GTLB - Earnings call transcript Q2 2025

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Operator

[Audio Gap]

[Operator Instructions]

Please note today's call is being recorded.

[Operator Instructions]

And now it is my pleasure to turn the conference over to Kelsey Turcotte. you. to over Kelsey,

Kelsey Turcotte

Brian appreciate XXXX us GitLab's Financial Sijbrandij; for Financial CEO, We the commentary Quarter and quarter Co-Founder GitLab's Fiscal Sid guidance Officer, Chief GitLab's Year Results fiscal and will you afternoon. provide for on year. joining the Second and Robins, Good Conference Call.

and you release our Page cover presentation statement regarding our cautionary statements Securities earlier I'll begin, meaning of other website. statement. factors section expressed X to we are under release Litigation of the our safe harbor and both earnings I certain the statements within to the on in Reform cause would could those today, The which Before forward-looking results include of Investor the a like any Private discussion that issued assumptions of presentation to the our direct differ earnings available uncertainties, Act. risks, forward-looking from and in Relations

As this and is customary, the be language. governed call will presentation content of today's by

addition, measure. or to non-GAAP GAAP non-GAAP presentation certain referenced. of refer financial periods exclude be release financial most earnings information management measures today's measures measures. comparable unusual discussing certain directly the call, the materials financial In reconciliations items impact the for and These that Please believes comparability these we and additional regarding our nonrecurring will during non-GAAP to the

Sid Sijbrandij. the turn now call over Executive to will Officer, and I Co-Founder GitLab's Chief

Sytse Sijbrandij

market-leading with capabilities. platform us AI today. and and for joining to our our quarter Thank excited DevSecOps you you share second talk about I'm results its

realize focus faster team's reflect customer-specific them deliver time helping business We strong and continue to that customers, outcomes. our results to value on

North logos Mortgage increased million, to $XXX and expansion customers. well driven revenue as by like new quarter existing by year-over-year Gilt XX% as Second Delaware

in increasing our This margin responsible quarter, non-GAAP X,XXX exceeded commitment year-over-year points XX%. continued meaningfully the over underscores basis to our expectations to Our operating also growth.

accelerate better performance. respond decreasing those faster times teams development and with security DevSecOps our the quality experts even GitLab This improve do. take than platform and intense to can prioritize further. is to deliver and developers, cycle throughout is to AI organizations delivery software competition need Now together software all integrated purpose-built what while ever, operations customers to more bring and gains to life collaborate, security, cycle, software We

are with focusing Enterprises measurable cogeneration. results excels. just use requires benefits to and that They're They integrate deliver provides beyond and This results. real where approach on AI to are business looking real aspects goals all is for cases a and into software strategic AI improved solutions looking security, development tangible aligns GitLab of AI. this

XX% benefits They Our and help the them meaningful drive GitLab vulnerability excited time security and operations, to has about in XX% about reduction business ability chain are faster customers real demonstrated of lead time also excited spent which productivity up tool on outcomes. are Duo, detection. our XX% faster to

more also this about quarter, developer heard we example, Duo on For effectiveness, improving larger which AI focus the their helping additional productivity Ultimate the deal Commission GitLab recently resulting is that and GitLab is of of Duo purchased Washington work. Duo. Disclosure GitLab They Public in sizes. their coupled teams substance their Barclays seats state is with licenses. mentioned from

help chains It's they're and capabilities seeing AI capabilities and application shared are enterprises GitLab driving adopt pilot Barclays from our who and value GitLab improved be that large their of them who security their more delivery Duo can GitLab Duo AI-powered out work. adopting and simplifying experience in rolling same tool code. of customer developer productive multi-cloud a experience, are use the advantage deploying in of FI's a exciting participated natural in to building They to their is step company see is and yet improving Developers AI to developer to they so where productivity. thousands take for another in developers, easy is platform Ultimate to like Duo

of to productivity. rolling the X,XXX company's to is GitLab wanted improve all developer team developers. FX also Now KeyBanc The out Duo

DevSecOps and adopted is Duo GitLab our combined first and platform they is that's faster. Xx technology our driving pipeline end-to-end of AI It's our developers, customers. results for approved So Duo, first. the focus to resolve with KeyBanc GitLab platform, on our GitLab issues Duo both combination helping KeyBanc's AI due transparency privacy

