GitLab Inc. (GTLB) Announced Q1 2027 Earnings on June 2, 2026, Reporting "Revenue of $264 million, growth of 23%"

GitLab Inc. reported its first quarter fiscal year 2027 financial results, with management stating "Revenue of $264 million, growth of 23%" and "operating profit of $38 million and a 14% non-GAAP operating margin" for the quarter.For the first quarter, adjusted free cash flow was $147 million, representing a free cash flow margin of 56%.Management also highlighted that they ended the quarter with 1,519 customers paying more than $100,000 a year, which is up 18% year-over-year, and a dollar-based net retention of 117%.During the call, management provided updates on their Act 2 plan, which includes a workforce restructuring affecting approximately 14% or 350 team members. As part of this strategy, the company expects to "exit 22 countries and reduce our team member geographic footprint by approximately 37%" while incurring $30 million to $35 million of pretax restructuring charges.The company plans to reinvest savings into five architectural bets: machine scale infrastructure, orchestration, context, governance, and maintaining one platform for all modes of software engineering.Management also reported that the dual agent platform paid consumption run rate was nearly $20 million in the first quarter.For forward guidance, management expects second quarter fiscal year 2027 total revenue of $272 million to $274 million, representing approximately 15% to 16% year-over-year growth.For the full year, total revenue is expected to be $1.112 billion to $1.118 billion. On the product and partnership front, GitLab announced expanded relationships with AWS, Google Cloud, and Anthropic, allowing Duo Agent platform spend to be eligible against committed cloud budgets.The company also announced plans to introduce GitLab Flex, a new buying program that allows customers to mix seat-based and credit-based products, as well as an API accessible service called GitLab Orbit.