All-Remote - GitLab Inc. (NASDAQ: GTLB), The
DevSecOps Platform, today reported financial results for its fourth
quarter and full fiscal year of 2024, ended January 31, 2024.
“We delivered a strong fourth quarter and
continue to see large enterprise customers standardize on GitLab to
realize business value,” said Sid Sijbrandij, GitLab CEO and
co-founder. “By integrating AI throughout the software development
lifecycle, our DevSecOps platform allows our customers to plan,
build, manage, and deliver software more efficiently, ultimately
scaling the impact their software investments have on business
outcomes. We believe this puts us in a strong position to continue
to win the large market opportunity in front of us.”
“In Q4, revenue grew 33% year-over-year, and we
delivered over 1,900 basis points of non-GAAP operating margin
expansion year-over-year, demonstrating continued business momentum
driven by our commitment to deliver value to customers with our
market-leading DevSecOps platform,” said Brian Robins, GitLab chief
financial officer. “I’m pleased to share that with consistent
execution across the business in FY24 we delivered breakeven cash
flow a year ahead of our commitment and recorded our second
consecutive quarter of non-GAAP operating profit while continuing
to invest in key product areas. These milestones are a testament to
our approach to responsible growth.”
Fourth Quarter Fiscal
Year 2024 Financial
Highlights (in millions, except per share data and
percentages):
| |
Q4 FY 2024 |
|
Q4 FY 2023 |
|
Y/Y Change |
|
Revenue |
$ |
163.8 |
|
|
$ |
122.9 |
|
|
|
33 |
% |
|
GAAP Gross margin |
|
90 |
% |
|
|
88 |
% |
|
|
|
Non-GAAP Gross margin |
|
92 |
% |
|
|
90 |
% |
|
|
|
GAAP Operating loss |
$ |
(34.9 |
) |
|
$ |
(46.3 |
) |
|
$ |
11.4 |
|
|
Non-GAAP Operating income (loss) |
$ |
13.2 |
|
|
$ |
(13.8 |
) |
|
$ |
27.0 |
|
|
GAAP Net loss attributable to GitLab |
$ |
(36.5 |
) |
|
$ |
(38.7 |
) |
|
$ |
2.2 |
|
|
Non-GAAP Net income (loss) attributable to GitLab |
$ |
25.0 |
|
|
$ |
(4.5 |
) |
|
$ |
29.5 |
|
|
GAAP Net loss per share attributable to GitLab |
$ |
(0.23 |
) |
|
$ |
(0.26 |
) |
|
$ |
0.03 |
|
|
Non-GAAP Net income (loss) per share attributable to GitLab |
$ |
0.15 |
|
|
$ |
(0.03 |
) |
|
$ |
0.18 |
|
|
GAAP net cash provided by (used in) operating activities |
$ |
24.9 |
|
|
$ |
(11.7 |
) |
|
$ |
36.6 |
|
|
Non-GAAP Free cash flow |
$ |
24.5 |
|
|
$ |
(12.8 |
) |
|
$ |
37.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2024
Financial Highlights (in millions, except per
share data and percentages):
| |
FY 2024 |
|
FY 2023 |
|
Y/Y Change |
|
Revenue |
$ |
579.9 |
|
|
$ |
424.3 |
|
|
|
37 |
% |
|
GAAP Gross margin |
|
90 |
% |
|
|
88 |
% |
|
|
|
Non-GAAP Gross margin |
|
91 |
% |
|
|
90 |
% |
|
|
|
GAAP Operating loss |
$ |
(187.4 |
) |
|
$ |
(211.4 |
) |
|
$ |
24.0 |
|
|
Non-GAAP Operating loss |
$ |
(1.4 |
) |
|
$ |
(87.1 |
) |
|
$ |
85.7 |
|
|
GAAP Net loss attributable to GitLab |
$ |
(424.2 |
) |
|
$ |
(172.3 |
) |
|
$ |
(251.9 |
) |
|
Non-GAAP Net income (loss) attributable to GitLab |
$ |
32.6 |
|
|
$ |
(67.7 |
) |
|
$ |
100.3 |
|
|
GAAP Net loss per share attributable to GitLab |
$ |
(2.75 |
) |
|
$ |
(1.16 |
) |
|
$ |
(1.59 |
) |
|
Non-GAAP Net income (loss) per share attributable to GitLab |
$ |
0.20 |
|
|
$ |
(0.46 |
) |
|
$ |
0.66 |
|
|
GAAP net cash provided by (used in) operating activities |
$ |
35.0 |
|
|
$ |
(77.4 |
) |
|
$ |
112.4 |
|
|
Non-GAAP Free cash flow |
$ |
33.4 |
|
|
$ |
(83.5 |
) |
|
$ |
116.9 |
|
A reconciliation between GAAP and non-GAAP
financial measures is contained in this release under the section
titled “Non-GAAP Financial Measures.”
