GTLB - Earnings call transcript Q3 2022

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Operator

00:03 Thanks for joining us today for GitLab's Third Quarter twenty twenty two Financial Results. Today, GitLab's Co-Founder and CEO, Sid Sijbrandij; and GitLab's Chief Financial Officer, Brian Robins will provide commentary on the quarter. Please note, we will be opening up the call for panelists' questions. To ask a question, please use the chat feature. Post your question directly to the IR chat channel using the drop-down menu. turn Group over Harbor. to I'll of Taylor that, Blueshirt The cover With the to call Giles XX:XX the Safe

Taylor Giles

Thank you, XX:XX Kevin.

forward-looking risks statements differ discussed involve during we and results are of begin, to conference known assumptions that Federal statements and or could to make actual unknown the These we those meaning uncertainties within anticipated. materially laws. Before Securities from subject the and this may call, cause

to these statements of release risks Quarterly business, associated our For in a which one. forward-looking to not We refer undue XX-Q the statements earnings our encourage caution reliance upon these forward-looking information A measures our greater SEC website. detail complete place distributed to press to substitute you website. section discussion Form the thirty supplemental available Report on one, our results based our ended, the submitted we XX:XX the available fiscal with us. to to and Our twenty filings, to including Sijbrandij. twenty to the today and quarter non-GAAP These period-to-period you a and now the Commission GAAP are for currently financial these measures. undertake or posted October in operations forward-looking US statements this today's Sid or non-GAAP investors in to or forward-looking also with do duty events. be measures from earnings measures non-GAAP and our reconciliation turn events of or during be the obligation our statements to our These release GitLab's We any financial as referred to as schedules Relations evaluating any of financial are and of In Principles, revisions in will Exchange call XX:XX addition, discussed the A call measures circumstances, not reflect financial is update not discussed Accepted SEC. the to Generally most I our over statements any in comparable certain occurrence any reconciliations of future be of our by measures additional measures performance we on unanticipated Accounting intended Officer, are and in report Securities to replay Co-Founder on or that together management Executive performance with GAAP financial to earnings non-GAAP believe XX:XX for differ at supplemental included accordance call, release. contained assist comparable release may will in Chief Investor results. prepared information comparing

Sid Sijbrandij

for you share XX:XX we're quarterly first of of year Thank own had expectations joining we great and percent growth a exceeded fifty to eight a of with two sixty six twenty twenty year-over-year us for revenue this third company. We dollars. point earnings quarter. today fiscal our quarter our revenue for million the as represents call quarter public excited eight This

are on we seeing to moment was the are take to our community provides investors, express a Our my above customers. XX:XX and thirty to I momentum we look adopting we to customers XX:XX Platform customers, still team feel market. DevOps want in and The growing and a members. we gratitude large early dollar reflecting return As our that continued net retention significant the GitLab rate based percent, forward, investment strong for one wider

are all-remote the most the with and first quarter first We but overall excited believe our company to we offering. initial to business, reflect want to share you go more and public I about our are transparent details public. I on

which our the is was to date, run October of of how end-to-end as XX:XX two example publicly publicly this we listing its our Handbook, listing Day Our took stream transparency transparency value NASDAQ. GitLab. one. the place at GitLab twenty of business. transparency company on first Another twenty accessible documenting entire thousand example has fourteen, been scaled than we've more is webpages prevalent One

in company major watch one our of the in live GitLab GitLab, and and you explain the tell market has a While during go I'll can software. it speed earnings with over provides company. tailwinds DevOps. for recording the the we our You of might thought helpful of us. the the at steps operating that milestone In of opportunity this GitLab be it great History. software believe many defines a XX:XX to of be the securing we stream important developing, searching world was is the believe first the value was have call, large every IPO and I front about of to by evolution we where history that Because innovation, XX:XX

software We transform. operations, security known as the phases. and believe to and and represents lifecycle, to DevOps competitive, that must tool the organizations the hours. to also practices adoption approach of is As in to continue evolution in development every months I'll work to shorten evolve. development, to from operation sets set a collaborate that explain This industry teams allow rate remain of XX:XX different dramatically a together software development increases, DevOps typically digitally DevOps tools DevOps. four

