GitLab Reports Second Quarter Fiscal Year 2024 Financial Results

Quarterly revenue of $139.6 million, up 38% year-over-year

Fiscal Second Quarter Highlights:

  • Total revenue of $139.6 million
  • GAAP operating margin of (39)%; Non-GAAP operating margin of (3)%
  • GAAP net loss per share of $(0.33); Non-GAAP net income per share of $0.01

SAN FRANCISCO, Sept. 05, 2023 (GLOBE NEWSWIRE) -- All-Remote - GitLab Inc. (NASDAQ: GTLB), The DevSecOps Platform, today reported financial results for its second quarter fiscal year 2024, ended July 31, 2023.

“GitLab’s strong quarter is a result of our focus on creating a differentiated and innovative DevSecOps platform and executing on a strong go-to-market motion,” said Sid Sijbrandij, GitLab CEO and co-founder. “In addition, Gartner and Forrester recognized GitLab as a category leader, which is an important milestone for the company and signals the shift from point solutions to platforms. We believe that our rapid pace of product innovation and strong customer demand position us to capture a greater share of the estimated $40 billion total addressable market opportunity.”

“We are pleased with our continued business momentum as it shows the value proposition of our market-leading DevSecOps platform is resonating in the market,” said Brian Robins, GitLab chief financial officer. “Our revenue of $139.6 million this quarter represents an increase of 38% organically from the prior year, which shows that we continue to execute while driving responsible growth.”

Second Quarter Fiscal Year 2024 Financial Highlights (in millions, except per share data and percentages):

 Q2 FY 2024 Q2 FY 2023 Y/Y Change
Revenue$139.6  $101.0   38%
GAAP Gross margin 89%  87%  
Non-GAAP Gross margin 91%  89%  
GAAP Operating loss$(54.1) $(65.3) $11.2 
Non-GAAP Operating loss$(4.3) $(27.0) $22.7 
GAAP Net loss attributable to GitLab$(50.1) $(59.0) $8.9 
Non-GAAP Net income (loss) attributable to GitLab$1.9  $(21.5) $23.4 
GAAP Net loss per share attributable to GitLab$(0.33) $(0.40) $0.07 
Non-GAAP Net income (loss) per share attributable to GitLab$0.01  $(0.15) $0.16 

A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”

Business Highlights:

  • Customers with more than $5,000 of ARR increased to 7,815, up 33% from Q2 of fiscal year 2023.
  • Customers with more than $100,000 of ARR increased to 810, up 37% from Q2 of fiscal year 2023.
  • Dollar-Based Net Retention Rate was 124% in Q2 of fiscal year 2024.
  • Named as a leader in the inaugural Gartner® Magic Quadrant™ for DevOps Platforms.
  • Recognized as the only Leader in The Forrester Wave™: Integrated Software Delivery Platforms, Q2 2023 Report.
  • Appointed Chris Weber as Chief Revenue Officer. A long-time Microsoft executive, Weber will oversee all field operations, including sales, customer success, and strategic partnerships.
  • Released inaugural reports for environmental, social, and governance (ESG) and diversity, inclusion, and belonging (DIB). These reports highlight GitLab’s progress and performance across key ESG & DIB priorities.
  • Announced the release of GitLab 16.0 to deliver AI-powered workflows, strengthen software supply chain security, and help customers meet complex compliance and regulatory needs.
  • Launched the DevSecOps World Tour in Q2 of fiscal year 2024, which includes in-person customer events in 14 global cities.

Third Quarter and Fiscal Year 2024 Financial Outlook

For the third quarter and fiscal year 2024, GitLab Inc. expects (in millions, except share and per share data):

 Q3 FY 2024 Guidance FY 2024 Guidance
Revenue$140.0 - $141.0 $555.0 - $557.0
Non-GAAP operating loss$(6.0) - $(5.0) $(33.0) - $(30.0)
Non-GAAP net loss per share assuming approximately
155 million and 154 million weighted average shares
outstanding as of Q3 FY2024 and FY24, respectively
$(0.02) - $(0.01) $(0.08) - $(0.05)

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below in Non-GAAP Financial Measures. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating loss and net loss per share to the corresponding GAAP measures is not available.

