Delaware | 001-40895 | 47-1861035 | |||||||||||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
Address Not Applicable1 |
Zip Code Not Applicable1 |
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(Address of Principal Executive Offices) | (Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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Class A Common Stock, par value $0.0000025 per share | GTLB | The Nasdaq Stock Market LLC |
Exhibit No. | Description | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL). |
GitLab Inc. | ||||||||||||||
Dated: September 3, 2024 |
By: | /s/ Brian Robins | ||||||||||||
Brian Robins |
||||||||||||||
Chief Financial Officer |
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Exhibit 99.1 |
Q2 FY 2025 | Q2 FY 2024 | Y/Y Change | |||||||||||||||
Revenue | $ | 182.6 | $ | 139.6 | 31 | % | |||||||||||
GAAP Gross margin | 88 | % | 89 | % | |||||||||||||
Non-GAAP Gross margin | 91 | % | 91 | % | |||||||||||||
GAAP Operating margin | (22) | % | (39) | % | |||||||||||||
Non-GAAP Operating margin | 10 | % | (3) | % | |||||||||||||
GAAP Operating loss | $ | (41.0) | $ | (54.1) | $ | 13.1 | |||||||||||
Non-GAAP Operating income (loss) | $ | 18.2 | $ | (4.3) | $ | 22.5 | |||||||||||
GAAP Net Income (loss) attributable to GitLab | $ | 12.9 | $ | (50.1) | $ | 63.0 | |||||||||||
Non-GAAP Net income attributable to GitLab | $ | 24.5 | $ | 1.9 | $ | 22.6 | |||||||||||
GAAP Net income (loss) per share attributable to GitLab | $ | 0.08 | $ | (0.33) | $ | 0.41 | |||||||||||
Non-GAAP Net income per share attributable to GitLab | $ | 0.15 | $ | 0.01 | $ | 0.14 | |||||||||||
GAAP net cash provided by operating activities | $ | 11.7 | $ | 27.1 | $ | (15.4) | |||||||||||
Non-GAAP adjusted free cash flow | $ | 10.8 | $ | 26.8 | $ | (16.0) |
Q3 FY 2025 Guidance | FY 2025 Guidance | ||||||||||
Revenue | $187.0 - $188.0 | $742.0 - $744.0 | |||||||||
Non-GAAP operating income | $19.0 - $20.0 | $55.0 - $58.0 | |||||||||
Non-GAAP diluted net income per share assuming approximately 168 million and 168 million weighted average shares outstanding during Q3 FY 2025 and FY 2025, respectively. | $0.15 - $0.16 | $0.45 - $0.47 | |||||||||
July 31, 2024(1) |
January 31, 2024(1) |
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ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 438,616 | $ | 287,996 | |||||||
Short-term investments | 644,488 | 748,289 | |||||||||
Accounts receivable, net of allowance for doubtful accounts of $679 and $673 as of July 31, 2024 and January 31, 2024, respectively | 165,001 | 166,731 | |||||||||
Deferred contract acquisition costs, current | 33,841 | 32,300 | |||||||||
Prepaid expenses and other current assets | 32,410 | 45,601 | |||||||||
Total current assets | 1,314,356 | 1,280,917 | |||||||||
Property and equipment, net | 2,899 | 2,954 | |||||||||
Operating lease right-of-use assets | 482 | 405 | |||||||||
Goodwill | 16,017 | 8,145 | |||||||||
Intangible assets, net | 21,867 | 1,733 | |||||||||
Deferred contract acquisition costs, non-current | 15,753 | 19,317 | |||||||||
Other non-current assets | 4,888 | 4,390 | |||||||||
TOTAL ASSETS | $ | 1,376,262 | $ | 1,317,861 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | 3,219 | $ | 1,738 | |||||||
Accrued expenses and other current liabilities | 272,164 | 286,178 | |||||||||