X% why Magic by Gartner's to Gartner's with assistance. every in GitLab recognition recently is outcomes First, recent XXXX of number a platform XXXX, was first-ever AI as the delivery, as recognized Quadrant this in Quadrants: pleased for our drive our using row, have the recognized to And in platforms. teams highlights a phase the DevOps accelerate augment delivering leader code innovation commitment of leader to capabilities Gartner from engineering We According XXXX Gartner, Magic for AI-powered the we're GitLab AI This very to XX%. of enhance and year for will increased for was the quadrant of SDLC believe second a software Magic security that X customers.

highest both and ability our We to in our execute vision. positioned completeness were of

data on deployment comes This context return across of software realize our Our entire adoption workflow. market DevSecOps from organization's platform. security leadership investment and Customers deployment development significant capabilities, and flexibility integrated provides our and unified an compliance store. from our end-to-end

Our mentioned security based are a chain study developer achieve accelerating consolidation. and over new impact on consolidation return increase improving focus X improving Forrester of are experience investment years our conducted over ago. ] found by economic the on study XX chain and [ productivity, percentage continued and That's related frequently Tool delivery, time that benefits can years. XXX% GitLab point the last X nearly feature results tool on developer on our this organizations Ultimate total we customers. increasing These

wanted to annual drive that consolidate XX% than and DevSecOps their their X,XXX to more In teams XX% tool X in our than chain fact, more survey tools professionals, use of efficiencies. reported

as opportunity total a presents reduce to consolidate This tremendous allow customers and vendors of to us platform cost ownership. a for

One our to solutions. legacy ability strengths of GitLab's customers is replace help point

run managed faster, the pipeline CI XX%. spent on to by thousands For Lockheed time reduce example, XXx maintenance legacy CI by consolidating on and service system of Martin builds GitLab, retired

shift resulted significant increase for efficiency a Lockheed in in and productivity Martin. That

the innovators X tools across and is GitLab visibility with science. in in planning are platform of Planning combination example world's They to single material Enterprise leading centralized Another business. improve our using the add-on, Agile into a Ultimate

embed mission-critical solve security this process, a also stages Recent see pipeline. in shifting the the increase left Ultimate guardrails as and to suites of to development news checks software customers at the by instrumenting urgency helps the security executive Our security awareness earliest need seamlessly GitLab continue cycles security development. the into about and in need. software

more secure are advantage security delivery. of flow. faster, confidence the the code the experience comprehensive the Ultimate a This dramatically not by This reliability, in and earns their leaders set developer bottleneck but crucial eliminating contact heart strategic from results security and switching apart from state GitLab compliance approach us maintain enhances developers only into transforms also capabilities a and at firefighting, in security innovation of and of competition. post-deployment

constant order largest QX, good enterprise-grade demands capabilities ARR. In XX% the quarter, fit with Ultimate Ultimate the X for meet our end of purchases require deals who to customers the total software. Ultimate. landed platform of is Ultimate of more and customers second of of produce XX and to our a move XX now faster is first were At top X our particularly

single-tenant complex requirements when the offering Duo suggests purchased For in Atmospheric and and GitLab adopt and enhanced security services. by customers its example, compliance. the and companies and compliance is GitLab. our this and completely also regulated factor unique is security is to Oceanic National ultimate Dedicated, They developer industries highly that market valuable from Security their public offering premium especially to SaaS with upgraded Administration productivity. quarter to managed important the is GitLab sector This for financial an improve in

highly in-process for for achieved helps and that compliance FedRAMP Snowflake have GitLab recently environment security We're we environment. in of government. security Snowflake requirements DevSecOps share single-tenant moderate. sector CI Dedicated the source-code management, industries GitLab end-to-end stringent their an excited the Dedicated, benefits public the has With customers regulated from also to government GitLab a agencies all security U.S. plus and migrated the designation and corporate platform. to dedicated for meet of for

public expect to build designation this the the We sector. upon in significant we already have momentum

QX the was a accomplished. we I'm good summary, quarter, team GitLab contributed proud to In thank you of what success. to and also everything want our ongoing for I

to I'm Brian. energized with second really fiscal ability and our success to accelerate by we that, Looking over I'll have the at turn drive With continue business it outcomes. opportunity AI customer 'XX, to half to the of