teams but XX:XX The on each not when the first team caused quickly move through was This standardized teams. which the own own changes tools. to same the selected The problems tools, was second together. bring of their team was software where with the phase of try phase tools your each work familiar because DevOps, DevOps, was struggled best-in-class organizations to set other where tools,

tool billion GitLab so model, work and efficiency fourth stages single to customers GitLab stage and unified set get GitLab replaces need lifecycle. this over deliver allowing solution together believe DevOps Gartner, improve to a the software their software phases. have improve teams between environments. replacing single to use This XX:XX Based and organizational and point for visibility DevOps streamline this potential market phase security which solution. solutions stream companies application to their development believe platform will vendor in In to single cloud embrace of value DevOps listed and At twenty phase, to DevOps believe concepts, for do-it-yourself a twenty to efficiency. effective platforms interface So in the right tools the user by market designed our the every over-reliance efficiently our year application. Platform required teams we to called hard our market can to best we a delivery teams the also our or as GitLab I organizations workflow not by we were approach a we vendor guide delivery DIY they in the The of twenty The platforms sixty GitLab these and GitLab, plan, our software the enables XX:XX true applications, of percent in secure is on DevOps cut to avoid helps use XX:XX for provides point twenty same compliance delivery have to our complex We our With that customers a was operations stream needed platform. the the switched as risks. of value competitive and enables XX:XX it move twenty customers for the DevOps DevOps a of on platform business versus in for percent the custom and a manage realized cloud select build, Gartner of twenty to multi-cloud DevOps teams the for fully own doing improve the their one. IPO, customers companies control their development, any experience with switch empower fit to the pioneer quite maintain. twenty, locking full evolution, to delivery fact security to application indicate one our chain. and GitLab's of tools, value of reduce DevOps team are benefits is faster, vendor. row. stream to entire never a across of lifecycle. XX:XX third DevOps According a provider forty Platform XX:XX improving position and mentioned allows not hybrid allowing multi-cloud were any platforms. DevOps XX:XX representative We platform. as during A twenty strategy. to and Gartner collaboratively evidenced to believe created DevOps prioritize one the and this dollars in in second help and for platform across In the all October calculations twenty as market DevOps allows deploy in is secure a opportunity data a and for a for and four, phase extremely category one tools us new advantage

strategy the core Operator, of development research full that introduced our standardize flywheel contributions. more we leading both lifecycle we manage more Kubernetes-based and features. open Hat, hundred of quarter, customers deployment are back development leveraging create to power of community. dual to By each, to more lead a contributions the leverages features, group where a our cycle leads will which more have users, and We our an which features top their example to including on platforms, As in OpenShift. enables this third Red new one A GitLab innovation, the of over new few GitLab and XX:XX

the for built automating total which security engine we of common engine. enable ownership. new feature is new XX:XX This ultimately this security foundation eliminate and than In testing feature cost next-generation to in-house risks addition, to GitLab's before. customers believe reduces detect faster lays Another tasks, static application proprietary the was

we of GitLab public they their a our that with base start XX:XX single no wider use enables proud the organizations Smartsheet realizing to they of outcomes added the the twenty in include Lockheed longer chain of more DevOps attitude. industry-leading hundred testing improvements a quarter, every in their range increase wide After thousands cycle achieve users, usage solutions markdown what small tool customers delivers see with with Suzuki more some from get time. Fortune four logos and to including need GitLab, solutions. the often (ph) Platform to and released XXX to expand Platform community what features also customers and new point five using from GitLab's of is for expand that replace for I'm verticals, custom The is of Motor companies. and positive functionality. across geography rapid and tens sector. people customers customers, started in in source We you The third Most individual Martin. to the platform, and share you XX:XX DevOps wide faster very control [Wiki] tasks, the experience number This using GitLab across business new spread Corporation, point users

QX In companies. Let had with me auto clients. we give you expansion few examples of sector public many a expansions at our

