GitLab Inc. · NASDAQ:GTLB

GitLab — Q2 FY2025 Earnings Presentation

47 slides from GitLab's earnings presentation, September 2024

Slide 1: Investor Presentation Second Quarter Fiscal Year 2025
Investor Presentation Second Quarter Fiscal Year 2025
Slide 2: Forward-looking statements
This presentation contains “forward-looking statementsˮ 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 $730M 31% 10% 6% Q2 FY25 Non-GAAP Adj. Run-Rate Revenue1 YoY Run-Rate Revenue Growth1 Q2 FY25 Non-GAAP Operating Margin1 Free Cash Flow Margin1 126% Dollar-Based Net Retention Rate 1 9,314 Base Customers 1 1,076 $100K ARR Customers1 1 Platform Note: Figures as of the three months
Slide 4: Every organization must be great at developing, securing, & deploying software
Every organization must be great at developing, securing, & deploying software. © 2024 GitLab Inc.
Slide 5: Growing complexity in DevSecOps
Today 64% of organizations say they would like to consolidate their toolchains Growing complexity in DevSecOps 70% say it takes more than one month to onboard new developers 52% of security respondents said their efforts to quickly fix vulnerabilities are often slowed by red tape © 2024 GitLab Inc.
Slide 6: Most environments today look like this
GitHub BitBucket Digital.ai The problem Most environments Synopsys Jenkins today look like this… Jfrog Jira Datadog © 2024 GitLab Inc.
Slide 11: AI-assisted workflows for everyone in the software development lifecycle
25% Time spent coding Improved planning Faster AI-assisted workflows for everyone in coding the software development lifecycle Faster onboarding Throughout the software development lifecycle Improved security Privacy and transparency first Automated testing Better The right AI models for each use ca
Slide 12: AI being used across the entire SDLC
AI being used across the entire SDLC Market opportunity By 2027, the number of platform engineering teams using AI to augment every phase of the SDLC will have increased from 5% to 40%. 5% Today 2027 © 2024 GitLab Inc. Source: Gartner®, How Platform Engineering Teams Can Augment DevOps with AI, Manj
Slide 13: GitLab recognized as a Leader in 2024 Gartner Magic Quadrant
GitLab recognized as a Leader 2024 Gartner® Magic Quadrant™ for According to Gartner, Leaders execute well against their current vision and are well positioned for tomorrow. Source: Gartner, Magic Quadrant for AI Code Assistants, Arun Batchu, Haritha Khandabattu, Philip Walsh, Matt Brasier, August 2
Slide 14: An end-to-end software development and deployment workflow
An end-to-end software development and deployment workflow GitLab Duo Chat Epics Push Code Automated Test Scan Collaboration & Review Epic summary Code explanation Test generation Vulnerability explanation Code review summary and resolution Code refactoring Root cause analysis Discussion summary App
Slide 15: Significant ROI and short payback period
Significant ROI and short payback period 482% Fewer software vendors License cost reduction Better user experience Higher productivity < 6 months Payback period of less than 6 months Fewer tools Lower integration costs Much faster cycle time Revenue acceleration Source: GitLab-commissioned Forrester
Slide 16: 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 SAST Package Continuous Auto DevOps Metrics Container Desk management integration CI registry delivery CD Scanning DAST Kube
Slide 17: Our product
Our product A significant increase in feature and functionality in GitLab is the most comprehensive AI-powered DevSecOps platform every stage over last 5 years Plan Create Verify Secure Package Deploy Monitor Govern AIPowered Value stream GitLab Review Container Dependency Environment Service Depen
Slide 19: Large and high growth market opportunity
Large and high growth market opportunity $40B estimated total addressable market* © 2024 GitLab Inc. * based on GitLab internal analysis
Slide 20: Evolution of organizations expected to adopt a DevOps platform
Evolution of organizations expected to adopt a DevOps platform By 2027, 75% of organizations will have switched from multiple point solutions to DevOps vs platforms to streamline application delivery, up from 25% in 2023. 2023 Organizations 25% 2027 0rganizations 75% © 2024 GitLab Inc. Source: Gartn
Slide 21: GitLab recognized as the only Leader in Forrester Wave
GitLab recognized as the only Leader The Forrester Wave™: 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: Forrester Research, Inc. Unauthorized reproduction, citation, or distr
Slide 22: Leading the category via multi-faceted go-to-market
High value enterprise sales ➔ Executive selling Large ➔ Top strategic accounts Enterprise Leading the category via multi-faceted Mid-Market High velocity inside sales go-to-market Small & Medium Businesses Product-led growth © 2024 GitLab Inc.
Slide 23: Land and expand model
y urne the jo ng alo o ne by d one place re dis sa Expand via more ool nt t Poi teams and Land and departments Ultimate uptier via integrated Land with developers security, expand model on secure SCM CI/CD compliance, Expand with more and value Val use cases like u e in stream analytics cre Agile Pl
Slide 24: GitLab Partner Ecosystem
Consulting Cloud & Cloud & Systems Partner Services Partners Systems Partner ● Co-selling ● Co-innovation ● Platform Integration ISVs GitLab ● Platform Integration ● Co-innovation Partner Resellers & Distributors Ecosystem Resellers & Distributors ISVs ● Co-selling ● Transactional Reach and Scale Co
Slide 25: All users in a company are on the same tier
All users in a company are on the same tier Free Premium Ultimate $0 per user per month $29 per user per month Enterprise pricing Individual Directors Executives Contributors All users within organization have the same plan All users within organization have the same plan • All stages of the DevOps
Slide 26: More customer value with additional SKUs