Brian Robbins

for everyone Sid, you, you Thank again joining today. and us thank

example while code, became platform. AI-powered platform integrated to the A in end-to-end In platform great quick technology The intuitive Integral the history." dozens in expectations decrease cautious one validates Turning solving problems. spacecraft is projects. the deliver growth greater that our QX XX% without value to is results on time release machines, leads "we margin collaborate DevSecOps reduction moon. to downtime That GitLab. success XX the pipeline a the get Quoting quarter's years spacecraft customers XXx in complex macroeconomic was line cadence, land top we GitLab, our our could make to significant FY gain than of first have It what our developers project, increase execution 'XX. another XX% year-over-year our from value the exceeded on operating expansion. project years of as helped U.S. enabled to impactful us which environment, needs and result with delivered visibility the time. today's XXx of a software built venture quarter shared does. write of Results X on in in absolutely not This and and

increase DBNRR net quarter rate, and approximately of prior approximately DBNRR, reached at the quarter by a increased ended driven upgrades from expansion XX%. combination of XX%, with approximately at seat or QX revenue an dollar-based was customer XX% tier year. XXX%. QX of $XXX.X Second of at yield million, We XX% the retention

customers increase now of historical contributed ARR approximately of of XX% all total XX% over $X,XXX, addition, expand. have to steadily year-over-year of with least In at an in our cohorts and QX. continue We ARR X,XXX

cohort ARR, which reached increase X,XXX In our of plus customer in $XXX,XXX quarter, larger this we year-over-year. XX% of particular, of performance an monitor

was the example retailers invested an than online dollars more these A [indiscernible], in one this customer In new cohort this great fact, of the of ultimate is large by Netherlands. customers success quarter. biggest with XX% of

up revenues Bols keep to configurations a hours developer With policies compliance GitLab, automate month. Bull of per and set they that grew, changing thousands strict As checks, and saving constantly needed with regulations. can compliance

part in to XX% Non-GAAP gross now RPO Dedicated. reflection quarter. million. considerable year-over-year $XXX getting while Year-over-year XX% total quarter, of total were grew million, grew revenue, $XXX.X SaaS year-over-year margins to the SaaS GitLab This a XX% XX% with grew CRPO for of we're XX%. revenue traction represents

best-in-class Given compared efficiencies, I attention of significant high a with team's operating growth was operating to non-GAAP year-over-year year. very quarter gross saw $X.X margins. in SaaS, million in QX $XX.X Once million income continues in which am again, a of last in leverage. result the non-GAAP we the improvement continued happy operating loss the to to second

the free $XX.X dropped margin in quarter, gathering million reflect million compared again flow cash This responsible second compared to our negative global the commitment to activities quarter focus free year. was prior in flow compared period. with our demonstrates last the of year for cash smart payments the period. in the the second operating $XX.X once our translated QX of Cash FY to $XX.X million This the to cash which in non-GAAP operations prior growth. 'XX from was bottom the from line, in on of X.X% Adjusted in we QX. in $XX.X operating of continued to year team's resource all adjusted QX allocation, flow employee quarter combination XX% of revenue timing to and made million outperformance QX

to Now turning guidance.

of $XXX quarter representing of XX% For revenue XX% we 'XX, year-over-year. growth a to million $XXX rate the million, FY to of third expect total

expect we $XXX non-GAAP million a million diluted $XX per $X.XX, and assuming shares $XX expect weighted income income We non-GAAP to to share net a average of outstanding. $X.XX of operating million,

a For 'XX, FY growth approximately representing million, year-over-year. XX% the we $XXX of full total rate expect revenue million of year to $XXX

and income share expect assuming non-GAAP million joint million I'd operating $XXX We venture. expect $X.XX non-GAAP update like 'XX, to outstanding. an China $X.XX, were provide to non-GAAP related our FY JiHu million, of JiHu, last million diluted of on $X.X shares Separately, in the compared of year. average million QX $XX weighted to to In QX net $XX per to income we expenses $X.X

we modeling however, $XX $XX JiHu, deconsolidate JiHu to we to forecast year. potentially cannot related remains predict million of million compared occur. goal the for purposes, when 'XX Our last timing expenses approximately may this Thus, likelihood FY of or with

delivered I'm turn half with Thank With into FY your will we will you the support and We to for how afternoon. look the as you appreciate I it moderate all positioned with Kelsey QX, speaking strong joining are a of this Q&A. really the over that, who we 'XX. head pleased during back forward of many quarter. to We

Kelsey Turcotte

you Thank Great. very much.