Conference Call Information

GitLab will host a conference call today, September 5, 2023, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its second quarter of fiscal 2024 financial results. Investors and analysts should register for the call in advance by visiting A replay of the call will be available on GitLab’s investor relations website (

About GitLab

GitLab is the most comprehensive DevSecOps Platform that empowers organizations to maximize the overall return on software development by delivering software faster and efficiently, while strengthening security and compliance. GitLab’s single application is easier to use, leads to faster cycle time and allows visibility throughout and control over all stages of the DevSecOps lifecycle. With GitLab, every team in your organization can collaboratively plan, build, secure, and deploy software to drive business outcomes faster with complete transparency, consistency and traceability.

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 stock-based compensation expense, amortization of acquired intangible assets, foreign exchange (gain) loss, (gain) loss from a deconsolidation of a subsidiary, equity method investment (gain) loss, changes in the fair value of acquisition related contingent consideration, charitable donation of common stock, and restructuring charges. 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.

Forward-Looking Statements

This press release and the accompanying earnings call contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:

  • our ability to effectively manage future growth;
  • our revenue growth rate in the future;
  • our ability to achieve and sustain profitability, our business, financial condition, and operating results;
  • our intense competition and loss of market share to our competitors;
  • the market for our services may not grow;
  • a decline in our customer renewals and expansions;
  • fluctuations in our operating results;
  • our ability to manage our growth effectively;
  • our plans to incorporate artificial intelligence features into our products;
  • our transparency;
  • our publicly available company Handbook;
  • security and privacy breaches;
  • customers staying on our free self-managed or SaaS product offering;
  • our limited operating history;
  • our ability to respond to rapid technological changes;
  • our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption;
  • our hiring model;
  • the effects of regional and global conflict, including armed conflict in Ukraine, on our business; and
  • general economic conditions (including changes in interest rates, inflation, increased volatility in the capital markets and instability in the global banking sector) and slow or negative growth of our markets.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Operating Metrics

Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.

Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.

GitLab Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)

 July 31, 2023(1) January 31, 2023(1)
Cash and cash equivalents        $273,225  $295,402 
Short-term investments         713,058   641,249 
Accounts receivable, net of allowance for doubtful accounts of $180 and $1,564 as of July 31, 2023 and January 31, 2023, respectively         105,815   130,479 
Deferred contract acquisition costs, current         25,069   26,505 
Prepaid expenses and other current assets         26,053   24,327 
Total current assets         1,143,220   1,117,962 
Property and equipment, net         4,080   5,797 
Operating lease right-of-use assets         673   998 
Equity method investment         10,574   12,682 
Goodwill         8,145   8,145 
Intangible assets, net         2,774   3,901 
Deferred contract acquisition costs, non-current         14,743   15,628 
Other long-term assets         4,860   4,087 
TOTAL ASSETS        $1,189,069  $1,169,200 
Accounts payable        $4,165  $5,184 
Accrued expenses and other current liabilities         24,643   25,954 
Accrued compensation and benefits         23,504   20,776 
Deferred revenue, current         268,883   254,382 
Total current liabilities         321,195   306,296 
Deferred revenue, non-current         25,860   28,355 
Other non-current liabilities         10,774   9,824 
TOTAL LIABILITIES         357,829   344,475 
Preferred stock, $0.0000025 par value; 50,000 shares authorized as of July 31, 2023 and January 31, 2023;
no shares issued and outstanding as of July 31, 2023 and January 31, 2023        
Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized as of July 31, 2023 and January 31, 2023;
103,432 and 94,655 shares issued and outstanding as of July 31, 2023 and January 31, 2023, respectively        
Class B Common stock, $0.0000025 par value; 250,000 shares authorized as of July 31, 2023 and January 31, 2023;
51,178 and 56,489 shares issued and outstanding as of July 31, 2023 and January 31, 2023, respectively        
Additional paid-in capital         1,610,072   1,497,373 
Accumulated deficit         (828,197)  (725,648)
Accumulated other comprehensive income (loss)         1,782   (705)
Total GitLab stockholders’ equity         783,657   771,020 
Noncontrolling interests         47,583   53,705 
TOTAL STOCKHOLDERS’ EQUITY         831,240   824,725 

(1) As of July 31, 2023 and January 31, 2023, the consolidated balance sheet includes assets of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD (“JiHu”), of $52.5 million and $62.8 million, respectively, and liabilities of $7.3 million and $8.9 million, respectively. The assets of JiHu can be used only to settle obligations of JiHu and creditors of JiHu do not have recourse against the general credit of GitLab Inc.

