Gitlab (US:GTLB)2025-06-10 21:38User Growth and Customer Base - GitLab has over 50 million registered users, with more than 50% of Fortune 100 companies as customers[127] - Base Customers increased to 10,104 as of April 30, 2025, from 8,976 as of April 30, 2024, representing a 13% increase[134] - Customers with ARR of $100,000 or more rose to 1,288 as of April 30, 2025, up from 1,025 as of April 30, 2024, a 26% increase[145] - The number of customers with ARR over $100,000 increased to 1,288 as of April 30, 2025, up from 1,025 in the same period of 2024[164] Financial Performance - Total revenue increased by $45.3 million, or 27%, to $214.5 million for the three months ended April 30, 2025, compared to $169.2 million for the same period in 2024[163] - Subscription revenue from self-managed and SaaS grew by $43.3 million, or 29%, reaching $194.5 million for the three months ended April 30, 2025[163] - Gross profit for the three months ended April 30, 2025, was $189.5 million, with a gross margin of 88%, down from 89% in the same period of 2024[165] - Net loss attributable to GitLab was $35.9 million for the three months ended April 30, 2025, compared to a net loss of $55.2 million for the same period in 2024[161] Expenses and Investments - Research and development expenses increased by $11.3 million, or 21%, to $65.4 million for the three months ended April 30, 2025[169] - Sales and marketing expenses rose by $15.2 million, or 16%, to $107.6 million for the three months ended April 30, 2025[167] - General and administrative expenses decreased by $6.4 million, or 11%, to $51.1 million for the three months ended April 30, 2025[171] - Stock-based compensation expense increased by $13.6 million, or 32%, to $55.8 million for the three months ended April 30, 2025[173] - GitLab plans to continue investing in research and development, expecting R&D expenses to increase in absolute terms in future periods[133] - Sales and marketing expenses are expected to increase in absolute dollars as GitLab invests in its sales and marketing organization[154] Cash Flow and Liquidity - Cash, cash equivalents, and short-term investments totaled $1.1 billion as of April 30, 2025, compared to $992.4 million as of January 31, 2025, indicating a strong liquidity position[181] - Net cash provided by operating activities was $106.3 million for the three months ended April 30, 2025, a significant increase from $38.1 million in the same period of 2024[183] - Cash used in investing activities was $81.9 million for the three months ended April 30, 2025, primarily for purchases of short-term investments[187] - Adjusted free cash flow for the three months ended April 30, 2025, was $104.1 million, compared to $37.4 million in the same period of 2024[191] Market Strategy and Partnerships - The company employs a "land and expand" strategy, focusing on increasing usage of The DevSecOps platform among existing customers[136] - The company aims to build and maintain successful partnerships and alliances to expand its market reach and drive brand awareness[138] - GitLab's open-core business model allows for community contributions, with nearly 900 contributors making over 3,000 merge requests in 2024[128] Retention and Interest Rates - Dollar-Based Net Retention Rate was 122% as of April 30, 2025, down from 129% in the previous year[136][143] - The Dollar-Based Net Retention Rate was 122% for the three months ended April 30, 2025, down from 129% in the same period of 2024[163] - Interest income decreased by 10% to $10.9 million for the three months ended April 30, 2025, compared to $12.0 million in the same period of 2024, primarily due to lower interest rates[175] - As of April 30, 2025, a hypothetical 1% change in interest rates would result in a fair value change of approximately $5.3 million in the company's investment portfolio[197] Foreign Exchange and Taxation - Foreign exchange losses increased significantly to $9.95 million for the three months ended April 30, 2025, compared to $0.79 million in the same period of 2024, reflecting the revaluation of non-functional currency denominated monetary assets and liabilities[176] - Provision for income taxes decreased by 80.4% to $2.54 million for the three months ended April 30, 2025, down from $12.98 million in the same period of 2024, with an effective tax rate increase of approximately 22.9%[177] - The company has $58.3 million in cash and cash equivalents denominated in currencies other than the U.S. dollar, which may be significantly impacted by fluctuations in foreign currency exchange rates[199]