Accrued compensation and benefits | 29,117 | 35,809 | |||||||||
Deferred revenue, current | 362,348 | 338,348 | |||||||||
Total current liabilities | 666,848 | 662,073 | |||||||||
Deferred revenue, non-current | 14,732 | 23,794 | |||||||||
Other non-current liabilities | 6,678 | 14,060 | |||||||||
TOTAL LIABILITIES | 688,258 | 699,927 | |||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred stock, $0.0000025 par value; 50,000 shares authorized as of July 31, 2024 and January 31, 2024; no shares issued and outstanding as of July 31, 2024 and January 31, 2024 | — | — | |||||||||
Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized as of July 31, 2024 and January 31, 2024; 136,462 and 114,670 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively | — | — | |||||||||
Class B Common stock, $0.0000025 par value; 250,000 shares authorized as of July 31, 2024 and January 31, 2024; 23,963 and 42,887 shares issued and outstanding as of July 31, 2024 and January 31, 2024, respectively | — | — | |||||||||
Additional paid-in capital | 1,833,786 | 1,718,661 | |||||||||
Accumulated deficit | (1,191,517) | (1,149,822) | |||||||||
Accumulated other comprehensive income | 570 | 2,335 | |||||||||
Total GitLab stockholders’ equity | 642,839 | 571,174 | |||||||||
Noncontrolling interests | 45,165 | 46,760 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | 688,004 | 617,934 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,376,262 | $ | 1,317,861 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Subscription—self-managed and SaaS | $ | 163,181 | $ | 122,096 | $ | 314,360 | $ | 233,287 | |||||||||||||||
License—self-managed and other | 19,403 | 17,485 | 37,411 | 33,172 | |||||||||||||||||||
Total revenue | 182,584 | 139,581 | 351,771 | 266,459 | |||||||||||||||||||
Cost of revenue: | |||||||||||||||||||||||
Subscription—self-managed and SaaS | 16,630 | 10,871 | 30,469 | 21,762 | |||||||||||||||||||
License—self-managed and other | 4,740 | 3,825 | 9,677 | 6,873 | |||||||||||||||||||
Total cost of revenue | 21,370 | 14,696 | 40,146 | 28,635 | |||||||||||||||||||
Gross profit | 161,214 | 124,885 | 311,625 | 237,824 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 97,778 | 92,116 | 190,202 | 178,653 | |||||||||||||||||||
Research and development | 61,273 | 49,007 | 115,413 | 99,394 | |||||||||||||||||||
General and administrative | 43,168 | 37,819 | 100,655 | 72,067 | |||||||||||||||||||
Total operating expenses | 202,219 | 178,942 | 406,270 | 350,114 | |||||||||||||||||||
Loss from operations | (41,005) | (54,057) | (94,645) | (112,290) | |||||||||||||||||||
Interest income | 12,827 | 9,112 | 24,857 | 16,427 | |||||||||||||||||||
Other income (expense), net | 1,032 | (1,330) | 465 | (1,077) | |||||||||||||||||||
Loss before income taxes and loss from equity method investment | (27,146) | (46,275) | (69,323) | (96,940) | |||||||||||||||||||
Loss from equity method investment, net of tax | — | (917) | — | (1,665) | |||||||||||||||||||
Provision for (benefit from) income taxes | (39,420) | 4,016 | (26,710) | 5,502 | |||||||||||||||||||
Net income (loss) | $ | 12,274 | $ | (51,208) | $ | (42,613) | $ | (104,107) | |||||||||||||||
Net loss attributable to noncontrolling interest | (675) | (1,128) | (918) | (1,558) | |||||||||||||||||||
Net income (loss) attributable to GitLab | $ | 12,949 | $ | (50,080) | $ | (41,695) | $ | (102,549) | |||||||||||||||
