GitLab jumps into Nasdaq debut after IPO prices exceed expectations

GitLab’s stake surged 35% on Thursday’s opening day after software providers for developer collaboration sold their stake well beyond what was expected in an IPO.

GitLab, which trades Nasdaq under the ticker symbol GTLB, set its share price at $ 77 at the end of Wednesday, with a valuation of about $ 11 billion. GitLab said it is likely to sell its shares for $ 66 to $ 69 per share. The stock closed at $ 103.89, pushing GitLab’s market capitalization to $ 14.9 billion.

Since its inception almost 10 years ago, GitLab has been chasing GitHub in the source repository market. Atlassian Bitbucket. Microsoft With the acquisition of GitHub for $ 7.5 billion in 2018, GitLab has grown rapidly as the only large independent player on the market since then.

Second-quarter revenue was $ 58.1 million, up 69% from the previous year. However, GitLab recorded a net loss of $ 40.2 million in the last quarter, as it spends three-quarters of its revenue on sales and marketing, primarily to build a user base for developers.

People celebrate the Gitlab IPO at Nasdaq on October 14, 2021.

Source: Nasdaq

GitLab has raised nearly $ 650 million in this offering, and investors have purchased over $ 150 million in additional shares from an entity affiliated with GitLab CEO Sid Sijbrandij.

GitLab offers a free version of what the company calls the DevOps platform. This is a term that refers to a combination of developers and IT operations. This software allows users to manipulate, package, release, and monitor code. You can run GitLab in any public cloud, your own data center, or as a service hosted by GitLab.

The company makes money from it Premium products.. For $ 19 per user per month, GitLab includes enterprise tools and faster code reviews, and for $ 99 per user, users can take advantage of features such as security and compliance. GitLab states that about 383 customers spend at least $ 100,000 annually. Prospectus..

“Our future success depends in part on our ability to turn free product offering users into paid customers by selling additional products and upselling additional subscription services.” Said GitLab.

GitLab Net Revenue Maintenance RateIs a key indicator of subscription software companies as it shows customer success, rising to 152% over the July period. It will put it among the top listed software companies.

It’s also the main reason why GitLab is leading multiples of these high revenues as it grows. With a market capitalization of $ 14.9 billion, GitLab trades at about 64 times its annual revenue, below three of the 58 Bessemer Cloud Index companies and above Atlassian.

GitLab is widely known as a pioneer of Remote work.. During the pandemic, companies were forced to adapt to decentralized work, but GitLab started that way and didn’t have to change anything for its 1,350 employees working in more than 65 countries. was. In the prospectus header, Gitlab states that “addresses do not apply.”

Founded in 2012 and incorporated two years later, GitLab is the last $ 6 billion in secondary lendingConfirmed in early 2021, existing shareholders were able to sell up to 20% of their vested interests. This is up from the $ 2.7 billion valuation in the late 2019 funding round.

inside that “Team Handbook” GitLab has publicly announced on its website plans to publish it by November 2020. After a pandemic broke out earlier last year and disrupted the economy as a whole, the company abandoned its debut timing, showing that the listing is still on the roadmap.

According to the prospectus, GitLab co-founder Sijbrandij is the company’s largest stakeholder and has 19% ownership before offering. Khosla Ventures owns 14%, followed by ICONIQ at around 12%, August Capital at 11%, and GV (formerly Google Ventures) at just under 7%.

look: The rise of open source software GitLab jumps into Nasdaq debut after IPO prices exceed expectations

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