Slide 1: Investor Presentation Fourth Quarter Fiscal Year 2024
Investor Presentation Fourth 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 8,602 Base Customers 1 955 >$100K Customers 96 >$1M Customers $655M Run-Rate Revenue1 92% Non-GAAP Gross Margin 1 130% Dollar-Based Net Retention Rate 1 33% YOY Run-Rate Revenue Growth 1 Platform Note: Figures as of the three months ended January 31, 2024 (Q4 FY24) unless otherwis
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. © 2024 GitLab Inc.
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 © 2024 GitLab
Slide 6: The Problem
GitHub BitBucket Digital.ai The Problem Synopsys Jenkins Most environments today look like this… Jfrog Jira Datadog © 2024 GitLab Inc.
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 © 2024 GitLab Inc.
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 © 2024 GitLab Inc.
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 Explanation Code Review Summary Explanation Root Cause Analysis Vulnerability Resolution Discussion Summary App
Slide 11: A DevSecOps platform enables engineering efficiency
Fast A DevSecOps platform enables engineering efficiency © 2024 GitLab Inc.
Slide 12: A DevSecOps platform enables end-to-end governance
Secure A DevSecOps platform enables end-to-end governance © 2024 GitLab Inc.
Slide 13: A DevSecOps platform enables visibility across value streams
Efficient A DevSecOps platform enables visibility across value streams © 2024 GitLab Inc.
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 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 16: Our product today
Our product today Over last 5 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 Value stream Container Dependency Environment Dependency GitLab CLI Review apps Service de
Slide 17: Our Market Opportunity
Our Market Opportunity © 2024 GitLab Inc.
Slide 18: Large and high growth market opportunity
Large and high growth market opportunity $40B estimated total addressable market* * based on GitLab internal analysis © 2024 GitLab Inc.
Slide 19: By 2027, 75% of organizations will have switched to DevOps platforms
% of Organizations 100 80 75% By 2027, 75% of organizations will 75 70 65 have switched from multiple point 60 solutions to DevOps platforms to streamline application delivery, 40 up from 25% in 2023. 25% 20 % 2023 2027 Charts/graphics created by GitLab based on Gartner research Gartner®, Magic Quad
Slide 20: GitLab recognized as a Leader
GitLab recognized as a Leader 2023 Gartner® Magic Quadrant™ for DevOps Platforms 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 21: GitLab recognized as the only Leader
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 dist
Slide 22: Leading the category via multi-faceted go-to-market
Leading the category via multi-faceted go-to-market High value enterprise sales ● Executive selling ● Top Strategic Accounts Large Enterprise High velocity Mid-Market inside sales Small and Medium Business Product-led growth GitLab Copyright 2024
Slide 23: Land and expand model
y urne th e jo lo ng ea on e by d on place dis ls are t too in Po Expand via more teams Land and and departments Ultimate uptier via integrated Land with developers on secure security, expand model SCM and CI/CD compliance, and value stream Expand with more analytics use cases like Agile Planning an
Slide 24: 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 25: 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 Enterprise pricing Buyer Persona: Executives (all users within organization (all users within organiza
Slide 26: More customer value with additional SKUs
More customer value with additional SKUs New Great for Enterprise GitLab Duo Pro GitLab Enterprise Agile Dedicated Planning $ per user 19 per month Buyer Persona: Individual Contributors Buyer Persona: For Enterprises that need data $ 15 per user per month isolation, residency, and protection • Code
Slide 27: Our Customers
Our Customers GitLab Copyright 2024
Slide 28: 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%+ registered users on of Fortune 100 are Software/Technology the GitLab platform GitLab customers Transportation / Automotive © 2024 GitLab Inc.
