Net ARR growth exceeds 40%, total bookings hit a record high! GitLab (GTLB.US) delivers strong Q2 results, smashing expectations with a post-market surge of over 16%

According to Jinse Finance, DevSecOps platform giant GitLab (GTLB.US) surged more than 16% after hours, following second quarter results that surpassed expectations and strong guidance. Financial results show that in the second quarter of fiscal year 2027, the company achieved revenue of $286.3 million, up 21.3% year-on-year, exceeding expectations by $12.94 million; adjusted earnings per share were $0.24, beating expectations by $0.06.

In the quarter ending July 31, the software development, security, and operations platform provider set a new record for total bookings and reported net annual recurring revenue (ARR) growth of over 40%.

CEO Bill Staples emphasized: “As artificial intelligence drives the creation of more software and more tasks throughout the development lifecycle, the context, security, governance, and control GitLab offers become increasingly important. We believe that, as humans and AI agents collaborate more frequently to build software, this will create significant opportunities for GitLab.”

The financial report shows a dollar-based net retention rate of 117%. Non-GAAP operating profit increased from $39.6 million a year ago to $42.6 million. The non-GAAP operating profit margin was 15% of sales, compared to 17% a year earlier.

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

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