Business Highlights:
- Announced GitLab Duo Pro, a paid
add-on for GitLab Premium and Ultimate customers that includes Code
Suggestions, Chat, and organizational control capabilities for $19
per user per month.
- Launched a new Enterprise Agile
Planning SKU that makes it easy for GitLab Ultimate customers to
bring everyone into a single, secure platform and helps customers
get even more value out of their GitLab investment.
- Released Remote Development
workspaces into general availability, which allows customers to
create consistent, reproducible environments to help developers get
started faster.
- Appointed Sabrina Farmer as chief
technology officer (CTO). The former Google VP of Engineering leads
GitLab’s software engineering, operations, and customer support
teams to execute the company's technical vision and strategy and
oversees the development and delivery of GitLab's products.
- Named the Best AI/ML solution in
the 2024 DeveloperWeek DEVIES awards for GitLab Duo.
- Named the Best DevSecOps Solution
winner by DevOps Dozen.
Financial Highlights
- Customers with more than $5,000 of
ARR increased to 8,602, up 23% from Q4 of fiscal year 2023.
- Customers with more than $100,000
of ARR increased to 955, up 37% from Q4 of fiscal year 2023.
- Customers with more than $1M of ARR
increased to 96, up 52% from Q4 of fiscal year 2023.
- Dollar-Based Net Retention Rate was
130% in Q4 of fiscal year 2024.
- Total RPO grew 55% year over year
to $674 million. cRPO grew 40% to $430 million for the
same time frame.
First Quarter and
Fiscal Year 2025 Financial
Outlook
For the first quarter and fiscal year 2025, GitLab
Inc. expects (in millions, except share and per share data):
|
|
Q1 FY 2025 Guidance |
|
FY 2025 Guidance |
|
Revenue |
$165.0 - $166.0 |
|
$725.0 - $731.0 |
|
Non-GAAP operating income (loss) |
$(13.0) - $(12.0) |
|
$5.0 - $10.0 |
|
Non-GAAP diluted net income (loss) per share assuming approximately
158 million and 168 million weighted average shares outstanding
during Q1 FY2025 and FY2025, respectively. |
$(0.05) - $(0.04) |
|
$0.19 - $0.23 |
These statements are forward-looking and actual
results may differ materially as a result of many factors. Refer to
the Forward-Looking Statements safe harbor below for information on
the factors that could cause our actual results to differ
materially from these forward-looking statements.
A reconciliation of GAAP to non-GAAP financial
measures has been provided in the financial statement tables
included in this press release. An explanation of these measures is
also included below in Non-GAAP Financial Measures. We have not
provided the most directly comparable GAAP financial guidance
measures because certain items are out of our control or cannot be
reasonably predicted. Accordingly, a reconciliation of non-GAAP
guidance for operating income (loss) and net income (loss) per
share to the corresponding GAAP measures is not available.
Conference Call Information
GitLab will host a conference call today,
March 4, 2024, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss
its fourth quarter and full year fiscal 2024 financial results.
Investors and analysts should register for the call in advance by
visiting
https://gitlab.zoom.us/webinar/register/WN_ZHG1dzEdTSG_dNGnPWmWOw#/registration.
A replay of the call will be available on GitLab’s investor
relations website (ir.gitlab.com).
About GitLab
GitLab is the most comprehensive DevSecOps
Platform that empowers organizations to maximize the overall return
on software development by delivering software faster and
efficiently, while strengthening security and compliance. GitLab’s
single application is easier to use, leads to faster cycle time and
allows visibility throughout and control over all stages of the
DevSecOps lifecycle. With GitLab, every team in your organization
can collaboratively plan, build, secure, and deploy software to
drive business outcomes faster with complete transparency,
consistency and traceability.
Non-GAAP Financial Measures
GitLab believes non-GAAP measures are useful in
evaluating its operating performance. GitLab uses this supplemental
information to evaluate its ongoing operations and for internal
planning and forecasting purposes. GitLab believes that non-GAAP
financial information, when taken collectively with its GAAP
financial information, may be helpful to investors because it
provides consistency and comparability with past financial
performance. However, non-GAAP financial information is presented
for supplemental informational purposes only, has limitations as an
analytical tool, and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. Reconciliations of non-GAAP financial measures to the most
directly comparable financial results as determined in accordance
with GAAP are included at the end of this press release following
the accompanying financial data. We define non-GAAP financial
measures as GAAP measures, excluding certain items such as
stock-based compensation expense, amortization of acquired
intangible assets, foreign exchange (gain) loss, gain from a
deconsolidation of a subsidiary, equity method investment loss and
impairment, changes in the fair value of acquisition related
contingent consideration, charitable donation of common stock,
restructuring charges, a non-recurring income tax adjustment
related to bilateral advance pricing agreement (“BAPA”)
negotiations, and other expenses that the Company believes are not
indicative of its ongoing operations. Shares used for net income
per share on a non-GAAP basis include incremental dilutive shares
related to restricted stock units, options, and shares issuable
under GitLab Inc.’s 2021 Employee Stock Purchase Plan that are
anti-dilutive on a GAAP basis. A reconciliation of non-GAAP
guidance measures to corresponding GAAP measures is not available
on a forward-looking basis without unreasonable effort due to the
uncertainty of expenses that may be incurred in the future.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures
and not rely on any single financial measure to evaluate our
business.