Net income (loss) per share attributable to GitLab Class A and Class B common stockholders: | |||||||||||||||||||||||
Basic | $ | 0.08 | $ | (0.33) | $ | (0.26) | $ | (0.67) | |||||||||||||||
Diluted | $ | 0.08 | $ | (0.33) | $ | (0.26) | $ | (0.67) | |||||||||||||||
Weighted-average shares used to compute net income (loss) per share attributable to GitLab Class A and Class B common stockholders: | |||||||||||||||||||||||
Basic | 159,677 | 153,644 | 158,973 | 152,683 | |||||||||||||||||||
Diluted | 166,346 | 153,644 | 158,973 | 152,683 |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||||||
Net income (loss), including amounts attributable to noncontrolling interest | $ | 12,274 | $ | (51,208) | $ | (42,613) | $ | (104,107) | |||||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||
Stock-based compensation expense | 48,969 | 46,368 | 91,221 | 78,698 | |||||||||||||||||||
Change in fair value of acquisition related contingent consideration | 3,750 | — | 3,750 | — | |||||||||||||||||||
Charitable donation of common stock | 2,957 | 2,675 | 5,914 | 5,350 | |||||||||||||||||||
Amortization of intangible assets | 2,333 | 546 | 3,420 | 1,125 | |||||||||||||||||||
Depreciation expense | 744 | 1,114 | 1,681 | 2,206 | |||||||||||||||||||
Amortization of deferred contract acquisition costs | 11,837 | 10,070 | 22,946 | 20,619 | |||||||||||||||||||
Loss from equity method investment | — | 1,161 | — | 2,108 | |||||||||||||||||||
Net amortization of premiums or discounts on short-term investments | (4,241) | (4,898) | (9,141) | (8,494) | |||||||||||||||||||
Unrealized foreign exchange loss (gain), net | (803) | 1,087 | (258) | 825 | |||||||||||||||||||
Other non-cash expense (income), net | (111) | (44) | 301 | (103) | |||||||||||||||||||
Changes in assets and liabilities: | |||||||||||||||||||||||
Accounts receivable | (29,847) | 20,441 | 1,225 | 25,281 | |||||||||||||||||||
Prepaid expenses and other current assets | 2,917 | (2,161) | 13,271 | (4,248) | |||||||||||||||||||
Deferred contract acquisition costs | (12,415) | (9,640) | (20,955) | (18,137) | |||||||||||||||||||
Other non-current assets | (78) | (419) | (497) | (721) | |||||||||||||||||||
Accounts payable | 14 | 1,135 | 1,350 | (1,023) | |||||||||||||||||||
Accrued expenses and other current liabilities | (41,250) | (1,606) | (21,633) | 1,183 | |||||||||||||||||||
Accrued compensation and benefits | 6,250 | 7,732 | (6,902) | 2,611 | |||||||||||||||||||
Deferred revenue | 19,286 | 1,964 | 14,838 | 11,175 | |||||||||||||||||||
Other non-current liabilities | (10,889) | 2,792 | (8,083) | 1,800 | |||||||||||||||||||
Net cash provided by operating activities | 11,697 | 27,109 | 49,835 | 16,148 | |||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||
Purchases of short-term investments | (118,866) | (276,132) | (263,258) | (334,996) | |||||||||||||||||||
Proceeds from maturities of short-term investments | 121,412 | 189,484 | 376,099 | 272,984 | |||||||||||||||||||
Purchases of property and equipment | (851) | (277) | (1,551) | (533) | |||||||||||||||||||
Payments for business combination, net of cash acquired | — | — | (20,210) | — | |||||||||||||||||||
Payments for asset acquisition | (7,314) | — | (7,314) | — | |||||||||||||||||||
Escrow payment related to business combination, after acquisition date | — | (2,500) | — | (2,500) | |||||||||||||||||||
