GitLab Inc. (NASDAQ: GTLB ) stock surged Wednesday after the company reported strong fiscal second-quarter results. The software developer also issued upbeat third-quarter guidance and raised its fiscal 2027 outlook .
GitLab reported adjusted earnings of 24 cents per share. That beat the consensus estimate of 18 cents .
Revenue rose 21% year over year to $286.25 million. It also topped the Street estimate of $273.12 million.
Adjusted operating income increased to $42.6 million from $39.6 million. The adjusted operating margin was 15%. Meanwhile, adjusted free cash flow totaled $9.8 million, representing a 3% margin.
GitLab ended the quarter with $1.3 billion in cash and investments. It also recorded about $23.3 million in restructuring charges.
TrendingThe company repurchased about 3.5 million shares during the quarter. It had roughly $245 million remaining under its buyback authorization.
Bookings And Retention Improve
Gross bookings reached a record. First orders more than doubled to about 1,700, marking the highest level in three years.
New-logo net annual recurring revenue rose 39%. First-order net ARR climbed nearly 40%, while total net ARR grew 42%.
Deals worth at least $500,000 surged more than 150%. Ultimate ARR rose about 35% and represented 59% of total ARR.
Gross retention remained above 90%. Dollar-based net retention improved sequentially to 117% for the first time since 2024.
Total remaining performance obligations rose 16% to $1.2 billion. Current RPO increased 20% to $744.7 million. Calculated billings grew 24%, up from 12% growth in the previous quarter.
SaaS And AI Adoption Accelerate
SaaS revenue increased 36% and accounted for 34% of total revenue. GitLab Dedicated and Duo drove the growth.
The company’s Flex model secured more than $20 million in commitments from over 130 customers within six weeks. GitLab expects the model to defer no more than $13 million in fiscal 2027 revenue .
The paid consumption run rate jumped to more than $40 million from $15 million in the first quarter. GitLab aims to exceed $100 million by year-end.
Duo Agent Platform’s paid committed recurring revenue rose 50% sequentially. Orbit indexing grew 70% to more than 2,200 organizations and generated over 170,000 queries.
Orbit achieved 70% accuracy, compared with 58% for traditional retrieval-augmented generation. Secure repositories, code pushes and CI/CD pipelines grew 60%, 50% and 40%, respectively.
Meanwhile, GitLab’s public-sector business rebounded. Account executive capacity grew about 30%, while productivity per representative increased roughly 10%.
GitLab Raises Fiscal 2027 Outlook
GitLab raised its fiscal 2027 adjusted earnings forecast to 85 cents to 87 cents per share. That topped the analyst estimate of 81 cents .
The company now expects revenue of $1.129 billion to $1.133 billion, above the $1.12 billion consensus estimate. It continues to forecast a gross margin of 85% to 87%.
For the third quarter, GitLab expects adjusted earnings of 19 cents to 20 cents per share. Analysts project 18 cents. The company forecast revenue of $281 million to $283 million, compared with the $281 million consensus estimate.
GTLB Price Action: GitLab shares were up 24.81% at $56.27 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data .
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Read Next MarketsThese Analysts Boost Their Forecasts On GitLab After Better-Than-Expected Q2 Results
GitLab Inc (NASDAQ: GTLB) reported strong Q2 results, beating expectations and raising guidance for FY27. Stock jumped 21.6% in pre-market trading.
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