Free Cash Flow
Free cash flow is a non-GAAP financial measure
that we calculate as net cash provided by (used in) operating
activities less cash used for purchases of property and equipment
and any non-recurring income tax payments related to BAPA. We
believe that free cash flow is a useful indicator of liquidity that
provides information to management and investors about the amount
of cash generated from our operations that, after the investments
in property and equipment and any non-recurring income tax payments
related to BAPA, can be used for strategic initiatives, including
investing in our business, and strengthening our financial
position. One limitation of free cash flow is that it does not
reflect our future contractual commitments. Additionally, free cash
flow does not represent the total increase or decrease in our cash
balance for a given period.
Forward-Looking Statements
This press release and the accompanying earnings
call contain “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934. Although we believe
that the expectations reflected in the forward-looking statements
contained in this release and the accompanying earnings call are
reasonable, they are subject to known and unknown risks,
uncertainties, assumptions and other factors that may cause actual
results or outcomes to be materially different from any future
results or outcomes expressed or implied by the forward-looking
statements. These risks, uncertainties, assumptions, and other
factors include, but are not limited to the following:
- our ability to effectively manage our growth;
- our revenue growth rate in the future;
- our ability to achieve and sustain profitability, our business,
financial condition, and operating results;
- intense competition in our markets and loss of market share to
our competitors;
- the market for our services may not grow;
- a decline in our customer renewals and expansions;
- fluctuations in our operating results;
- our incorporation of artificial intelligence features into our
products;
- our transparency;
- our publicly available company Handbook;
- security and privacy breaches;
- customers staying on our free self-managed or SaaS product
offering;
- our limited history operating as a public company;
- our ability to respond to rapid technological changes;
- our ability to accurately predict the long-term rate of
customer subscription renewals or adoption, or the impact of these
renewals and adoption;
- our hiring model;
- the effects of ongoing armed conflict in different regions of
the world on our business; and
- general economic conditions (including changes in interest
rates, inflation, uncertainty of the federal budget, increased
volatility in the capital markets and instability in the global
banking sector) and slow or negative growth of our markets.
Further information on these and additional
risks, uncertainties, and other factors that could cause actual
outcomes and results to differ materially from those included in or
contemplated by the forward-looking statements contained in this
release are included under the caption “Risk Factors” and elsewhere
in the filings and reports we make with the Securities and Exchange
Commission. We do not undertake any obligation to update or release
any revisions to any forward-looking statement or to report any
events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events, except as required
by law.
Operating Metrics
Annual Recurring Revenue (“ARR”): We define
annual recurring revenue as the annual run-rate revenue of
subscription agreements, including our self-managed and SaaS
offerings but excluding professional services, from all customers
as measured on the last day of a given month. We calculate ARR by
taking the monthly recurring revenue (“MRR”) and multiplying it by
12. MRR for each month is calculated by aggregating, for all
customers during that month, monthly revenue from committed
contractual amounts of subscriptions, including our self-managed
license, self-managed subscription, and SaaS subscription offerings
but excluding professional services.
Dollar-Based Net Retention Rate: We calculate
Dollar-Based Net Retention Rate as of a period end by starting with
our customers as of the 12 months prior to such period end (“Prior
Period ARR”). We then calculate the ARR from these customers as of
the current period end (“Current Period ARR”). The calculation of
Current Period ARR includes any upsells, price adjustments, user
growth within a customer, contraction, and attrition. We then
divide the total Current Period ARR by the total Prior Period ARR
to arrive at the Dollar-Based Net Retention Rate.