Instructions] [Operator

And our first Fishbein participant Joel Truist. at is

Joel Fishbein

Congrats on the Obviously, there. changeover go-to-market strong had quarter. how you an on had And love going get despite quarter. update you that, Did you a forward? you're a about to in thinking solid a from very leadership

a follow-up. a in leader. And for quick for just on you, question a new looking Brian, you're what curious Just

Sytse Sijbrandij

to have but been really with search, quality pleased team but of And Ashley's the this was and really Joel. both and Yes, how impressed her leadership, a the our sales transition, in as quantity the love enabled opportunity. role continue with guidance our Thanks was touch that the has found we've and smooth smoothly Strategy she for in which he doing We've another Chief supported to would customers launched great here, Officer, transitioned job, very with leadership. we're him interim, already Marketing and that, candidates. In the quarter. raising to Chris

Joel Fishbein

color going I Great. for could one margins, Brian, you're the give over just really helpful. you on quick would to operating And line. but us be prioritize any significantly very you there I outperformed believe growth a still margin you. mean,

Brian Robbins

XX% do -- Thanks, and growing nothing's pre-IPO quarter. responsibly, we and we on the we'll Joel. even Yes, that growth appreciate Sid changed to I every have is the said than that. thing, model operating with that continue leverage I greater #X increased in year-over-year. but

for and So and raise beat this happy the happy year. the quarter performance with with the

Kelsey Turcotte

Ryan Next Barclays. question goes to MacWilliams at

Ryan MacWilliams

us hiring macro at Just between point? in now, first right what developer know and how any you you the terms of second do are you're in the seeing quarter And the quarter? seeing this differences

Brian Robbins

Yes. Thanks there. X spending difference a still for no cautious remains the question. been the It There's environment between really out quarters.

And we enabling either, pitches our trends teams order And there are financially to changes the and really out developer seen we're and of in Forrester period customers the really talked the our that's really strong. about And ROI Sid hiring in on remain the go more first haven't continues to power are the receiving. that so the any and payback related. platform report so that with

Kelsey Turcotte

hiring? developer around was question Second

Brian Robbins

Yes, No developer been same. -- developer has been has hiring the changes. hiring

Ryan MacWilliams

here. cycle. such non-coding are Excellent. And Sid, you're been AI. around seeing generative as binaries pick But lot a of up, color the but the their within customers software there's of velocity tools, interest focus more as on more around then security seeing securing you or coding as more utilize process, development development assistance they around for software life from coding AI would their appreciate I

Sytse Sijbrandij

that's how we And certainly market. Yes. see the

Gartner the this was Assistant rates market AI a us really that's only space. Quadrant code creation. last Magic glad that the leader We're as AI in first non-hypercloud The

about that really AI, and from beyond this think having to for cycle. we in doing going I you'll platform we're I'm The the I And AI in and with is us what the broadest we're dual to released DevOps great was excited that, second highest autonomous enables have in win we're whole phase life that, throughout vision, for Gartner and leader the spot morning, here. and reactive proactive execution And this more Magic And software both AR that with for -- Quadrant for a a score the and have best enterprise. think category.

We that we're autonomous XX showed event. is the agent GitLab towards our own. can and of more attended workflow and take Duo GitLab initiative That's you it. scaling where its If puck going,

Kelsey Turcotte

Jason Ader, next, from William Blair.

Jason Ader

they you mean, a think Or the do there's because explanation? you All that's share? if that shift, growing guess share. than faster right. kind than rate doing of GitHub the taking than market you be I I else, you there all, and taking do that growth in better how I recently think could of and guess everybody about out faster you, said just they're market? but sense some at growing have share faster you both Are are GitHub's

Sytse Sijbrandij

I early. are both platforms, I to we're customers that's think that migrating of benefiting and think us. And

on look a our and AI in head other of a If they a need you model of X.X. And you because great because working got and they context-wise, the that small at start. it's there's in use context. head and according cogeneration had on on tropic purchased the revenue had more leader know to part only because what more co-creation. At a worked things, market. they've We're we AI Gartner. Today, together, a [ we're to same has that's we billion the model a better most need is great leads better time, is the worked the and the $XX contracts platform, of the market you They contacts vendor-agnostic we Today, start what and on X -- thing OpenAI have ] non-hypercloud best a broadest that's answers. And the -- the what past for user we

in So that, competing. feel together we with comfortable

Jason Ader

you just we bottomed? follow-up it's Great. retention you and Brian, continuing net for on XXX, And DRR, then you down? rate Where Do the a exiting to NRR maybe it Okay. come see was do think year?