GitLab Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)

 Three Months Ended July 31, Six Months Ended July 31, 2023
  2023   2022   2023   2022 
Subscription—self-managed and SaaS        $122,096  $88,936  $233,287  $165,859 
License—self-managed and other         17,485   12,105   33,172   22,589 
Total revenue         139,581   101,041   266,459   188,448 
Cost of revenue:       
Subscription—self-managed and SaaS         10,871   10,671   21,762   18,604 
License—self-managed and other         3,825   2,359   6,873   4,274 
Total cost of revenue         14,696   13,030   28,635   22,878 
Gross profit         124,885   88,011   237,824   165,570 
Operating expenses:       
Sales and marketing         92,116   80,689   178,653   147,399 
Research and development         49,007   39,520   99,394   71,350 
General and administrative         37,819   33,104   72,067   54,996 
Total operating expenses         178,942   153,313   350,114   273,745 
Loss from operations         (54,057)  (65,302)  (112,290)  (108,175)
Interest income         9,112   3,064  ��16,427   3,590 
Other income (expense), net         (1,330)  1,500   (1,077)  19,948 
Loss before income taxes and loss from equity method investment         (46,275)  (60,738)  (96,940)  (84,637)
Loss from equity method investment, net of tax         (917)  (816)  (1,665)  (1,019)
Provision for (benefit from) income taxes         4,016   (57)  5,502   2,454 
Net loss        $(51,208) $(61,497) $(104,107) $(88,110)
Net loss attributable to noncontrolling interest         (1,128)  (2,473)  (1,558)  (2,987)
Net loss attributable to GitLab        $(50,080) $(59,024) $(102,549) $(85,123)
Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted        $(0.33) $(0.40) $(0.67) $(0.58)
Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted         153,644   147,797   152,683   147,248 

GitLab Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

 Six Months Ended July 31,
  2023   2022 
Net loss, including amounts attributable to noncontrolling interest        $(104,107) $(88,110)
Adjustments to reconcile net loss to net cash used in operating activities:   
Stock-based compensation expense         78,698   55,218 
Charitable donation of common stock         5,350    
Amortization of intangible assets         1,125   1,176 
Depreciation expense         2,206   1,286 
Amortization of deferred contract acquisition costs         20,619   21,618 
Gain from deconsolidation of Meltano Inc.            (17,798)
Loss from equity method investment         2,108   1,290 
Net amortization of premiums or discounts on short-term investments         (8,494)  (1,293)
Unrealized foreign exchange loss (gain), net         825   (1,572)
Other non-cash (income) expense, net         (103)  469 
Changes in assets and liabilities:   
Accounts receivable         25,281   (13,568)
Prepaid expenses and other current assets         (4,248)  (5,488)
Deferred contract acquisition costs         (18,137)  (21,210)
Other long-term assets         (721)  2,700 
Accounts payable         (1,023)  528 
Accrued expenses and other current liabilities         1,183   90 
Accrued compensation and benefits         2,611   (16,680)
Deferred revenue         11,175   17,549 
Other non-current liabilities         1,800   (696)
Net cash provided by (used in) operating activities         16,148   (64,491)
Purchases of short-term investments         (334,996)  (520,664)
Proceeds from maturities of short-term investments         272,984   50,031 
Purchases of property and equipment         (533)  (3,234)
Deconsolidation of Meltano Inc.            (9,620)
Escrow payment related to business combination, after acquisition date         (2,500)   
Net cash used in investing activities         (65,045)  (483,487)
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases         17,777   11,311 
Issuance of common stock under employee stock purchase plan 7,751   9,554 
Contributions received from noncontrolling interests, net of issuance costs            57,673 
Net cash provided by financing activities         25,528   78,538 
Impact of foreign exchange on cash and cash equivalents         (1,308)  (4,475)
Net decrease in cash and cash equivalents         (24,677)  (473,915)
Cash, cash equivalents, and restricted cash at beginning of period         297,902   887,172 
Cash, cash equivalents, and restricted cash at end of period        $273,225  $413,257 
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:   
Cash and cash equivalents        $273,225  $410,757 
Restricted cash, included in prepaid expenses and other current assets            2,500 
Total cash, cash equivalents and restricted cash        $273,225  $413,257 

