Shares of GitLab Inc. (NASDAQ: GTLB) fell 14% intra-day on Wednesday, even though the company delivered stronger-than-expected third-quarter results and raised its full-year revenue outlook.
GitLab reported non-GAAP EPS of $0.25, exceeding analyst estimates by $0.05. Revenue rose 25% year over year to $244.4 million, above the $239.09 million consensus.
Large-customer growth remained robust, with 1,405 clients generating more than $100,000 in ARR, up 23% from last year. GitLab’s Dollar-Based Net Retention Rate stayed at 119%, reflecting sustained upselling and platform adoption.
Profitability improved meaningfully, with a non-GAAP operating margin of 18%, up from 13% in the prior-year quarter. GitLab also reported $31.4 million in operating cash flow and $27.2 million in adjusted free cash flow, underscoring growing operational efficiency.
The company raised its full-year revenue guidance to $946–$947 million, compared with the prior $936–$942 million range. The lift adds about $5.5 million at the midpoint, mirroring the upside recorded in the third quarter.
For the fourth quarter, GitLab guided revenue of $251–$252 million, up 19% year over year and roughly aligned with the $251.5 million midpoint consensus estimate.
