At a Glance

  • GitLab's new finance chief Jessica Ross says the company is resetting how it guides investors, with a greater focus ontransparency。
  • On her first earnings call as CFO on Tuesday, Ross said the company had a strong fiscal 2026, but also pointed to near-term challenges, including softness in the U.S. market and several "deal delays" involving large customers.
  • "I joined and conducted a purposeful listening tour with investors," Ross said. "The feedback was very clear: investors want a deeper understanding of how we arrive at these numbers. We heard you, and we hope you see that in our prepared remarks. I expect to carry that philosophy into my guidance philosophy."

Deeper Dive

The shift comes as investors in large software companies increasingly value visibility into forward-looking expectations and demand trends, not just revenue figures.

According to Ross (appointed in December), among other recent challenges, GitLab's federal contract business has only partially recovered after the government shutdown. Additionally, she said GitLab experienced "several large deals delayed due to specific customer budget constraints and some industry-specific challenges." One retailer encountered issues in the fourth quarter, and another large customer faced layoffs and restructuring.

"These are real issues, and we continue to engage with customers where they are, but we find these issues to be very specific," Ross told investors on Tuesday. "These have been incorporated into our guidance going forward."

JPMorgan analysts praised the increased transparency in a client note. "Management candidly acknowledged being 'not satisfied' with growth prospects, which reflects transparency, and we believe this helps build credibility," they said.

GitLab reported on Tuesday that total revenue for the fourth quarter of fiscal 2026, ended January 31,rose to $260.4 million, up 23% year over year. Full-year total revenue increased 26% from the prior year. The software company posted a GAAP operating loss of $5.2 million in the fourth quarter, compared with a loss of $19.3 million in the same period last year. For the next quarter, the company expects total revenue between $253 million and $255 million.

"A significant portion of our fiscal 2027 guidance acknowledges that booking growth over the past three years has not kept pace with revenue growth, a reality that naturally shows up in the math," Ross said.