Customer Growth and Market Reach - GitLab has over 40 million registered users, with more than 50% of Fortune 100 companies as customers[173] - Base Customers increased to 9,519 as of October 31, 2024, up 16% from 8,175 in 2023[182] - $100,000 ARR customers grew to 1,144 as of October 31, 2024, a 31% increase from 874 in 2023[182] - The company had 1,144 customers with ARR over $100,000 as of October 31, 2024, up from 874 customers as of October 31, 2023[222] - The company expects to expand its global sales and marketing team to acquire new customers and increase sales to existing customers[183] - The company aims to continue investing in partnerships and alliances to expand its market reach and drive brand awareness[186] Financial Performance and Revenue Growth - Total revenue increased by 31% to $196.0 million for the three months ended October 31, 2024, and by 32% to $547.8 million for the nine months ended October 31, 2024, driven by demand for the DevSecOps Platform and customer expansion[222] - Subscription revenue (self-managed and SaaS) grew by 34% to $175.3 million for the three months ended October 31, 2024, and by 34% to $489.6 million for the nine months ended October 31, 2024[222] - License revenue (self-managed and other) increased by 11% to $20.8 million for the three months ended October 31, 2024, and by 12% to $58.2 million for the nine months ended October 31, 2024[222] - Net income attributable to GitLab was $29.6 million for the three months ended October 31, 2024, compared to a net loss of $285.2 million for the same period in 2023[217] - Revenue attributed to the variable interest entity, JiHu, was $1.9 million for the three months ended October 31, 2024, and $5.3 million for the nine months ended October 31, 2024[223] Expenses and Cost Management - Sales and marketing expenses increased to $95.3 million for the three months ended October 31, 2024, and to $285.5 million for the nine months ended October 31, 2024, but decreased as a percentage of total revenue to 49% and 52%, respectively[217][220] - Research and development expenses rose to $61.4 million for the three months ended October 31, 2024, and to $176.8 million for the nine months ended October 31, 2024, but decreased as a percentage of total revenue to 31% and 32%, respectively[217][220] - General and administrative expenses increased to $46.0 million for the three months ended October 31, 2024, and to $146.6 million for the nine months ended October 31, 2024, but decreased as a percentage of total revenue to 23% and 27%, respectively[217][220] - Cost of revenue increased by $7.0 million (47%) to $22.1 million for the three months ended October 31, 2024, driven by higher SaaS and cloud usage costs, amortization of intangible assets, and personnel-related expenses[224] - Sales and marketing expenses increased by $8.4 million (10%) to $95.3 million for the three months ended October 31, 2024, primarily due to higher personnel-related costs[228] - Research and development expenses increased by $12.3 million (25%) to $61.4 million for the three months ended October 31, 2024, driven by higher personnel-related costs and hosting expenses[232] - General and administrative expenses increased by $7.1 million (18%) to $46.0 million for the three months ended October 31, 2024, primarily due to higher personnel-related costs and stock-based compensation[235] - Stock-based compensation expense increased by $6.7 million (16%) to $48.0 million for the three months ended October 31, 2024, mainly due to higher RSU expenses[241] - Cost of revenue attributed to JiHu was $0.5 million for the three months ended October 31, 2024, compared to $0.8 million in the same period in 2023[227] - Sales and marketing expenses attributed to JiHu were $1.8 million for the three months ended October 31, 2024, compared to $1.6 million in the same period in 2023[230] - Research and development expenses attributed to JiHu were $0.6 million for the three months ended October 31, 2024, compared to $1.5 million in the same period in 2023[234] - General and administrative expenses attributed to JiHu were $1.6 million for the three months ended October 31, 2024, compared to $1.0 million in the same period in 2023[238] Product and Platform Efficiency - GitLab's DevSecOps Platform reduces software development cycle times by up to 7x, from weeks to minutes[172] - Nearly 700 contributors added over 2,100 merge requests to the core product in 2023, enhancing R&D efforts[175] - GitLab plans to increase R&D expenses, which may impact short-term profitability but drive long-term growth[180] Gross Margin and Profitability - Gross margin decreased by 1% to 89% for the three months ended October 31, 2024, compared to 90% in the same period in 2023[224] - GitLab's SaaS offering is expected to increase cloud-related costs, potentially impacting gross margins[202] Cash Flow and Liquidity - Cash and cash equivalents totaled $0.9 billion as of October 31, 2024, compared to $1.0 billion as of January 31, 2024[259] - Net cash used in operating activities was $127.2 million for the nine months ended October 31, 2024, compared to $10.2 million provided in the same period in 2023[262] - Cash used in investing activities was $8.6 million for the nine months ended October 31, 2024, compared to $50.5 million in the same period in 2023[262] - Cash provided by financing activities was $20.9 million for the nine months ended October 31, 2024, compared to $30.2 million in the same period in 2023[262] - Adjusted free cash flow is a non-GAAP measure used to assess liquidity, calculated as net cash from operating activities less property and equipment purchases plus non-recurring BAPA tax payments[271] - Adjusted free cash flow for 2024 was $9.65 million, compared to a negative $6.697 million in 2023[272] - GAAP net cash used in operating activities for 2024 was $(177.028) million, compared to $(5.961) million in 2023[272] - Income tax payments related to BAPA added $187.735 million to adjusted free cash flow in 2024[272] - As of October 31, 2024, the company had $0.9 billion in cash, cash equivalents, and short-term investments[280] - A 1% change in interest rates would result in a $4.2 million change in the fair value of the investment portfolio[280] - The company has $57.4 million in cash and cash equivalents denominated in currencies other than the U.S. dollar[282] - A 10% change in foreign currency exchange rates would have a material impact on the financial statements[282] Tax and Other Financial Metrics - The effective tax rate increased by 1244.3% for the three months ended October 31, 2024, primarily due to tax effects of BAPA negotiations[249] - Unrecognized tax benefits decreased to $9.9 million as of October 31, 2024, from $396.8 million as of January 31, 2024, due to BAPA settlement[256] - Interest income increased to $12.6 million for the three months ended October 31, 2024, up 16% from $10.9 million in the same period in 2023[245] - Total other income (expense), net increased to $4.99 million for the three months ended October 31, 2024, up 777% from $569,000 in the same period in 2023[245] - The company recorded an impairment charge of $8.9 million in other income (expense), net, reducing the equity method investment value to zero as of January 31, 2024[247] Internal Controls and Financial Reporting - A material weakness in internal control over financial reporting was identified as of October 31, 2024[286] - The material weakness relates to ineffective IT general controls for revenue-related financial reporting systems[287] - Remediation efforts include strengthening IT governance and enhancing user access controls[289] - The company's unaudited condensed consolidated financial statements for the periods presented are in conformity with U.S. GAAP, despite a material weakness in internal control over financial reporting[288] - The company implemented remediation actions in Q3 FY2025 to address the material weakness, including strengthening IT governance and developing training programs on internal controls[289] - The company believes the remediation actions, once fully tested, will be sufficient to address the material weakness, but effectiveness cannot be guaranteed[291] - No other changes in internal control over financial reporting were identified during the quarter ended October 31, 2024, apart from the material weakness and remediation efforts[292] - The company's internal controls over financial reporting are designed to provide reasonable assurance but cannot prevent or detect all errors and fraud[293]

