Summary
GitLab reported first quarter fiscal 2024 revenue of $126.9 million, up 45.2% from $87.4 million in the prior-year quarter. Gross profit was $112.9 million, up 45.6% from $77.6 million. Gross margin was 89.0%, up from 88.7%. The revenue increase was driven by ongoing demand for The DevSecOps Platform, new customers, expansion within existing paid customers, and growth in customers with $100,000 or greater in ARR.
Operating loss was $58.2 million, widened from $42.9 million. Net loss attributable to GitLab was $52.5 million, widened from $26.1 million. Diluted EPS was negative $0.35, down from negative $0.18. Operating margin was negative 45.9%, up from negative 49.0%. Non-GAAP net loss per share was negative $0.06. Non-GAAP operating margin improved by approximately 1,700 basis points year over year.
Operating cash flow was negative $10.96 million, an improvement from negative $28.16 million. Capital expenditures were $0.26 million, down from $1.87 million. Deferred revenue was $263.42 million, up 40.1% from $188.06 million. Remaining performance obligations were $460.30 million, up 36.9% from $336.20 million. The company said its existing cash, cash equivalents, and short-term investments will be sufficient to support working capital and capital expenditure requirements for at least the next 12 months.
Customers with more than $5,000 of ARR increased to 7,406, up 43% from the prior-year quarter. Customers with more than $100,000 of ARR increased to 760, up 39%. Dollar-Based Net Retention Rate was 128%, compared with over 130% a year earlier. GitLab said it has more than 30 million registered users and more than 50% of the Fortune 100 companies are GitLab customers. The company announced AI-powered workflows, including Code Suggestions, AI-assisted vulnerability guidance, and Value Streams Dashboards. It expanded partnerships with Google Cloud and Oracle. GitLab issued its 7th annual Global DevSecOps Report, which found that 65% of developers are using AI ML in testing efforts or will be in the next three years. The company said it sees an estimated $40 billion total addressable market.
For the second quarter of fiscal 2024, guidance is a non-GAAP operating loss of $11.0 million to $10.0 million. For the full fiscal year 2024, guidance is a non-GAAP operating loss of $47.0 million to $43.0 million. Non-GAAP net loss per share guidance is negative $0.03 to negative $0.02 for the second quarter and negative $0.18 to negative $0.14 for the full fiscal year.
Management flagged macroeconomic uncertainty, intense competition, potential loss of market share, customer renewal and expansion fluctuations, security and privacy breaches, and reliance on free self-managed or SaaS offerings. The company also noted risks from regional and global conflict, including armed conflict in Ukraine, and changes in interest rates, inflation, and instability in the global banking sector. GitLab said it expects research and development expenses to increase in absolute dollars and to negatively impact short-term profitability. Sales and marketing expenses are also expected to increase in absolute dollars as the company invests in growth. The company cited risks related to its limited operating history, ability to manage growth, hiring model, and ability to accurately predict long-term customer subscription renewals or adoption.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2024 | Q4 FY2023 | QoQ | Q1 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $126.9M | $122.9M | +3.2% | $87.4M | +45.2% |
| Gross profit | $112.9M | $108.7M | +3.9% | $77.6M | +45.6% |
| Gross margin | 89.0% | 88.4% | +0.6 pp | 88.7% | +0.3 pp |
| Research & development | $50.4M | $43.7M | +15.4% | $31.8M | +58.3% |
| Sales & marketing | $86.5M | $81.5M | +6.2% | $66.7M | +29.7% |
| General & administrative | $34.2M | $29.8M | +15.1% | $21.9M | +56.4% |
| Total operating expenses | $171.2M | $154.9M | +10.5% | $120.4M | +42.1% |
| Operating income (loss) | -$58.2M | -$46.3M | -25.8% | -$42.9M | -35.8% |
| Operating margin | -45.9% | -37.6% | -8.3 pp | -49.0% | +3.1 pp |
| Net income (loss) | -$52.5M | -$38.7M | -35.5% | -$26.1M | -101.0% |
| Net margin | -41.4% | -31.5% | -9.8 pp | -29.9% | -11.5 pp |
| Diluted EPS | -$0.35 | -$0.26 | -$0.09 | -$0.18 | -$0.17 |
| Customers | 760 | — | — | — | — |
| Net retention rate | 128.0% | 130.0% | -2.0 pp | 130.0% | -2.0 pp |
Risks
Dollar-Based Net Retention Rate declined to 128% as of April 30, 2023 from over 130% as of April 30, 2022, and the filing warns customers may downtier, reduce seats, or fail to renew. The Premium tier price increase and discontinuation of starter and bronze tiers may push customers to the free version or away from paid offerings.
GitLab faces intense competition from well-established providers such as Atlassian and Microsoft, as well as larger competitors with more capital, and expects competition to increase across all stages of the software development lifecycle. Pricing pressure could reduce sales, margins, or market share.
GitLab has incurred losses since inception, including a net loss of $52.5 million for the three months ended April 30, 2023, and an accumulated deficit of approximately $778.1 million as of April 30, 2023. It expects operating expenses to increase in the foreseeable future, which will negatively affect operating results if revenue does not increase.
The filing repeatedly cites inflation, rising interest rates, volatility in global debt and equity markets, and instability in the global banking sector as factors that can reduce corporate spending, delay purchasing decisions, lengthen sales cycles, and make forecasting difficult.
GitLab is incorporating generative AI features across the software development lifecycle, and the filing warns this new technology can produce inaccurate, biased, or hallucinatory outputs and requires specialized expertise, creating operational and reputational risk. Competition risk also cites AI as an area where larger rivals may invest more.
Base Customers grew to 7,406 as of April 30, 2023 from 5,168 as of April 30, 2022, placing strain on management and operational and financial resources. Failure to improve systems, processes, and controls could impair forecasting and prevent losses.
The DevSecOps Platform is built using open source technology, which the filing says can become a vector for supply-chain cyber-attacks, and security incidents could arise from AI-related sensitive data exposure such as insufficient data anonymization during training. A breach could lead to litigation, regulatory enforcement, fines, and reputational harm.
GitLab's commitment to transparency includes a publicly available Handbook and open communication, which may expose confidential information to competitors or bad actors and create Regulation FD and disclosure-control risk. The filing warns that inaccurate or outdated Handbook content could lead to securities law violations and reputational harm.
GitLab's open source and source code-available business model makes paid-tier software vulnerable to unauthorized distribution and sale, and it relies on independent open source contributors outside its control to develop and enhance core technologies. Delays or failures could increase development expenses and delay releases.
GitLab relies on channel partners for sales and support, particularly enterprise, governmental, and international sales, and partners may deliver poor service or prioritize competing products because they are not exclusive. Failure to maintain or train partners could harm growth.
Changes in U.S. and international tax laws, including OECD minimum tax proposals, digital services taxes, and the Inflation Reduction Act's 15% minimum tax, could increase GitLab's effective tax rate and cash tax obligations.
GitLab maintains cash balances at third-party financial institutions in excess of FDIC and similar insurance limits, and a bank failure could impair recovery of deposits and operating liquidity.
SaaS KPIs
All quarters →Dollar-Based Net Retention Rate
Customers with more than $100,000 of ARR
Customers with more than $5,000 of ARR
Summary, forecast, risks and KPIs are extracted from Gitlab Inc.'s SEC filings for Q1 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.