Gitlab (US:GTLB)2025-12-02 22:43User Growth and Customer Base - GitLab has over 50 million registered users, with more than 50% of Fortune 100 companies as customers[126] - Base Customers increased to 10,475 as of October 31, 2025, from 9,519 as of October 31, 2024, representing a 10% increase[133] - Customers with ARR of $100,000 or more rose to 1,405 as of October 31, 2025, up from 1,144 as of October 31, 2024, a 23% increase[144] Financial Performance - Total revenue for the three months ended October 31, 2025, increased by $48.3 million, or 25%, to $244.4 million compared to $196.0 million for the same period in 2024[162] - Subscription revenue from self-managed and SaaS increased by $48.0 million, or 27%, to $223.3 million for the three months ended October 31, 2025, compared to $175.3 million for the same period in 2024[162] - Gross profit for the three months ended October 31, 2025, was $212.1 million, representing a gross margin of 87%, down from 89% in the same period of 2024[167] - The company reported a net loss attributable to GitLab of $8.3 million for the three months ended October 31, 2025, compared to a net income of $29.1 million for the same period in 2024[160] Expenses and Investments - GitLab plans to continue investing in research and development, expecting R&D expenses to increase in absolute terms in future periods[132] - GitLab's operating expenses are expected to rise due to increased investments in sales and marketing, R&D, and general administrative costs[138] - Research and development expenses for the three months ended October 31, 2025, were $68.7 million, an increase from $61.4 million in the same period of 2024[160] - General and administrative expenses for the three months ended October 31, 2025, were $50.8 million, compared to $46.0 million for the same period in 2024[160] - Sales and marketing expenses increased by $9.6 million, reaching $105.0 million for the three months ended October 31, 2025, a 10% increase from $95.3 million in the same period of 2024[171] Cash Flow and Liquidity - As of October 31, 2025, the principal source of liquidity was cash, cash equivalents, and short-term investments totaling $1.2 billion, up from $992.4 million as of January 31, 2025[196] - Cash provided by operating activities for the nine months ended October 31, 2025, was $187.1 million, compared to a cash outflow of $127.2 million for the same period in 2024[200][201] - Adjusted free cash flow for the nine months ended October 31, 2025, was $177.8 million, compared to $57.9 million for the same period in 2024[207] - The company believes existing cash and investments will support working capital and capital expenditure requirements for at least the next 12 months[197] Tax and Interest - The effective tax rate decreased by approximately 417.6% for the three months ended October 31, 2025, compared to the same period in 2024, primarily due to a pretax loss[191] - Interest income decreased by $882,000 to $11.7 million for the three months ended October 31, 2025, a 7% decline from $12.6 million in the same period of 2024[185] Foreign Exchange and Investments - The company has $59.1 million in cash and cash equivalents denominated in currencies other than the U.S. dollar, which may be affected by fluctuations in foreign exchange rates[215] - The company has not engaged in hedging foreign currency transactions to date but may consider it in the future[216]