GitLab Q3 FY2023 results

GitLab Q3 results are out and they are a beat and raise. Elevated year on year growth and solid sequential growth (all organic) and consistent QoQ revenue addition and with a similar beat as previous quarter.

Growth is coming down but gradually, (75%, 73%, 69%). Net expansion continues above 130%.

Leverage is definitely there and whilst they have yet to reach positive Non GAAP operating margin, they are making strides.

A couple of new product/feature launches were mentioned in the release and earnings call including: GitLab Govern and TeamOps, with GitLab Dedicated for next year.

They are feeling macro a little but still have great pipeline visibility and are able to land and expand effectively. They consider macro to be a mix of headwinds and tailwinds.

Expectations for FY2024 is for revenue growth of 40% or greater, which given guidance from other fast growing tech companies doesn’t feel too bad. They are targeting free cash flow for FY2025.

  • Q3 Non-GAAP EPS of -$0.10 beats by $0.05.

  • Revenue of $112.98M (+69.1% Y/Y) beats by $6.9M.

  • Customers with more than $5,000 of ARR increased to 6,469, up 59% Y/Y.

  • Customers with more than $100,000 of ARR increased to 638, up 49% Y/Y.

  • Non-GAAP operating margin of (19)%.

  • Q4 Outlook: Revenue $119.0 - $120M; Non-GAAP operating loss $(27.0) - $(26.0)M; Non-GAAP net loss per share $(0.15) - $(0.14).

  • 2023 Outlook: Revenue $420.5 - $421.5M; Non-GAAP operating loss $(100.0) - $(99.0)M; Non-GAAP net loss per share $(0.56) - $(0.55).

29 Likes