Slide 1: Investor Presentation Second Quarter Fiscal Year 2024
Investor Presentation Second Quarter Fiscal Year 2024
Slide 2: Forward-looking statements
This presentation contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to,
Slide 3: GitLab at a Glance
GitLab at a Glance 7,815 Base Customers 1 810 >$100K Customers $558M Run-Rate Revenue 1 38% YOY Run-Rate Revenue Growth2 91% Non-GAAP Gross Margin 3 124% Dollar-Based Net Retention Rate 1 100% Remote since inception 1 Platform Note: Figures as of the three months ended July 31, 2023 (Q2 FY24) unless
Slide 4: Every company must be great at developing, securing, and deploying software
Every company must be great at developing, securing, and deploying software. While cutting costs.
Slide 5: High growth market opportunity
High growth market opportunity $40B 85% 69% estimated total of organizations are of organizations would like addressable market* using 2-10 DevOps to consolidate their tools** toolchains** Sources: * TAM based on GitLab internal analysis; ** GitLab 2022 DevSecOps Report
Slide 6: DIY DevOps is getting exponentially harder
DIY DevOps is getting exponentially harder Complexity Exponential growth of project tool integrations DevOps maturity => More tools per project No. of project Microservices => More projects tool integrations No. of tools No. of projects Time
Slide 7: The four phases of DevOps
The four phases of DevOps BYO DevOps BIC DevOps DIY DevOps DevSecOps Platform Bring-Your-Own Best-In-Class Do-It-Yourself Single application Disparate set of Standardized toolchain Custom integrations for All of the essential DevSecOps tools in a single redundant tools with no integration a standard
Slide 8: GitLab is the most comprehensive DevSecOps Platform
GitLab is the most comprehensive DevSecOps Platform Empower development, security, and operations teams to build better software, faster Save costs Greater efficiency Save on integration Faster cycle time
Slide 9: One workflow to unite your developers, security, and operations teams
One workflow to unite your developers, security, and operations teams Plan & Create Integrate & Verify Deploy & Operate Monitor & Improve
Slide 10: A single application enables executive visibility across value streams
A single application enables executive visibility across value streams Executive dashboards without siloed views. Bring together all metrics from within and outside of GitLab: DORA4, Value Stream Analytics, DevOps Adoption, Observability. Improved collaboration and understanding via a single place f
Slide 11: By 2027, 75% of organizations will have switched to DevOps platforms
Organizations 100 80 75% By 2027, 75% of organizations will have switched from multiple point 60 solutions to DevOps platforms to streamline application delivery, 40 which is an increase from 25% 25% in 2023. 20 % 2023 2027 Charts/graphics created by GitLab based on Gartner research. Source: Gartner
Slide 12: 2023 Gartner Magic Quadrant for DevOps Platforms
2023 Gartner® Magic Quadrant™ for DevOps Platforms GitLab recognized as a Leader Gartner positioned GitLab as highest in Ability to Execute. According to Gartner, Leaders execute well against their current vision and are well-positioned for tomorrow. Source: Gartner, Magic Quadrant for DevOps Platfo
Slide 13: GitLab recognized as the only Leader
GitLab recognized as the only Leader The Forrester WaveTM: Integrated Software Delivery Platforms, Q2 2023 GitLab is great for enterprises wishing to consolidate their best-of-breed toolchain into one high-performing ISDP. Source: The Forrester WaveTM: Integrated Software Delivery Platforms, Q2 2023
Slide 14: Our product in 2019
Our product in 2019 GitLab was known for Source Code Management and CI/CD Plan Create Verify Secure Package Release Configure Monitor Govern Service Source code Continuous Package Continuous Container SAST Auto DevOps Metrics desk management integration (CI) registry delivery (CD) scanning Performan
Slide 15: Our product today
Our product today Over last 4 years, significant increase in feature and functionality in every stage GitLab is the most comprehensive DevSecOps platform Plan Create Verify Secure Package Deploy Monitor Govern Analyze Value stream Container Dependency Environment Dependency GitLab CLI Review apps Se
Slide 16: Open core drives innovation
Open core drives innovation Dual Flywheel Approach: • Innovation from GitLab • Innovation from the wider community Every quarter hundreds of improvements are contributed by our customers and users
Slide 17: Significant ROI and short payback period
Significant ROI and short payback period 427% ROI for revenue-generating applications Much faster cycle time Revenue acceleration Better user experience Higher productivity < 6 months Fewer tools Fewer software vendors Lower integration costs License cost reduction Payback period of less than 6 mont
Slide 18: GitLab Duo
