Dive Brief:
- GitLab is hitting the reset button on how it guides investors, placing a greater emphasis on transparency, according to the company’s new finance chief, Jessica Ross.
- During her first earnings call as GitLab’s CFO on Tuesday, Ross described the company’s fiscal 2026 as a strong year while also flagging recent challenges, including softer performance in the U.S. and a few instances of “deal slippage” involving large customers.
- “When I joined, I ran an intentional listening campaign with investors,” Ross said. “The feedback was very clear: investors want more insight and transparency into how we arrive at the numbers. We heard you, and I’m hoping that you see that reflected in our prepared remarks. I expect to carry that forward with my guidance philosophy.”
Dive Insight:
The shift comes as investors in major software companies increasingly prioritize forward expectations and visibility into demand trends, not just top-line revenue.
Gitlab’s total revenues rose to $260.4 million in its fiscal 2026 fourth quarter ended Jan. 31, up 23% year-over-year, according to results released Tuesday. Total revenues for the full year increased 26% compared with the prior year.
The software maker reported a GAAP operating loss of $5.2 million for Q4, compared with $19.3 million in the year-earlier period. For its coming quarter, the company anticipates total revenue of $253 million to $255 million.
“A significant portion of our FY27 guide acknowledges that the bookings growth rate has not scaled with revenue over the past three years, and that reality flows through mathematically,” Ross said during the Tuesday earnings call.
Among other recent challenges, the company has only seen a partial recovery in its federal contracts segment since the government shutdown, according to the finance chief, who was appointed in December.
In addition, she said Gitlab experienced “a few large deals slipping from specific customers facing budget constraints and some industry-specific challenges.” One retailer had some Q4 challenges and another large customer faced some layoffs and restructuring.
“These are real issues, and we're continuing to meet our customers where they are, but we found it to be something very specific,” Ross said. “That's all been embedded into our guide going forward.”
The guidance approach was hailed in a client’s note by JPMorgan analysts.
“Management’s candid acknowledgment of being ‘not satisfied’ with the growth outlook reflects transparency, which helps build some credibility in our view,” they said.