GitLab. and XX:XX build deploy consolidation future. hours critical center of today's complete The was XX:XX GitLab a further world. highlight process, teams expansion which to was chain integrated the under solution in modernization e-commerce They and reduce We key release XX:XX GitLab customer contractors for to believe to deploy in tool The companies government from landscape, process that thousand two play DevSecOps continue role telecommunications like contractor The to security a with another DevOps from In I of efforts. Platform and accelerated Another cycle initiatives a is development expand a with integrates that business time using the customer. This license eight users infrastructure. major expansion their ideas environment. center data they our to migrated simplifies platform logistics supporting their enterprise to single services threat added development and military Chief their continue able of to team GitLab, enabled decision leave I'd GitLab, more November because GitLab. one to to data Fellow to the largest to Platform the And QX. Data secure that streamlined what expansion in to reduced created. to time. continue Chief Financial made our hundred integrate of GitLab's completing does shared build percent after On Zaporozhets Dmitriy your we Information like position GitLab's platform one percent his and you we lead of ten GitLab that excited Engineering on Officer. Sunny over call QX, security to one In the contributions. thank for of I the to and to XX:XX would now Sunny his Chief Directors. and member, and hundred DevOps We commitment only all applications of we practical Robins, my of into years ten, GitLab personal very Creator his believe the the Officer welcome that do also the Co-Founder turn we're need Officer of way will pleased to to at as Board Bedi. Snowflake the to and welcomed the this. I'm newest him that is Dmitriy Brian XX:XX I Board is program.

Brian Robins

you, most will financial come Before quarter to give I to a we you us will XX:XX needs again a developer of and today's goes to believe best the quickly into modernize be the XX:XX market world, quarter, a organizations business and our must immediate experience. that the operating Because Sid, and with expand I to results seeking land strategy they and software their company to overview software key with I'll In help Thank conclude disrupted today. become go-to-market company. for thank DevOps. our dive address our for guidance. or a innovative every us joining third everyone company metrics their and our brief recap often proven model and by model. then customers GitLab

and and to tiers Ultimate paid a Ultimate, per and We adoption a our viral percent. platform have based is version with free and XX:XX fastest growing offered the paid by version evidenced Premium our has subscription one free which are and offering. dollar-based two continues SaaS as plans. seen net that over subscriptions our user tiers, self-managed plan. are The Our retention expansion been thirty available available both and platform. features within consistently best-in-class the be This those priced on is of

SaaS Going our business. is forward, offering, expect portion recognized become larger of a which ratably our to we

cash both upfront. percent and Post has percent and value is ninety component ten offering support, license self-managed revenue including usually a is ratable contract Our is less usually the upfront recognition, about than which which contract ratably recognized of multiple years typically XX:XX upfront. the have contract are were Historically, contract annual invoiced collected contract where upfront. multi-year terms of value period. with is and the recognized had over some we Our deals contracts

turn expect the XX:XX up was going multi-year we percent six annually. dollars year. eight eight our fifty invoiced vast the from Revenue million the deals quarter. to majority prior me will let of However, be sixty forward of point Now,

approximately compared five over thousand customers thousand end, least over and of up thousand ARR respectively. also to those the who measure five As we over thousand greater four We our thousand customers quarter spending with more and growth ninety of performance year, quarter in ARR. hundred had percent with hundred than six prior of Current dollars three of hundred dollars, one XX:XX and thousand in largest from represent the five two at four ARR with ARR our customers us. dollars customers as we than define

had twenty eighty we four least forty For and quarter two three the of thousand, over respectively. from prior at quarter, with to up over customers ARR over hundred and the compared one year, customers

well one and FY think twenty. at indicator become is DevOps increased this demand market do business. believe DevOps. know, good of you and thousand have twenty we've I to note already new twenty added For the of over to billings We compared to exceeded hundred As customers, imperative platforms important five for be we many thousand is that both and of it the platform to twenty to one we XX:XX customers business not FY our think dollars our better dollars number calculated to our a due

an XX:XX notably compares impacted for number revenue eighty margin the was excellent growth period ARR we to this quarter and in preceding third was percent for of revenue due year-over-year percent of immediate grows like strong our prior last prepaid Calculated the point and example deals. factors, growth ARR by percent as nine quarter higher the This large which billings a two even nine both gross eighty and being most growth. saw year. eight quarter, point seven history Non-GAAP eighty of multi-year quarter the to

