• GitLab Reports Fourth Quarter and Full Year Fiscal 2022 Financial Results

    Source: Nasdaq GlobeNewswire / 14 Mar 2022 16:05:01   America/New_York

    Quarterly revenue of $77.8 million, up 69% year-over-year
    Strong Dollar-Based Net Retention Rate at over 152%

    Fiscal Fourth Quarter Highlights:

    • Total revenue of $77.8 million
    • GAAP operating margin of (52)%; Non-GAAP operating margin of (35)%
    • GAAP net loss per share of $(0.32); Non-GAAP net loss per share of $(0.16)

    Fiscal Year 2022 Highlights:

    • Total revenue of $252.7 million
    • GAAP operating margin of (51)%; Non-GAAP operating margin of (39)%
    • GAAP net loss per share of $(1.95); Non-GAAP net loss per share of $(1.20)

    SAN FRANCISCO, March 14, 2022 (GLOBE NEWSWIRE) -- All-Remote -- GitLab Inc. (NASDAQ: GTLB), The DevOps Platform, today reported financial results for its fourth quarter and full year of fiscal 2022, ended January 31, 2022.

    “We are seeing continued strong momentum for customers adopting our DevOps platform, as revenue increased 69% year-over-year,” said Sid Sijbrandij, GitLab CEO. “This growth was broad-based, driven by strong customer additions across all company sizes. We believe these results demonstrate that the market is moving from DIY DevOps composed of different tools to a DevOps Platform. This shift enables organizations to accelerate the time-to-market of their most important software and applications, providing them with a distinct competitive advantage.”

    “Our Dollar-Based Net Retention increased above 152%, and we continued to achieve success in both upgrading and signing new customers to Ultimate, which remains our fastest growing tier,” said Brian Robins, GitLab CFO. “As we look forward to fiscal year 2023 and beyond, we believe we are addressing a large and early stage market opportunity, and we remain focused on executing to drive sustainable growth and improving profitability over the long term.”

    Fourth Quarter Fiscal Year 2022 Financial Highlights (in millions, except per share data and percentages):

     Q4 FY 2022 Q4 FY 2021 Y/Y Change
    Revenue$77.8  $46.1   69%
    GAAP Gross margin 88%  87%  
    Non-GAAP Gross margin 89%  89%  
    GAAP Operating loss$(40.6) $(128.5) $87.9 
    Non-GAAP Operating loss$(27.4) $(22.2) $(5.2)
    GAAP Net loss attributable to GitLab$(45.8) $(120.0) $74.2 
    Non-GAAP Net loss attributable to GitLab$(23.2) $(24.0) $0.8 
    GAAP Net loss per share attributable to GitLab$(0.32) $(2.31) $1.99 
    Non-GAAP Net loss per share attributable to GitLab$(0.16) $(0.46) $0.30 
                

    Fiscal Year 2022 Financial Highlights (in millions, except per share data and percentages):

     FY 2022 FY 2021 Y/Y Change
    Revenue$252.7  $152.2   66%
    GAAP Gross margin 88%  88%  
    Non-GAAP Gross margin 89%  89%  
    GAAP Operating loss$(129.0) $(213.9) $84.9 
    Non-GAAP Operating loss$(98.3) $(101.8) $3.5 
    GAAP Net loss attributable to GitLab$(155.1) $(192.2) $37.1 
    Non-GAAP Net loss attributable to GitLab$(95.3) $(103.5) $8.2 
    GAAP Net loss per share attributable to GitLab$(1.95) $(3.82) $1.87 
    Non-GAAP Net loss per share attributable to GitLab$(1.20) $(2.06) $0.86 
                

    A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”

    Fourth Quarter Fiscal Year 2022 Business Highlights:

    • 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.
    • Dollar-Based Net Retention Rate above 152% in Q4 of fiscal year 2022.
    • New and expansion customers included Deutsche Telekom, the US Army, and Travis Perkins.
    • Released GitLab versions 14.5, 14.6 and 14.7, marking 124 consecutive months of innovation as of January 31, 2022.
    • Successfully achieved ISO/IEC 27001:2013 certification, demonstrating the maturity and effectiveness of GitLab’s information security program.
    • Acquired Opstrace, a pre-revenue open source observability solution that expands our ability to address a wider variety of customer use cases, and that we believe will help better enable organizations to lower incident rates, increase developer productivity, and lower mean-time-to resolution.

