GitHub rival GitLab goes public with over $ 200 million in income
GitLab CEO Sid Sijbrandij at a company event in London
GitLab, a provider of cloud-based software that enables developers to share code and collaborate on projects, is the newest high-growth tech company to sign up for an IPO.
The company announced on Friday that it plans to trade on the Nasdaq under the ticker symbol “GTLB”. GitLab is raising money to acquire Atlassian and GitHub, which Microsoft acquired for $ 7.5 billion in 2018.
GitLab joins the ranks of cloud software companies preparing to capitalize on an ongoing bull market that values growth above all else. Toast, which sells software and hardware to help restaurants manage orders and switch to take-out, is slated to launch next week with Freshworks, a smaller competitor of Salesforce in providing software for customer service and sales organizations come.
GitLab’s revenue rose 69% year over year to $ 58.1 million in its most recent quarter, which is over $ 230 million on an annualized basis. However, the company’s net loss soared from $ 9.4 million last year to over $ 40 million.
GitLab said the net revenue retention rate, a key metric for subscription software companies because it shows customer success, rose to 152% in July. That would make it one of the leading publicly traded software companies.
GitLab is widely known as a pioneer in remote working. While companies were forced to adapt to distributed work during the pandemic, this is how GitLab started in 2014 and didn’t have to change much. In the header of its prospectus, Gitlab says “Address not applicable”.
“Remote operations give us access to a global talent pool that enables us to hire talented team members regardless of location and gain a strong competitive advantage,” the submission states. GitLab has 1,350 employees in more than 65 countries.
GitLab was last valued at $ 6 billion in a second round of funding that allowed existing shareholders to sell up to 20% of their property. That was an increase from a valuation of $ 2.7 billion in a funding round in late 2019.
In its “team manual” on its website, GitLab had openly announced its plan to go public by November 2020. After the pandemic broke out early last year and shook the entire economy, the company canceled the date for its debut while also indicating that a public listing was still on the roadmap.
GitLab’s co-founder and CEO Sid Sijbrandij is the company’s largest shareholder with 18.9% of the shares in Class B shares, according to the filing. Khosla Ventures owns 14%.
WATCH: GitLab CEO on the future of work