Net ARR increased by more than 40%, and the total number of bookings reached a record high! GitLab (GTLB.US)'s strong Q2 performance hit expectations, surged 16% after the market

The Zhitong Finance App learned that DevSecOps platform giant GitLab (GTLB.US) rose more than 16% after the market, after the company's second-quarter results exceeded expectations and issued strong guidance. According to financial reports, the company's revenue for the second quarter of fiscal year 2027 reached US$286.3 million, up 21.3% year over year, exceeding expectations of US$12.94 million; adjusted earnings per share were $0.24, exceeding expectations of US$0.06.

In the quarter ending July 31, the software development, security, and operations platform vendor's total bookings reached a record high, and indicated a net annual recurring revenue (ARR) increase of more than 40%.

CEO Bill Staples emphasized, “As artificial intelligence drives more software creation and more work throughout the development lifecycle, the context, security, governance, and control that GitLab provides becomes increasingly important. We believe this will create significant opportunities for GitLab as humans and AI agents build software together more frequently.”

According to financial reports, the company recorded a net retention rate of 117% based on the US dollar. Non-GAAP operating profit rose to $42.6 million from $39.6 million a year ago. The non-GAAP operating margin was 15% of sales, compared to 17% a year ago.

Adjusted cash flow contracted during the quarter, falling to $9.8 million from $46.5 million a year earlier.

Looking ahead, GitLab (GTLB) expects third-quarter revenue of $281 million to $283 million, compared to market expectations of $281 million; earnings per share are expected to be $0.19 to $0.20, compared to the general market expectation of $0.18.