Brian Robbins

retention We're us. All rate. I for the output concern continue which includes rate cohorts we with don't of to expand. see me. happy retention a landed is dollar-based dollar where Thanks steadily for The quarter. anything historical the our the That's our with an question. in for net net seats, composition

been in for year, of us largest And in signed the over the we any a deal year. we developer a reflection hiring don't has for history, change ratio which as tailwind Just seats a view last company quick the as a reminder, trends. recent

is very front penetration. market, And room of low big of said, we Sid this As a in us for have lots growth.

Kelsey Turcotte

Rangan goes question Sachs. Goldman to Next Kash from

Kasthuri Rangan

Sid, for the enjoyed Congrats I Brian. [indiscernible] summer. for hope one quarter. Great. One you on your

in You safely the too have months It's selling talked Duo about you that a still got markets? just company that to I can GitLab is as a the in we strength end not capabilities, all hyperscaler, point that early these key AI being agree X unique think it's X AI race. going ago. your

how to that this you're that an we're positioning So you neutral start hyperscaler that does the off a given in you early run? good advantage think and do actually give long

And Brian, from then in you, the a ahead help the company, especially your the go renewals you Can as get ER the what smaller to you coming you tiers I think one about of that price growth increases. contribution for talked from the better. growth for understand price even help us motions percentage of pricing rate and increases subsequent could through other is the that

Sytse Sijbrandij

question. for platform. thank the get good, XXx of hyperscaler, key against but we win a When Yes, reasons being our first Kash, more, Microsoft that all, you time. that independent, GitHub faster most it's it's the have, comprehensive we can The not Being are can enough. cycle do vendor-agnostic, customers platform

going always vendor prove our the customers thing for top, have customers. they've getting more the listen that's to to only with a XX% security customers third way And study. security. And the we're dedicated The or the we really Forrester. that's MQ is all that to really really, fast. single-tenant second to the the We're and XXX% previous get We acknowledgment We're allow the we're Today, to the well. SaaS that's And left, the reason solution, the reason according our GitLab it. we best done than do that is security the way ROI the return, is interesting our leader right, to enabling that all and executing biggest in shift DevOps.

being on are increasing. platform benefits the of So the broadest

GitLab. off customers and over being Our time better on are better

Brian Robbins

real on Kash. I'll price touch Sid. the quickly, increase Thanks,

price, continue we break And well I has which couple do related a What also what there's And is cycle customer on to as about layer tier care so expect as really the retention. when in quarterly net the I price about portfolio. is the positive the I touch talked One that at And things dollar-based seats, doing then upgrades. and how in we call, unit this economics and to as is increased business. QX in of there. the look we're time yield with I'm out through impact nicely to increase happy over we going really are renewal forward, there. growing to

so impact year we'll partially year see next there, and And to that. throughout related we're but this

the increase the the price increasing pleased so that shows returns unit of getting the study seeing which the And I'm total really economic from and as and that are as from we're value overall, consistently with customers improving well. the economics, part the platform

Kelsey Turcotte

Karl Next of question comes from Keirstead UBS.

Karl Keirstead

Microsoft. now I'm a on KeyBanc the side, some other change, gaps was your and closed model Are I improvement assuming wondering of customers cloud my or functionality early least lot you. guess those FX but second anecdotes ] I Google's could at that understanding using it [ Great. if code-gen in were is of be CoPilot that pretty Maybe then rooted to maybe Duo so had those for on off moving LLMs. has the And Barclays, this are about Okay. and functionality tool. marked X-parter quite maybe question of GitHub those of this, in wins, a are Duo that wrong a AI Duo customers powerful, of Anthropic's initially, that said, to was the And any

Sytse Sijbrandij

of these Karl. had do comparison. of they Enterprise, use, and you exists. that, commonly a Duo look that think I at nearly Duo there's customers, most customers, head-to-head Yes, if evaluating that And pockets X customers they've Copilot and don't for for Pro know Thanks Yes.

