Core Viewpoint - Madison Small Cap Fund's fourth-quarter 2025 performance was challenging, underperforming the Russell 2000 Index, with a return of -0.4% compared to the benchmark's 2.2% [1] Fund Performance - The fund's sector allocation negatively impacted its performance, particularly in the healthcare sector, which was the weakest [1] - The fund remains optimistic about the speculative market losing momentum but is cautious about market irrationality [1] GitLab Inc. Overview - GitLab Inc. (NASDAQ:GTLB) is a software development lifecycle platform that covers DevSecOps stages, with a market capitalization of $3.881 billion [2] - As of March 12, 2026, GitLab's stock closed at $22.82 per share, with a one-month return of -22.77% and a 52-week loss of 56.18% [2] Investment Position in GitLab - Madison Small Cap Fund initiated a new investment position in GitLab, highlighting its strategic software tools that assist developers throughout the software development pipeline [3] - GitLab has mid-teens operating margins, a strong balance sheet, and is experiencing double-digit growth in a large market [3] - The company operates in a duopoly with Microsoft's GitHub platform, and the fund has confidence in the recently appointed CEO, Bill Staples [3] - The stock has faced pressure due to concerns about AI-powered competitors, but the fund believes that increased software development will enhance the demand for GitLab's tools [3] - The estimated intrinsic value of GitLab's stock is $75 per share, indicating an attractive investment opportunity at current prices [3]

JFrog FY Conference Summary Company Overview - **Company**: JFrog (NasdaqGS:FROG) - **Industry**: Infrastructure and Security Software Key Points Company Vision and Market Opportunity - JFrog was founded 15 years ago to manage binaries, which are critical to the software supply chain, as DevOps practices accelerated the need for organized and secure binary repositories [6][7] - The company has evolved from a point solution to a full platform, with over 56% of revenue now coming from Enterprise+ solutions [11] Business Segments and Growth Drivers - **Cloud Segment**: Achieved 45% growth in 2025, driven by diverse customer usage exceeding minimum commitments [13] - **Self-Managed Segment**: Monetized through the number of servers rather than developer seats, providing a competitive advantage [14] - **Security Segment**: Security offerings have doubled as a percentage of Annual Recurring Revenue (ARR) from 5% in 2024 to 10% in 2025, indicating strong growth [31] Financial Performance and Guidance - JFrog has a 97% gross retention rate, indicating strong customer loyalty and commitment to multi-year contracts [78] - The company has shifted its guidance philosophy to focus on cloud commitments, excluding usage over minimum commitments and large deals, to account for revenue volatility [26][30] Security Business Insights - The security business has seen rapid growth due to increased awareness of vulnerabilities in the software supply chain, particularly after high-profile security incidents [36][37] - JFrog's security products, including Curation and Advanced Security, are designed to protect against vulnerabilities and manage software supply chain risks [35][41] Market Position and Competitive Landscape - JFrog positions itself as a system of record for AI and software supply chains, emphasizing the importance of governance and compliance in security [59][62] - The company believes it is defendable against AI disruptions due to its established infrastructure and integration capabilities with various tools [92][93] Future Outlook - JFrog aims to continue delivering durable growth while balancing profitability and investment in key areas such as governance and compliance [102] - The company is optimistic about the potential for its governance product, AppTrust, to gain traction in the market [69] Additional Insights - JFrog's approach to security emphasizes the need for centralized policy control, allowing organizations to manage what packages are allowed into their systems [95] - The company remains focused on its core objectives despite external market chaos, indicating a commitment to long-term growth strategies [102] This summary encapsulates the key insights from JFrog's FY conference, highlighting the company's strategic direction, financial performance, and market positioning within the infrastructure and security software industry.

Investor Presentation Fourth Quarter and Fiscal Year 2026 This presentation contains "forward-looking statementsˮ within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our future operating results and financial position, anticipated future expenses and investments, expectations relating to certain of ...

