GitLab : First Quarter 2027 Financial Supplemental

About this update from Gitlab Inc.

‌Non-GAAP Financial Measures GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding certain items such as stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, equity method investment loss and impairment, acquisition related expenses, charitable donation of common stock, restructuring charges, a non-recurring income tax adjustment related to bilateral advance pricing agreement ("BAPA") negotiations, non-recurring charges associated with the formation of our GitLab Information Technology (Hubei) Co., LTD Joint Venture in China ("JiHu"), and other expenses that the Company believes are not indicative of its ongoing operations. In addition to these exclusions, effective Q1 FY26 we utilize a fixed long-term projected tax rate in our computation of the non-GAAP income tax provision which reflects the new location of GitLab's intellectual property in the U.S. following the conclusion of our bilateral advance pricing agreements. For FY26 and FY27, we have determined the projected non-GAAP tax rate to be 22%. Shares used for net income per share on a non-GAAP basis include incremental dilutive shares related to restricted stock units, options, and shares issuable under GitLab Inc.'s 2021 Employee Stock Purchase Plan that are anti-dilutive on a GAAP basis. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business. Adjusted Free Cash Flow Adjusted free cash flow is a non-GAAP financial measure that we calculate as net cash provided by operating activities less cash used for purchases of property and equipment, plus any non-recurring income tax payments related to the BAPA or minus any non-recurring income tax refunds related to the BAPA, plus any non-recurring payments related to the formation of JiHu. We believe that adjusted free cash flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our operations that, after the investments in property and equipment, any non-recurring income tax payments or refunds related to the BAPA, and any non-recurring payments related to the formation of JiHu, can be used for strategic initiatives, including investing in our business, and strengthening our financial position. One limitation of adjusted free cash flow is that it does not reflect our future contractual commitments. Additionally, adjusted free cash flow does not represent the total increase or decrease in our cash balance for a given period. ‌GitLab Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) April 30, 2026 January 31, 2026 October 31, 2025 July 31, 2025 April 30, 2025 January 31, 2025 October 31, 2024 July 31, 2024 ASSETS CURRENT ASSETS: Cash and cash equivalents .............................................................................. $ 335,395 $ 229,576 $ 224,231 $ 261,371 $ 255,719 $ 227,649 $ 176,632 $ 438,616 Short-term investments ..................................................................................... 1,022,117 1,030,327 980,077 903,806 849,113 764,728 740,340 644,488 Accounts receivable, net ................................................................................... 200,302 304,301 221,140 197,775 201,408 264,565 197,555 165,001 Deferred contract acquisition costs, current .................................................. 39,108 42,676 36,522 35,306 35,455 38,964 34,518 33,841 Prepaid expenses and other current assets .................................................. 42,483 48,899 44,979 37,912 39,066 40,411 46,641 35,879 Total current assets ........................................................................................... 1,639,405 1,655,779 1,506,949 1,436,170 1,380,761 1,336,317 1,195,686 1,317,825 Property and equipment, net ............................................................................ 12,777 11,815 10,193 7,642 4,856 4,013 3,563 2,899 Goodwill ............................................................................................................... 17,798 17,379 16,919 16,634 16,029 16,139 16,131 16,017 Intangible assets, net ......................................................................................... 7,759 9,774 11,789 13,804 15,819 17,834 19,536 21,867 Deferred contract acquisition costs, non-current .......................................... 23,810 23,705 20,288 18,961 19,830 20,142 17,248 15,753 Other non-current assets .................................................................................. 3,984 4,295 4,701 4,976 4,695 4,818 3,996 5,370 TOTAL ASSETS ................................................................................................ $ 1,705,533 $ 1,722,747 $ 1,570,839 $ 1,498,187 $ 1,441,990 $ 1,399,263 $ 1,256,160 $ 1,379,731 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable ............................................................................................... $ 8,847 $ 9,205 $ 9,187 $ 11,395 $ 11,288 $ 7,519 $ 2,224 $ 3,219 Accrued expenses and other current liabilities .............................................. 