growth million two million to year. The FY across offering We rate or dollars percent three move into main and fourth metric factors five point seven revenue percent. leverage we fiscal We during in team the above accelerate in in improved the quarter to the As this growth hundred of the two the point to twenty due XX:XX three the during one for our operating SaaS twenty million nine operating in dollars twenty thirty the cash loss year-over-year, used quarter are revenue used three loss anticipate business rapid support last to of one Non-GAAP contributing is which XX:XX saw quarter. this and this lower-than-expected nine were hiring point decline higher in estimating performed a point dollars forward, member believe was we remains point and year. of QX Operating to our revenue business strength. business. our one percent ten of of growth million of the a same in fifty compared twenty or last the quarter. dollars well up continued quarter point fourteen compared quarter We set moderate

we we well As underpenetrated market mentioned and capture positioned to Sid guidance. believe earlier, opportunity relatively a Turning of XX:XX to is it. as very an we're outside have substantial portion

to sixty FY the growth of For twenty rate million million point fifty a revenue fifty five expect five we of fourth total dollars dollars, quarter nine year-over-year. representing of seventh to point two, three one twenty percent percent

two four revenue per six five point We and million total of million share dollars operating a hundred three million dollars sixty outstanding. expect average two. the four loss percent dollars zero to to expect weighted zero two dollars non-GAAP now FY of share dollars dollar million one forty sixty we representing point full hundred the a thirty to year-over-year. Let's of two assuming rate one turn to dollars, non-GAAP five loss thirty net year of percent twenty two forty expect growth forty and to XX:XX million We is and two twenty

and eight operating one point We and million loss loss expect four million expect the to chat please hundred to assuming for ready move per and share dollars one your to we dollar IR question, to average hundred use directly post questions. of dollars four non-GAAP two million one the question point the Q&A. three one the non-GAAP weighted With dollars To and four will of three net dollars, we a XX:XX that, we're ask question. shares feature Operator, first outstanding. now

Operator

XX:XX coming from XX:XX should be first Kash question Rangan. Our

Kash Rangan

It congratulations you And corporations? you I'm software became the on the company. a that large you quarter ever so development any first if faster or public Thank changes? in very and us competitive could same? us strategic Fortune as cycle again. happen, and release did for does world, congrats how much, give Hi. and your give on post-pandemic you update displacements Thank interesting roadmap a about could on were if landscape, perspective commentary XX:XX XXX a much, to just that put if you the also that Sid, the curious quick on you an

Sid Sijbrandij

appreciate XX:XX Yes. I Thanks, Kash. it.

to and Platform and got The compared ago we tighter. operators DevOps saw to labor a quarter developer, We see market for continue experts demand for strong the security that

struggling So we can right people. have, they GitLab with more people and they're believe done really customers get the that with hire more to now

massive believe updates at they early by and GitLab, we market untapped T-Mobile, to and potential. For software times due a we delivery so increased believe we're more still is frequent ten with ten what times their example, frequency their to

Kash Rangan

competition? more to And the to you Thank any arena take you or competitive poised are on the changes comment Right. competitive much. where the any in relative share so XX:XX displacements

Sid Sijbrandij

sixty customers to out of that still about right grown four, them forward. at now We point with by adoption but numbers replacing According it's see Gartner right convincing their is that that They -- see solutions the percent platform twenty in the and now. the October, case twenty DevOps twenty that competing to it's Yes. way they that being percent came DevOps. all a platforms DIY the we're latest XX:XX with

Kash Rangan

Happy so you Holidays. much. Brilliant. Thank XX:XX

Sid Sijbrandij

XX:XX Thanks, You too. Kash.

Operator

XX:XX move Auty. we will to Sterling Next up,

Sterling Auty

XX:XX Yes. Thanks. Hi, guys.