GitLab Inc. (GTLB) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 43.75%. A quarter ago, it was expected that this company would post earnings of $0.10 per share when it actually produced earnings of $0.15, delivering a surprise of 50%.Over the last four quarters, the company has sur ...

Revenue and Financial Performance - Total revenue for Q3 FY 2025 reached $196.0 million, a 31% year-over-year increase[2][4] - Total revenue for the three months ended October 31, 2024, increased to $196.0 million, up from $149.7 million in the same period last year, representing a 31% growth[23] - Subscription revenue for the three months ended October 31, 2024, reached $175.3 million, a 34% increase compared to $131.0 million in the prior year period[23] - Q4 FY 2025 revenue guidance is projected between $205.0 million and $206.0 million, with full-year FY 2025 revenue expected to be between $753 million and $754 million[9] - Net income attributable to GitLab for the three months ended October 31, 2024, was $29.6 million, compared to a net loss of $285.2 million in the prior year period[23] - Net income for the three months ended October 31, 2023 was $28,267, compared to a net loss of $(286,355) in the same period last year[25] - Net income attributable to GitLab common stockholders on a GAAP basis for Q3 2024 was $29.6 million, compared to a loss of $285.2 million in Q3 2023[27] - Non-GAAP net income for Q3 2024 was $39.1 million, up from $14.4 million in Q3 2023[28] - GAAP net income per share, diluted, for Q3 2024 was $0.18, compared to a loss of $1.84 per share in Q3 2023[28] - Non-GAAP net income per share, diluted, for Q3 2024 was $0.23, up from $0.09 in Q3 2023[28] Operating Margins and Profitability - GAAP operating margin improved to (15)% from (27)% year-over-year, while Non-GAAP operating margin expanded to 13% from 3%[4] - Non-GAAP operating income for Q4 FY 2025 is forecasted to be between $28.0 million and $29.0 million, with full-year guidance of $69 million to $70 million[9] - Gross profit for the three months ended October 31, 2024, was $173.9 million, up 29% from $134.6 million in the same period last year[23] - Gross profit on GAAP basis for Q3 2024 was $173.9 million, compared to $134.6 million in Q3 2023, with a gross margin of 89% for both periods[27] - Non-GAAP gross profit for Q3 2024 was $178.4 million, with a gross margin of 91%, consistent with Q3 2023[27] Customer Growth and Retention - Customers with more than $100,000 of ARR grew 31% year-over-year to 1,144[6] - Dollar-Based Net Retention Rate stood at 124%[6] - Total RPO increased 48% year-over-year to $811.8 million, with cRPO growing 39% to $515.2 million[6] Expenses and Investments - Sales and marketing expenses for the three months ended October 31, 2024, were $95.3 million, up 10% from $87.0 million in the prior year period[23] - Research and development expenses for the three months ended October 31, 2024, were $61.4 million, up 25% from $49.1 million in the prior year period[23] - Research and development expenses on a GAAP basis for Q3 2024 were $61.4 million, up from $49.1 million in Q3 2023[27] - Sales and marketing expenses on a GAAP basis for Q3 2024 were $95.3 million, compared to $87.0 million in Q3 2023[27] - Stock-based compensation expense for the three months ended October 31, 2023 was $48,042, up from $41,334 in the prior year period[25] - Stock-based compensation expense for Q3 2024 was $48.0 million, up from $41.3 million in Q3 2023[27] Cash Flow and Financial Position - Cash and cash equivalents decreased to $176.6 million as of October 31, 2024, from $288.0 million as of January 31, 2024[21] - Total current assets decreased to $1,192.2 million as of October 31, 2024, from $1,280.9 million as of January 31, 2024[21] - Total liabilities decreased to $482.4 million as of October 31, 2024, from $699.9 million as of January 31, 2024[21] - Total stockholders' equity increased to $770.2 million as of October 31, 2024, from $617.9 million as of January 31, 2024[21] - Net cash used in operating activities for the three months ended October 31, 2023 was $(177,028), compared to $(5,961) in the same period last year[25] - Purchases of short-term investments for the three months ended October 31, 2023 totaled $(240,136), compared to $(238,680) in the prior year period[25] - Proceeds from maturities of short-term investments for the three months ended October 31, 2023 were $148,763, down from $253,995 in the same period last year[25] - Net cash provided by financing activities for the three months ended October 31, 2023 was $2,922, compared to $4,715 in the prior year period[25] - Cash and cash equivalents at end of period October 31, 2023 were $176,632, down from $285,309 at the end of the same period last year[25] - Adjusted free cash flow for Q3 2024 was $9.7 million, compared to a negative $6.7 million in Q3 2023[29] Product and Market Recognition - GitLab announced the general availability of Advanced SAST for GitLab Ultimate customers, leveraging technology acquired with Oxeye[7] - GitLab was recognized as a Leader in the Gartner® Magic Quadrant™ for DevOps Platforms for the second consecutive year[7] Deferred Revenue and Accounts Receivable - Deferred revenue for the three months ended October 31, 2023 was $19,665, up from $14,270 in the prior year period[25] - Accounts receivable for the three months ended October 31, 2023 was $(32,883), compared to $(30,572) in the same period last year[25] - Accrued expenses and other current liabilities for the three months ended October 31, 2023 was $(220,071), compared to $244,674 in the prior year period[25]