GitLab Duo The Suite of AI Capabilities Powering Workflows Throughout the Software Delivery Lifecycle Improve DevSecOps workflow efficiency by 10x by Improved security applying AI assisted workflows to all teams involved in delivering software value Predictive Faster analytics deployments Privacy-Fi
Slide 19: Enterprise-grade and privacy-first AI
Keep your proprietary code With Code Suggestions, you keep Enterprise-grade your proprietary source code secure within GitLab's cloud infrastructure and this code isn't used as training and privacy-first AI data. IP Protection, Privacy, and Compliance are concerns, especially at enterprise level unn
Slide 20: Why customers choose GitLab
Why customers choose GitLab Make developers Deliver better more productive products faster Airbus releases features 144x faster with GitLab Measure Increase productivity operational and efficiency efficiency Iron Mountain saw $150k in approximate cost savings per year Secure the Reduce security soft
Slide 21: Competitive differentiators
Competitive differentiators DevSecOps ● An all-in-one DevSecOps solution with security integrated throughout Platform the platform ● SaaS for customers who want to consume as a service Flexibility ● Self-Managed for customers who want deployment control Cloud ● Deploy anywhere enabling multi-cloud s
Slide 22: GitLab is the only complete DevSecOps Platform
GitLab is the only complete DevSecOps Platform GitLab is more than just a developer tool for writing and sharing code. It's the only complete AI-powered DevSecOps platform for the entire software development lifecycle (SDLC) where enterprises build mission-critical software. AI-Powered Dev Sec Ops P
Slide 23: Go-to-Market Strategy
Go-to-Market Strategy | 7 | ae
Slide 24: Leading the category via multi-faceted go-to-market
Leading the category via multi-faceted go-to-market High value enterprise sales ● Value Stream Assessments ● Top Strategic Accounts Large Enterprise High velocity Mid-Market inside sales Small and Medium Business Product-led growth
Slide 25: Land and expand model
y urne he jo n gt alo ne yo eb on ced pla dis are ols int to Po Expand to more Land and Land with developers departments Uptier to expand model on Create & Verify Expand to Ultimate more use cases Va lue in cre ase sw it h G it Lab ad op tio n
Slide 26: Investing in building our ecosystem
Investing in building our ecosystem Cloud Partners Technology Partners Service Partners Allow GitLab to deliver Integrate with GitLab to Sales and integration partners better software faster. Our deliver customized DevOps that help customers achieve cloud native integrations are solutions across ind
Slide 27: All users in a company are on the same tier
All users in a company are on the same tier Fastest Growing Tier Free Premium Ultimate $ 0 per user per month Buyer Persona: Individual Contributors $ 29 per user per month Buyer Persona: Directors $ 99 per user per month Buyer Persona: Executives (all users within organization (all users within org
Slide 28: Our Customers
Se Our Customers /, rv “a
Slide 29: More than 30 million users; more than 50% of Fortune 100
Financial Services Public Sector / Education More than 30 million users Consumer / More than 50% of Fortune 100 Retail are GitLab customers Technology / Internet Transportation / Automotive
Slide 30: Navy Black Pearl case study
Challenge “We’re hoping to commoditize all of that Navy Black Pearl, the DevSecOps service developed and tooling, and that way people can skip managed by Sigma Defense that creates mission that step and focus on what DevSecOps applications for the U.S. Department of Navy, wanted to simplify and mode
Slide 31: CARFAX case study
With DevSecOps, Challenge CARFAX development teams had amassed DevOps tools that were not meeting needs and security is always creating challenges. In addition to their efficiency and productivity concerns, CARFAX development front and center. It’s teams needed a way to find vulnerabilities earlier.
Slide 32: Financial Highlights
Financial Highlights | (Ce
Slide 33: Financial Highlights
$558M 38% Run-Rate Revenue1 YoY Run-Rate Revenue Growth2 Financial Highlights 7,815 810 Base Customers1 > $100K Customers Q2 FY’2024 91% 124% Non-GAAP Gross Dollar-Based Net Margin3 Retention 1 Definition can be found in the Appendix. 2 Represents growth in revenue from annualized Q2 FY23 to annuali
Slide 34: Strong Momentum at Scale
Strong Momentum at Scale 38% 1 Run-Rate Revenue (millions) YOY Growth 1 Definition can be found in the Appendix.
Slide 35: Growing Customer Base
Growing Customer Base Base Customers 1 Customers Generating > $100k ARR 1 Definition can be found in the Appendix.
Slide 36: Continued Investment in Growth with Significant Operating Leverage
Continued Investment in Growth with Significant Operating Leverage Non-GAAP Gross Margin 1 Non-GAAP Operating Expenses 1 (% of Revenue) 1 Non-GAAP metrics-see Appendix for reconciliation with most directly comparable GAAP figure.