|
GitLab Inc.Condensed Consolidated Balance
Sheets(in thousands, except per share
data)(unaudited) |
|
|
| |
January 31, 2024(1) |
|
January 31, 2023(1) |
|
ASSETS |
|
|
|
|
CURRENT ASSETS: |
|
|
|
|
Cash and cash equivalents |
$ |
287,996 |
|
|
$ |
295,402 |
|
|
Short-term investments |
|
748,289 |
|
|
|
641,249 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $673
and $1,564 as of January 31, 2024 and January 31, 2023,
respectively |
|
166,731 |
|
|
|
130,479 |
|
|
Deferred contract acquisition costs, current |
|
32,300 |
|
|
|
26,505 |
|
|
Prepaid expenses and other current assets |
|
45,601 |
|
|
|
24,327 |
|
|
Total current assets |
|
1,280,917 |
|
|
|
1,117,962 |
|
|
Property and equipment, net |
|
2,954 |
|
|
|
5,797 |
|
|
Operating lease right-of-use assets |
|
405 |
|
|
|
998 |
|
|
Equity method investment, net of impairment of $8,858 and $0 as of
January 31, 2024 and January 31, 2023, respectively |
|
— |
|
|
|
12,682 |
|
|
Goodwill |
|
8,145 |
|
|
|
8,145 |
|
|
Intangible assets, net |
|
1,733 |
|
|
|
3,901 |
|
|
Deferred contract acquisition costs, non-current |
|
19,317 |
|
|
|
15,628 |
|
|
Other non-current assets |
|
4,390 |
|
|
|
4,087 |
|
|
TOTAL ASSETS |
$ |
1,317,861 |
|
|
$ |
1,169,200 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
Accounts payable |
$ |
1,738 |
|
|
$ |
5,184 |
|
|
Accrued expenses and other current liabilities |
|
286,178 |
|
|
|
25,954 |
|
|
Accrued compensation and benefits |
|
35,809 |
|
|
|
20,776 |
|
|
Deferred revenue, current |
|
338,348 |
|
|
|
254,382 |
|
|
Total current liabilities |
|
662,073 |
|
|
|
306,296 |
|
|
Deferred revenue, non-current |
|
23,794 |
|
|
|
28,355 |
|
|
Other non-current liabilities |
|
14,060 |
|
|
|
9,824 |
|
|
TOTAL LIABILITIES |
|
699,927 |
|
|
|
344,475 |
|
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
Preferred stock, $0.0000025 par value; 50,000 shares
authorized as of January 31, 2024 and January 31, 2023;
no shares issued and outstanding as of January 31, 2024 and
January 31, 2023 |
|
— |
|
|
|
— |
|
|
Class A Common stock, $0.0000025 par value; 1,500,000 shares
authorized as of January 31, 2024 and January 31, 2023;
114,672 and 94,655 shares issued and outstanding as of
January 31, 2024 and January 31, 2023, respectively |
|
— |
|
|
|
— |
|
|
Class B Common stock, $0.0000025 par value; 250,000 shares
authorized as of January 31, 2024 and January 31, 2023;
42,887 and 56,489 shares issued and outstanding as of
January 31, 2024 and January 31, 2023, respectively |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
1,718,661 |
|
|
|
1,497,373 |
|
|
Accumulated deficit |
|
(1,149,822 |
) |
|
|
(725,648 |
) |
|
Accumulated other comprehensive income (loss) |
|
2,335 |
|
|
|
(705 |
) |
|
Total GitLab stockholders’ equity |
|
571,174 |
|
|
|
771,020 |
|
|
Noncontrolling interests |
|
46,760 |
|
|
|
53,705 |
|
|
TOTAL STOCKHOLDERS’ EQUITY |
|
617,934 |
|
|
|
824,725 |
|
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
1,317,861 |
|
|
$ |
1,169,200 |
|
__________(1) As of January 31, 2024 and
January 31, 2023, the consolidated balance sheet includes
assets of the consolidated variable interest entity, GitLab
Information Technology (Hubei) Co., LTD (“JiHu”), of $47.6 million
and $62.8 million, respectively, and liabilities of $6.1
million and $8.9 million, respectively. The assets of JiHu can
be used only to settle obligations of JiHu and creditors of JiHu do
not have recourse against the general credit of GitLab Inc.
