Gitlab (US:GTLB)2022-06-06 23:11Customer Growth and Retention - Base Customers increased to 5,168 as of April 30, 2022, from 3,142 as of April 30, 2021, representing a 64% increase[138] - Customers with ARR of $100,000 or more rose to 545 as of April 30, 2022, up from 324 as of April 30, 2021, marking a 68% increase[151] - Dollar-Based Net Retention Rate remained above 130% for both April 30, 2022, and April 30, 2021[148] - The Dollar-Based Net Retention Rate remained above 130% as of April 30, 2022, indicating continued demand and expansion within existing customers[170] Financial Performance - Total revenue increased by $37.5 million, or 75%, to $87.4 million for the three months ended April 30, 2022, compared to $49.9 million for the same period in 2021[170] - Subscription revenue from self-managed and SaaS grew by $32.0 million, or 71%, reaching $76.9 million for the three months ended April 30, 2022[170] - Gross profit rose by $34.1 million, or 78%, to $77.6 million, with a gross margin of 89% for the three months ended April 30, 2022[172] - The net loss attributable to GitLab was $26.1 million for the three months ended April 30, 2022, compared to a net loss of $27.9 million for the same period in 2021[167] Expenses and Investments - Sales and marketing expenses increased by $27.9 million, or 72%, to $66.7 million, primarily due to a $19.6 million rise in personnel-related expenses[174] - Research and development expenses grew by $10.5 million, or 49%, to $31.8 million, driven by a $10.4 million increase in personnel-related expenses[176] - General and administrative expenses totaled $21.9 million for the three months ended April 30, 2022, compared to $9.3 million in the same period of 2021[163] - Stock-based compensation expenses totaled $17.5 million for the three months ended April 30, 2022, compared to $3.4 million for the same period in 2021[168] Cash Flow and Financial Position - Cash used in operating activities was $28.2 million for the three months ended April 30, 2022, compared to $21.5 million in the same period of 2021[194] - Cash provided by financing activities was $43.7 million for the three months ended April 30, 2022, significantly higher than $11.0 million in 2021[200] - As of April 30, 2022, cash, cash equivalents, and short-term investments totaled $934.8 million, slightly up from $934.7 million as of January 31, 2022[192] - The company expects existing cash and short-term investments to be sufficient for working capital and capital expenditure requirements for at least the next 12 months[193] Tax and Other Income - The provision for income taxes was $1.3 million for the three months ended April 30, 2022, with an effective tax rate of (10.5)%, compared to (4.6)% in 2021[183] - Interest income rose to $526,000 for the three months ended April 30, 2022, an 874% increase from $54,000 in 2021[181] - The gain from the deconsolidation of Meltano Inc. was $17.8 million, contributing to total other income of $18.4 million for the three months ended April 30, 2022[182] Internal Controls and Risk Management - The company has identified a material weakness in its internal control over financial reporting, specifically regarding the review of non-routine transactions[213] - Remediation efforts include enhancing review processes around non-standard contracts and expanding internal disclosure review processes[216] - Management does not expect that the company's disclosure controls and procedures will prevent or detect all errors and fraud[220] - The company has not engaged in hedging foreign currency transactions to date, which may expose it to fluctuations in exchange rates[210] - The company's revenue is primarily denominated in U.S. dollars, minimizing material foreign currency risk[209]