Datadog's State of DevSecOps 2025 Report Finds Only 18% of Critical Vulnerabilities Are Truly Worth PrioritizingThe report also found that exploitable vulnerabilities are especially prevalent in Java applicationsApril 23, 2025 4:05 PM EDT | Source: Datadog, Inc.New York, New York--(Newsfile Corp. - April 23, 2025) - Datadog, Inc. (NASDAQ: DDOG), the monitoring and security platform for cloud applications, today released its new report, the State of DevSecOps 2025, which found that only a fract ...

Core Viewpoint - GitLab's share price has declined significantly due to increasing competition in the AI-driven code generation market, particularly from Microsoft's GitHub, alongside macroeconomic challenges and a shift towards agentic AI capabilities [1][2][3]. Company Performance - GitLab shares have lost 27.1% year to date, underperforming the broader Zacks Computer & Technology sector's 21% decline and the Zacks Internet Software industry's 18.3% drop [1]. Competitive Landscape - The competition in the AI-driven code generation space is intensifying, with GitHub's AI-powered coding assistant, GitHub Copilot, gaining traction and reinforcing Microsoft's dominance in the developer tools market [2]. - Persistent macroeconomic headwinds and the rapid shift towards agentic AI capabilities present growing challenges for GitLab [3]. Product Strengths - GitLab's robust DevSecOps platform, including GitLab Ultimate, GitLab Dedicated, and GitLab Duo, has driven customer adoption and retention, enhancing security, scalability, and AI-driven automation [4]. - GitLab Ultimate, the flagship product, accounted for 50% of the company's Annual Recurring Revenues as of the fourth quarter of fiscal 2025, highlighting its importance in revenue growth [6]. - The introduction of GitLab Duo, an AI-powered assistant, aims to improve software development workflows and developer productivity [7]. Innovation and Development - GitLab's Duo Workflow product, which focuses on AI-driven software development, entered private beta in the fourth quarter of 2024, leveraging Generative AI to enhance the software development lifecycle [8]. Strategic Partnerships - GitLab's partnerships with leading cloud providers, including Amazon Web Services and Zscaler, enhance the platform's scalability and deployment capabilities, strengthening its competitive position in the DevSecOps market [9]. - The integration of GitLab Duo with Amazon Q aims to improve AI-driven DevSecOps on AWS, enhancing security and efficiency [10]. Future Outlook - Despite challenges such as rising competition and cautious enterprise spending, GitLab's strong AI-driven DevSecOps platform, strategic partnerships, and growing enterprise adoption support long-term growth [11].

Core Viewpoint - The recent market sell-off, with the Nasdaq Composite down over 13% from its all-time highs, presents potential long-term buying opportunities in the technology sector. Group 1: Nvidia - Nvidia is the leader in AI infrastructure, with its GPUs providing essential processing power for AI model training and inference [2][3] - The company's revenue has more than doubled in both fiscal years 2024 and 2025 [2] - Nvidia holds approximately 90% market share in the GPU space, supported by its CUDA software platform, and is currently down nearly 22% from its all-time highs [4] Group 2: Broadcom - Broadcom is focusing on custom AI chips, providing an alternative to Nvidia's high-priced offerings [5] - The company has three main AI chip customers with a combined serviceable addressable market of $60 billion to $90 billion for fiscal 2027 [6] - Broadcom's stock is down about 23% from its all-time highs set in December 2024, presenting a buying opportunity [7] Group 3: Alphabet - Alphabet is a leader in digital advertising and cloud computing, with significant growth in its cloud unit, which saw a 30% revenue increase last quarter [8][10] - The company is well-positioned to leverage AI for new ad formats, potentially tapping into a large new market [9] - Alphabet's stock is down about 21% from highs set early last month, making it an attractive long-term investment [10] Group 4: Salesforce - Salesforce aims to lead in agentic AI, which automates tasks with minimal human supervision, offering significant business applications [11] - The launch of Agentforce has attracted 5,000 customers, including 3,000 paying customers, since its introduction [12][13] - The stock is down nearly 26% since December 2024, providing a good entry point for investors [13] Group 5: GitLab - GitLab is a fast-growing DevSecOps platform, with a high-margin subscription model benefiting from AI integration [14] - The company has seen a 29% increase in revenue last quarter, marking its sixth consecutive quarter of growth between 29% to 33% [16] - GitLab's stock is down about 31% from early February highs, presenting a strong buying opportunity [14][17]

Financial Data and Key Metrics Changes - Q4 revenue increased by 29% year-over-year to $211 million, exceeding expectations [8][31] - FY 2025 revenue grew by 31% to $759.2 million, driven by land and expand strategy [31] - Non-GAAP operating margin for Q4 reached 17.7%, an increase of over 960 basis points year-over-year [35] - Adjusted free cash flow grew by 259% to $120 million for FY 2025 [31] - Non-GAAP gross margin was 91% for Q4, maintaining best-in-class status [34] Business Line Data and Key Metrics Changes - GitLab Ultimate now accounts for 50% of total ARR, with significant growth in enterprise customers [21][73] - GitLab Dedicated grew approximately 90% year-over-year in Q4 [22] - The number of customers with ARR of at least $100,000 increased by 29% to 1,229 [32] - The dollar-based net retention rate (DB NRR) for Q4 was 123%, driven by seat expansion and tier upgrades [33] Market Data and Key Metrics Changes - SaaS revenue represented 29% of total revenue, growing 36% year-over-year [34] - Total remaining performance obligations (RPO) grew by 40% year-over-year to $945 million [34] - The company closed the largest net ARR deal in its history during Q4 [29] Company Strategy and Development Direction - The company aims to add more new paying customers, especially in mid-market and enterprise segments [14] - Focus on accelerating customer value realization through innovation in core DevOps, security, and AI areas [14][19] - Plans to enhance go-to-market strategies, including expanding customer success and professional service teams [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the AI landscape and its potential to transform software development [61] - The company is prioritizing responsible growth while navigating competitive challenges in the market [62] - Management highlighted strong customer enthusiasm and commitment to GitLab's platform [58] Other Important Information - The company announced the private beta of Duo Workflow, moving towards AI-driven software development [26] - New CRO Ian Steward is expected to drive revenue growth and operational improvements [8][27] Q&A Session Questions and Answers Question: Insights on Duo Enterprise's contribution and market competition - Duo's performance exceeded expectations, with about a third of deals including Duo ARR [46] - Differentiation in a competitive market is based on GitLab's comprehensive platform and context provided for AI models [50] Question: Understanding the gap between optimism and financial guidance - Management emphasized strong customer feedback and ROI from GitLab's platform, which supports their optimistic outlook [59] Question: Driving utilization of the GitLab platform - The company focuses on customer success plans and partnerships to enhance platform utilization and adoption [92] Question: Changes in go-to-market strategy with new CRO - Incremental changes are expected, focusing on customer success and global expansion [80] Question: Balance of growth investments versus margin expansion - The company aims to invest in growth while maintaining a strong margin profile, with a focus on sales capacity and engineering [87]