So we're winning against Copilot.

bought on switch able that's in We planet a still AI task, right not consensus. found beholden But is the kind and using same because and some using use we to any that. application customers X.X, better an is cogeneration, models. greatest company advantage of AI an you Anthropic we the of our for foundational We're haven't to product, [indiscernible] the being model vivid and the or latest best for the can great Regarding Internet, Google's it on the model HyperCloud the look our modeling company gives we're code. testing, now, to most best the

Kelsey Turcotte

of to goes Owens Sandler. Rob Piper question Next

Robbie Owens

expectations? realizing there's of Brian, in a SSP. relative Great. Number with And growth lot is looking year we the up questions last there takes kind indicators, about that a one. on masked you out have and the and guess, did leading puts lot our no revenue quarter-over-quarter. change guess CRP think up of I come called the quarter, to to changes I'll in one, I X just that at around if RPO headwind number, to quarter-over-quarter, your the secondarily, of

that X growth last speak what can on front? right are and you've now you seen to results upsell year in the deal I seeing just large guys the best new of activity you customer think -- versus commitments

Brian Robbins

for talked itself. that's about you for Yes, took that at allocated. little When question, doesn't accounting SSP the the it the It on everybody, SSP of we Rob. deal gets and hit a overall quarter this related to on absolutely. sort bit call. We last Thanks actually a just look the of impact how

the that assumed We're in doing was And so across business. numbers. well the

the had was quarters. last Expansion well. best churn X in contraction in doing We well. quarter and is order the First

contraction X better would we the in And so on through and of that run churning quarters. contracts than most I that have prior quarter, calls, was second thought said I

saw that positive is well. business the over growing of that thing area a benefit, value, just that greater sort than saw things has as the actually onto goes I we're expansions a lot customers ROI, and model. in we just think Sid seeing enterprise we in some of created we The single of time in real around previously up a chain lands the of tool it lot a the positives show that And to saw to other And outcomes, in a consolidating said year-over-year. XX% $XXX,XXX strength of platform

Kelsey Turcotte

Michael at from question comes Next Wells Fargo. Turrin

Michael Turrin

I look Great. parts to guess than question the the CRPO I'll not but XX%. and here of good, to prior billings, lot your Thanks, bookings Kelsey. more it's up we're team. appreciate all of the taking across just something both I indicators question, ask -- upfront, software, leading some seeing a pretty

those So just more in if Brian, for unpack more the metrics? And anything assumptions you're us year anything can else hoping embedding to you for strength strength of the mindful there's execution mentioning maybe that onetime us in be or walk that us. rest nature the bit across seats, back sales then through forecast of a the in on for macro, QX worth of

Brian Robbins

Appreciate the two questions.

to and and has the how been actually On entire the really the running sales the closely Chris. there's forecast the and we're and into customers interim plugged business been no transition whatsoever really of role, CRO over taking force changes really actually visiting and worked

All that the enterprise we short-term that calculated minimal CRPO was the really greater total that you XX% have. base about, about XX% of So within now the there quarter and disruption from than XX% year-over-year, around Ultimate departure. XX% talked billings of Chris' metrics have coming with we're grown the year-over-year, ARR and happy ARR bookings

And itself. for Ultimate Dedicated Ultimate and I was larger, is deals increasing, roughly getting year-over-year, think you and see grew saw us adoption And XXX% are in Dedicated. that is good great. also SaaS so customers, our then the our we metrics

board across adopting just strength the our the sort customers we're so seeing who platform. of from And are

Kelsey Turcotte

to over questions Bora of the turn JPMorgan. We'll Pinjalim

Pinjalim Bora

But of committed. the way seeing what to quarter. that further terms of being product are the today portion ask some we Congrats AI as the adoption. of the customer of Any written wanted base quantify or any to Sid, codes is are users AI touching maybe the like metrics? and quantitative of seems by you, it the on in being the obviously, it I portion further that kind

Sytse Sijbrandij

It's Thanks Yes. for for still that. us. early

but not it. all customer you they typically on, of all don't our the of the FX have Barclays, And users yet. them they look You AI going AI [indiscernible], in quotes for heard if have from at if have AI,

relatively are We to this enterprise. So and listen slower customers we to that this customers. cycle. adoption really in well more are it's cater these considerate, early They to the important adopt

because life we see for on throughout that. requesting are the our accelerating cycle. For example, We models off-line are AI a work giant our opportunity customers

Ultimate big GitLab Duo and really, our good customers really a So [ that's value focus think ours. predominantly ] Enterprise that a proposition, of is

Pinjalim Bora

Yes. second Brian, assume which XX kind customers And in the in this billings, customers, what that did [ of to change phase follow-up of any portion it are phase at ]. contracts April, for of I wrong, have it this end existing to existing complete pricing rollout, Brian. point fair the from Is of it's RPO the first through performance I'm believe One impact largely XX the of this your by the started completely Understood. quarter? if point? not of