|
GitLab Inc.Condensed Consolidated Statements of
Operations(in thousands, except per share
data)(unaudited) |
|
|
| |
Three Months Ended January 31, |
|
Fiscal Year Ended January 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Revenue: |
|
|
|
|
|
|
Subscription—self-managed and SaaS |
$ |
142,026 |
|
|
$ |
105,055 |
|
|
$ |
506,306 |
|
|
$ |
369,349 |
|
|
License—self-managed and other |
|
21,753 |
|
|
|
17,852 |
|
|
|
73,600 |
|
|
|
54,987 |
|
|
Total revenue |
|
163,779 |
|
|
|
122,907 |
|
|
|
579,906 |
|
|
|
424,336 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Subscription—self-managed and SaaS |
|
12,165 |
|
|
|
11,124 |
|
|
|
45,486 |
|
|
|
40,841 |
|
|
License—self-managed and other |
|
3,824 |
|
|
|
3,114 |
|
|
|
14,222 |
|
|
|
10,839 |
|
|
Total cost of revenue |
|
15,989 |
|
|
|
14,238 |
|
|
|
59,708 |
|
|
|
51,680 |
|
|
Gross profit |
|
147,790 |
|
|
|
108,669 |
|
|
|
520,198 |
|
|
|
372,656 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
90,762 |
|
|
|
81,513 |
|
|
|
356,393 |
|
|
|
309,992 |
|
|
Research and development |
|
52,388 |
|
|
|
43,680 |
|
|
|
200,840 |
|
|
|
156,143 |
|
|
General and administrative |
|
39,523 |
|
|
|
29,750 |
|
|
|
150,405 |
|
|
|
117,932 |
|
|
Total operating expenses |
|
182,673 |
|
|
|
154,943 |
|
|
|
707,638 |
|
|
|
584,067 |
|
|
Loss from operations |
|
(34,883 |
) |
|
|
(46,274 |
) |
|
|
(187,440 |
) |
|
|
(211,411 |
) |
|
Interest income |
|
11,813 |
|
|
|
6,249 |
|
|
|
39,114 |
|
|
|
14,496 |
|
|
Other income (expense), net |
|
(11,318 |
) |
|
|
(1,024 |
) |
|
|
(11,826 |
) |
|
|
21,585 |
|
|
Loss before income taxes and loss from equity method
investment |
|
(34,388 |
) |
|
|
(41,049 |
) |
|
|
(160,152 |
) |
|
|
(175,330 |
) |
|
Loss from equity method investment, net of tax |
|
(1,416 |
) |
|
|
(693 |
) |
|
|
(3,824 |
) |
|
|
(2,468 |
) |
|
Provision for income taxes |
|
1,767 |
|
|
|
379 |
|
|
|
264,057 |
|
|
|
2,898 |
|
|
Net loss |
$ |
(37,571 |
) |
|
$ |
(42,121 |
) |
|
$ |
(428,033 |
) |
|
$ |
(180,696 |
) |
|
Net loss attributable to noncontrolling interest |
|
(1,104 |
) |
|
|
(3,388 |
) |
|
|
(3,859 |
) |
|
|
(8,385 |
) |
|
Net loss attributable to GitLab |
$ |
(36,467 |
) |
|
$ |
(38,733 |
) |
|
$ |
(424,174 |
) |
|
$ |
(172,311 |
) |
|
Net loss per share attributable to GitLab Class A and Class B
common stockholders, basic and diluted |
$ |
(0.23 |
) |
|
$ |
(0.26 |
) |
|
$ |
(2.75 |
) |
|
$ |
(1.16 |
) |
|
Weighted-average shares used to compute net loss per share
attributable to GitLab Class A and Class B common stockholders,
basic and diluted |
|
156,601 |
|
|
|
150,133 |
|
|
|
154,283 |
|
|
|
148,407 |
|
|
GitLab Inc.Condensed Consolidated Statements of
Cash Flows(in
thousands)(unaudited) |
|
|
| |
Three Months Ended January 31, |
|
Fiscal Year Ended January 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss, including amounts attributable to noncontrolling
interest |
$ |
(37,571 |
) |
|
$ |
(42,121 |
) |
|
$ |
(428,033 |
) |
|
$ |
(180,696 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
43,017 |
|
|
|
33,641 |
|
|
|
163,049 |
|
|
|
122,567 |
|
|
Gain from the fair value change of acquisition related contingent
consideration |
|
— |
|
|
|
(1,722 |
) |
|
|
— |
|
|
|
(1,722 |
) |
|
Charitable donation of common stock |
|
2,675 |
|
|
|
— |
|
|
|
10,700 |
|
|
|
— |
|
|
Amortization of intangible assets |
|
521 |
|
|
|
595 |
|
|
|
2,167 |
|
|
|
2,362 |
|
|
Depreciation expense |
|
1,039 |
|
|
|
1,033 |
|
|
|
4,368 |
|
|
|
3,231 |
|
|
Amortization of deferred contract acquisition costs |
|
12,397 |
|
|
|
12,265 |
|
|
|
43,463 |
|
|
|
44,958 |
|
|
Gain from deconsolidation of Arch, formerly Meltano |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,798 |
