GitLab beats Q1 forecasts, cuts 14% staff, exits 22 markets

GitLab, a provider of software development tools, reported first-quarter earnings that exceeded analyst expectations but also announced a significant workforce reduction and a strategic pullback from numerous international markets. The company posted adjusted earnings of 23 cents per share on revenue of $264.2 million for the quarter ending April 30, representing a 23% year-over-year revenue increase. Both figures surpassed Wall Street forecasts.

Despite the strong financial results, the company plans to cut approximately 14% of its full-time workforce, affecting about 350 employees, and will exit operations in 22 countries. Management described the restructuring as a strategic reallocation to optimize execution against its priorities. The move will reduce the company's geographic footprint by about 37%. GitLab expects to incur between $30 million and $35 million in pretax restructuring charges, with about $19 million recognized in the current quarter.

Chief Executive Bill Staples framed the company's performance around what he called structural tailwinds from artificial intelligence. He highlighted early momentum from the GitLab Duo Agent Platform, which embeds AI tools...