72,680 58,185 58,406 52,339 66,308 54,680 68,137 287,811 Accrued compensation and benefits ............................................................... 28,538 39,657 33,402 30,164 28,119 40,233 27,274 29,117 Deferred revenue, current ................................................................................. 532,983 545,096 464,813 459,459 450,668 442,599 383,183 362,348 Total current liabilities ........................................................................................ 643,048 652,143 565,808 553,357 556,383 545,031 480,818 682,495 Deferred revenue, non-current ......................................................................... 23,991 26,994 28,977 25,749 25,981 26,369 14,138 14,732 Other non-current liabilities ............................................................................... 7,108 7,362 8,057 7,499 7,029 6,557 3,776 6,678 TOTAL LIABILITIES .......................................................................................... 674,147 686,499 602,842 586,605 589,393 577,957 498,732 703,905 STOCKHOLDERS' EQUITY: Additional paid-in capital ................................................................................... 2,209,247 2,207,361 2,141,732 2,080,759 2,013,228 1,952,031 1,891,653 1,833,786 Accumulated deficit ............................................................................................ (1,228,542) (1,223,570) (1,220,973) (1,212,697) (1,203,489) (1,167,614) (1,174,506) (1,203,609) Accumulated other comprehensive income (loss) ........................................ 4,499 6,877 1,956 (1,511) (1,459) (8,508) (5,098) 623 Total GitLab stockholders' equity .................................................................... 985,204 990,668 922,715 866,551 808,280 775,909 712,049 630,800 Noncontrolling interests ..................................................................................... 46,182 45,580 45,282 45,031 44,317 45,397 45,379 45,026 TOTAL STOCKHOLDERS' EQUITY .............................................................. 1,031,386 1,036,248 967,997 911,582 852,597 821,306 757,428 675,826 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .............................. $ 1,705,533 $ 1,722,747 $ 1,570,839 $ 1,498,187 $ 1,441,990 $ 1,399,263 $ 1,256,160 $ 1,379,731 ‌GitLab Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended April 30, 2026 January 31, 2026 October 31, 2025 July 31, 2025 April 30, 2025 January 31, 2025 October 31, 2024 July 31, 2024 Revenue: Subscription-self-managed and SaaS ....................................... $ 239,306 $ 234,277 $ 223,262 $ 212,684 $ 194,481 $ 185,562 $ 175,257 $ 163,181 License-self-managed and other ................................................ 24,852 26,125 21,091 23,276 20,028 25,869 20,790 19,403 Total revenue ....................................................................... 264,158 260,402 244,353 235,960 214,509 211,431 196,047 182,584 Cost of revenue: Subscription-self-managed and SaaS ....................................... 30,591 28,297 25,184 21,753 19,268 17,277 17,170 16,630 License-self-managed and other ................................................ 6,897 6,685 7,037 6,752 5,767 5,592 4,955 4,740 Total cost of revenue ........................................................ 37,488 34,982 32,221 28,505 25,035 22,869 22,125 21,370 Gross profit ................................................................................................... 226,670 225,420 212,132 207,455 189,474 188,562 173,922 161,214 Operating expenses: Sales and marketing ....................................................................... 119,358 112,581 104,974 109,583 107,587 98,753 95,340 97,778 Research and development ........................................................... 71,482 68,961 68,715 71,488 65,410 62,885 61,354 61,273 General and administrative ............................................................ 51,579 49,042 50,799 44,735 51,087 46,262 45,960 43,168 Total operating expenses ........................................................................... 242,419 230,584 224,488 225,806 224,084 207,900 202,654 202,219 Loss from operations ................................................................................... (15,749) (5,164) (12,356) (18,351) (34,610) (19,338) (28,732) (41,005) Interest income ............................................................................................. 11,947 11,630 11,704 11,511 10,862 10,292 12,586 12,827 Other income (expense), net ..................................................................... 255 (6,075) (6,334) (911) (9,971) 4,017 4,799 1,260 Income (loss) before income taxes ........................................................... (3,547) 391 (6,986) (7,751) (33,719) (5,029) (11,347) (26,918) Provision for (benefit from) income taxes ................................................ 