    First Quarter and Fiscal Year 2023 Financial Outlook

    For the first quarter of fiscal year 2023, GitLab Inc. expects (in millions, except share and per share data):

     Q1 FY 2023 Guidance FY 2023 Guidance
    Revenue$77.0 - $78.0 $385.5 - $390.5
    Non-GAAP operating loss$(38.5) - $(37.5) $(142.0) - $(138.0)
    Non-GAAP net loss per share assuming approximately 147 million and 148 million weighted average shares outstanding as of Q1 FY2023 and FY23, respectively$(0.28) - $(0.27) $(1.02) - $(0.97)
        

    This guidance includes $6.5 million and $30.0 million in expenses, for first quarter of fiscal 2023 and full year fiscal 2023, respectively, for our joint venture in China, GitLab Information Technology (Hubei) Co., LTD (“JiHu”) and Meltano, Inc., our majority owned subsidiary, that are consolidated in our financials.

    These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

    Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquired intangible assets, and foreign exchange (gain) loss. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating loss and net loss per share to the corresponding GAAP measures is not available.

    Conference Call Information

    GitLab will host a conference call today, March 14, 2022, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its fourth quarter and full year fiscal 2022 financial results. Investors and analysts should register for the call in advance by visiting https://gitlab.zoom.us/webinar/register/WN_EH9W_TbPR1OPd4u5aeRF0A. A replay of the call will be available on GitLab’s investor relations website (ir.gitlab.com).

    About GitLab

    GitLab is The DevOps Platform that empowers organizations to maximize the overall return on software development by delivering software faster and efficiently, while strengthening security and compliance. GitLab’s single application is easier to use, leads to faster cycle time and allows visibility throughout and control over all stages of the DevOps lifecycle. With GitLab, every team in your organization can collaboratively plan, build, secure, and deploy software to drive business outcomes faster with complete transparency, consistency and traceability.

    Non-GAAP Financial Measures

    GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, and foreign exchange (gain) loss. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

    Forward-Looking Statements

    This press release and the accompanying earnings call contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:

    • our ability to appropriately manage future growth;
    • our revenue growth rate in the future;
    • our ability to achieve and sustain profitability, our business, financial condition, and operating results;
    • our intense competition and loss of market share to our competitors;
    • the market for our services may not grow;
    • a decline in our customer renewals and expansions;
    • our transparency;
    • our publicly available company Handbook;
    • security and privacy breaches;
    • customers staying on our open-source or free SaaS product offering;
    • fluctuations in our operating results;
    • our limited operating history;
    • our ability to manage our growth effectively;
    • our ability to respond to rapid technological changes;
    • our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption;
    • our hiring model;
    • the effects of the recent and developing armed conflict in Ukraine on our business; and
    • general economic conditions and slow or negative growth of our markets.

    Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

    Operating Metrics

    Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.

    Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.

     
    GitLab Inc.
    Condensed Consolidated Balance Sheets
    (in thousands, except per share data)
    (unaudited)
        
     January 31, 2022(1) January 31, 2021
    ASSETS   
    CURRENT ASSETS:   
    Cash and cash equivalents$884,672  $282,850 
    Short-term investments 50,031   — 
    Accounts receivable, net of allowance for doubtful accounts of $1,098 and $1,022 as of January 31, 2022 and January 31, 2021, respectively 77,233   39,651 
    Deferred contract acquisition costs, current 24,363   18,700 
    Prepaid expenses and other current assets 15,544   7,292 
    Total current assets 1,051,843   348,493 
    Property and equipment, net 3,271   — 
    Goodwill 8,145   — 
    Intangible assets, net 6,285   797 
    Deferred contract acquisition costs, non-current 14,743   11,776 
    Other long-term assets 7,151   1,500 
    TOTAL ASSETS$1,091,438  $362,566 
    LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)   
    CURRENT LIABILITIES:   
    Accounts payable$4,984  $3,111 
    Accrued expenses and other current liabilities 24,571   7,348 
    Accrued compensation and benefits 32,820   13,179 
    Deferred revenue, current 179,224   103,543 
    Total current liabilities 241,599   127,181 
    Deferred revenue, non-current 32,568   30,625 
    Other non-current liabilities 18,002   11,078 
    TOTAL LIABILITIES 292,169   168,884 
    Commitments and contingencies   
    CONVERTIBLE PREFERRED STOCK   
    Convertible preferred stock, $0.0000025 par value; no shares and 79,959 shares authorized as of January 31, 2022 and January 31, 2021, respectively; no shares and 79,551 shares issued and outstanding as of January 31, 2022 and January 31, 2021, respectively —   424,904 
    STOCKHOLDERS’ EQUITY (DEFICIT):   
    Preferred stock, $0.0000025 par value; 50,000 shares and no shares authorized as of January 31, 2022 and January 31, 2021, respectively; no shares issued and outstanding as of January 31, 2022 and January 31, 2021, respectively —   — 
    Class A Common stock, $0.0000025 par value; 1,500,000 and 163,000 shares authorized as of January 31, 2022 and January 31, 2021, respectively; 27,141 and 1,151 shares issued and outstanding as of January 31, 2022 and January 31, 2021, respectively —   — 
    Class B Common stock, $0.0000025 par value; 250,000 and 163,000 shares authorized as of January 31, 2022 and January 31, 2021, respectively; 119,747 and 52,468 shares issued and outstanding as of January 31, 2022 and January 31, 2021, respectively —   — 
    Additional paid-in capital 1,320,479   186,892 
    Accumulated deficit (553,337)  (398,199)
    Accumulated other comprehensive income (loss) 7,724   (19,915)
    Total GitLab stockholders' equity (deficit) 774,866   (231,222)
    Noncontrolling interests 24,403   — 
    TOTAL STOCKHOLDERS’ EQUITY (DEFICIT) 799,269   (231,222)
    TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)$1,091,438  $362,566 

