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Earnings Call: Q1 2026

Jun 10, 2025

Operator

Good day, everyone, and welcome to today's GitLab First Quarter Fiscal Year 2026 conference call. At this time, all participants are in a view-and-listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. If you'd like to ask a question, please use the raise hand feature located in the menu at the bottom of your Zoom toolbar. In addition, please ensure your Zoom name reflects your full name and the firm you are with. If you're joining via phone, you may press star nine to ask a question. Please note this call is being recorded. It is now my pleasure to turn the conference over to Kelsey Turcotte.

Kelsey Turcotte
Vice President of Investor Relations, GitLab

Good afternoon. We appreciate you joining us for GitLab's First Quarter Fiscal Year 2026 financial results conference call. With me are Bill Staples, our CEO, and Brian Robbins, our CFO. During this afternoon's call, we will provide an overview of the business, commentary on our first quarter results, and guidance for the second quarter and fiscal year 2026. Before we begin, I'll cover the Safe Harbor statement. I would 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 Security Litigation Reform Act.

As is customary, the content of today's call 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 measures. I'll now turn the call over to Bill. Bill.

Bill Staples
CEO, GitLab

Thank you, Kelsey, and good afternoon, everyone. Thank you for joining us today. First quarter revenue increased 27% year- over- year to $215 million, with non-GAAP operating margin reaching 12%. I want to thank our team for your focus on execution and our customers. Our continued growth underscores the demonstrable value customers realize with our AI-native DevSecOps platform. Unlike competitors, we are the only AI-native cloud-agnostic model-neutral DevSecOps platform capable of running anywhere, including air-gapped environments. We offer comprehensive solutions across the software development lifecycle with built-in contextual AI that's really only possible on a platform with a unified data store. Every day, organizations face pressure to maximize efficiency, and software is an essential lever they have to create business agility and competitive advantage. Our DevSecOps platform stands at the core of enabling customers to build that mission-critical software.

I view our strategic differentiators as an opportunity for GitLab to advance conversations about AI's strategic role in software development. As enterprises embrace AI and transform development practices, our unified platform uniquely enables them to maintain enterprise security and compliance. We believe our market is moving rapidly in a direction that's inherently advantageous for platform solutions. I expect AI code creation tools to empower more code creators than ever. The result is that the volume of code being created will expand, and all of those users and agents still require a platform in order to test, validate, secure, package, and deploy their code to production environments. This is what GitLab does today. Supermicro, an AI solutions provider, recently doubled the size of their software team and upgraded from our free tier in Q1.

They selected GitLab Premium and Duo Pro to build an internal software acceleration program targeting 2x faster feature development for their end-to-end AI infrastructure solutions. It was a big quarter for our R&D team with the annual launch of new product capabilities across the platform in GitLab 18. This May introduction and product roadmap build upon the essential capabilities of successful software development: core DevOps, security, and AI. In core DevOps, we are centralizing artifact management, optimizing CI/CD pipelines for speed and security, and making it easier for users to find, filter, and embed content from anywhere in the platform. We want to ensure customers can easily collaborate and drive maximum ROI from their GitLab investment. We're also deepening our security capabilities to help customers achieve comprehensive visibility and control.

This includes custom frameworks to design, implement, and enforce compliance, vulnerability dashboards to pinpoint critical findings, and innovation to improve detection accuracy, reduce false positives, and help customers focus on the code that threat actors can exploit. Security is a key driver of GitLab Ultimate adoption, and we want to deliver market-leading solutions that are even more effective because they are embedded in our DevSecOps platform. Finally, we are natively integrating AI throughout the platform. Customers who use our Premium and Ultimate tiers now have access to both Duo Chat and code suggestions. In addition, GitLab Duo Enterprise is now available for GitLab Premium customers. We now include chat and code suggestions with Premium and Ultimate because we see every engineer is experimenting with AI, and we want Duo to be an obvious solution for them with no barriers to adoption.

This integrated approach offers an ideal starting point for both new and existing customers, allowing them to leverage chat and code suggestions with limited usage limits and providing them a smooth upgrade path to our offerings with higher usage limits and more comprehensive capabilities, including GitLab Duo Pro, Duo Enterprise, and when GA GitLab Duo Workflow. We also made Duo Enterprise available to Premium customers for the first time in response to customer demand for self-hosted models and its ability to inject AI in planning, collaboration, and deployment. By lowering barriers to adoption and expanding the serviceable market with more flexible packaging, we believe we will be able to unlock more Duo adoption in coming quarters. New and existing customers are increasingly finding Duo a compelling solution versus competitors.

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