2,032 3,904 1,811 2,245 2,539 (11,344) (39,152) (39,155) Net income (loss) ......................................................................................... $ (5,579) $ (3,513) $ (8,797) $ (9,996) $ (36,258) $ 6,315 $ 27,805 $ 12,237 Net loss attributable to noncontrolling interest ........................................ (607) (916) (521) (788) (383) (577) (1,298) (675) Net income (loss) attributable to GitLab ................................................... $ (4,972) $ (2,597) $ (8,276) $ (9,208) $ (35,875) $ 6,892 $ 29,103 $ 12,912 Net income (loss) per share attributable to GitLab Class A and Class B common stockholders: ............................................................. Basic .............................................................................................................. $ (0.03) $ (0.02) $ (0.05) $ (0.06) $ (0.22) $ 0.04 $ 0.18 $ 0.08 Diluted ........................................................................................................... $ (0.03) $ (0.02) $ (0.05) $ (0.06) $ (0.22) $ 0.04 $ 0.17 $ 0.08 Weighted-average shares used to compute net income (loss) per share attributable to GitLab Class A and Class B common stockholders: ............................................................................................ Basic .............................................................................................................. 169,948 169,231 167,407 165,953 164,491 163,055 161,317 159,677 Diluted ........................................................................................................... 169,948 169,231 167,407 165,953 164,491 170,094 167,436 166,346 ‌GitLab Inc. Reconciliation of GAAP to Non-GAAP (in thousands, except per share data) (unaudited) Three Months Ended April 30, 2026 January 31, 2026 October 31, 2025 July 31, 2025 April 30, 2025 January 31, 2025 October 31, 2024 July 31, 2024 Gross profit on GAAP basis $ 226,670 $ 225,420 $ 212,132 $ 207,455 $ 189,474 $ 188,562 $ 173,922 $ 161,214 Stock-based compensation expense ........................................... 2,864 3,823 2,300 2,261 1,929 1,998 1,993 2,076 Amortization of acquired intangibles ............................................. 2,015 2,015 2,015 2,015 2,020 2,195 2,511 2,333 Restructuring charges ..................................................................... - 153 - - - - - - Gross profit on non-GAAP basis $ 231,549 $ 231,411 $ 216,447 $ 211,731 $ 193,423 $ 192,755 $ 178,426 $ 165,623 Gross margin on non-GAAP basis .............................................. 88 % 89 % 89 % 90 % 90 % 91 % 91 % 91 % Sales and marketing on GAAP basis $ 119,358 $ 112,581 $ 104,974 $ 109,583 $ 107,587 $ 98,753 $ 95,340 $ 97,778 Stock-based compensation expense ........................................... (17,445) (19,572) (17,354) (19,950) (22,091) (18,664) (17,012) (19,881) Restructuring charges ..................................................................... - (1,493) - - - - (130) (266) Sales and marketing on non-GAAP basis $ 101,913 $ 91,516 $ 87,620 $ 89,633 $ 85,496 $ 80,089 $ 78,198 $ 77,631 Research and development on GAAP basis $ 71,482 $ 68,961 $ 68,715 $ 71,488 $ 65,410 $ 62,885 $ 61,354 $ 61,273 Stock-based compensation expense ........................................... (13,630) (14,725) (15,560) (19,197) (14,272) (15,478) (14,384) (16,114) Restructuring charges ..................................................................... - - - - - - - (393) Research and development on non-GAAP basis $ 57,852 $ 54,236 $ 53,155 $ 52,291 $ 51,138 $ 47,407 $ 46,970 $ 44,766 General and administrative on GAAP basis $ 51,579 $ 49,042 $ 50,799 $ 44,735 $ 51,087 $ 46,262 $ 45,960 $ 43,168 Stock-based compensation expense ........................................... (16,122) (15,038) (16,468) (12,876) (17,535) (10,496) (14,653) (10,898) Restructuring charges ..................................................................... - - - - - - 11 (112) Charitable donation of common stock .......................................... (821) (1,597) (1,970) (1,787) (1,739) (2,957) (2,957) (2,957) Changes in the fair value of acquisition related contingent consideration .................................................................................... - - - - - - - (3,750) Acquisition related expenses ......................................................... (310) (216) (321) (157) (183) (391) (140) (658) Other non-recurring charges .......................................................... (76) 77 (48) 320 (963) (4,538) (872) 261 General and administrative on non-GAAP basis $ 34,250 $ 32,268 $ 31,992 $ 30,235 $ 30,667 $ 27,880 $ 27,349 $ 25,054 Loss from operations on GAAP basis $ (15,749) $ (5,164) $ (12,356) $ (18,351) $ (34,610) $ (19,338) $ (28,732) $ (41,005) Stock-based compensation expense ........................................... 