Net ARR surged over 40%, and total bookings hit a record high! GitLab (GTLB.US) reported strong Q2 results that exceeded expectations, soaring over 16% in after-hours trading.

DevSecOps platform giant GitLab (GTLB.US) surged over 16% in after-hours trading following the company's second-quarter performance that exceeded expectations and issued strong guidance. The earnings report showed that the company's revenue for the second quarter of fiscal year 2027 reached $286.3 million, a year-over-year increase of 21.3%, surpassing expectations by $12.94 million; adjusted earnings per share were $0.24, exceeding expectations by $0.06. In the quarter ending July 31, this software development, security, and operations platform provider achieved a record total booking and noted that its net annual recurring revenue (ARR) grew by over 40%. CEO Bill Staples emphasized, "As artificial intelligence drives more software creation and more work throughout the development lifecycle, the context, security, governance, and control that GitLab provides 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 earnings report indicated that the company recorded a net retention rate of 117% based on dollars. 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, down from 17% a year ago. Adjusted cash flow decreased in the quarter, dropping from $46.5 million a year ago to $9.8 million. Looking ahead, GitLab (GTLB) expects third-quarter revenue to be between $281 million and $283 million, while market expectations are for $281 million; it anticipates earnings per share of $0.19 to $0.20, while the general market expectation is $0.18.