Summary
GitLab reported third quarter fiscal 2024 revenue of $149.668 million, up 32.5% from the prior-year quarter. Gross profit was $134.584 million, up 36.7%, and gross margin rose to 89.9% from 87.1%. Operating loss narrowed to $40.267 million from $56.962 million, and operating margin improved to negative 26.9% from negative 50.4%. The company also reported its first quarter of non-GAAP operating profit, with non-GAAP operating income of $4.7 million. Net loss attributable to GitLab was $285.158 million, or negative $1.84 per diluted share, compared with $48.455 million, or negative $0.33 per diluted share, in the prior-year quarter. The GAAP net loss widened largely because of a non-recurring income tax adjustment tied to bilateral advance pricing agreement negotiations with U.S. and Dutch tax authorities. That proposed agreement is not final.
For the first nine months of fiscal 2024, revenue was $416.127 million, up 38.1% from the prior-year period. Gross profit was $372.408 million, up 41.1%, and gross margin was 89.5%. Operating loss narrowed to $152.557 million from $165.137 million, while net loss widened to $387.707 million from $133.578 million. Diluted EPS was negative $2.53 versus negative $0.90. Operating cash flow turned positive at $10.187 million for the nine months, compared with negative $65.688 million in the prior-year period. Capital expenditures were $1.269 million for the nine months, down 74.7% from $5.018 million. In the quarter alone, operating cash flow was negative $5.961 million, down from negative $1.197 million, and capital expenditures were $0.736 million, down 58.7% from $1.784 million.
Customer metrics remained solid. Customers with more than $5,000 of ARR increased to 8,175, up 26% from Q3 fiscal 2023. Customers with more than $100,000 of ARR increased to 874, up 37%. Dollar-Based Net Retention Rate was 128% in Q3 fiscal 2024, compared with over 130% in the prior-year quarter. Deferred revenue was $287.647 million, up 32.1% from the prior-year quarter, and remaining performance obligations were $548.1 million, up 39.6%. Product news centered on GitLab Duo. The beta release of GitLab Duo Chat gives users a natural-language AI assistant. Code Suggestions is set for general availability in the GitLab 16.7 December 2023 release. The company also launched a beta of Vulnerability Summary and a new self-serve portal for GitLab Dedicated. GitLab was named the 2023 Google Cloud Technology Partner of the Year for DevOps, Application Development.
Management issued guidance for the fourth quarter and full fiscal year 2024. For Q4 FY2024, revenue is expected to be $157.0 million to $158.0 million. For FY2024, revenue is expected to be $573.0 million to $574.0 million. Non-GAAP operating income is guided to $5.0 million to $6.0 million for Q4 FY2024, while full-year FY2024 non-GAAP operating loss is guided to $(10.0) million to $(9.0) million. Non-GAAP net income per share is guided to $0.08 to $0.09 for Q4 FY2024 and $0.12 to $0.13 for FY2024. The outlook assumes roughly 164 million and 162 million weighted average shares outstanding for Q4 FY2024 and FY2024, respectively. Risks include intense competition, a possible decline in customer renewals and expansions, fluctuations in operating results, the company's incorporation of AI features, security and privacy breaches, customers staying on free offerings, limited public company history, rapid technological changes, hiring model challenges, armed conflict, and general economic conditions such as inflation, interest rates, and banking sector instability. The BAPA negotiations with the IRS and Dutch Tax Authority remain unresolved and could affect future tax expense.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $149.7M | $139.6M | +7.2% | $113.0M | +32.5% |
| Gross profit | $134.6M | $124.9M | +7.8% | $98.4M | +36.7% |
| Gross margin | 89.9% | 89.5% | +0.5 pp | 87.1% | +2.8 pp |
| Research & development | $49.1M | $49.0M | +0.1% | $41.1M | +19.3% |
| Sales & marketing | $87.0M | $92.1M | -5.6% | $81.1M | +7.3% |
| General & administrative | $38.8M | $37.8M | +2.6% | $33.2M | +17.0% |
| Total operating expenses | $174.9M | $178.9M | -2.3% | $155.4M | +12.5% |
| Operating income (loss) | -$40.3M | -$54.1M | +25.5% | -$57.0M | +29.3% |
| Operating margin | -26.9% | -38.7% | +11.8 pp | -50.4% | +23.5 pp |
| Net income (loss) | -$285.2M | -$50.1M | -469.4% | -$48.5M | -488.5% |
| Net margin | -190.5% | -35.9% | -154.7 pp | -42.9% | -147.6 pp |
| Diluted EPS | -$1.84 | -$0.33 | -$1.51 | -$0.33 | -$1.51 |
| Customers | 874 | 810 | +7.9% | 638 | +37.0% |
| Net retention rate | 128.0% | 124.0% | +4.0 pp | 130.0% | -2.0 pp |
Risks
The quarter ended October 31, 2023 included a large tax expense tied to bilateral advance pricing agreement negotiations between the U.S. IRS and Dutch Tax Authority, as highlighted in MD&A. Net loss widened to $285.2 million and diluted EPS fell to -$1.84 in the quarter, with tax effects contributing to the wider loss.
GitLab is embedding generative AI features across its services while relying on third-party AI model vendors, and it cites nascent AI regulation, copyright and IP claims, privacy liability, and potential model vendor disruption. The company also says it competes with well-established providers including Atlassian and Microsoft, which have greater capital resources.
Dollar-Based Net Retention Rate was 128% as of October 31, 2023, down from over 130% as of October 31, 2022, and the company changed its account hierarchy methodology during the quarter. MD&A notes limited historical data on uptiering, downtiering, and churn, and risk factors say customers may decline renewals, reduce seats, or downtier.
The company discontinued its starter and bronze tier product offerings and implemented a Premium tier price increase in the first quarter of fiscal year 2024. Risk factors say these changes may cause customers to switch to the free product or stop using GitLab products, harming renewal and expansion revenue.
Risk factors repeatedly cite inflation, rising interest rates, federal budget uncertainty, volatility in global debt and equity markets, and instability in the global banking sector. These conditions may reduce corporate spending, delay purchasing decisions, lengthen sales cycles, and make forecasting difficult.
GitLab says transparency is a core value and maintains a publicly available Handbook that may expose confidential competitive information, allow competitors to use innovations, and create Regulation FD or disclosure control failures if material information is disclosed through public channels.
The DevSecOps Platform is built using open-source technology, and risk factors state that using or incorporating third-party technology can become a vector for supply-chain cyberattacks. GitLab has previously been and may in the future be a target of cyberattacks because of its open source code use.
Base Customers grew to 8,175 as of October 31, 2023 from 6,469 as of October 31, 2022, and revenue rose 32.5% for the three months ended October 31, 2023. Risk factors warn that rapid growth strains management, operational, and financial resources and may impair forecasting and controls if systems do not scale.
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
Non-GAAP Operating Margin
Registered Users
Summary, forecast, risks and KPIs are extracted from Gitlab Inc.'s SEC filings for Q3 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 2, 2026.