GitLab Inc. (NASDAQ:GTLB) stock plunged Wednesday after weak fiscal 2027 guidance overshadowed an otherwise solid fourth-quarter earnings report.
Q4 Financial Highlights
On the earnings front, GitLab delivered a beat on both the top and bottom lines. The company reported fourth-quarter EPS of 30 cents, topping the consensus estimate of 23 cents, while revenue of $260.4 million surpassed the Street’s $252.21 million and grew 23% year over year.
The non-GAAP operating margin stood at 21%, with operating cash flow of $45.8 million, though the GAAP operating margin remained negative at (2)%.
Customer momentum was also notable, with clients generating over $1 million in ARR, rising 26% year-over-year to 155, and the Dollar-Based Net Retention Rate holding at 118%. Total RPO grew 20% to $1.1 billion.
For the full fiscal year 2026, revenue reached $955.2 million, up 26%, and the company crossed the $1 billion ARR milestone.
However, the outlook tempered …