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1. Company Snapshot

1.a. Company Description

GitLab Inc., through its subsidiaries, develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific.The company offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle.It helps organizations to plan, build, secure, and deploy software to drive business outcomes.


The company also provides related training and professional services.The company was formerly known as GitLab B.V. and changed its name to GitLab Inc.in July 2015.


The company was founded in 2011 and is headquartered in San Francisco, California.

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1.b. Last Insights on GTLB

Breaking News: GitLab Inc reported Q3 earnings with solid subscription revenue growth driven by an expanding client base. The company beat third-quarter results but issued fourth-quarter sales guidance that came in slightly below analyst expectations. Weakness in its public sector segment was noted. Rosenblatt cut the target to $55. GitLab's Q3 results were mixed, with some metrics beating estimates while guidance was slightly below expectations. Analysts are currently recommending a hold on the stock. GitLab's revenue grew year-over-year.

1.c. Company Highlights

2. GitLab's Q3 FY 2026 Earnings: A Strong Performance with Growth Momentum

GitLab's third-quarter fiscal year 2026 revenue grew 25% year-over-year to $244 million, surpassing guidance by two points. The company's non-GAAP operating margin reached 18%, exceeding Q3 guidance by five points. GitLab's non-GAAP net income per share came in at -$0.04987, missing estimates of $0.22. Non-GAAP gross margin was 89%, and Q3 non-GAAP operating income was $43.7 million. Total RPO grew 27% year-over-year to $1 billion, and CRPO grew 28% year-over-year to $659 million.

Publication Date: Dec -04

📋 Highlights
  • Revenue Growth Surpasses Guidance:: Q3 FY2026 revenue reached $244M (+25% YoY), exceeding guidance by 2 points.
  • Non-GAAP Operating Margin Expansion:: Margin hit 18%, surpassing Q3 guidance by 5 points, with $43.7M operating income.
  • GitLab Ultimate Dominates ARR:: Contributed 54% of total ARR, driving expansions at major clients like Indeed and SBI Securities.
  • Strong Cash Position:: Ended quarter with $1.2B in cash/investments, $27.2M adjusted free cash flow (11.1% margin), up from $9.7M YoY.
  • International Growth vs. US Public Sector Softness:: International markets showed strong growth, while US public sector performance lagged due to government shutdown delays.

Key Drivers of Growth

GitLab Ultimate, which offers a comprehensive DevSecOps platform, now accounts for 54% of total ARR and was a key driver of expansions at major customers like Indeed and SBI Securities. The company saw significant growth in international markets, but US public sector performance was soft due to slower decision-making related to government shutdowns. GitLab's Duo Agent platform, set to be generally available soon, will enable customers to create, share, and use custom-built agents for software engineering tasks. According to Bill Staples, "the team is making progress on the first-order business, but it's still not where it needs to be yet."

Business Model Evolution

GitLab is shifting from a pure seat-based business model to a hybrid seat-plus-usage-based model with the introduction of Duo Agent platform, which will help monetize activities downstream from AI code generation. The company expects this shift to help converge activity in the platform with revenue growth. In Q3, seats contributed over 80% of the mix of net revenue retention rate, yield was around 10%, and the remaining from up-tiering.

Valuation and Outlook

GitLab's strong balance sheet and predictable business model allow for continued investment in AI capabilities, platform enhancements, and go-to-market organization. With a P/S Ratio of 6.9 and EV/EBITDA of -104.13, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 24.9%, indicating a consistent growth trajectory. GitLab's guidance for FY 2026 expects total revenue of $946 million to $947 million, representing a growth rate of approximately 25% year over year.

Challenges and Opportunities

SMB weakness persists, but GitLab's long-term public sector thesis remains intact. The company saw disruption from the US government shutdown and the ongoing effects of Doge in the government, which impacted the license line. GitLab's unified platform approach, context, and ability to action on behalf of users are key differentiators from larger players like OpenAI and Google.

3. NewsRoom

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GitLab Inc. (GTLB) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -04

Source: seekingalpha.com

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Microsoft Faces AI Demand Questions as GitLab Posts Eighth Straight Beat

Dec -04

Source: 247wallst.com

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GitLab Stock Falls After Q3 Results And Q4 Guidance Misses Midpoint, Rosenblatt Cuts Target To $55

Dec -03

Source: feeds.benzinga.com

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Dow Up Over 270 Points Despite Big Tech Volatility

Dec -03

Source: schaeffersresearch.com

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Dow Jones Today: Stocks Turn Higher as Investors Downplay Private Payrolls Decline, Report Microsoft Cutting AI Software Sales Quotas

Dec -03

Source: investopedia.com

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Gitlab Shares Down Despite Q3 Earnings Beat, Revenues Up Y/Y

Dec -03

Source: zacks.com

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Gitlab (GTLB) Reports Q3 Earnings: What Key Metrics Have to Say

Dec -03

Source: zacks.com

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Why GitLab Stock Crashed Today

Dec -03

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (35.00%)

6. Segments

Sell Subscriptions on Both Self-Managed and Saas Models

Expected Growth: 25.0%

The increasing adoption of cloud-based solutions and the growing need for efficient DevOps practices are driving demand for GitLab's platform, leading to expected revenue growth.

7. Detailed Products

GitLab CI/CD

A continuous integration and continuous deployment tool that automates testing, building, and deployment of software applications

GitLab Version Control

A version control system that allows developers to track changes and collaborate on code

GitLab Issue Tracking

A project management tool that enables teams to track and manage issues, bugs, and tasks

GitLab Project Management

A project management tool that enables teams to plan, track, and deliver projects

GitLab Wiki

A documentation tool that enables teams to create and share knowledge bases

GitLab Container Registry

A container registry that enables teams to store and manage container images

GitLab Security and Compliance

A security and compliance tool that enables teams to identify and remediate vulnerabilities

GitLab Monitoring and Observability

A monitoring and observability tool that enables teams to monitor and troubleshoot applications

8. GitLab Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

GitLab's products are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative solutions, GitLab's strong brand and customer loyalty mitigate this force.

Bargaining Power Of Suppliers

GitLab's suppliers have limited bargaining power due to the company's strong market position and ability to negotiate favorable terms.

Threat Of New Entrants

While new entrants may emerge, GitLab's established brand, strong customer base, and high barriers to entry make it difficult for new competitors to gain traction.

Intensity Of Rivalry

The DevOps and software development market is highly competitive, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.07%
Debt Cost 3.95%
Equity Weight 99.93%
Equity Cost 6.41%
WACC 6.41%
Leverage 0.07%

11. Quality Control: GitLab Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
JFrog

A-Score: 5.0/10

Value: 4.5

Growth: 7.0

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Procore

A-Score: 4.6/10

Value: 4.4

Growth: 7.9

Quality: 3.8

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Bentley Systems

A-Score: 4.6/10

Value: 0.3

Growth: 6.4

Quality: 7.3

Yield: 0.0

Momentum: 5.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Riot Blockchain

A-Score: 4.5/10

Value: 5.3

Growth: 6.3

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
nCino

A-Score: 3.4/10

Value: 3.0

Growth: 7.4

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
GitLab

A-Score: 3.2/10

Value: 4.4

Growth: 6.7

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.51$

Current Price

37.51$

Potential

-0.00%

Expected Cash-Flows