Naughty and Nice ER Review: GTLB

Note: GitLab last reported back in late March and is not scheduled to report again until early June. So…based on a Champico Industries Executive Board decision (The Board consists of our cook, the landscaper, my granddaughter, and myself) - it was resolved to go ahead and do a Naughty and Nice ER review on the March report and then update the company status in June. Seems reasonable.

GitLab - Software for Software Development with Various Other Software Stuff and So On and So Forth.

GTLB last reported FQ4 2022 on March 15.……

  • Quarterly revenue of $77.8 million, up 69% year-over-year: Strong ATTA BOY!

  • Strong Dollar-Based Net Retention Rate at over 152%: Very Very Strong ATTA BOY!

  • Customers with more than $5,000 of ARR increased to 4,593, up 67% from Q4 of fiscal year 2021; Customers with more than $100,000 of ARR increased to 492, up 74% from Q4 of fiscal year 2021; Customers with more than $1 million of ARR increased to 39, up 95% from Q4 of fiscal year 2021; I’m proud to share that in the fourth quarter, we added over 500 net new base customers: ATTA BOY!

  • The Gartner Market Guide for value stream delivery platforms further supports our view. It states that by 2024, 60% of organizations will have switched to a platform approach. This would represent 300% growth from a 20% adoption rate in 2021: ATTA BOY!

  • What makes GitLab unique is how we both sustain the growth in our cohorts over a long period of time and also expand the size of our cohorts. To illustrate this, cohorts from six years ago are still expanding today: ATTA BOY!

  • Our paid tiers are priced per user with different features per tier. Every user within an organization is on the same plan which helps keep our business model transparent and easy to understand. The Ultimate tier is our fastest-growing tier, now representing 37% of our annual recurring revenue for the fourth quarter compared with 26% of annual recurring revenue in the fourth quarter of FY 2021 and growing in excess of 100%: ATTA BOY!

  • In FY '22, our non-GAAP gross margin held steady at 89%: ATTA BOY!

  • Total RPO grew 95% year-over-year to $312 million: ATTA BOY!

  • Non-GAAP operating loss was $27.4 million or negative 35% of revenue compared to a loss of $22.2 million or negative 48% of revenue in Q4 of the last fiscal year: ATTA BOY!

Note: While there is still a hole in their bucket - they are narrowing the gap.

  • Guidance: For first quarter of FY 2023, we expect total revenue of $77 million to $78 million, representing a growth rate of 54% to 56% year-over-year: ATTA BOY!

  • We expect a non-GAAP operating loss of $142 million to $138 million. And we expect a non-GAAP net loss per share of $1.02 to $0.97, assuming 148 million weighted average shares outstanding: OH POOP!

Note: Nobody is perfect ya know.

Market Reaction to Report: ATTA BOY!…


GTLB LIST and RANKING Assignment: NICE #2

Note: GitLab is attractive especially since falling off the sell-off cliff but it remains to be seen what happens to Guidance once they report in June. If they are rock solid at that time the stock should move nicely. In the meantime - the company is not actually cheap by any means and they are fighting for ground with the big boys. Wyrd Bio Full Araed! This is a White Tent for me.

All the Best,

1 Like