Slide 29: Agoda customer story
Dealing with our sprawling toolchain was a real nightmare for our developers. Consolidating on 98%+ GitLab allowed us to give our decrease in build queue time software development team a better experience, and they are a 3,000/ hours quarter lot happier now. developer time save Nadav Robas DevOps an
Slide 30: CACI customer story
We turned to GitLab to enable us to rethink and disrupt the way we develop and build software swiftly 90% without compromising security. savings in labor & administration It’s how we enable our agile software development business. 13x faster security scanning Glenn Kurowski Senior Vice President and
Slide 31: Financial Highlights
Financial Highlights GitLab Copyright 2024
Slide 32: Financial Highlights
$655M 33% Run-Rate Revenue1 YoY Run-Rate Revenue Growth2 Financial Highlights 8,602 955 Base Customers1 > $100K Customers Q4 FY’2024 92% 130% Non-GAAP Gross Dollar-Based Net Margin3 Retention 1 Definition can be found in the Appendix. 2 Represents growth in revenue from annualized Q4 FY23 to annuali
Slide 33: Strong Momentum at Scale
Strong Momentum at Scale 33% 1 Run-Rate Revenue (millions) YOY Growth 1 Definition can be found in the Appendix.
Slide 34: Growing Customer Base
Growing Customer Base Base Customers 1 Customers Generating > $100k ARR 1 Definition can be found in the Appendix.
Slide 35: 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 36: 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 37: Enduring Tailwinds
Enduring Tailwinds Platform shift is still early, estimated $40B TAM High productivity helps reduce growing cost of quality engineers Ultimate penetration has room to expand Large and growing number of open source registrations Strong ARPU growth
Slide 38: Financial Outlook
Financial Outlook First Quarter and Fiscal Year 2025 ($ in millions, except per share data) Q1 FY 2025 Guidance FY 2025 Guidance Revenue $165.0 - $166.0 $725.0 - $731.0 Non-GAAP Operating Income / (Loss) $(13.0) - $(12.0) $5.0 - $10.0 Non-GAAP Net Income per Share $(0.05) - $(0.04) $0.19 - $0.23 Not
Slide 39: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Gross Profit ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 GAAP Gross Profit $372,656 $520,198 $108,669 $147,790 Stock-based Compensation Expense $5,078 $6,400 $1,455 $1,640 Amortization of Intangible Assets $2,067 $2,067 $521 $521 Restructuring Charges $0 $463 $0
Slide 40: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Sales & Marketing Expense ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 Sales & Marketing Expense $309,992 $356,393 $81,513 $90,762 Stock-based Compensation Expense $(48,001) $(68,766) $(13,194) $(17,184) Restructuring Charges $0 $(3,811) $0 $(188) Non-GAAP Sales &
Slide 41: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Research & Development Expense ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 Research & Development Expense $156,143 $200,840 $43,680 $52,388 Stock-based Compensation Expense $(36,325) $(50,804) $(9,920) $(13,887) Restructuring Charges $0 $(2,119) $0 $0 Non-GAAP Re
Slide 42: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation General & Administrative Expense ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 General & Administrative Expense $117,932 $150,405 $29,750 $39,523 Stock-based Compensation Expense $(33,163) $(37,079) $(9,072) $(10,306) Amortization of Acquired Intangibles $(295) $(1
Slide 43: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating Loss ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 GAAP Operating Loss $(211,411) $(187,440) $(46,274) $(34,883) Stock-based Compensation Expense $122,567 $163,049 $33,641 $43,017 Amortization of Intangible Assets $2,362 $2,167 $595 $521 Restructuring Cha
Slide 44: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Net Income / (Loss) Attributable to GitLab ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 Net Loss Attributable to GitLab $(172,311) $(424,174) $(38,733) $(36,467) Amortization of Acquired Intangibles $2,362 $2,167 $595 $521 Stock-based Compensation Expense $122,567
Slide 45: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Operating Cash Flow to Free Cash Flow ($ in thousands) FY 2023 FY 2024 Q4 FY23 Q4 FY24 Net Cash Provided by / (Used in) Operating Activities $(77,408) $35,040 $(11,720) $24,853 Purchases of Property and Equipment $(6,070) $(1,598) $(1,052) $(329) Free Cash Flow $(83,4
Slide 46: Appendix
Appendix GitLab Copyright 2024
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