GitLab Reports Strong Earnings, Exceeds Expectations

GitLab's fiscal Q4 2025 results show strong growth with earnings of $0.33 per share, outperforming expectations. Revenue reached $211.4 million, a 29% year-over-year increase, indicating robust operational improvements and market resilience.

Date: 04-03-2025

AI Rating: 8

Earnings Per Share (EPS)
GitLab reported non-GAAP earnings of $0.33 per share, surpassing analysts' expectations of $0.23 per share. This significant increase reflects the company’s improving profitability, marking a 120% increase compared to the previous year’s $0.15 EPS.

Revenue Growth
The company achieved a revenue of $211.4 million for the quarter, exceeding the analyst forecast of $206 million. This result demonstrates a strong 29% year-over-year growth, highlighting GitLab’s effective strategies to enhance its market footprint amid competition.

Net Income
GitLab's non-GAAP net income rose dramatically to $56.7 million from $25 million in the same period last year, representing a 126.4% increase. This growth in net income reinforces the company’s successful cost management and operational efficiency.

Profit Margins
The non-GAAP operating margin reached 18%, a substantial improvement from the prior year’s 8%, indicating the company's effective management of operating costs amidst increasing revenues.

Free Cash Flow (FCF)
For the quarter, GitLab reported adjusted free cash flow of $62.1 million, up from $24.5 million year-over-year, showing a strong increase of 153.1%. This significant growth in cash flow reflects operational efficiency and the company's ability to generate cash from its business operations.

Outlook
Management’s future guidance for revenue suggests a continued optimistic trajectory, aiming for $936 million to $942 million for the fiscal year. This confidence in growth is supported by advancements in AI integration and expanding customer base, indicating solid fundamentals despite a competitive landscape.

Stocks: GTLB