) |
|
Loss from equity method investment |
|
776 |
|
|
|
942 |
|
|
|
3,824 |
|
|
|
3,189 |
|
|
Impairment of equity method investment |
|
8,858 |
|
|
|
— |
|
|
|
8,858 |
|
|
|
— |
|
|
Net amortization of premiums or discounts on short-term
investments |
|
(5,988 |
) |
|
|
(2,731 |
) |
|
|
(20,349 |
) |
|
|
(6,077 |
) |
|
Unrealized foreign exchange loss (gain), net |
|
4,396 |
|
|
|
354 |
|
|
|
4,648 |
|
|
|
(3,727 |
) |
|
Other non-cash expense, net |
|
1,013 |
|
|
|
717 |
|
|
|
1,330 |
|
|
|
1,156 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(31,050 |
) |
|
|
(32,006 |
) |
|
|
(36,341 |
) |
|
|
(54,169 |
) |
|
Prepaid expenses and other current assets |
|
(15,671 |
) |
|
|
(3,589 |
) |
|
|
(23,854 |
) |
|
|
(8,909 |
) |
|
Deferred contract acquisition costs |
|
(21,340 |
) |
|
|
(15,410 |
) |
|
|
(53,100 |
) |
|
|
(48,555 |
) |
|
Other non-current assets |
|
865 |
|
|
|
962 |
|
|
|
(309 |
) |
|
|
3,012 |
|
|
Accounts payable |
|
(3,219 |
) |
|
|
(1,106 |
) |
|
|
(3,443 |
) |
|
|
287 |
|
|
Accrued expenses and other current liabilities |
|
12,436 |
|
|
|
1,370 |
|
|
|
258,293 |
|
|
|
4,619 |
|
|
Accrued compensation and benefits |
|
12,331 |
|
|
|
3,457 |
|
|
|
15,173 |
|
|
|
(11,693 |
) |
|
Deferred revenue |
|
50,189 |
|
|
|
32,803 |
|
|
|
79,347 |
|
|
|
73,003 |
|
|
Other non-current liabilities |
|
(10,821 |
) |
|
|
(1,174 |
) |
|
|
5,249 |
|
|
|
(2,446 |
) |
|
Net cash provided by (used in) operating
activities |
|
24,853 |
|
|
|
(11,720 |
) |
|
|
35,040 |
|
|
|
(77,408 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchases of short-term investments |
|
(242,021 |
) |
|
|
(189,671 |
) |
|
|
(815,697 |
) |
|
|
(821,622 |
) |
|
Proceeds from maturities of short-term investments |
|
207,028 |
|
|
|
108,925 |
|
|
|
734,007 |
|
|
|
231,626 |
|
|
Purchases of property and equipment |
|
(329 |
) |
|
|
(1,052 |
) |
|
|
(1,598 |
) |
|
|
(6,070 |
) |
|
Deconsolidation of Arch, formerly Meltano |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9,620 |
) |
|
Escrow payment related to business combination, after acquisition
date |
|
— |
|
|
|
— |
|
|
|
(2,500 |
) |
|
|
— |
|
|
Other investing activities |
|
(450 |
) |
|
|
— |
|
|
|
(450 |
) |
|
|
— |
|
|
Net cash used in investing activities |
|
(35,772 |
) |
|
|
(81,798 |
) |
|
|
(86,238 |
) |
|
|
(605,686 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock upon exercise of stock
options, including early exercises, net of repurchases |
|
9,810 |
|
|
|
7,061 |
|
|
|
32,302 |
|
|
|
24,515 |
|
|
Issuance of common stock under employee stock purchase plan |
|
5,182 |
|
|
|
4,824 |
|
|
|
12,933 |
|
|
|
14,378 |
|
|
Contributions received from noncontrolling interests, net of
issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
61,726 |
|
|
Partial settlement of acquisition related contingent cash
consideration |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,137 |
) |
|
Net cash provided by financing activities |
|
14,992 |
|
|
|
11,885 |
|
|
|
45,235 |
|
|
|
97,482 |
|
|
Impact of foreign exchange on cash and cash equivalents |
|
(1,386 |
) |
|
|
4,866 |
|
|
|
(3,943 |
) |
|
|
(3,658 |
) |
|
Net increase (decrease) in cash and cash equivalents |
|
2,687 |
|
|
|
(76,767 |
) |
|
|
(9,906 |
) |
|
|
(589,270 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
|
285,309 |
|
|
|
374,669 |
|
|
|
297,902 |
|
|
|
887,172 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
287,996 |
|
|
$ |
297,902 |
|
|
$ |
287,996 |
|
|
$ |
297,902 |
|
|
Reconciliation of cash, cash equivalents and restricted
cash within the condensed consolidated balance sheets to the
