GitLab Inc. (GitLab (GTLB)) reported its first-quarter results after Tuesday's closing bell, and the numbers were better than analysts had expected. The stock climbed 6.98% to $34.04 in extended trading as investors digested the beat and a raised outlook.

GitLab Q1 Details

GitLab posted quarterly earnings of 23 cents per share, beating the analyst estimate of 21 cents. Revenue came in at $264.16 million, also ahead of the Street's $254.56 million forecast.

But the big news wasn't just the beat. The company's board approved a restructuring plan that includes a 14% reduction to its full-time workforce — about 350 team members — and the exit of 22 countries to reduce its employee geographic footprint by roughly 37%. That's a significant move to streamline operations.

CEO Bill Staples struck an optimistic tone, saying, "The agentic era is creating structural tailwinds for GitLab, and Q1 showed it clearly with accelerating platform activity and promising traction from GitLab Duo Agent Platform." He added, "GitLab is the only platform that spans the full software lifecycle with one control plane, one data model, and cloud and AI model neutrality."

Looking Ahead

GitLab raised its fiscal 2027 adjusted EPS guidance to a range of 79 cents to 82 cents, compared to the 81-cent analyst estimate. It also lifted its revenue outlook to between $1.112 billion and $1.118 billion, versus the $1.112 billion estimate. Investors seemed to like what they heard, sending shares higher after hours.