GitLab’s customer growth, enterprise demand, and Flex adoption strengthened optimism around its future growth.

  • GitLab posted its strongest new-customer quarter in three years, with first orders more than doubling.
  • Sales productivity and gross bookings also hit records, while Flex attracted over 130 customers in six weeks.
  • GitLab reported $286.3 million in Q2 revenue, up 21% year-on-year, while net ARR rose 42%. 

GitLab (GTLB) stock surged nearly 21% in premarket trading on Wednesday after the software company reported strong fiscal second-quarter (Q2) results, including 21% revenue growth and rising net ARR. Record gross bookings, stronger customer demand and early traction for its Flex offering further boosted investor confidence in GitLab’s growth outlook.

GitLab stock traded over 30% in Wednesday’s premarket, and is on track for its best day in two years. 

GitLab Sees Strong New Customer Growth As First Orders Double 

Speaking at the Q2 earnings call, GitLab CEO William Staples said GitLab recorded its strongest quarter for new customer orders in three years. The number of first-time orders more than doubled from a year earlier, while net annual recurring revenue (ARR) from those customers climbed nearly 40%.

“Our dedicated first order organization is building more repeatable sales motions, while our product-led investments are widening the top of the funnel. The combination is bringing significantly more new customers into GitLab. It's important to win customers of all sizes, including AI start-ups and others with small orders to begin with because more than half of our current $1 billion plus in run rate revenue comes from customers whose first order was less than $5,000.”

Account executive headcount rose about 30% year-on-year, while output per representative increased roughly 10%. Staples said the combination helped produce the company’s strongest gross bookings quarter on record.

GitLab is looking to broaden revenue opportunities as artificial intelligence changes software development. Its Flex offering attracted more than 130 customers that committed over $20 million during its first six weeks, giving clients greater flexibility in how they use GitLab products.

GitLab’s Large Enterprise Deals Surge More Than 150% 

GitLab CFO Jessica Ross described the quarter as an important turning point for the business. GitLab generated $286.3 million in revenue, a 21% year-on-year increase, about five percentage points above its guidance. Net ARR increased 42%, marking the company’s second-best growth quarter in four years.

“Dollar-based net retention accelerated sequentially for the first time since 2024, and we did all of this while also beating our profitability expectations.” 

Larger customers also showed stronger engagement with the platform. Deals worth at least $500,000 increased more than 150% from the prior year, indicating that major organizations are expanding their use of GitLab.

GTLB Stock: Retail Stance 

On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day. 

A user said, “a lot of the reason has to be that GITHUB has experienced big hits recently. More customer will migrate in later quarters.”

GTLB stock has gained 20% year-to-date. 

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