GitLab Inc.

Good day, everyone, and welcome to today's GitLab first quarter fiscal year 2026 conference call. At this time, all participants are in a view and listen only mode. Later, you will have the opportunity to ask questions during the question and answer session. If you'd like to ask a question, please use the raise hand feature located in the menu at the bottom of your Zoom toolbar. In addition, please ensure your Zoom name reflects your full name and the firm you are with. And if you're joining via phone, you may press star nine to ask a question. Please note this call is being recorded. It is now my pleasure to turn the conference over to Kelsey Turcotte.

Good afternoon. We appreciate you joining us for GitLab's first quarter fiscal year 2026 financial results conference call. With me are Bill Staples, our CEO, and Brian Robbins, our CFO. During this afternoon's call, we will provide an overview of the business, commentary on our first quarter results, and guidance for the second quarter and fiscal year 2026. Before we begin, I'll cover the safe harbor statement. I would like to direct you to the cautionary statement regarding forward-looking statements on page two of our presentation and in our earnings release issued earlier today, both of which are available under the investor relations section of our website. The presentation and earnings release include a discussion of certain risks, uncertainties, assumptions, and other factors that could cause our results to differ from those expressed in any forward-looking statements within the meaning of the Private Security Litigation Reform Act. As is customary, the content of today's call and presentation will be governed by this language. In addition, during today's call, we will be discussing certain non-GAAP financial measures. These non-GAAP financial measures exclude certain unusual, or non-recurring items that management believes impact the comparability of the periods referenced. Please refer to our earnings release and presentation materials for additional information regarding these non-GAAP financial measures and the reconciliations to the most directly comparable GAAP measures. I'll now turn the call over to Bill. Bill?