amounts shown in the condensed statements of cash flows
above: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
287,996 |
|
|
$ |
295,402 |
|
|
$ |
287,996 |
|
|
$ |
295,402 |
|
|
Restricted cash, included in prepaid expenses and other current
assets |
|
— |
|
|
|
2,500 |
|
|
|
— |
|
|
|
2,500 |
|
|
Total cash, cash equivalents and restricted cash |
$ |
287,996 |
|
|
$ |
297,902 |
|
|
$ |
287,996 |
|
|
$ |
297,902 |
|
|
GitLab Inc.Reconciliation of GAAP to
Non-GAAP(in thousands, except per share
data)(unaudited) |
|
|
| |
Three Months Ended January 31, |
|
Fiscal Year Ended January 31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Gross profit on GAAP basis |
$ |
147,790 |
|
|
$ |
108,669 |
|
|
$ |
520,198 |
|
|
$ |
372,656 |
|
|
Gross margin on GAAP basis |
|
90 |
% |
|
|
88 |
% |
|
|
90 |
% |
|
|
88 |
% |
|
Stock-based compensation expense |
|
1,640 |
|
|
|
1,455 |
|
|
|
6,400 |
|
|
|
5,078 |
|
|
Amortization of acquired intangibles |
|
521 |
|
|
|
521 |
|
|
|
2,067 |
|
|
|
2,067 |
|
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
463 |
|
|
|
— |
|
|
Gross profit on non-GAAP basis |
$ |
149,951 |
|
|
$ |
110,645 |
|
|
$ |
529,128 |
|
|
$ |
379,801 |
|
|
Gross margin on non-GAAP basis |
|
92 |
% |
|
|
90 |
% |
|
|
91 |
% |
|
|
90 |
% |
| |
|
|
|
|
|
|
|
|
Sales and marketing on GAAP basis |
$ |
90,762 |
|
|
$ |
81,513 |
|
|
$ |
356,393 |
|
|
$ |
309,992 |
|
|
Stock-based compensation expense |
|
(17,184 |
) |
|
|
(13,194 |
) |
|
|
(68,766 |
) |
|
|
(48,001 |
) |
|
Restructuring charges |
|
(188 |
) |
|
|
— |
|
|
|
(3,811 |
) |
|
$ |
— |
|
|
Sales and marketing on non-GAAP basis |
$ |
73,390 |
|
|
$ |
68,319 |
|
|
$ |
283,816 |
|
|
$ |
261,991 |
|
| |
|
|
|
|
|
|
|
|
Research and development on GAAP basis |
$ |
52,388 |
|
|
$ |
43,680 |
|
|
$ |
200,840 |
|
|
$ |
156,143 |
|
|
Stock-based compensation expense |
|
(13,887 |
) |
|
|
(9,920 |
) |
|
|
(50,804 |
) |
|
|
(36,325 |
) |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
(2,119 |
) |
|
|
— |
|
|
Research and development on non-GAAP basis |
$ |
38,501 |
|
|
$ |
33,760 |
|
|
$ |
147,917 |
|
|
$ |
119,818 |
|
| |
|
|
|
|
|
|
|
|
General and administrative on GAAP basis |
$ |
39,523 |
|
|
$ |
29,750 |
|
|
$ |
150,405 |
|
|
$ |
117,932 |
|
|
Amortization of acquired intangibles |
|
— |
|
|
|
(74 |
) |
|
|
(100 |
) |
|
|
(295 |
) |
|
Stock-based compensation expense |
|
(10,306 |
) |
|
|
(9,072 |
) |
|
|
(37,079 |
) |
|
|
(33,163 |
) |
|
Restructuring charges |
|
— |
|
|
|
— |
|
|
|
(1,634 |
) |
|
|
— |
|
|
Charitable donation of common stock |
|
(2,675 |
) |
|
|
— |
|
|
|
(10,700 |
) |
|
|
— |
|
|
Changes in the fair value of acquisition related contingent
consideration |
|
— |
|
|
|
1,722 |
|
|
|
— |
|
|
|
659 |
|
|
Other non-recurring charges |
|
(1,718 |
) |
|
|
— |
|
|
|
(2,131 |
) |
|
|
— |
|
|
General and administrative on non-GAAP basis |
$ |
24,824 |
|
|
$ |
22,326 |
|
|
$ |
98,761 |
|
|
$ |
85,133 |
|
| |
|
|
|
|
|
|
|
|
Loss from operations on GAAP basis |
$ |
(34,883 |
) |
|
$ |
(46,274 |
) |
|
$ |
(187,440 |
) |
|
$ |
(211,411 |
) |
|
Stock-based compensation expense |
|
43,017 |
|
|
|
33,641 |
|
|
|
163,049 |
|
|
|
122,567 |
|
|
Amortization of acquired intangibles |
|
521 |
|
|
|
595 |
|
|
|
2,167 |
|
|
|
2,362 |
|
|
Restructuring charges |
|
188 |
|
|
|
— |
|
|
|
8,027 |
|
|
|
— |
|
|
Charitable donation of common stock |
|
2,675 |
|
|
|
— |
|
|
|
10,700 |
|
|
|
— |
|
|
Changes in the fair value of acquisition related contingent
consideration |
|
— |
|
|
|
(1,722 |
) |
|
|
— |
|
|
|
(659 |
) |
|
Other non-recurring charges |
|
1,718 |
|
|
|
— |
|
|
|
2,131 |
|
|
|
— |
|
| Income (loss) from operations
on non-GAAP basis |
$ |
13,236 |
|
|
