Slide 1: Investor Presentation Third Quarter Fiscal Year 2024
Investor Presentation Third 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 8,175 Base Customers 1 874 >$100K Customers $599M Run-Rate Revenue 1 7x Improved cycle time with GitLab2 91% Non-GAAP Gross Margin 1 128% Dollar-Based Net Retention Rate 1 32% YOY Run-Rate Revenue Growth 1 Platform Note: Figures as of the three months ended October 31, 2023 (Q3 FY
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: Growing complexity in DevSecOps
Growing complexity in DevSecOps 69% 66% of organizations would like to consolidate their toolchains 84% of developers spend at least a quarter of organizations of their time maintaining and integrating are using between toolchains 2-10 DevOps tools Source: GitLab 2023 DevSecOps Report GitLab Copyrig
Slide 6: The Problem
GitHub BitBucket Digital.ai The Problem Synopsys Jenkins Most environments today look like this… Jfrog Jira Datadog GitLab Copyright
Slide 7: The Solution
The Solution GitLab is the most comprehensive DevSecOps platform Continuous Delivery Software Delivery Value Stream Plan & Create Integrate & Verify Deploy & Operate Secure & Govern Monitor & Improve Single Data Store Continuous Improvement AI-powered GitLab Copyright
Slide 8: AI-assisted workflows for everyone in the software development lifecycle
AI-assisted workflows for everyone in the 25% Time spent software development lifecycle coding Improved planning Throughout the software Faster coding development lifecycle Faster onboarding Privacy and transparency first Improved Best-in-class models security Automated testing Better documentation
Slide 9: One workflow to unite your developers, security, and operations teams
One workflow to unite your developers, security, and operations teams Epics Scan Push Code Automated Test Collaboration & review Approval Milestones Merge Create a merge request Accepted Issues Deploy Assign Issue Release GitLab Copyright
Slide 10: One workflow to unite your developers, security, and operations teams
One workflow to unite your developers, security, and operations teams GitLab Chat Epics Push Code Automated Test Scan Collaboration & review Epic summary Code Test generation Vulnerability Code review summary explanation summary Root cause analysis Discussion summary Approval Milestones Create a mer
Slide 11: A DevSecOps platform enables engineering efficiency
Fast A DevSecOps platform enables engineering efficiency GitLab Copyright
Slide 12: A DevSecOps platform enables end-to-end governance
Secure A DevSecOps platform enables end-to-end governance GitLab Copyright
Slide 13: A DevSecOps platform enables visibility across value streams
Efficient A DevSecOps platform enables visibility across value streams GitLab Copyright
Slide 14: Significant ROI and short payback period
Significant ROI and short payback period 427% ROI for revenue-generating applications 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 accelerati
Slide 15: Our Market Opportunity
Our Market Opportunity GitLab Copyright 2023
Slide 16: Large and high growth market opportunity $40B
Large and high growth market opportunity $40B estimated total addressable market* * based on GitLab internal analysis GitLab Copyright 2023
Slide 17: By 2027, 75% of organizations will have switched to DevOps platforms
Organizations 100 80 75% By 2027, 75% of organizations will 60 have switched from multiple point solutions to DevOps platforms 40 to streamline application delivery, 25% up from 25% in 2023. 20 % 2023 2027 Charts/graphics created by GitLab based on Gartner research. Source: Gartner, Inc.,Magic Quadr
Slide 18: GitLab recognized as a Leader
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 19: 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 20: 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 GitLab Copyright 2023
Slide 21: 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 GitLab Copyright 2023
Slide 22: 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 23: 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 24: Our Customers
Our Customers GitLab Copyright 2023
Slide 25: Global customers from a wide-array of verticals trust GitLab
Financial Services Global customers Public Sector / Education from a wide-array of verticals trust GitLab Consumer / Retail 30M+ 50%+ million users on the of Fortune 100 are Software/Technology GitLab platform GitLab customers Transportation / Automotive GitLab Copyright 2023
Slide 26: Airbus customer story
It’s simple. All teams operate around this one tool. Instantly, that made 114x Increase in product communication easier. release velocity We wouldn’t be where we are today if we didn’t 425% have GitLab in our stack. Increase in project growth in five years (from 50 to 850 projects) Logan Weber Softw
Slide 27: Telekom IT customer story
Time to market was a big issue for us. Before our transformation to Agile and DevOps started, we 6x had release cycles of nearly 18 Faster time to market months in some cases. We've been able to dramatically reduce 13K that to roughly 3 months. Active GitLab users Thorsten Bastian Business Owner IT,
Slide 28: Lockheed Martin customer story
Having GitLab has completely changed the way we approach reusable software because the 80x place where we develop software Faster CI pipeline builds is also the place that other people can share, contribute, and 90% participate in that development. Less time spent on system maintenance Alan Hohn Dir
Slide 29: Financial Highlights
Financial Highlights GitLab Copyright 2023
Slide 30: Financial Highlights Q3 FY'2024
$599M 32% Run-Rate Revenue1 YoY Run-Rate Revenue Growth2 Financial Highlights 8,175 874 Base Customers1 > $100K Customers Q3 FY’2024 91% 128% Non-GAAP Gross Dollar-Based Net Margin3 Retention 1 Definition can be found in the Appendix. 2 Represents growth in revenue from annualized Q3 FY23 to annuali
Slide 31: Strong Momentum at Scale
Strong Momentum at Scale 32% 1 Run-Rate Revenue (millions) YOY Growth 1 Definition can be found in the Appendix.