More customer value with additional SKUs Enterprise Agile GitLab Pro Enterprise Planning Dedicated $19 per user per month • Code completion and $39 • per user per month Organizational user controls $15 per user per month ● Replacement for Jira Enterprise Pricing ● Fully managed by GitLab code genera
Slide 28: Global customers from a wide-array of verticals trust GitLab
Financial Services Global customers Public Sector / Defense / EDU from a wide-array of verticals trust GitLab Consumer / Retail 40M 50% registered users on of Fortune 100 are Software/Technology the GitLab platform GitLab customers Transportation / Automotive © 2024 GitLab Inc.
Slide 29: Customer testimonial: improvements using Code Suggestions
Weʼre already seeing improvements in speed and efficiency using Code Suggestions, test generation and 1.5x faster lead time Chat for Summaries. And weʼre looking to work even more efficiently using AI across the entire SDLC. 50% faster vulnerability detection Mans Booijink Operations Manager cube ©
Slide 30: Intuitive Machines spacecraft testimonial
We built a spacecraft from scratch in five years. If we hadnʼt adopted GitLab, we could not have done that. The lander would not have flown — 10x increase in release cadence not in the timeframe we were working on and with the number of people we had on the team. 99% reduction in downtime 20x James
Slide 31: bol testimonial: flexibility and compliance
GitLab is helping us stay flexible and competitive as we grow, and as the requirements that our software and our developers need to comply with grow. 1000s of developer hours saved by: That's the biggest challenge that we had and we tackled it with GitLab. Automating compliance Guus Houtzager Engine
Slide 33: Financial highlights Q2 FY 2025
$183M 31% Revenue YoY Revenue Growth Financial highlights 126% 6% Dollar-Based Net Adjusted Free Q2 FY 2025 Retention1 Cash Flow Margin2 9,314 1,076 Base Customers1 > $100K Customers 1 Definition can be found in the Appendix. © 2024 GitLab Inc. 2 See Appendix for reconciliation with most directly co
Slide 34: Strong momentum at scale
Strong momentum at scale Run-Rate Revenue1 (millions) 34% 2Year CAGR 1 © 2024 GitLab Inc. Definition can be found in the Appendix.
Slide 35: Growing customer base
Growing customer base Base Customers 1 Customers Generating > $100k ARR 1 © 2024 GitLab Inc. Definition can be found in the Appendix.
Slide 36: Focus on disciplined resource allocation
Focus on disciplined resource allocation Non-GAAP Gross Margin 1 Non-GAAP Operating Expenses 1,2 % of Revenue) 1 © 2024 GitLab Inc. Non-GAAP metrics-see Appendix for reconciliation with most directly comparable GAAP figure. 2 Q1FY25 G&A expenses include $15 million expense related to our in-perso
Slide 37: Investment in growth while expanding margins
Investment in growth while expanding margins Non-GAAP Operating Income / Loss1,2 % of Revenue) Non-GAAP Adjusted Free Cash Flow1 % of Revenue) Significant year-over-year operating margin expansion Cash efficient business 1 © 2024 GitLab Inc. Non-GAAP metrics-see Appendix for reconciliation with
Slide 38: Financial outlook
Financial outlook Third Quarter and Fiscal Year 2025 $ in millions, except per share data) Q3 FY 2025 Guidance FY 2025 Guidance Revenue $187.0  $188.0 $742.0  $744.0 Non-GAAP Operating Income / Loss $19.0  $20.0 $55.0  $58.0 Non-GAAP Net Income per Share $0.15  $0.16 $0.45  $0.47 © 2024 Git
Slide 40: GAAP to Non-GAAP Reconciliation: Gross Profit
GAAP to Non-GAAP Reconciliation Gross Profit $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 GAAP Gross Profit $372,656 $520,198 $124,885 $161,214 Stock-based Compensation Expense $5,078 $6,400 $1,698 $2,076 Amortization of Intangible Assets $2,067 $2,067 $521 $2,333 Restructuring Charges $0 $463 $
Slide 41: GAAP to Non-GAAP Reconciliation: Sales & Marketing
GAAP to Non-GAAP Reconciliation Sales & Marketing Expense $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 Sales & Marketing Expense $309,992 $356,393 $92,116 $97,778 Stock-based Compensation Expense $48,001 $68,766 $21,295 $19,881 Restructuring Charges $0 $3,811 $118 $266 Non-GAAP Sal
Slide 42: GAAP to Non-GAAP Reconciliation: Research & Development
GAAP to Non-GAAP Reconciliation Research & Development Expense $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 Research & Development Expense $156,143 $200,840 $49,007 $61,273 Stock-based Compensation Expense $36,325 $50,804 $12,477 $16,114 Restructuring Charges $0 $2,119 $12 $393 Non-G
Slide 43: GAAP to Non-GAAP Reconciliation: General & Administrative
GAAP to Non-GAAP Reconciliation General & Administrative Expense $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 General & Administrative Expense $117,932 $150,405 $37,819 $43,168 Stock-based Compensation Expense $33,163 $37,079 $10,898 $10,898 Amortization of Acquired Intangibles $295 $
Slide 44: GAAP to Non-GAAP Reconciliation: Operating Loss
GAAP to Non-GAAP Reconciliation Operating Loss $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 GAAP Operating Loss $211,411 $187,440 $54,057 $41,005 Stock-based Compensation Expense $122,567 $163,049 $46,368 $48,969 Amortization of Intangible Assets $2,362 $2,167 $546 $2,333 Restructuring C
Slide 45: GAAP to Non-GAAP Reconciliation: Net Income / Loss
GAAP to Non-GAAP Reconciliation Net Income / Loss Attributable to GitLab $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 Net Loss Attributable to GitLab $172,311 $424,174 $50,080 $12,949 Stock-based Compensation Expense $122,567 $163,049 $46,368 $48,969 Amortization of Acquired Intangibles
Slide 46: Operating Cash Flow to Adjusted Free Cash Flow
GAAP to Non-GAAP Reconciliation Operating Cash Flow to Adjusted Free Cash Flow $ in thousands) FY 2023 FY 2024 Q2 FY24 Q2 FY25 Net Cash Provided by / Used in) Operating Activities $77,408 $35,040 $27,109 $11,697 Purchases of Property and Equipment $6,070 $1,598 $277 $851 Adjusted Free Ca
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 organizationʼs ARR. Reseller or distributor channel partners are not counted as customers. In cases where customers sub