Thank you, Kelsey, and good afternoon, everyone. Thank you for joining us today. First quarter revenue increased 27% year-over-year to $215 million, with non-GAAP operating margin reaching 12%. I want to thank our team for your focus on execution and our customers. Our continued growth underscores the demonstrable value customers realize with our AI-native DevSecOps platform. Unlike competitors, we are the only AI-native, cloud-agnostic, model-neutral DevSecOps platform capable of running anywhere, including air-gapped environments. We offer comprehensive solutions across the software development lifecycle with built-in contextual AI that's really only possible on a platform with a unified data store. Every day, organizations face pressure to maximize efficiency and software is an essential lever they have to create business agility and competitive advantage. Our DevSecOps platform stands at the core of enabling customers to build that mission-critical software. I view our strategic differentiators as an opportunity for GitLab to advance conversations about AI's strategic role in software development. As enterprises embrace AI and transform development practices, our unified platform uniquely enables them to maintain enterprise security and compliance. We believe our market is moving rapidly in a direction that's inherently advantageous for platform solutions. I expect AI code creation tools to empower more code creators than ever. The result is that the volume of code being created will expand and all of those users and agents still require a platform in order to test, validate, secure, package, and deploy their code to production environments. This is what GitLab does today. Supermicro, an AI solutions provider, recently doubled the size of their software team and upgraded from our free tier in Q1. They selected GitLab Premium and Duo Pro to build an internal software acceleration program targeting 2x faster feature development for their end-to-end AI infrastructure solutions. It was a big quarter for our R&D team with the annual launch of new product capabilities across the platform in GitLab 18. This May introduction and product roadmap build upon the essential capabilities of successful software development, core DevOps, security, and AI. In core DevOps, we are centralizing artifact management, optimizing CICD pipelines for speed and security, and making it easier for users to find, filter, and embed content from anywhere in the platform. We want to ensure customers can easily collaborate and drive maximum ROI from their GitLab investment. We're also deepening our security capabilities to help customers achieve comprehensive visibility and control. This includes custom frameworks to design, implement, and enforce compliance, vulnerability dashboards to pinpoint critical findings, and innovation to improve detection accuracy, reduce false positives, and help customers focus on the code that threat actors can exploit. Security is a key driver of GitLab Ultimate adoption, and we want to deliver market-leading solutions that are even more effective because they're embedded in our DevSecOps platform. And finally, we are natively integrating AI throughout the platform. Customers who use our Premium and Ultimate tiers now have access to both Duo chat and code suggestions. In addition, GitLab Duo Enterprise is now available for GitLab Premium customers. We now include chat and code suggestions with premium and ultimate because we see every engineer is experimenting with AI and we want Duo to be an obvious solution for them with no barriers to adoption. This integrated approach offers an ideal starting point for both new and existing customers, allowing them to leverage chat and code suggestions with limited usage limits and providing them a smooth upgrade path to our offerings with higher usage limits and more comprehensive capabilities, including GitLab Duo Pro, Duo Enterprise, and, when GA, GitLab Duo Workflow. We also made Duo Enterprise available to premium customers for the first time in response to customer demand for self-hosted models and its ability to inject AI in planning, collaboration, and deployment. By lowering barriers to adoption and expanding the serviceable market with more flexible packaging, we believe we will be able to unlock more Duo adoption in coming quarters. New and existing customers are increasingly finding Duo a compelling solution versus competitors. For example, R&V Insurance, a top five German insurer, is expanding their GitLab deployment by implementing Duo Enterprise in their regulated environment. After adopting GitLab Ultimate in 2023 to integrate their full DevSecOps lifecycle, RNV's recent Duo Enterprise evaluation demonstrated significant improvements with a more than 35% acceleration in AI-assisted test generation and 25% acceleration in both root cause analysis and code explanation. In April, we launched GitLab Duo with Amazon Q, a strategic integration that embeds Amazon Q's autonomous software development agents directly within the GitLab DevSecOps platform. Early access participant Volkswagen Digital Solutions reported significant productivity gains, noting the joint capabilities dramatically reduce context switching and accelerate their entire pipeline from code commit to production deployment. Our partnership with AWS extends beyond technical integration to coordinated go-to-market initiatives, including GitLab's position among the select AWS Global Summit sponsors. This alliance amplifies our market presence and drives higher quality customer engagement. Over the coming months, we'll showcase this powerful combination at AWS Global Summit events, further expanding our enterprise reach. Finally, we remain on schedule to launch GitLab Duo Workflow, our agentic AI solution, this winter. We're getting great feedback from our workflow private beta participants. What began as a private beta with six major customers has now expanded to dozens. Developers report that workflow is beginning to transform their daily productivity. Engineers describe confidently delegating complex multi-step refactoring tasks to workflow, and then watching as it methodically outlines a transparent execution plan resulting in clean, properly committed code. Our private data satisfaction metrics are really compelling. 82 percent of surveyed users already classify themselves as either satisfied, or very satisfied with Workflow's capabilities, validating our strategic investment in agentic software development. Momentum with GitLab Duo continues to grow, particularly with Duo Enterprise. In Q1, the number of customers who purchased GitLab Duo for the first time increased 35% quarter over quarter. We also closed some great expansion deals with existing customers. For example, Highmark Health and EnGen, a health tech subsidiary of Highmark Health, added GitLab Duo Enterprise to their existing GitLab Ultimate deployment. Multiple strategic objectives drove this decision. This includes enhanced developer productivity, and a comprehensive enterprise-wide AI solution that strengthens both code quality and security while simultaneously extending generative AI benefits beyond developers to their broader technical teams. Ultimate now represents 52% of total ARR, with 8 of our 10 largest deals in the quarter purchasing Ultimate. We're also seeing Ultimate continue to increase as a percentage of total new customer lands. This quarter's new Ultimate customers include Efficotin, Technosilda, Premise Health, and SGK. We also had significant expansions at American Family Mutual Insurance Company and the FBI. In Q1, a leading AI-powered market intelligence and search platform chose GitLab in a competitive evaluation that included GitHub. Their goal is to unify their growing development team under a single solution to manage what has become a very complex environment. In addition to GitLab Ultimate, they chose Duo Enterprise to power AI development capabilities and streamline workflows. These large-scale adoptions validate our comprehensive platform strategy and demonstrate growing market recognition of the value delivered by Duo Enterprise. Turning to Dedicated, our single-tenant SaaS solution. We continue to see broad adoption across industries, and I'm pleased to announce that we achieved FedRAMP moderate authorization. We expect this will create a nice tailwind in our public sector business with Dedicated for Government. The rapid adoption we're seeing validates our strategic investment in providing enterprise-grade isolation with cloud-native convenience, particularly among security-conscious sectors where compliance requirements traditionally slowed digital transformation efforts. In Q1, German-based Forvia Hella, one of the world's oldest automotive suppliers, purchased GitLab Dedicated and Duo Enterprise. Dedicated will enable them to streamline their highly complex environment and reduce R&D overhead costs. Additionally, Ignite by Forvia. shared with us that GitLab Duo's intelligent code suggestions have become a daily asset for their developers. Combined with the chat feature, Duo allows for immediate feedback and iteration, resulting in faster development cycles and a more secure code base. According to Ignite, GitLab Duo is a seamless and powerful addition to their workflows. Also in Q1, NatWest expanded their investment with us. Since NatWest became a dedicated customer in 2022, we've partnered closely with them to drive results that include 20% improvements in deployment frequency over the last 12 months, which have increased the pace of outcomes to colleagues and customers utilizing AI code generation and governance simplification. Based on the success they've seen over the past several years, NatWest increased their GitLab footprint to 17,000 users on Dedicated and 6,000 Duo Enterprise seats. One of the things that distinguishes GitLab is our vibrant co-creation ecosystem, with April setting an all-time record for customer contributions to our platform. This represents customer-driven innovation, with industry leaders like Thales, Scania, and Siemens and submissions include package registry capabilities and expanded logging functionality for our AI gateway. This collaborative model delivers real-world value across multiple dimensions. It accelerates our feature velocity, ensures innovations match enterprise requirements, and fosters deeper partnerships with our customers. I believe our mission to help customers deliver secure software faster is of critical importance to every business in the world, and our technology holds transformational power. We aspire to be the world's best AI-native DevSecOps platform, unlocking step function productivity improvements by redefining the software engineering experience through human and agent collaboration. I shared this new vision for GitLab with our team members a few weeks ago, and I will introduce it along with the innovation we're building today and the roadmap ahead at our GitLab 18 launch event later this month. And with that, I'll turn it over to Brian.