Core Insights - GitLab Inc. is a key player in the DevSecOps industry, focusing on intelligent orchestration solutions that integrate development, security, and operations [1] - The company is set to release its quarterly earnings on March 3, 2026, with an estimated EPS of $0.23 and projected revenue of approximately $252.2 million [1][6] Revenue Growth - GitLab anticipates fourth-quarter fiscal 2026 revenues between $251 million and $252 million, representing a 19% increase from the previous year [2][6] - The growth is primarily driven by advancements in AI-driven DevSecOps and SaaS, along with strong customer retention [2] - The dollar-based net retention rate stands at 119%, with a 23% year-over-year increase in customers generating $100,000 in annual recurring revenue [2] SaaS Performance - In the third quarter, GitLab's SaaS revenues increased by 36% year-over-year, maintaining a 119% net retention rate and growth in enterprise customers [3] - The Zacks Consensus Estimate aligns with GitLab's revenue expectations, projecting $251.60 million in revenue and earnings of 23 cents per share [3] Stock Performance and Market Position - Despite positive revenue projections, GTLB shares have declined by 41.7% over the past six months [4][6] - GitLab projects a revenue growth of 24.66% for fiscal 2026, supported by its collaboration with Amazon Web Services (AWS), enhancing its appeal to various organizations [4][6] Competitive Landscape - GitLab faces significant competition in the DevSecOps space, which poses a concern for the company [5] - The company's current ratio of about 2.66 indicates a strong liquidity position, with current assets more than double its current liabilities [5]

Core Insights - The State of DevSecOps Report 2026 reveals a significant industry shift as security risks increasingly move upstream into the software supply chain, with 87% of organizations having at least one known exploitable vulnerability in deployed services [1][7] Industry Trends - Security risk is rising across the software delivery lifecycle, with the median software dependency now 278 days out of date, which is 63 days longer than the previous year [2] - The acceleration of development and reliance on third-party components are contributing to increased risks, as half of organizations adopt new library versions within 24 hours of release [3][7] Security Practices - Current security practices have not kept pace with the evolving methods of software development, leading to challenges in balancing speed and security [4] - The report indicates that only 18% of vulnerabilities labeled as "critical" remain critical when runtime context is applied, suggesting that alert volume is obscuring real risks [5][6] Visibility and Prioritization - The lack of context in vulnerability alerts complicates prioritization, resulting in potential burnout and slower response times for security teams [6] - Only 4% of organizations pin all public GitHub Actions to specific versions, leaving CI/CD pipelines vulnerable to silent changes in third-party code [3][7] Methodology - The report is based on telemetry analysis from tens of thousands of applications, providing a global perspective on security risks in modern software environments [8]

IonQ, Inc. Q4 2025 Earnings Call Summary - Moby Strategic Evolution and Performance Drivers Shifted from a single-product quantum computing firm to a full-stack platform provider covering computing, networking, sensing, and security. Achieved 202% year-over-year revenue growth in 2025, driven by strong demand for the fifth-generation 100-qubit Tempo system. Leveraged a 'land-and-expand' strategy where initial hardware sales evolve into multi-year, multi-generation roadmap partnerships. Maintained ...

Core Insights - GitLab (GTLB) is experiencing growth due to its expanding clientele and market leadership in the DevSecOps platform category [1] - The company is increasingly adopted by a diverse range of organizations, including Fortune 100 companies and public sector agencies, solidifying its position in the market [1] Customer Growth - In Q3 of fiscal 2026, customers with more than $5K of Annual Recurring Revenue (ARR) increased to 10,475, reflecting a 10% year-over-year growth [2] - Customers with more than $100K of ARR rose to 1,405, marking a 23% year-over-year increase, indicating strong traction among large enterprise customers [2][9] Partnerships - GitLab has established a rich partner network, including collaborations with major cloud platforms like Google Cloud and Amazon Web Services (AWS), which are crucial for expanding its reach among large enterprises [3][4] - The strategic collaboration with AWS aims to deliver secure DevSecOps solutions for regulated industries and the public sector [4] Competitive Landscape - GitLab operates in a highly competitive environment, facing significant competition from Microsoft (MSFT) and its GitHub platform, as well as Atlassian (TEAM) and other DevSecOps providers [5][6] - Microsoft has enhanced its position through the integration of GitHub and Azure DevOps, while Atlassian offers a robust suite of tools that support development and DevOps workflows [6] Stock Performance and Valuation - GitLab's shares have declined by 41.7% over the past six months, underperforming the broader Zacks Computer & Technology sector, which returned 10.6% [7][9] - The Zacks Consensus Estimate for fiscal 2026 revenues is $946.45 million, indicating a year-over-year growth of 24.66%, with earnings projected at 89 cents per share, reflecting a 20.27% year-over-year growth [13]