GitLab — Q2 FY2025 Earnings Presentation on 6ix

GitLab — Q2 FY2025 Earnings Presentation

Slide 1: Investor Presentation Second Quarter Fiscal Year 2025

Slide 2: Forward-looking statements

Slide 3: GitLab at a glance

Slide 4: Every organization must be great at developing, securing, & deploying software

Slide 5: Growing complexity in DevSecOps

Slide 6: Most environments today look like this

Slide 7: A comprehensive DevSecOps platform

Slide 8: GitLab enables engineering efficiency

Slide 9: GitLab enables end-to-end governance

Slide 10: GitLab enables end-to-end visibility

Slide 11: AI-assisted workflows for everyone in the software development lifecycle

Slide 12: AI being used across the entire SDLC

Slide 13: GitLab recognized as a Leader in 2024 Gartner Magic Quadrant

Slide 14: An end-to-end software development and deployment workflow

Slide 15: Significant ROI and short payback period

Slide 16: Our product in 2019

Slide 17: Our product

Slide 18: Our market opportunity

Slide 19: Large and high growth market opportunity

Slide 20: Evolution of organizations expected to adopt a DevOps platform

Slide 21: GitLab recognized as the only Leader in Forrester Wave

Slide 22: Leading the category via multi-faceted go-to-market

Slide 23: Land and expand model

Slide 24: GitLab Partner Ecosystem

Slide 25: All users in a company are on the same tier

Slide 26: More customer value with additional SKUs

Slide 27: Our customers

Slide 28: Global customers from a wide-array of verticals trust GitLab

Slide 29: Customer testimonial: improvements using Code Suggestions

Slide 30: Intuitive Machines spacecraft testimonial

Slide 31: bol testimonial: flexibility and compliance

Slide 32: Financial highlights

Slide 33: Financial highlights Q2 FY 2025

Slide 34: Strong momentum at scale

Slide 35: Growing customer base

Slide 36: Focus on disciplined resource allocation

Slide 37: Investment in growth while expanding margins

Slide 38: Financial outlook

Slide 39: Appendix

Slide 40: GAAP to Non-GAAP Reconciliation: Gross Profit

Slide 41: GAAP to Non-GAAP Reconciliation: Sales & Marketing

Slide 42: GAAP to Non-GAAP Reconciliation: Research & Development

Slide 43: GAAP to Non-GAAP Reconciliation: General & Administrative

Slide 44: GAAP to Non-GAAP Reconciliation: Operating Loss

Slide 45: GAAP to Non-GAAP Reconciliation: Net Income / Loss

Slide 46: Operating Cash Flow to Adjusted Free Cash Flow

Slide 47: Definitions