Brian Robbins

Yes.

the remember, on we early increase impact to weren't people So renew. allowing price overall,

so up really to comes than XX comes XX their XX. and they to go go will straight up then And it and XX renewal when new to would customers XX

And that through as increase important portfolio. the over so layer time cycle I think renewal it's continue in really the to will we price

our it improving customers. what based year next to see expect to continue the And of to the really points on to benefit I so And that. we're economics delivering unit

Kelsey Turcotte

Instructions] [Operator

to with Moskowitz I'll it Gregg Mizuho. And that, turn at over

Gregg Moskowitz

months expand follow very to up is nicely what you're a much because some among wanted if out curious customers. with that with finding -- you where Sid, success largest on very Congrats X Ultimate that were more ago? good point frequently your Ultimate you percentage Great. what you're to compared continues the of the versus landing about I as ARR XX to on seeing I'm Despite good exists price for and performance. Ultimate higher premium, called

Sytse Sijbrandij

customer integrated that. a leading so driving so started return this with more Ultimate approach for for that because is certainly much the like we approach Thanks GitLab return, Ultimate. Ultimate because comprehensiveness security talked new our value. when is driving lead is to much the XXX% changing about the value with We're to We've just

is not just on return much on on just our vendor, all talked just but the able it's existing about cycle get not on We those the So is deprecating solutions. even not Martin. expensive not costs. less, legacy time, maybe the point X counterintuitively, it's you the most Lockheed because our from deprecate software, CI about to paying hardware so on biggest Being return coming product us efficiency,

most able So being Ultimate leading it. solutions, winner with the point why and is big can the and to that's we're replace consolidate

Operator

Hedberg from Our at Matt next RBC. question comes

Matthew Hedberg

guess congrats just increasingly thinking you, with AI, their for work it when you're like through curious important my you adoption. customer are I'm having seems conversations either well. gen customers, as Gen like they're guys sort AI how gen that of offer when regarding is of I into for AI. a I'll own stream fitting

of like sort now? last I think to all how you're that the first I when I all of right their important GitLab guess, it's everybody cycle that asked. see in they do life question talking how been ecosystem and customers, developing. software But that into And is development -- think fitting -- is we've how there the that kind they're

Sytse Sijbrandij

XXX% to rushing important our to implement a We really caveats it bunch of users. customers. it's all had they're them not Yes, to of their of are why

want secure. it First they all, of

out Second for are to working existing people on for are of of see A they're Most applications. enterprises on working new wanted work the applications. there, all, existing giant demos applications. you lot developers the in they who

We coding, vendors so the They an but the when when they and is see project So security those got That's to to that we on Da work well return, the want has it's a work those existing for customer super It important. comes make requirements and important. even it's Vinci run all that. deliver the internally even time, actual really who the that return that to throughout, meet considerations can AI want better now into. has, for of making applications. called most super, are just

forward, people great going in a jumping vision not just but they're the solution coding to of XXX% for have We a today.

Kelsey Turcotte

Next unmute on your Schneider to RW question for you'd goes us. now Baird. Zach unmute Zach, ahead phone, if go you at can

go on to Okay, so to from Mike Needham. we'll

Michael Cikos

how just as circle the to your internal And you composition contributing about help this wanted us focus I appreciate Just can to I you DBNRR. one flows to how in force to have from you toward first, on could of DBNRR continuing help the there up, seats versus think sense, well the that Wanted XX% If different guys given and give get like quarter. sense the pricing of a next. get compared a to to then the packages secondly, expectations? us color any out changes is the quarter more the other sales Or the us indexing potentially there the market? better about

Brian Robbins

Yes, quarter was on the be that previous absolutely. to output. going The different question. we It's knew the also based the dollar-based Thanks we an that had last deal than for this quarters. fluctuation net retention with largest year, seat

retention trying that that's the solution is landing we best net fact good seats as and -- we'll nothing component out in and within quarter ultimate, retention on caused rate. that an rate, it landing there. news go any land so what for to of going there's the and then impact we're And The to solution as and but concerns the net that's figure to as all specifically customer, on that's larger more dollar-based the will sell, have we're that dollar-based relates

Kelsey Turcotte

to Bernstein. goes question Weed at Next Peter

Peter Weed

on the you very congrats much, continued and Thank momentum.

