GitLab (NASDAQ:GTLB) shares plunged over 8% intra-day today as upbeat Q1 results were overshadowed by underwhelming revenue guidance.

The DevSecOps platform reported adjusted Q1 earnings per share of $0.17, topping analyst expectations of $0.15. Revenue grew 27% year-over-year to $214.5 million, narrowly beating the $213 million consensus.

However, Q2 revenue guidance of $226–227 million was viewed as lackluster, merely matching Street estimates and disappointing investors seeking stronger momentum. GitLab's full-year outlook of $936–942 million also aligned closely with forecasts, offering little upside surprise.

Despite this, the company showed strong operational improvement, turning a year-ago non-GAAP operating loss of $3.8 million into a $26.1 million profit. It also reported a healthy 122% net retention rate and 26% YoY growth in customers with over $100,000 in annual recurring revenue. Still, the tepid guidance suggested to investors that GitLab’s growth may be stabilizing, leading to a sharp selloff despite solid fundamentals.