Dollar General NYSE: DG and GitLab NASDAQ: GTLB operate in different industries but offer similar value, trading near long-term lows. Both have the potential to reverse course and trend higher in 2025, but only one is a good buy for investors today. The other faces numerous headwinds that will take several quarters to mitigate, if not longer. Here’s a look at one stock to buy and one to sell before the end of the year.  Get GitLab alerts:Dollar General: Deeper Discounts Are Coming  Dollar General TodayDGDol ...

GitLab (GTLB) is set to release its third-quarter fiscal 2025 results on Dec. 5, 2024.The company anticipates third-quarter fiscal 2025 revenues between $187 million and $188 million, suggesting 25%-26% year-over-year growth. Non-GAAP earnings is anticipated to be between 15 cents and 16 cents.The Zacks Consensus Estimate for revenues is pegged at $187.67 million, indicating an increase of 25.39% from the year-ago quarter’s reported figure.The consensus mark for earnings remained at 16 cents per share in th ...

GitLab (GTLB) shares have jumped 13.3% in a month, underperforming the Zacks Computer & Technology sector’s return of 0.7% and the Zacks Internet Software industry’s appreciation of 3%. The outperformance can be attributed to strong top-line growth expectations in fiscal 2025. Its expanding clientele has been a key catalyst. Solid adoption of its AI-powered DevSecOps platform is aiding prospects.GTLB expects total revenues between $742 million and $744 million, indicating a growth rate of 28% over fiscal 20 ...

NEW YORK, Nov. 03, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of GitLab Inc. (NASDAQ: GTLB) between June 6, 2023 and March 4, 2024, both dates inclusive (the “Class Period”), of the important November 4, 2024 lead plaintiff deadline. SO WHAT: If you purchased GitLab securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO N ...

NEW YORK, Nov. 01, 2024 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of GitLab Inc. (NASDAQ: GTLB) between June 6, 2023 and March 4, 2024, both dates inclusive (the “Class Period”), of the important November 4, 2024 lead plaintiff deadline. SO WHAT: If you purchased GitLab securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO N ...

NEW YORK, Oct. 31, 2024 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of GitLab Inc. (NASDAQ: GTLB). Shareholders who purchased shares of GTLB during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/gitlab-loss-submission-form/?id=110016&from=4 CLASS PERIOD: June 6, 2023 to March 4, 2024 ...

NEW YORK, Oct. 29, 2024 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of GitLab Inc. (NASDAQ: GTLB). Shareholders who purchased shares of GTLB during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/gitlab-loss-submission-form/?id=109661&from=3 CLASS PERIOD: June 6, 2023 to March 4, 2 ...