Key facts
- GitLab reported Q1 adjusted EPS of $0.23, beating the $0.21 estimate.
- Q1 revenue was $264.2 million, up 23% year-over-year and above the $254.2 million consensus.
- The company raised its full-year fiscal 2027 guidance for EPS and revenue.
- GitLab plans to cut its workforce by approximately 14% (350 employees) and exit 22 countries.
- Restructuring charges are expected to total $30–$35 million.
GitLab reported first-quarter fiscal 2027 adjusted earnings per share of $0.23, surpassing the analyst estimate of $0.21. Revenue for the quarter was $264.2 million, a 23% year-over-year increase and above the consensus of $254.2 million. The company also raised its full-year fiscal 2027 guidance, now forecasting EPS between $0.79–$0.82 and revenue between $1.112–$1.118 billion. However, GitLab announced plans to reduce its workforce by approximately 14%, or about 350 employees, and exit 22 countries as part of a strategic realignment. The company expects restructuring charges of $30–$35 million, with $19 million anticipated in the second quarter. CEO Bill Staples highlighted the AI "agentic era" as a structural tailwind, referencing early traction from the Duo Agent Platform. Despite the earnings beat and raised guidance, GitLab's stock experienced a significant decline, extending previous day's losses in premarket trading. The Q2 guidance for profit came in slightly light compared to analyst expectations.