Slide 37: Driving Operating Efficiency While Maintaining Growth
Driving Operating Efficiency While Maintaining Growth Non-GAAP Operating Loss1 (% of Revenue) GAAP Operating Cash Flow (% of Revenue) Increasing operating leverage Cash efficient business 1 Non-GAAP metrics-see Appendix for reconciliation with most directly comparable GAAP figure.
Slide 38: Enduring Tailwinds
Enduring Tailwinds Platform shift is still early, estimated $40B TAM High productivity helps reduce growing cost of quality engineers Ultimate penetration has room to expand Large and growing number of open source registrations Strong ARPU growth
Slide 39: Financial Outlook
Financial Outlook Third Quarter and Fiscal Year 2024 ($ in millions, except per share data) Q3 FY 2024 Guidance FY 2024 Guidance Revenue $140.0 - $141.0 $555.0 - $557.0 Non-GAAP operating loss $(6.0) - $(5.0) $(33.0) - $(30.0) Non-GAAP net loss per share $(0.02) - $(0.01) $(0.08) - $(0.05) Note: Non
Slide 40: GAAP to Non-GAAP Reconciliation: Gross Profit
GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) FY 2022 FY 2023 Q2 FY23 Q2 FY24 GAAP Gross Profit $222,668 $372,656 $88,011 $124,885 Stock-based Compensation Expense $1,300 $5,078 $1,585 $1,698 Amortization of Intangible Assets $334 $2,067 $521 $521 Restructuring charges $0 $0 $0 $46 N
Slide 41: GAAP to Non-GAAP Reconciliation: Sales & Marketing
GAAP to Non-GAAP Reconciliation Sales & Marketing Expense ($ in thousands) FY 2022 FY 2023 Q2 FY23 Q2 FY24 Sales & Marketing Expense $190,754 $309,992 $80,689 $92,116 Stock-based Compensation Expense $(10,550) $(48,001) $(14,851) $(21,295) Restructuring charges $0 $0 $0 $(118) Non-GAAP Sales & Marke
Slide 42: GAAP to Non-GAAP Reconciliation: Research & Development
GAAP to Non-GAAP Reconciliation Research & Development Expense ($ in thousands) FY 2022 FY 2023 Q2 FY23 Q2 FY24 Research & Development Expense $97,217 $156,143 $39,520 $49,007 Stock-based Compensation Expense $(8,305) $(36,325) $(11,339) $(12,477) Restructuring charges $0 $0 $0 $12 Non-GAAP Research
Slide 43: GAAP to Non-GAAP Reconciliation: General & Administrative
GAAP to Non-GAAP Reconciliation General & Administrative Expense ($ in thousands) FY 2022 FY 2023 Q2 FY23 Q2 FY24 General & Administrative Expense $63,654 $117,932 $33,104 $37,819 Stock-based Compensation Expense $(9,854) $(33,163) $(9,972) $(10,898) Amortization of Acquired Intangibles $(331) $(295
Slide 44: GAAP to Non-GAAP Reconciliation: Operating Loss
GAAP to Non-GAAP Reconciliation Operating Loss ($ in thousands) FY 2022 FY 2023 Q2 FY23 Q2 FY24 GAAP Operating Loss $(128,957) $(211,411) $(65,302) $(54,057) Stock-based Compensation Expense $30,009 $122,567 $37,747 $46,368 Amortization of Intangible Assets $665 $2,362 $595 $546 Restructuring charge
Slide 45: GAAP to Non-GAAP Reconciliation: Net Loss
GAAP to Non-GAAP Reconciliation Net Loss Attributable to GitLab ($ in thousands) FY 2022 FY 2023 Q2 FY23 Q2 FY24 Net Loss Attributable to GitLab $(155,138) $(172,311) $(59,024) $(50,080) Amortization of Acquired Intangibles $665 $2,362 $595 $546 Stock-based Compensation Expense $30,009 $122,567 $37,
Slide 46: Appendix
Appendix
Slide 47: Definitions
Definitions Customer: a single organization with separate subsidiaries, segments, or divisions that use The one DevOps Platform is considered a single customer for determining each organization’s ARR. Reseller or distributor channel partners are not counted as customers. In cases where customers sub
Slide 48: All-remote Company since 2014
All-remote 2,000+ 60+ Company Team Members Countries since 2014 ● Wider, more diverse, and more uniquely skilled global talent pool 2,700+ 0 ● Measurable objectives > prescribed hours Handbook Webpages Offices ● Shifts based on when employees are most productive ● Engaged and passionate team ● No ph
Slide 49: Driven by a Distinguished Company Culture
Driven by a Distinguished Company Culture Results CREDIT Value Hierarchy Iteration Transparency Prioritizes Results Collaboration Diversity, Efficiency inclusion and belonging 20 Documented ways in which we reinforce Our Values
Slide 50: Thank you
& GitLab Thank you