Gitlab Inc (NASDAQ:GTLB) stock fell 8.02% (As on June 11, 11:23:08 AM UTC-4, Source: Google Finance) after the company increased its full-year profit outlook but narrowly missed expectations on sales guidance. Customers with more than $5,000 of ARR reached 10,104, an increase of 13% year-over-year. Customers with more than $100,000 of ARR reached 1,288, an increase of 26% year-over-year. Dollar-Based Net Retention Rate was 122%. Total RPO grew 40% year-over-year to $955.1 million, while cRPO grew 34% to $584.8 million.

Moreover, the company has announced GitLab 18, including major new innovations across core DevOps workflows, security and compliance processes, and AI capabilities natively integrated into the platform. The company has announced the general availability of GitLab Duo with Amazon Q, which embeds Amazon Q’s autonomous agents directly into the GitLab DevSecOps platform for GitLab Ultimate self-managed customers on Amazon Web Services (AWS).

GTLB in the first quarter of FY26 has reported the adjusted earnings per share of 17 cents, beating the analysts’ estimates for the adjusted earnings per share of 15 cents. The company had reported the adjusted revenue growth of 27 percent to $214.5 million in the first quarter of FY26, beating the analysts’ estimates for revenue of $213.2 million.

The company said it’s raising its full-year earnings forecast to a range of 74 to 75 cents per share, up from an earlier outlook of 68 to 72 cents. Wall Street is looking for full-year earnings of 72 cents per share. However, the company could only reiterate its prior outlook for full-year revenue, saying it’s still targeting a range of $936 million to $942 million. The midpoint of that range is just shy of Wall Street’s target of $939.7 million in full-year revenue.

GitLab’s current-quarter forecast was also left wanting. The company said it’s expecting to earn a profit of 16 to 17 cents per share on sales of $226 million to $227 million, while Wall Street is modeling earnings of 16 cents on revenue of $226.6 million.

Meanwhile, the company has been growing fast and is often seen as a rival to the Microsoft Corp.-owned GitHub, but it has endured a rough year, with its co-founder and former Chief Executive Sid Sijbrandij stepping down late last year after being diagnosed with cancer. There was talk that GitLab might become an acquisition target for companies, including Datadog Inc., but the appointment of former New Relic Inc. CEO Bill Staples (pictured) as Sijbrandij’s replacement appears to have put those rumors to bed.