GitLab Inc.
Reconciliation of GAAP to Non-GAAP
(in thousands, except per share data)

 Three Months Ended July 31, Six Months Ended July 31,
  2023   2022   2023   2022 
Gross profit on GAAP basis         $124,885  $88,011  $237,824  $165,570 
Gross margin on GAAP basis         89%  87%  89%  88%
Stock-based compensation expense         1,698   1,585   3,112   2,375 
Amortization of acquired intangibles         521   521   1,025   1,025 
Restructuring charges         46      463    
Gross profit on non-GAAP basis         $127,150  $90,117  $242,424  $168,970 
Gross margin on non-GAAP basis         91%  89%  91%  90%
Sales and marketing on GAAP basis         $92,116  $80,689  $178,653  $147,399 
Stock-based compensation expense         (21,295)  (14,851)  (35,059)  (21,902)
Restructuring charges         (118)     (3,677) $ 
Sales and marketing on non-GAAP basis         $70,703  $65,838  $139,917  $125,497 
Research and development on GAAP basis         $49,007  $39,520  $99,394  $71,350 
Stock-based compensation expense         (12,477)  (11,339)  (24,179)  (16,375)
Restructuring charges         12      (2,047)   
Research and development on non-GAAP basis         $36,542  $28,181  $73,168  $54,975 
General and administrative on GAAP basis         $37,819  $33,104  $72,067  $54,996 
Amortization of acquired intangibles         (25)  (74)  (100)  (151)
Stock-based compensation expense         (10,898)  (9,972)  (16,348)  (14,566)
Restructuring charges         (20)     (1,638)   
Charitable donation of common stock         (2,675)     (5,350)   
General and administrative on non-GAAP basis         $24,201  $23,058  $48,631  $40,279 
Loss from operations on GAAP basis         $(54,057) $(65,302) $(112,290) $(108,175)
Stock-based compensation expense         46,368   37,747   78,698   55,218 
Amortization of acquired intangibles         546   595   1,125   1,176 
Restructuring charges         172      7,825    
Charitable donation of common stock         2,675      5,350    
Loss from operations on non-GAAP basis         $(4,296) $(26,960) $(19,292) $(51,781)
Other income (expense), net on GAAP basis        $(1,330) $1,500  $(1,077) $19,948 
Gain from deconsolidation of Meltano Inc.                  (17,798)
Foreign exchange gains (losses), net         1,268   (1,646)  994   (2,506)
Other income, net on non-GAAP basis        $(62) $(146) $(83) $(356)
Net loss attributable to GitLab common stockholders on GAAP basis        $(50,080) $(59,024) $(102,549) $(85,123)
Stock-based compensation expense         46,368   37,747   78,698   55,218 
Amortization of acquired intangibles         546   595   1,125   1,176 
Restructuring charges         172      7,825    
Charitable donation of common stock         2,675      5,350    
Gain from deconsolidation of Meltano Inc.                  (17,798)
Loss from equity method investment, net of tax         917   816   1,665   1,019 
Foreign exchange gains (losses), net         1,268   (1,646)  994   (2,506)
Net income (loss) attributable to GitLab common stockholders on non-GAAP basis        $1,866  $(21,512) $(6,892) $(48,014)
GAAP net loss per share, basic and diluted        $(0.33) $(0.40) $(0.67) $(0.58)
Non-GAAP net income (loss) per share, basic        $0.01  $(0.15) $(0.05) $(0.33)
Non-GAAP net income (loss) per share, diluted        $0.01  $(0.15) $(0.05) $(0.33)
Shares used in per share calculation - basic on GAAP basis         153,644   147,797   152,683   147,248 
Effect of dilutive securities (1)         7,473          
Shares used in per share calculation - diluted on non-GAAP basis         161,117   147,797   152,683   147,248 

(1) Shares used for net income per share on 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.

Media Contact:
Lisa Boughner
VP, Global Communications
GitLab Inc.

Investor Contact:
Jack Andrews
VP, Investor Relations
GitLab Inc.

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