$ |
(13,760 |
) |
|
$ |
(1,366 |
) |
|
$ |
(87,141 |
) |
| |
|
|
|
|
|
|
|
| Other income (expense), net on
GAAP basis |
$ |
(11,318 |
) |
|
$ |
(1,024 |
) |
|
$ |
(11,826 |
) |
|
$ |
21,585 |
|
|
Gain from deconsolidation of Arch, formerly Meltano |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,798 |
) |
|
Impairment of equity method investment |
|
8,858 |
|
|
|
— |
|
|
|
8,858 |
|
|
|
— |
|
|
Foreign exchange gains (losses), net |
|
2,651 |
|
|
|
997 |
|
|
|
3,157 |
|
|
|
(4,364 |
) |
| Other income (expense), net on
non-GAAP basis |
$ |
191 |
|
|
$ |
(27 |
) |
|
$ |
189 |
|
|
$ |
(577 |
) |
| |
|
|
|
|
|
|
|
| Net loss attributable to
GitLab common stockholders on GAAP basis |
$ |
(36,467 |
) |
|
$ |
(38,733 |
) |
|
$ |
(424,174 |
) |
|
$ |
(172,311 |
) |
|
Stock-based compensation expense |
|
43,017 |
|
|
|
33,641 |
|
|
|
163,049 |
|
|
|
122,567 |
|
|
Amortization of acquired intangibles |
|
521 |
|
|
|
595 |
|
|
|
2,167 |
|
|
|
2,362 |
|
|
Restructuring charges |
|
188 |
|
|
|
— |
|
|
|
8,027 |
|
|
|
— |
|
|
Charitable donation of common stock |
|
2,675 |
|
|
|
— |
|
|
|
10,700 |
|
|
|
— |
|
|
Changes in the fair value of acquisition related contingent
consideration |
|
— |
|
|
|
(1,722 |
) |
|
|
— |
|
|
|
(659 |
) |
|
Gain from deconsolidation of Arch, formerly Meltano |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(17,798 |
) |
|
Impairment of equity method investment |
|
8,858 |
|
|
|
— |
|
|
|
8,858 |
|
|
|
— |
|
|
Loss from equity method investment, net of tax |
|
1,416 |
|
|
|
693 |
|
|
|
3,824 |
|
|
|
2,468 |
|
|
Foreign exchange gains (losses), net |
|
2,651 |
|
|
|
997 |
|
|
|
3,157 |
|
|
|
(4,364 |
) |
|
Other non-recurring charges |
|
1,718 |
|
|
|
— |
|
|
|
2,131 |
|
|
|
— |
|
|
Income tax adjustment(1) |
|
467 |
|
|
|
— |
|
|
|
254,859 |
|
|
|
— |
|
| Net income (loss) attributable
to GitLab common stockholders on non-GAAP basis |
$ |
25,044 |
|
|
$ |
(4,529 |
) |
|
$ |
32,598 |
|
|
$ |
(67,735 |
) |
| |
|
|
|
|
|
|
|
| GAAP net loss per share, basic
and diluted |
$ |
(0.23 |
) |
|
$ |
(0.26 |
) |
|
$ |
(2.75 |
) |
|
$ |
(1.16 |
) |
| Non-GAAP net income (loss) per
share, basic |
$ |
0.16 |
|
|
$ |
(0.03 |
) |
|
$ |
0.21 |
|
|
$ |
(0.46 |
) |
| Non-GAAP net income (loss) per
share, diluted |
$ |
0.15 |
|
|
$ |
(0.03 |
) |
|
$ |
0.20 |
|
|
$ |
(0.46 |
) |
|
|
|
|
|
|
|
|
|
| Shares used in per share
calculation - basic on GAAP basis |
|
156,601 |
|
|
|
150,133 |
|
|
|
154,283 |
|
|
|
148,407 |
|
| Effect of dilutive
securities |
|
8,820 |
|
|
|
— |
|
|
|
8,182 |
|
|
|
— |
|
| Shares used in per share
calculation - diluted on non-GAAP basis |
|
165,421 |
|
|
|
150,133 |
|
|
|
162,465 |
|
|
|
148,407 |
|
(1) Income tax adjustment related to BAPA
negotiations.
| GitLab
Inc.Reconciliation of GAAP Cash Flow from Operating
Activities to Free Cash Flow(in
thousands)(unaudited) |
| |
| |
Three Months Ended January 31, |
|
Fiscal Year Ended January 31, |
| |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Computation of free cash
flow(1) |
|
|
|
|
|
|
|
| GAAP net cash provided by (used in) operating activities |
$ |
24,853 |
|
|
$ |
(11,720 |
) |
|
$ |
35,040 |
|
|
$ |
(77,408 |
) |
|
Less: Purchases of property and equipment |
|
(329 |
) |
|
|
(1,052 |
) |
|
|
(1,598 |
) |
|
|
(6,070 |
) |
|
Non-GAAP free cash flow |
$ |
24,524 |
|
|
$ |
(12,772 |
) |
|
$ |
33,442 |
|
|
$ |
(83,478 |
) |
(1) No income tax payments related to BAPA were
recorded during the periods presented.
Media Contact: Lisa BoughnerVP,
Global Communications GitLab Inc. press@gitlab.com
Investor Contact: James ShenVP
FinanceGitLab Inc.ir@gitlab.com
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