GitLab raises full-year forecast on strong revenue, announces 14% workforce cut
Shares have fallen a third over the past year despite rising enterprise demand and new pricing models.
GitLab has reported a 23% year-on-year increase in fiscal first-quarter revenue, reaching $264.2 million and surpassing its previous guidance range of $253 million to $255 million. The strong performance has prompted the company to raise its full-year fiscal 2027 revenue forecast to between $1.112 billion and $1.118 billion, representing growth of 16% to 17%.
The results were driven by robust growth across both new and existing customer bases. New logo growth increased by 30% during the quarter, while dollar-based net retention stood at 117% over the past 12 months. Subscription revenue rose 23% to $239.3 million, and license revenue jumped 25% to $24.9 million.
Enterprise adoption continues to deepen, with the number of customers generating $100,000 or more in annual recurring revenue (ARR) rising 18% to 1,519. These high-value accounts now represent 75% of total ARR, while customers with $5,000 or more in ARR account for 95% of the business. The company also recorded nearly $20 million in consumption revenue from its Duo Agentic Platform.
Despite the positive financial outlook, GitLab announced it is reducing its workforce by approximately 14% and exiting operations in 22 countries. The restructuring aims to flatten the organisational structure, though the company confirmed that sales headcount will not be impacted. Management expects the addition of more quota-carrying sales representatives to drive positive results in the second half of the year.
Looking ahead, GitLab forecast fiscal second-quarter revenue between $272 million and $274 million, with adjusted earnings per share expected between $0.17 and $0.18. The company is also introducing “GitLab Flex,” a flexible credit model, alongside its hybrid seat-plus consumption pricing for the Duo Agent Platform.
The stock has declined by roughly one-third over the past year, contrasting with its continued revenue growth. Based on fiscal 2027 analyst estimates, the company trades at a price-to-sales multiple of 4.1, a valuation that some analysts consider attractive given the firm’s cash position and growth trajectory.
