Q2 2025 GitLab Inc Earnings Call Transcript
Key Points
- Second-quarter revenue increased 31% year over year to $183 million, driven by new logos and expansion by existing customers.
- Non-GAAP operating margin significantly exceeded expectations, increasing over 1,300 basis points year over year to 10%.
- GitLab Duo demonstrated up to 90% reduction in time spent on toolchain operations, 50% faster lead time, and 50% faster vulnerability detection.
- GitLab was recognized as a leader in Gartner's 2024 Magic Quadrant for both AI code assistance and DevOps platforms.
- Total RPO grew 51% year over year to $747.9 million, while CRPO grew 42% year over year to $475 million.
- The macroeconomic environment remains cautious, impacting spending behavior.
- Dollar-based net retention rate (DBNRR) decreased to 126%, indicating a potential slowdown in customer expansion.
- Cash from operating activities decreased to $11.7 million from $27.1 million in the prior year period.
- Adjusted free cash flow also decreased to $10.8 million from $26.8 million in the prior year period.
- Non-GAAP expenses related to the JiHu joint venture were $3.3 million, with an expected $14 million in expenses for FY25.
(audio in progress)
(Operator Instructions) Please note today's call is being recorded. I will be standing by should you need assistance.
And now, it is my pleasure to turn the conference over to Kelsey Turcotte. Kelsey, over to you.
Good afternoon. We appreciate you joining us for GitLab's second-quarter fiscal year 2025 financial results conference call. GitLab's Co-Founder and CEO, Sid Sijbrandij; and GitLab's Chief Financial Officer, Brian Robins, will provide commentary on the quarter and guidance for the fiscal year.
Before we begin, I'll cover the Safe Harbor statement. I would like to direct you to the cautionary statement regarding forward-looking statements on page 2 of our presentation and in our earnings release issued earlier today, which are both available under the Investor Relations section of our website. The presentation and earnings release include a discussion of certain risks, uncertainties, assumptions, and other factors that could cause our results to differ from those
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