Slide 1: Investor Presentation Fourth Quarter Fiscal Year 2023
Investor Presentation Fourth Quarter Fiscal Year 2023
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 7,002 Base Customers 1 697 >$100K Customers $492M Run-Rate Revenue 1 58% YOY Run-Rate Revenue Growth2 90% Non-GAAP Gross Margin 3 133% Dollar-Based Net Retention Rate 1 100% Remote since inception 1 Platform Note: Figures as of the three months ended January 31, 2023 (Q4 FY23) unl
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 01 BYO DevOps 02 BIC DevOps 03 DIY DevOps 04 DevSecOps Platform Bring-Your-Own Best-In-Class Do-It-Yourself Single application A single application Disparate set of tools Standardized toolchain Custom integration
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 Sec Better insights: End-to-end visibility across the software delivery lifecycle. code deploy pl an operate Greater efficiency: built-in support for automation e
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 2024, 60% of organizations will have switched to value stream delivery platforms
By 2024, 60% of organizations will have switched from multiple point solutions to value stream delivery platforms to streamline application delivery, up from 20% in 2021. 1 Gartner Market Guide for Value Stream Delivery Platforms, Manjunath Bhat, Thomas Murphy, Daniel Betts, Chris Saunderson, Hassan
Slide 12: 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 Source code Service Continuous Package Continuous Container management SAST Auto DevOps Metrics desk integration (CI) registry delivery (CD) scanning (SCM) Per
Slide 13: Our product today
Our product today Over last 3.5 years, significant increase in feature and functionality in every stage GitLab is the most comprehensive DevSecOps platform Plan Create Verify Secure Package Release Configure Monitor Govern Value stream Container Dependency Environment Infrastructure Software bill Gi
Slide 14: 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 15: 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 16: Why customers choose GitLab
Why customers choose GitLab Make developers Deliver better Dunelm increased deployments per week by 7.5x through automation more productive products faster without requiring additional developer and administrator effort. Measure Increase productivity operational Airbus releases features 144x faster
Slide 17: 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 18: Go-to-Market Strategy
Go-to-Market Strategy | 7 | ae
Slide 19: 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 20: 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 21: 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 22: 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 o
Slide 23: Our Customers
Se Our Customers /, rv “a
Slide 24: More than 30 million users; more than 50% of Fortune 100 are customers
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 25: Iron Mountain case study
The vision that GitLab has Problem Iron Mountain had fragmented tooling, gaps that in terms of tying strategy to blocked development and operations communications, heavy administrative burdens, scope and to code is very and difficulties with efficiently securing complex pipeline deployments powerful
Slide 26: Hemmersbach case study
GitLab is the one tool that Problem Hemmersbach needed a platform to connect their code to processes, streamline toolchain connects our whole team. You complexity, and encourage collaboration for a global team always see GitLab open and Solution everything is based on GitLab. GitLab Ultimate Result
Slide 27: Financial Highlights
Financial Highlights | (Ce
Slide 28: Financial Highlights Q4 FY'2023
$492M 58% Run-Rate Revenue1 YoY Run-Rate Revenue Growth2 Financial Highlights 7,002 697 Base Customers1 > $100K Customers Q4 FY’2023 90% 133% Non-GAAP Gross Dollar-Based Net Margin3 Retention 1 Definition can be found in the Appendix. 2 Represents growth in revenue from annualized Q4 FY22 to annuali
Slide 29: Strong Momentum at Scale
Strong Momentum at Scale 58% 1 Run-Rate Revenue (millions) YOY Growth 1 Definition can be found in the Appendix.
Slide 30: Growing Customer Base
Growing Customer Base Base Customers 1 Customers Generating > $100k ARR 1 Definition can be found in the Appendix.
Slide 31: 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 32: 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 33: Enduring Tailwinds
Enduring Tailwinds Platform shift is still early, estimated $40B TAM High productivity helps reduce growing cost of quality engineers Ultimate penetration has room to expand Large and growing number of open source registrations Strong ARPU growth
Slide 34: Financial Outlook
Financial Outlook First Quarter and Fiscal Year 2024 ($ in millions, except per share data) Q1 FY 2024 Guidance FY 2024 Guidance Revenue $117.0 - $118.0 $529.0 - $533.0 Non-GAAP operating loss $(27.0) - $(26.0) $(64.0) - $(59.0) Non-GAAP net loss per share $(0.15) - $(0.14) $(0.29) - $(0.24) Note: N
Slide 35: GAAP to Non-GAAP Reconciliation: Gross Profit
GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) FY 2022 FY 2023 Q4 FY22 Q4 FY23 GAAP Gross Profit $222,668 $372,656 $68,623 $108,669 Add: Stock-based Compensation Expense $1,300 $5,078 $578 $1,455 Add: Amortization of Intangible Assets $334 $2,067 $334 $521 Non-GAAP Gross Profit $224,3
Slide 36: GAAP to Non-GAAP Reconciliation: Sales & Marketing
GAAP to Non-GAAP Reconciliation Sales & Marketing Expense ($ in thousands) FY 2022 FY 2023 Q4 FY22 Q4 FY23 Sales & Marketing Expense $190,754 $309,992 $57,192 $81,513 Less: Stock-based Compensation Expense $(10,550) $(48,001) $(4,862) $(13,194) Non-GAAP Sales & Marketing Expense $180,204 $261,991 $5
Slide 37: GAAP to Non-GAAP Reconciliation: Research & Development
GAAP to Non-GAAP Reconciliation Research & Development Expense ($ in thousands) FY 2022 FY 2023 Q4 FY22 Q4 FY23 Research & Development Expense $97,217 $156,143 $28,610 $43,680 Less: Stock-based Compensation Expense $(8,305) $(36,325) $(3,652) $(9,920) Non-GAAP Research & Development Expense $88,912
Slide 38: GAAP to Non-GAAP Reconciliation: General & Administrative
GAAP to Non-GAAP Reconciliation General & Administrative Expense ($ in thousands) FY 2022 FY 2023 Q4 FY22 Q4 FY23 General & Administrative Expense $63,654 $117,932 $23,378 $29,750 Less: Stock-based Compensation Expense $(9,854) $(33,163) $(3,675) $(9,072) Less: Amortization of Acquired Intangibles $
Slide 39: GAAP to Non-GAAP Reconciliation: Operating Loss
GAAP to Non-GAAP Reconciliation Operating Loss ($ in thousands) FY 2022 FY 2023 Q4 FY22 Q4 FY23 GAAP Operating Loss $(128,957) $(211,411) $(40,557) $(46,274) Add: Stock-based Compensation Expense $30,009 $122,567 $12,767 $33,641 Add: Amortization of Intangible Assets $665 $2,362 $414 $595 Add: Chang
Slide 40: GAAP to Non-GAAP Reconciliation: Net Loss
GAAP to Non-GAAP Reconciliation Net Loss Attributable to GitLab ($ in thousands) FY 2022 FY 2023 Q4 FY22 Q4 FY23 Net Loss Attributable to GitLab $(155,138) $(172,311) $(45,785) $(38,733) Add: Stock-based Compensation Expense $30,009 $122,567 $12,767 $33,641 Add: Amortization of Acquired Intangibles
Slide 41: Appendix
Appendix
Slide 42: 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 43: All-remote Company since 2014
All-remote 2,100+ 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 44: 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 45: Thank you
& GitLab Thank you