GitLab files to go public

The coding repository and devOps platform GitLab on Friday filed to go public on the Nasdaq Global Market under the symbol GTLB.

The company did not disclose the terms of its offering. Late last year, it was valued at $6 billion

In its S-1 form filed with the US Securities and Exchange Commission, GitLab showed that its revenue is growing but it continues to incur losses. 

For the second quarter of FY 2022, GitLab says it had a quarterly revenue run rate of $233 million. For the six months that ended July 2020 and July 2021, the company generated revenue of $63.9 million and $108.1 million, respectively. That represents year-over-year growth of 69%.

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GitLab’s net loss was $130.7 million in FY 2020 and $192.2 million for FY 2021. Its net loss was $69 million for the six months ended July 31, 2021. 

By the end of July 2021, the company says it had 3,632 customers with more than $5,000 of ARR (annual recurring revenue) in a given period. It had 383 customers with $100,000 of ARR.

GitLab also has more than 2,600 contributors in its open source community, which it lists as a competitive strength. 

“Our dual flywheel development strategy leverages development spend and community contributions,” it said in its filing. “It creates a virtuous cycle where more contributions leads to more features, which leads to more users, leading back to more contributions.”

GitLab estimates the current addressable market opportunity for the DevOps Platform is approximately $40 billion. According to Gartner, the total addressable market for Global Infrastructure Software is estimated to be $328 billion by the end of 2021 and $458 billion by the end of 2024. 

“We believe that we can serve $43 billion of this market by the end of 2021 and $55 billion by the end of 2024,” the filing says. 

Its listed risk factors include “intense competition” as well as security and privacy breaches.

GitLab’s workforce has been fully remote since its 2014 inception. As of July 31, it had approximately 1,350 team members in over 65 countries. 

“Operating remotely allows us access to a global talent pool that enables us to hire talented team members, regardless of location, providing a strong competitive advantage,” the company said.

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