50,061 53,158 51,682 54,284 55,827 46,636 48,042 48,969 Amortization of acquired intangibles ............................................. 2,015 2,015 2,015 2,015 2,020 2,195 2,511 2,333 Restructuring charges ..................................................................... - 1,646 - - - - 119 771 Charitable donation of common stock .......................................... 821 1,597 1,970 1,787 1,739 2,957 2,957 2,957 Changes in the fair value of acquisition related contingent consideration .................................................................................... - - - - - - - 3,750 Acquisition related expenses ......................................................... 310 216 321 157 183 391 140 658 Other non-recurring charges .......................................................... 76 (77) 48 (320) 963 4,538 872 (261) Income from operations on non-GAAP basis $ 37,534 $ 53,391 $ 43,680 $ 39,572 $ 26,122 $ 37,379 $ 25,909 $ 18,172 Other income (expense), net on GAAP basis $ 255 $ (6,075) $ (6,334) $ (911) $ (9,971) $ 4,017 $ 4,799 $ 1,260 Foreign exchange gains (losses), net .......................................... (536) 6,032 2,362 1,117 9,954 (3,860) (5,074) (1,267) Other non-recurring charges .......................................................... 182 178 3,714 172 170 173 171 172 Other income (expense), net on non-GAAP basis $ (99) $ 135 $ (258) $ 378 $ 153 $ 330 $ (104) $ 165 Net income (loss) attributable to GitLab common stockholders on GAAP basis $ (4,972) $ (2,597) $ (8,276) $ (9,208) $ (35,875) $ 6,892 $ 29,103 $ 12,912 Stock-based compensation expense ........................................... 50,061 53,158 51,682 54,284 55,827 46,636 48,042 48,969 Amortization of acquired intangibles ............................................. 2,015 2,015 2,015 2,015 2,020 2,195 2,511 2,333 Restructuring charges ..................................................................... - 1,646 - - - - 119 771 Charitable donation of common stock .......................................... 821 1,597 1,970 1,787 1,739 2,957 2,957 2,957 Changes in the fair value of acquisition related contingent consideration .................................................................................... - - - - - - - 3,750 Acquisition related expenses ......................................................... 310 216 321 157 183 391 140 658 Foreign exchange gains (losses), net .......................................... (536) 6,032 2,362 1,117 9,954 (3,860) (5,074) (1,267) Income tax adjustment .................................................................... (8,966) (10,428) (10,318) (9,077) (5,631) (3,222) (39,696) (46,472) Other non-recurring charges .......................................................... 258 101 3,762 (148) 1,133 4,711 1,043 (89) Net income attributable to GitLab common stockholders on non-GAAP basis $ 38,991 $ 51,740 $ 43,518 $ 40,927 $ 29,350 $ 56,700 $ 39,145 $ 24,522 GAAP net income (loss) per share, basic $ (0.03) $ (0.02) $ (0.05) $ (0.06) $ (0.22) $ 0.04 $ 0.18 $ 0.08 GAAP net income (loss) per share, diluted $ (0.03) $ (0.02) $ (0.05) $ (0.06) $ (0.22) $ 0.04 $ 0.17 $ 0.08 Non-GAAP net income per share, basic $ 0.23 $ 0.31 $ 0.26 $ 0.25 $ 0.18 $ 0.35 $ 0.24 $ 0.15 Non-GAAP net income per share, diluted $ 0.23 $ 0.30 $ 0.25 $ 0.24 $ 0.17 $ 0.33 $ 0.23 $ 0.15 Shares used in per share calculation - basic on GAAP basis 169,948 169,231 167,407 165,953 164,491 163,055 161,317 159,677 Effect of dilutive securities .............................................................. 1,567 2,882 4,324 4,535 5,669 7,039 6,119 6,669 Shares used in per share calculation - diluted on non-GAAP basis 171,515 172,113 171,731 170,488 170,160 170,094 167,436 166,346 Computation of adjusted free cash flow GAAP net cash provided by (used in) operating activities $ 149,197 $ 45,757 $ 31,428 $ 49,369 $ 106,302 $ 63,222 $ (177,028) $ 11,697 Less: Additions to property and equipment (2,393) (3,973) (3,038) (2,904) (912) (1,157) (1,057) (851) Add: Income tax payment (refunds) related to BAPA (77) (28) (1,146) (12) (1,293) - 187,735 - Non-GAAP adjusted free cash flow $ 146,727 $ 41,756 $ 27,244 $ 46,453 $ 104,097 $ 62,065 $ 9,650 $ 10,846 ‌GitLab Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended April 30, 2026 January 31, 2026 October 31, 2025 July 31, 2025 April 30, 2025 January 31, 2025 October 31, 2024 July 31, 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss), including amounts attributable to noncontrolling interest ............................................................................................................ $ (5,579) $ (3,513) $ (8,797) $ (9,996) $ (36,258) $ 6,315 $ 27,805 $ 12,237 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock-based compensation expense, net of amounts capitalized ..... 