Slide 32: Growing Customer Base
Growing Customer Base Base Customers 1 Customers Generating > $100k ARR 1 Definition can be found in the Appendix.
Slide 33: 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 34: Driving Operating Efficiency While Maintaining Growth
Driving Operating Efficiency While Maintaining Growth Non-GAAP Operating Income / (Loss)1 (% 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 35: Enduring Tailwinds
Enduring Tailwinds Platform shift is still early, estimated $40B TAM High productivity helps reduce growing cost of quality engineers Ultimate penetration has room to expand Large and growing number of open source registrations Strong ARPU growth
Slide 36: Financial Outlook
Financial Outlook Fourth Quarter and Fiscal Year 2024 ($ in millions, except per share data) Q4 FY 2024 Guidance FY 2024 Guidance Revenue $157.0 - $158.0 $573.0 - $574.0 Non-GAAP Operating Income / (Loss) $5.0 - $6.0 $(10.0) - $(9.0) Non-GAAP Net Income per Share $0.08 - $0.09 $0.12 - $0.13 Note: No
Slide 37: GAAP to Non-GAAP Reconciliation: Gross Profit
GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) FY 2022 FY 2023 Q3 FY23 Q3 FY24 GAAP Gross Profit $222,668 $372,656 $98,417 $134,584 Stock-based Compensation Expense $1,300 $5,078 $1,248 $1,648 Amortization of Intangible Assets $334 $2,067 $521 $521 Restructuring Charges $0 $0 $0 $0 No
Slide 38: GAAP to Non-GAAP Reconciliation: Sales & Marketing
GAAP to Non-GAAP Reconciliation Sales & Marketing Expense ($ in thousands) FY 2022 FY 2023 Q3 FY23 Q3 FY24 Sales & Marketing Expense $190,754 $309,992 $81,080 $86,978 Stock-based Compensation Expense $(10,550) $(48,001) $(12,905) $(16,523) Restructuring Charges $0 $0 $0 $54 Non-GAAP Sales & Marketin
Slide 39: GAAP to Non-GAAP Reconciliation: Research & Development
GAAP to Non-GAAP Reconciliation Research & Development Expense ($ in thousands) FY 2022 FY 2023 Q3 FY23 Q3 FY24 Research & Development Expense $97,217 $156,143 $41,113 $49,058 Stock-based Compensation Expense $(8,305) $(36,325) $(10,030) $(12,738) Restructuring Charges $0 $0 $0 $(72) Non-GAAP Resear
Slide 40: GAAP to Non-GAAP Reconciliation: General & Administrative
GAAP to Non-GAAP Reconciliation General & Administrative Expense ($ in thousands) FY 2022 FY 2023 Q3 FY23 Q3 FY24 General & Administrative Expense $63,654 $117,932 $33,186 $38,815 Stock-based Compensation Expense $(9,854) $(33,163) $(9,525) $(10,425) Amortization of Acquired Intangibles $(331) $(295
Slide 41: GAAP to Non-GAAP Reconciliation: Operating Loss
GAAP to Non-GAAP Reconciliation Operating Loss ($ in thousands) FY 2022 FY 2023 Q3 FY23 Q3 FY24 GAAP Operating Loss $(128,957) $(211,411) $(56,962) $(40,267) Stock-based Compensation Expense $30,009 $122,567 $33,708 $41,334 Amortization of Intangible Assets $665 $2,362 $591 $521 Restructuring Charge
Slide 42: GAAP to Non-GAAP Reconciliation: Net Loss
GAAP to Non-GAAP Reconciliation Net Loss Attributable to GitLab ($ in thousands) FY 2022 FY 2023 Q3 FY23 Q3 FY24 Net Loss Attributable to GitLab $(155,138) $(172,311) $(48,455) $(285,158) Amortization of Acquired Intangibles $665 $2,362 $591 $521 Stock-based Compensation Expense $30,009 $122,567 $33
Slide 43: Appendix
Appendix GitLab Copyright 2023
Slide 44: 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