Other investing activities | 457 | — | 457 | — | |||||||||||||||||||
Net cash provided by (used in) investing activities | (5,162) | (89,425) | 84,223 | (65,045) | |||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases | 4,980 | 10,264 | 10,073 | 17,777 | |||||||||||||||||||
Issuance of common stock under employee stock purchase plan | 7,932 | 7,751 | 7,932 | 7,751 | |||||||||||||||||||
Net cash provided by financing activities | 12,912 | 18,015 | 18,005 | 25,528 | |||||||||||||||||||
Impact of foreign exchange on cash and cash equivalents | (1,153) | (907) | (1,443) | (1,308) | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 18,294 | (45,208) | 150,620 | (24,677) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 420,322 | 318,433 | 287,996 | 297,902 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 438,616 | $ | 273,225 | $ | 438,616 | $ | 273,225 | |||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Gross profit on GAAP basis | $ | 161,214 | $ | 124,885 | $ | 311,625 | $ | 237,824 | |||||||||||||||
Gross margin on GAAP basis | 88 | % | 89 | % | 89 | % | 89 | % | |||||||||||||||
Stock-based compensation expense | 2,076 | 1,698 | 3,931 | 3,112 | |||||||||||||||||||
Amortization of acquired intangibles | 2,333 | 521 | 3,420 | 1,025 | |||||||||||||||||||
Restructuring charges | — | 46 | — | 463 | |||||||||||||||||||
Gross profit on non-GAAP basis | $ | 165,623 | $ | 127,150 | $ | 318,976 | $ | 242,424 | |||||||||||||||
Gross margin on non-GAAP basis | 91 | % | 91 | % | 91 | % | 91 | % | |||||||||||||||
Sales and marketing on GAAP basis | $ | 97,778 | $ | 92,116 | $ | 190,202 | $ | 178,653 | |||||||||||||||
Stock-based compensation expense | (19,881) | (21,295) | (37,278) | (35,059) | |||||||||||||||||||
Restructuring charges | (266) | (118) | (996) | (3,677) | |||||||||||||||||||
Sales and marketing on non-GAAP basis | $ | 77,631 | $ | 70,703 | $ | 151,928 | $ | 139,917 | |||||||||||||||
Research and development on GAAP basis | $ | 61,273 | $ | 49,007 | $ | 115,413 | $ | 99,394 | |||||||||||||||
Stock-based compensation expense | (16,114) | (12,477) | (28,450) | (24,179) | |||||||||||||||||||
Restructuring charges | (393) | 12 | (393) | (2,047) | |||||||||||||||||||
Research and development on non-GAAP basis | $ | 44,766 | $ | 36,542 | $ | 86,570 | $ | 73,168 | |||||||||||||||
General and administrative on GAAP basis | $ | 43,168 | $ | 37,819 | $ | 100,655 | $ | 72,067 | |||||||||||||||
Stock-based compensation expense | (10,898) | (10,898) | (21,562) | (16,348) | |||||||||||||||||||
Amortization of acquired intangibles | — | (25) | — | (100) | |||||||||||||||||||
Restructuring charges | (112) | (20) | (388) | (1,638) | |||||||||||||||||||
Charitable donation of common stock | (2,957) | (2,675) | (5,914) | (5,350) | |||||||||||||||||||
Changes in the fair value of acquisition related contingent consideration | (3,750) | — | (3,750) | — | |||||||||||||||||||
Acquisition related expenses | (658) | — | (2,709) | — | |||||||||||||||||||
Other non-recurring charges | 261 | — | (212) | — | |||||||||||||||||||
General and administrative on non-GAAP basis | $ | 25,054 | $ | 24,201 | $ | 66,120 | $ | 48,631 | |||||||||||||||
Loss from operations on GAAP basis | $ | (41,005) | $ | (54,057) | $ | (94,645) | $ | (112,290) | |||||||||||||||
