Summary
GitLab reported revenue of $169.2 million for FY2025 Q1, up 33% from $126.9 million in the prior-year quarter. Gross profit rose 33.2% to $150.4 million. Gross margin was 88.9%, down 0.1 percentage points from 89.0% a year earlier. The company attributed the top-line gain to ongoing demand for The DevSecOps Platform, new customer additions, expansion within existing paid customers, and growth in the number of customers spending more than $100,000 in ARR.
Profitability improved on most lines. Operating loss narrowed to $53.6 million from $58.2 million, and operating margin was -31.7%, up 14.2 percentage points from -45.9%. Net loss attributable to GitLab widened to $54.6 million from $52.5 million. Diluted EPS was flat at -$0.35. Cash generation was the standout. Operating cash flow was $38.1 million, up $49.1 million from negative $11.0 million in the prior-year quarter. Capital expenditures were $0.7 million. Non-GAAP adjusted free cash flow was $37.4 million, compared with negative $11.2 million a year earlier. Non-GAAP operating loss was $3.8 million versus $15.0 million, and non-GAAP net income was $4.5 million versus a non-GAAP net loss of $8.8 million. Non-GAAP diluted EPS was $0.03 against -$0.06.
Customer metrics held up. Customers with more than $5,000 of ARR reached 8,976, an increase of 21%. Customers with more than $100,000 of ARR reached 1,025, an increase of 35%. Dollar-Based Net Retention Rate was 129%, down from above 130% a year earlier. Total RPO grew 48% to $681.2 million, and cRPO grew 34% to $436.1 million. Deferred revenue, current portion, was $341.8 million, up 29.8%.
Product activity was heavy. GitLab shipped GitLab 17 with GitLab Duo Enterprise, made GitLab Duo Chat generally available, and announced an integration with Google Console. It acquired Oxeye, a cloud-native application security and risk management vendor, and the intellectual property of Rezilion. Expenses grew faster than revenue in some areas. General and administrative costs rose sharply, driven largely by an in-person company-wide event, and stock-based compensation expense increased. The company also recorded a higher provision for income taxes tied to the bilateral advance pricing agreement between U.S. and Dutch taxing authorities.
Guidance covers the second quarter and the full fiscal year. For Q2 FY2025, GitLab expects revenue of $176.0 million to $177.0 million, non-GAAP operating income of $10.0 million to $11.0 million, and non-GAAP diluted net income per share of $0.09 to $0.10. For the full fiscal year 2025, it expects revenue of $733.0 million to $737.0 million, non-GAAP operating income of $34.0 million to $38.0 million, and non-GAAP diluted net income per share of $0.34 to $0.37. The full-year revenue outlook absorbs an estimated $4 million headwind from a completed stand-alone selling price allocation analysis.
Risks remain familiar. The company lists intense competition and possible loss of market share, its ability to achieve and sustain profitability, fluctuations in operating results, security and privacy breaches, and the incorporation of AI features into its products. General economic conditions, including interest rates and inflation, are also flagged. Tax matters add another layer. GitLab is in bilateral advance pricing agreement negotiations with U.S. and Dutch authorities, expects those talks to continue into the middle of fiscal year 2025, and is under examination in the Netherlands for tax years ended December 31, 2015 and 2016. 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.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $169.2M | $163.8M | +3.3% | $126.9M | +33.3% |
| Gross profit | $150.4M | $147.8M | +1.8% | $112.9M | +33.2% |
| Gross margin | 88.9% | 90.2% | -1.3 pp | 89.0% | -0.1 pp |
| Research & development | $54.1M | $52.4M | +3.3% | $50.4M | +7.4% |
| Sales & marketing | $92.4M | $90.8M | +1.8% | $86.5M | +6.8% |
| General & administrative | $57.5M | $39.5M | +45.5% | $34.2M | +67.9% |
| Total operating expenses | $204.1M | $182.7M | +11.7% | $171.2M | +19.2% |
| Operating income (loss) | -$53.6M | -$34.9M | -53.8% | -$58.2M | +7.9% |
| Operating margin | -31.7% | -21.3% | -10.4 pp | -45.9% | +14.2 pp |
| Net income (loss) | -$54.6M | -$36.5M | -49.8% | -$52.5M | -4.1% |
| Net margin | -32.3% | -22.3% | -10.0 pp | -41.4% | +9.1 pp |
| Diluted EPS | -$0.35 | -$0.24 | -$0.11 | -$0.35 | ±$0.00 |
| Customers | 1,025 | — | — | 760 | +34.9% |
| Net retention rate | 129.0% | 130.0% | -1.0 pp | 128.0% | +1.0 pp |
Risks
GitLab has embedded AI capabilities in the GitLab Duo suite, but it relies on third-party vendors for AI models, faces nascent AI regulation and IP claims, and may incur high computing costs that could adversely affect gross margin, profitability, financial position, and cash flow.
The market is highly competitive with limited barriers to entry; GitLab names Microsoft and Atlassian and other larger competitors with more capital, and expects competition to increase, including incorporation of AI into competitor services, which could reduce revenue growth or market share.
Dollar-Based Net Retention Rate was 129% as of April 30, 2024 compared with above 130% as of April 30, 2023, and customers may renew for fewer elements or downtier, which could harm future operating results.
GitLab is in BAPA negotiations between the IRS and Dutch tax authorities; it recorded an additional $8.7 million net tax liability for the three months ended April 30, 2024 after $254.9 million in fiscal year 2024, and provision for income taxes increased by $11.2 million to $12.7 million for the three months ended April 30, 2024.
GitLab has implemented user limits on its free SaaS product and plans storage and transfer limits, and has limited historical data on free-user conversion, so free users may decline to purchase paid offerings or paid conversion may not offset reduced free usage.
GitLab implemented a Premium tier price increase in fiscal year 2024 and has discontinued certain lower priced offerings, which may cause customers to choose the free version or stop using GitLab products, harming renewals and revenue.
Inflation, volatile interest rates, federal budget and debt ceiling uncertainty, potential government shutdowns, and banking sector instability may pressure customer spending, lengthen sales cycles, and make forecasting difficult.
Base Customers increased to 8,976 as of April 30, 2024 from 7,406 as of April 30, 2023, and rapid growth strains management, operational, and financial resources, potentially causing deployment delays, quality declines, and cost increases.
The DevSecOps Platform uses open source technology and AI features that may expose sensitive data, increasing supply-chain and breach risk; a breach could lead to litigation, regulatory enforcement, contract termination, and reputational harm.
GitLab's public Handbook and transparent communications may let competitors access innovations and create Regulation FD or disclosure-control failures if material information is unintentionally disclosed.
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
Non-GAAP Gross Margin
Total RPO
Non-GAAP Adjusted Free Cash Flow
cRPO
Summary, forecast, risks and KPIs are extracted from Gitlab Inc.'s SEC filings for Q1 FY2025 (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 2, 2026.