance. Q3 revenue increased 31% year over year to $196 million, and consistent with our commitment to responsible growth, our Non-GAAP operating margin reached 13.2%. This is an increase of over 1,000 basis points year over year. From cybersecurity threats to compliance mandates, CTOs, CIOs, and CISOs are facing increasingly complex challenges, and despite all of this, organizations need to accelerate the pace of software development to remain competitive and respond to ever-increasing customer expectations. This is why our DevSecOps platform resonates so well.
On the AI front, we continue to build momentum with GitLab Duo Pro and Enterprise. Customers are realizing tangible value with it. One recently told us that 40% of their developers are saving more than two hours per week with Duo, and another customer is seeing productivity improvements of up to 50%. In their first purchase with GitLab, Emirates, the world's largest international airline, chose Ultimate and Duo Pro. After comparing different AI-powered developer tools, it was our platform's built-in security and compliance capabilities and our AI code assistance that made us the choice. Another new customer, OxBlue, a leading global provider of construction video camera services, chose Ultimate and Duo Enterprise in a competitive assessment against GitHub. This is because of our ability to improve the developer experience across the entire software development lifecycle, including productivity improvements and security.
The combination of Ultimate and Duo Enterprise is a powerful one. While there are many AI solutions that can generate code, we go beyond that. We integrate AI throughout the software development lifecycle, and we serve all stakeholders involved in shipping great software, including product managers, security engineers, and operations teams. To take advantage of our end-to-end AI capabilities beyond the code creation, F5 moved from Duo Pro to Duo Enterprise in Q3. An international insurance and financial services company expanded their Ultimate deployment and purchased Duo Enterprise. By the end of 2024, they will have replaced four point products, saving over $2 million. They plan to consolidate more tools over the next three years, securing their entire software supply chain with a single DevSecOps platform.