Stock-based compensation expense | 48,969 | 46,368 | 91,221 | 78,698 | |||||||||||||||||||
Amortization of acquired intangibles | 2,333 | 546 | 3,420 | 1,125 | |||||||||||||||||||
Restructuring charges | 771 | 172 | 1,777 | 7,825 | |||||||||||||||||||
Charitable donation of common stock | 2,957 | 2,675 | 5,914 | 5,350 | |||||||||||||||||||
Changes in the fair value of acquisition related contingent consideration | 3,750 | — | 3,750 | — | |||||||||||||||||||
Acquisition related expenses | 658 | — | 2,709 | — | |||||||||||||||||||
Other non-recurring charges | (261) | — | 212 | — | |||||||||||||||||||
Income (loss) from operations on non-GAAP basis | $ | 18,172 | $ | (4,296) | $ | 14,358 | $ | (19,292) | |||||||||||||||
Other income (expense), net on GAAP basis |
$ | 1,032 | $ | (1,330) | $ | 465 | $ | (1,077) | |||||||||||||||
Foreign exchange gains (losses), net |
(867) | 1,268 | (230) | 994 | |||||||||||||||||||
Other income (expense), net on non-GAAP basis | $ | 165 | $ | (62) | $ | 235 | $ | (83) | |||||||||||||||
Net income (loss) attributable to GitLab common stockholders on GAAP basis | $ | 12,949 | $ | (50,080) | $ | (41,695) | $ | (102,549) | |||||||||||||||
Stock-based compensation expense | 48,969 | 46,368 | 91,221 | 78,698 | |||||||||||||||||||
Amortization of acquired intangibles | 2,333 | 546 | 3,420 | 1,125 | |||||||||||||||||||
Restructuring charges | 771 | 172 | 1,777 | 7,825 | |||||||||||||||||||
Charitable donation of common stock | 2,957 | 2,675 | 5,914 | 5,350 |
Changes in the fair value of acquisition related contingent consideration | 3,750 | — | 3,750 | — | |||||||||||||||||||
Acquisition related expenses | 658 | — | 2,709 | — | |||||||||||||||||||
Loss from equity method investment, net of tax | — | 917 | — | 1,665 | |||||||||||||||||||
Foreign exchange gains (losses), net | (867) | 1,268 | (230) | 994 | |||||||||||||||||||
Income tax adjustment | (46,737) | — | (38,082) | — | |||||||||||||||||||
Other non-recurring charges | (261) | — | 212 | — | |||||||||||||||||||
Net income (loss) attributable to GitLab common stockholders on non-GAAP basis | $ | 24,522 | $ | 1,866 | $ | 28,996 | $ | (6,892) | |||||||||||||||
GAAP net income (loss) per share, basic | $ | 0.08 | $ | (0.33) | $ | (0.26) | $ | (0.67) | |||||||||||||||
GAAP net income (loss) per share, diluted | $ | 0.08 | $ | (0.33) | $ | (0.26) | $ | (0.67) | |||||||||||||||
Non-GAAP net income (loss) per share, basic | $ | 0.15 | $ | 0.01 | $ | 0.18 | $ | (0.05) | |||||||||||||||
Non-GAAP net income (loss) per share, diluted | $ | 0.15 | $ | 0.01 | $ | 0.17 | $ | (0.05) | |||||||||||||||
Shares used in per share calculation - basic on GAAP basis | 159,677 | 153,644 | 158,973 | 152,683 | |||||||||||||||||||
Effect of dilutive securities | 6,669 | 7,473 | 7,925 | — | |||||||||||||||||||
Shares used in per share calculation - diluted on non-GAAP basis | 166,346 | 161,117 | 166,898 | 152,683 | |||||||||||||||||||
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
Computation of adjusted free cash flow(1) |
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GAAP net cash provided by operating activities | $ | 11,697 | $ | 27,109 | $ | 49,835 | $ | 16,148 | |||||||||||||||
Less: Purchases of property and equipment | (851) | (277) | (1,551) | (533) | |||||||||||||||||||
Non-GAAP adjusted free cash flow | $ | 10,846 | $ | 26,832 | $ | 48,284 | $ | 15,615 |