Bessemer Venture Partners Top Ten Revenue Growers: #6-10

Investing Strategies Abandoned Arctic Outpost #13
1

#6 GitLab. (GTLB)

Revenue Growth: 33.3%

What GitLab does:

“… develops software for the software development lifecycle in the United States, Europe, and the Asia Pacific. It offers GitLab, a DevOps platform, which is a single application that leads to faster cycle time and allows visibility throughout and control over various stages of the DevOps lifecycle. The company helps organizations to plan, build, secure, and deploy software to drive business outcomes.”

What GTLB says about GTLB:

"Software. Faster.

GitLab is the most comprehensive AI-powered DevSecOps Platform."

Current Data:

Current Price: $53.27
52 WK Range: 28.88 - 78.53
Market Cap: $8.4B
YTD Momentum: Negative 15.39%
EV/Forward Revenue: 9.1
Gross Margin: 90.2% (Good Grief 90.2 PERCENT!)

Latest QRTLY Report:

https://seekingalpha.com/pr/19643349?source=content_type%3Areact|section%3Aearnings_summary|section_asset%3Aearnings_history|first_level_url%3Asymbol|button%3Apress-release

CC Transcript:

https://seekingalpha.com/article/4675820-gitlab-inc-gtlb-q4-2024-earnings-call-transcript?source=content_type%3Areact|section%3Aearnings_summary|section_asset%3Aearnings_history|first_level_url%3Asymbol|button%3Atranscript

Highlights:

  • Quarterly revenue of* $163.8 *million, up 33% year-over-year

  • Non-GAAP operating margin of 8%

  • Non-GAAP net income per share of $0.15

  • Our dollar based net retention was 130% in Q4.

  • This quarter, total RPO grew 55% year-over-year to $674 million.

  • SaaS represents over 25% of total revenue and grew 52% year-over-year.

Guidance: Our guidance for first quarter of FY 2025. We expect total revenue of $165 million to $166 million, representing a growth rate of 30% to 31% year-over-year.

Note: They gave guidance for the full year = to 26% growth Y/Y. On the day of their report the stock was trading at $74.47 per share. Today the share price represents a drop of -28.5%. The company is estimated to report next in early June.

A couple of Pro Scouting Reports:

https://seekingalpha.com/article/4691164-gitlab-four-reasons-to-buy?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A1

https://seekingalpha.com/news/4089215-gitlab-gains-as-raymond-james-upgrades-to-outperform?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_news|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A2

I don’t think so.

…

#7

3 Likes
2

Seems I mucked up something…again. Sign - got to get back into posting shape.

So #7 Braze (BRZE)

So…what does BRZE Do Anyway?

“… operates a customer engagement platform that provides interactions between consumers and brands worldwide. The company offers Braze software development kits that automatically manage data ingestion and deliver mobile and web notifications, in-application/in-browser interstitial messages, and content cards.”

Still a little fuzzy on this one so here is what BRZE says about BRZE:

“Built with the speed and breadth to empower marketers to harness their creativity, our customer engagement platform delivers relevant, cross-channel experiences at scale.”

Current Data:

Current Price: $41.72
52 WK Range: 29.07 - 61.53
Market Cap: $4.2B Give or Take
YTD Momentum: Negative 21.5%
EV/Forward Revenue: 6.1
Gross Margin: 67.2

Latest Report:

https://seekingalpha.com/pr/19669187?source=content_type%3Areact|section%3Aearnings_summary|section_asset%3Aearnings_history|first_level_url%3Asymbol|button%3Apress-release

CC Transcript:

Highlights:

  • Revenue was $131.0 million compared to $98.7 million in the fourth quarter of the fiscal year ended January 31, 2023, up 33% year-over year, driven primarily by new customers, upsells, and renewals.

  • Subscription revenue in the quarter was $125.9 million compared to $94.8 million in the fourth quarter of the fiscal year ended January 31, 2023, and professional services and other revenue was $5.1 million compared to $3.9 million in the fourth quarter of the fiscal year ended January 31, 2023.

  • Dollar-based net retention for all customers for the trailing 12 months ended January 31, 2024 and January 31, 2023 was 117% and 124%, respectively; dollar-based net retention for customers with annual recurring revenue (ARR) of $500,000 or more was 120% compared to 126% for the fiscal year ended January 31, 2023.

  • Total customers increased to 2,044 as of January 31, 2024 from 1,770 as of January 31, 2023; 202 of our customers had ARR of $500,000 or more as of January 31, 2024, compared to 156 customers as of January 31, 2023.

Guidance for Q1 of 131 - 132M which computes to 29.7%.

Couple of PRO Articles - Sorta:

https://seekingalpha.com/article/4684390-braze-must-overcome-its-growth-challenges?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A1

https://seekingalpha.com/article/4682014-braze-sales-slowdown-is-because-of-change-in-sales-strategy?source=content_type%3Areact|section%3Asummary|section_asset%3Aall_analysis|first_level_url%3Asymbol|button%3ATitle|lock_status%3ANo|line%3A2

Nothing to see here.
…

This is getting worse by the moment and the fact that some of these companies are in the BVP Top 10 of Revenue Growers is simply indicating how SaaS has cooled off. Course, some of these guys may make a major move but without interest rates cooling off the deck is stacked against them.

Now…I was planning to finish this off this evening but I am really bored with it - so, I am going to go watch Gutfield. I’ll try to rally into the conclusion this tomorrow. Sigh

7 Likes