    __________
    (1) As of January 31, 2022, the consolidated balance sheet includes assets and liabilities of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD (“JiHu”), of $17.7 million and $3.7 million, respectively. The assets of JiHu can be used only to settle obligations of JiHu and creditors of JiHu do not have recourse against the general credit of the Company.

     
    GitLab Inc.
    Condensed Consolidated Statements of Operations
    (in thousands, except per share data)
    (unaudited)
        
     Three Months Ended January 31, Fiscal Year Ended January 31,
     2022 2021 2022 2021
    Revenue:     
    Subscription—self-managed and SaaS$69,621  $40,509  $226,163  $132,763 
    License—self-managed and other 8,175   5,638   26,490   19,413 
    Total revenue 77,796   46,147   252,653   152,176 
    Cost of revenue:       
    Subscription—self-managed and SaaS 7,302   4,966   23,668   14,453 
    License—self-managed and other 1,871   1,259   6,317   4,010 
    Total cost of revenue 9,173   6,225   29,985   18,463 
    Gross profit 68,623   39,922   222,668   133,713 
    Operating expenses:       
    Sales and marketing 57,192   54,922   190,754   154,086 
    Research and development 28,610   48,701   97,217   106,643 
    General and administrative 23,378   64,755   63,654   86,868 
    Total operating expenses 109,180   168,378   351,625   347,597 
    Loss from operations (40,557)  (128,456)  (128,957)  (213,884)
    Interest income 510   63   736   1,070 
    Other income (expense), net (9,598)  10,005   (30,850)  23,452 
    Loss before income taxes (49,645)  (118,388)  (159,071)  (189,362)
    Provision for (benefit from) income taxes (2,881)  1,650   (1,511)  2,832 
    Net loss$(46,764) $(120,038) $(157,560) $(192,194)
    Net loss attributable to noncontrolling interest (979)  —   (2,422)  — 
    Net loss attributable to GitLab$(45,785) $(120,038) $(155,138) $(192,194)
    Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted$(0.32) $(2.31) $(1.95) $(3.82)
    Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted 144,929   51,956   79,755   50,343 
                    


     
    GitLab Inc.
    Condensed Consolidated Statements of Cash Flows
    (in thousands)
    (unaudited)
       
      Fiscal Year Ended January 31,
      2022 2021
    CASH FLOWS FROM OPERATING ACTIVITIES:    
    Net loss, including amounts attributable to noncontrolling interest $(157,560) $(192,194)
    Adjustments to reconcile net loss to net cash used in operating activities:    
    Stock-based compensation expense  30,009   111,846 
    Amortization of intangible assets  665   222 
    Depreciation expense  543   — 
    Amortization of deferred contract acquisition costs  33,368   18,469 
    Unrealized foreign exchange (gain) loss  20,389   (24,322)
    Other non-cash expense  197   458 
    Changes in assets and liabilities:    
    Accounts receivable  (38,223)  (14,745)
    Prepaid expenses and other current assets  (8,219)  677 
    Costs deferred related to contract acquisition  (42,575)  (34,137)
    Other long-term assets  (3,374)  252 
    Accounts payable  1,877   1,474 
    Accrued expenses and other current liabilities  13,953   733 
    Accrued compensation and benefits  19,755   4,646 
    Deferred revenue  79,074   52,382 
    Other long-term liabilities  307   659 
    Net cash used in operating activities  (49,814)  (73,580)
    CASH FLOWS FROM INVESTING ACTIVITIES:    
    Purchases of short-term investments  (100,031)  — 
    Proceeds from maturities of short-term investments  50,000   — 
    Purchases of property and equipment  (3,541)  — 
    Payments for business combination, net of cash acquired and consideration withheld in an escrow  (323)  — 
    Payments for asset acquisitions  —   (933)
    Other investing activities  —   91 
    Net cash used in investing activities  (53,895)  (842)
    CASH FLOWS FROM FINANCING ACTIVITIES:    
    Proceeds from initial public offering, net of underwriting discounts  654,552   — 
    Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases  25,354   13,765 
    Proceeds from warrants exercised  86   — 
    Repurchase of common stock in a tender offer  (590)  (820)
    Contributions received from noncontrolling interests  26,450   — 
    Payments of deferred offering costs  (4,667)  — 
    Net cash provided by financing activities  701,185   12,945 
    Impact of foreign exchange on cash, cash equivalents and restricted cash  6,846   1,000 
    Net increase (decrease) in cash, cash equivalents and restricted cash  604,322   (60,477)
    Cash, cash equivalents and restricted cash at beginning of period  282,850   343,327 
    Cash, cash equivalents and restricted cash at end of period $887,172  $282,850 
    Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the condensed consolidated statements of cash flows above:    
    Cash and cash equivalents $884,672  $— 
    Restricted cash, included in other long-term assets  2,500   — 
    Total cash, cash equivalents and restricted cash $887,172  $— 
             