50,061 53,158 51,682 54,284 55,827 46,636 48,042 48,969 Change in fair value of acquisition related contingent consideration . - - - - - - - 3,750 Charitable donation of common stock .................................................... 821 1,597 1,970 1,787 1,739 2,956 2,957 2,957 Amortization of intangible assets ............................................................. 2,015 2,015 2,015 2,015 2,020 2,195 2,511 2,333 Depreciation and amortization ................................................................. 1,295 1,096 869 759 556 499 680 744 Amortization of deferred contract acquisition costs .............................. 12,924 14,139 13,478 13,370 13,899 14,064 12,704 11,837 Net amortization of premiums or discounts on short-term investments ................................................................................................. (324) (861) (1,741) (2,609) (2,996) (3,813) (3,792) (4,241) Unrealized foreign exchange loss (gain), net ........................................ (1,011) 5,425 2,416 1,069 9,901 (4,083) (5,175) (988) Other non-cash expense (income), net .................................................. 189 367 231 192 208 162 467 (111) Changes in assets and liabilities: Accounts receivable ................................................................................ 103,356 (82,033) (23,472) 3,859 65,928 (67,991) (32,883) (29,847) Prepaid expenses and other current assets ....................................... 6,387 (3,832) (7,036) 1,219 1,527 5,927 (10,847) 2,982 Deferred contract acquisition costs ...................................................... (9,745) (22,966) (15,898) (12,304) (8,126) (22,421) (14,751) (12,415) Other non-current assets ....................................................................... 228 395 233 (198) 379 (1,034) 1,348 (78) Accounts payable .................................................................................... (353) 794 (2,302) (472) 3,586 5,472 (1,317) 14 Accrued expenses and other current liabilities ................................... 14,451 (624) 6,140 (14,257) 9,979 (12,755) (219,544) (41,093) Accrued compensation and benefits .................................................... (10,970) 5,765 3,168 2,021 (13,084) 13,558 (1,913) 6,250 Deferred revenue .................................................................................... (14,288) 75,781 8,011 8,284 1,205 74,240 19,665 19,286 Other non-current liabilities .................................................................... (260) (946) 461 346 12 3,295 (2,985) (10,889) Net cash provided by (used in) operating activities ........... 149,197 45,757 31,428 49,369 106,302 63,222 (177,028) 11,697 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of short-term investments ........................................................ (222,196) (213,209) (314,385) (237,946) (245,952) (204,304) (240,136) (118,866) Proceeds from maturities of short-term investments ............................... 218,824 164,139 241,641 184,280 163,606 183,520 148,763 121,412 Proceeds from sales of short-term investments ....................................... 9,922 - - - 1,367 - - - Additions to property and equipment ......................................................... (2,393) (3,973) (3,038) (2,904) (912) (1,157) (1,057) (851) Payments for asset acquisition ................................................................... - - - - - - (346) (7,314) Other investing activities .............................................................................. - - - - - - - 457 Net cash provided by (used in) investing activities ........... 4,157 (53,043) (75,782) (56,570) (81,891) (21,941) (92,776) (5,162) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases ........................... 2,373 6,324 8,182 3,947 3,328 6,069 7,822 4,980 Issuance of common stock under employee stock purchase plan - 5,571 - 8,404 - 5,624 - 7,932 Common stock repurchased (50,048) - - - - - - - Payments for taxes related to net share settlement of equity awards (160) (416) (529) - - - - - Net cash provided by (used in) financing activities .......... (47,835) 11,479 7,653 12,351 3,328 11,693 2,922 12,912 Impact of foreign exchange on cash and cash equivalents ................... 300 1,152 (439) 502 331 (1,957) 4,898 (1,153) Net increase (decrease) in cash and cash equivalents .......................... 105,819 5,345 (37,140) 5,652 28,070 51,017 (261,984) 18,294 Cash and cash equivalents at beginning of period .................................. 229,576 224,231 261,371 255,719 227,649 176,632 438,616 420,322 Cash, and cash equivalents at end of period ........................................... $ 335,395 $ 229,576 $ 224,231 $ 261,371 $ 255,719 $ 227,649 $ 176,632 $ 438,616

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