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GitLab jumps in Nasdaq debut after pricing IPO above expected range


The Gitlab IPO is celebrated at Nasdaq on October 14, 2021.

Source: Nasdaq

GitLab shares rose 22% on their first trading day after it sold more shares than expected during its IPO.

GitLab traded its stock on the Nasdaq as the ticker symbol GTLB. The price was $77, which is approximately $11 billion. GitLab previously stated it expected to sell its shares at between $66 and $69 each. Stock opened at $94.25.

GitLab was founded almost a decade ago and has pursued GitHub since its inception. Atlassian’sBitbucket MicrosoftGitLab acquired GitHub for $7.5 Billion in 2018. Since then, GitLab has been growing rapidly and is the largest independent market player.

The second quarter’s revenue increased 69% to $58.1million, compared with the previous year. GitLab spent $40.2 million on the last quarter’s net loss due to the fact that it spends approximately three-quarters its revenue in sales and marketing. This is mainly because GitLab wants its developers user base to grow.

GitLab raised nearly $650 million through the offer, with investors purchasing over $150,000,000 of stock from an affiliate to GitLab CEO Sid Sijbrandij.

GitLab gives away a free copy of its DevOps platform. The term is a combination of IT operations and development. It allows you to create code and package it. You can also release it, monitor it, and track it. GitLab customers can use it in any of the public clouds, at their own data centers or as a GitLab hosted service.

This company earns money through its customers premium productsIt is available. GitLab offers tools and code review services for businesses at $19 per month. Users can also get compliance and security features for $99 each month. GitLab reported that 383 of its customers spend at least $100,000 per year. prospectus

GitLab stated that “our future success is dependent in part on our ability convert users of our complimentary product offering into paying clients by selling additional products and upselling additional subscriptions services.”

GitLab’s founders Dmitriy Zaporozhets & Sid Sijbrandij


GitLab claimed its net revenue retention rateThe July period saw a 152% increase in shopper success (a crucial metric for subscription-software companies) This would place it amongst the most publicly traded software companies.

This is also why GitLab has a very high multiple of revenue. GitLab’s market capital of $11 billion would allow it to trade at approximately 47x annualized revenue. This is below six companies from the Bessemer cloud Index and above Atlassian.

GitLab has been widely recognized as a pioneering organization in this field. remote work. Companies had to adjust to distributed work in the wake of the pandemic. GitLab, however, was able to do so from the beginning and did not have to change much for 1,350 people who were located in 65 different countries. Gitlab’s prospectus header states that the address is “not applicable.”

GitLab was established in 2012, and was incorporated 2 years later. It was valued last year at $6 billion in a secondary financing, confirmed in early 2021, that allowed existing shareholders to sell up to 20% of their vested equity. The valuation was $2.7B in late 2019 and this is an improvement.

It is available in its “team handbook” on its website, GitLab had openly stated its plan to go public by November 2020. While the company did not announce a date for the debut, they indicated that it was on its roadmap to list publicly.

Sijbrandij (GitLab founder) is the biggest stakeholder of the company, having 19% ownership prior to the offering. Khosla Ventures holds 14%. August Capital has 11%, ICONIQ is at 12% and Google Ventures (formerly Google Ventures), just under 7%.

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