     
    GitLab Inc.
    Reconciliation of GAAP to Non-GAAP
    (in thousands, except per share data)
    (unaudited)
        
     Three Months Ended January 31, Fiscal Year Ended January 31,
     2022 2021 2022 2021
    Gross profit on GAAP basis$68,623  $39,922  $222,668  $133,713 
    Gross margin on GAAP basis 88%  89%  88%  88%
    Stock-based compensation expense 578   979   1,300   1,185 
    Amortization of acquired intangibles 334   —   334   — 
    Gross profit on non-GAAP basis$69,535  $40,901  $224,302  $134,898 
    Gross margin on non-GAAP basis 89%  89%  89%  89%
            
    Sales and marketing on GAAP basis$57,192  $54,922  $190,754  $154,086 
    Stock-based compensation expense (4,862)  (19,185)  (10,550)  (21,504)
    Sales and marketing on non-GAAP basis$52,330  $35,737  $180,204  $132,582 
            
    Research and development on GAAP basis$28,610  $48,701  $97,217  $106,643 
    Stock-based compensation expense (3,652)  (29,617)  (8,305)  (31,519)
    Research and development on non-GAAP basis$24,958  $19,084  $88,912  $75,124 
            
    General and administrative on GAAP basis$23,378  $64,755  $63,654  $86,868 
    Amortization of acquired intangibles (80)  (85)  (331)  (222)
    Stock-based compensation expense (3,675)  (56,387)  (9,854)  (57,638)
    General and administrative on non-GAAP basis$19,623  $8,283  $53,469  $29,008 
            
    Loss from operations on GAAP basis$(40,557) $(128,456) $(128,957) $(213,884)
    Stock-based compensation expense 12,767   106,168   30,009   111,846 
    Amortization of acquired intangibles 414   85   665   222 
    Loss from operations on non-GAAP basis$(27,376) $(22,203) $(98,283) $(101,816)
            
    Other income (expense), net on GAAP basis$(9,598) $10,005  $(30,850) $23,452 
    Foreign exchange (gain) loss 9,437   (10,219)  29,140   (23,423)
    Other income (expense), net on non-GAAP basis$(161) $(214) $(1,710) $29 
            
    Net loss attributable to GitLab common stockholders on GAAP basis$(45,785) $(120,038) $(155,138) $(192,194)
    Stock-based compensation expense 12,767   106,168   30,009   111,846 
    Amortization of acquired intangibles 414   85   665   222 
    Foreign exchange (gain) loss 9,437   (10,219)  29,140   (23,423)
    Net loss attributable to GitLab common stockholders on non-GAAP basis$(23,167) $(24,004) $(95,324) $(103,549)
            
    Net loss per share on GAAP basis$(0.32) $(2.31) $(1.95) $(3.82)
    Non-GAAP adjustments to net loss per share 0.16   1.85   0.75   1.76 
    Net loss per share on non-GAAP basis$(0.16) $(0.46) $(1.20) $(2.06)
    Shares used in per share calculation - diluted on GAAP and non-GAAP basis 144,929   51,956   79,755   50,343 
                    

    Media Contact:
    Rachel Romoff
    GitLab Inc.
    press@gitlab.com

    Investor Contact:
    Jack Andrews
    GitLab Inc.
    ir@gitlab.com


    Primary Logo

Share on,