Core Insights - GitLab (GTLB) shares have decreased by 34.8% over the past six months, underperforming the Zacks Computer & Technology sector, which rose by 7.9%, and the Zacks Internet - Software industry, which declined by 22.4% [1][8] Performance Analysis - The underperformance is linked to delays in the U.S. public sector due to government shutdowns and budget constraints, alongside ongoing weakness in the price-sensitive SMB segment [2] - GitLab's customer base has shown growth, with customers generating over $5K in Annual Recurring Revenue (ARR) increasing by 10% year over year to 10,475, and those with over $100K in ARR rising by 23% year over year to 1,405 [6][8] Product and Market Position - Strong demand for GitLab's DevSecOps platform, particularly products like GitLab Ultimate, which now accounts for 54% of total ARR, has been a significant growth driver [5][9] - The introduction of the GitLab Duo Agent platform, which integrates AI capabilities, is expected to enhance productivity across the DevSecOps lifecycle [7][8] Revenue Guidance - For Q4 of fiscal 2026, GitLab anticipates revenues between $251 million and $252 million, reflecting a year-over-year growth of approximately 19% [12] - For the full fiscal year 2026, revenue expectations are between $946 million and $947 million, indicating a growth of about 25% year over year [13] Competitive Landscape - GitLab faces stiff competition from major players like Microsoft and Atlassian, which are strengthening their positions in the DevSecOps space [16][17] - The competitive environment is characterized by the integration of tools and platforms that enhance development workflows, posing challenges for GitLab [18] Valuation Insights - GitLab's stock is currently trading at a premium, with a forward 12-month price/sales (P/S) ratio of 4.4X, higher than the Zacks Internet - Software industry's 3.9X [19]

Vi e w p o i n t | 09 Feb 2026 19:49:16 ET │ 9 pages North America Systems Software Frontier AI Coming for Cyber? Headlines Hitting Last Bastions of Defense CITI'S TAKE In the last 2 weeks, the crescendo of headlines/social media posts from frontier AI companies on their express desires and preparedness to tackle cybersecurity use cases has punctured the "hermetic seal" of cyber ISVs' perceived defensiveness and taller business/technical/valuation moats. Cybersecurity is effectively an adoption tax at worst ...

Core Insights - GitLab Inc. (NASDAQ:GTLB) is identified as a stock with significant upside potential, included in Cathie Wood's top 10 picks [1] - Speculation regarding potential consolidation in the technology sector has emerged, with GitLab being named as a buyout candidate alongside other software companies [2] - GitLab announced the general availability of its GitLab Duo Agent Platform, enhancing its AI capabilities across the DevSecOps lifecycle [3] Group 1: Company Developments - GitLab's GitLab Duo Agent Platform expands agentic AI capabilities, addressing the AI productivity paradox by automating various workflows beyond code generation [3] - The company integrates prebuilt, customer, and external AI agents within its DevOps workflows, improving developer productivity and operational efficiency [4] - A new usage-based credit model has been introduced to reduce adoption friction for existing customers [3] Group 2: Market Context - The technology sector is experiencing a reset in valuations, leading to increased activity from strategic buyers looking for platform-scale assets [2] - GitLab is positioned as a potential buyout candidate amid this environment of consolidation and valuation adjustments [2][7]