I'm if think properly, little a that to think in appears are my to be you a we the quarter I deceleration should anticipating doing it guidance acceleration X about implied of nice How envelope numbers. a like bit relative acceleration looks in of X? what the for your quarter back in

Brian Robbins

Peter. Thanks,

QX, QX the of what at and appreciate at reported and for somewhat question. similar. we look I when always, back As guided we sort When and year, looked last QX they're

so to the QX relatively year-over-year weak. sort in didn't have QX and surprising. of me quarter be the the jumped seasonally same any or has strongest always to sequential changes been Fourth that company. historically been been and see little a quarter And I has QX out

to guide rates to line operating improving strong non-GAAP growth continue We margins. and top

thing The at visibility lot business well. we ratable great which about the in have we're model heading scale, given a of scale we given is the And is to continue seeing business. personally business, quarter, like I'd as any efficiencies the as nature of the in

guidance provided full year. this pleased we so the the for afternoon the with I'm And third quarter and for

Kelsey Turcotte

question at Next America. McGrane Bank to goes George of

Unknown Analyst

a talk to terms product to of the the of Just about strategy a ] installed features release and bit Can dig you're the congrats very more quarters. in about to you Koji Joe to in GA, there any press wanted Enterprise incentives? to were specifically base. George Ikeda. could the in on selling think highlighted for over changes adoption McGrane how of several sales I I on say next impressive. And rates list the you the kind about going wanted kind potential of how [ get of sense

Sytse Sijbrandij

for sales And larger force. audience existing customers. Enterprise that. The companies, Duo Yes. by main is is they Ultimate for Thanks GitLab it's -- our Ultimate and typically are served our

for it, of also look direct control our just tons to a implementing want fastest-growing think of at that. there's went And customer into improvement when cohort features not net you it, it's the we're and to not just on of example, for of we off-line for that's this but their security X/X about of motion. we're plus, coding, operations Ultimate they we're if if Duo people. devs, their you is it it. of productivity, That's it. and build enterprise the top to considerations, talking Ultimate, in using growing, the people new ARR SKU also And $XXX,XXX version. why So have selling who's on the because using an working are That's, because growth so we why lots for

Kelsey Turcotte

I'll Scotiabank. questions. to time have Altmann more We go for at two Nick

Nicholas Altmann

one to Last going next did a you you of marquee bigger wins. rattle year, needle quarter, be Just about for guys a talked sort me. off guys mover a Duo handful of quick

second the guess, I get of versus, sort half the so ago? of of in quarter you you say, year more on as think referenceable half And customers Duo pipeline, about contribution are second a when logos. What terms from Duo more the you sort have of anticipating

Brian Robbins

for question. more sort on and directly Thanks I'll it. about I give of the think some how context answer I'll then

contributing the in FY expect really we model So AI beyond. XXXX to to start and

First, big sort cycle a are people perspective, of just hype just practical was partially adopting media it a there now. from and

I starting AI to right to within their see we're and safely And so how to implement now, customers out figure think organizations. trying compliantly

contribution have in perspective. XQ, And from to this, will little a take revenue to we're from to in And it an you a plan but what reference a our million growing starting gave that mechanics know sense run to just sort build AI we're From say $XXX we that from you it perspective new for product also to know a see I it is rate XX%, Xx at and perspective, with say of makes while impact number. that. plus it's company a that going just the I

lot than expected better did we internally. we a So what

good a view just And long-term is this news so for from model term, as I this going be perspective driver to growth the long a business. because

Kelsey Turcotte

at Last call for our from Crane questions coming Kingsley Canaccord.

William Kingsley Crane

couple It user continue had you with nice in are number but to total green a wall high you've seeing like some smaller of some should some banks terms adoption due sounds bottoms-up Duo? FX, a we deployments Or customers? of shoots and with about of think penetration,

Sytse Sijbrandij

well. as adoption bottoms-up some seeing We're

if they for their that think part is common across buy I users. you more look base, Duo our entire of scenario customer the

don't come scenario. a not time. that's put We are there, users -- it. the that all in to various yet common over will they think reasons, they're The For returns ready more that

great has role these and have customers is that common. do if meet and also our But the we to immediately, it all preference. we partial that, can requirements, the course, Of more role we that do scenario

Kelsey Turcotte

we So evening. very quarter. quarter second you great seeing concludes of to Have joining for a our Thank over this and call. the look us, many forward you much coming

GitLab (GTLB) 3 Sep 242025 Q2 Earnings call transcript