-- got. any I'm in pricing impact mentioned different business? Ultimate seen might that you in that additional quarter, any shift had curious you -- saw tiers So you on what towards you've the that what terms tier the the have and of

Sid Sijbrandij

Ultimate continues XX:XX doubling fastest Thanks, year-over-year. that our be to more Sterling. than tier, growing

to ROI. increased As customers, we to say, these continue outcomes business the let's in drive

Ultimate. And the really so we're happy with in growth

Sterling Auty

can those when follow-up metrics, kind then the a in And XX:XX Is a our that top mix Is of over what's you? us look over hundred to customers or more new for customers, Ultimate? percent at also seventy and brand that customers the growth it one adding you, sense, give kind dollars makeup growth it you of is thousand shift about of get one spending just you existing to with developers? in tier

Sid Sijbrandij

the it majority XX:XX of So customers, users in more second the existing from then up tiring. and we customers see is adopting

Sterling Auty

Got it. Thank you. XX:XX

Sid Sijbrandij

Thank XX:XX you.

Operator

XX:XX have Next we a from question up, Owens. Rob

Rob Owens

afternoon, thanks question. taking just understand customers that customers, Good broader And how my terms XX:XX for at of proposition? the Great. are of you're more question Sterling's point? and larger this than case landing you I'd with platform and dovetail bit Thanks. landing little you are use a to landing in love with

Sid Sijbrandij

Thanks, XX:XX land continuing as as more expansion. well We're bigger see to Rob.

increase really landing lands and On on side, for we're the side the year-over-year we ARR had a new happy meaningful average are our new expansion. expand land larger, with

of retention and it's is don't then in percent we by loss to have well also ultimate many best in driven as dollar don't so people be thirty as -- by or leaving, net continues contraction up driven tiring one which class. It's of more see Our we excess users customers. really new

Rob Owens

point? mix of landing are Ultimate to often XX:XX than you you And Ultimate more ago at with then, a relative say were year that this

Brian Robins

continuing grow is Ultimate. also to and up-tier Ultimate then landing of faster we're -- more and Ultimate seeing to we're We with Yes. XX:XX

Rob Owens

XX:XX Thank you much, Brian.

Brian Robins

Rob. Thanks, Yup. XX:XX

Operator

from have up, Joel we Fishbein. XX:XX question Next a

Joel Fishbein

helpful? productivity Brian, a gentlemen. force, XX:XX to Rob's have up And and be terms Hey, enterprise that are you quarter, sales of the follow-up sales question. I the would also just congrats on quick where in building

Brian Robins

better. Joel. can continue and anticipate market Yes, team currently in remains healthy the all segments. get continues sales to We build to believe XX:XX We productivity

And so and an a we're as enterprise S&P adding in well. mid-market some at

add happy we quarter, -- this their we with number so new salespeople of And and added productivity. a

Joel Fishbein

Great. Thank XX:XX you.

Operator

Moving to Ikeda. on XX:XX now Koji

Koji Ikeda

XX:XX tell Hey, year with letting wondering taking of or changed to tools, I own your thinking approach us their was standardization IPO. you maybe nice first how quarter over developers choose Congrats evolved being speeder typically for your on Brian. conversations down. catalyst top-down past if customers with familiarity and their more and versus able the have from What top Hey, prospects Sid. a your could is may the or maybe the a DevOps standardization more a and that strategy? drives

Sid Sijbrandij

Yes. Thanks question. XX:XX that for

and So the is that within more company They have what are the growing. the integration projects number companies more are tools growing the at seeing have of time efforts DevOps that and time. same same is at they

Platform. electronics, it Walkman, going had and that's as as things get it DevOps that's a flashlight; you. protect Think things. sustainable, you became in these to And no an they're [indiscernible] XX:XX effort you with more exponential had to tools The causing one's more electronics -- more carrying a going So belt of towards more with carry a around were that get all more available, you increase and It a wasn't camera, you as becoming integrations unsustainable. why had and you is

iPhone. an want You

You in want something that of a integrates single device. that all

Koji Ikeda

it. maybe Got then Thanks. for just quick And XX:XX follow-up Brian. one

about mentioned you team something remarks, growth. in think your lower-than-expected I prepared

through double-click maybe a maybe this Thank should this that you. were aware else year of last walk comment? a bit. to Can year we of be beginning a you because you us Was wanted this or little year, is that bit the on anything at there there? pause is and Just front-loaded

Brian Robins

out. We We XX:XX more talked for point that number than we just one last and members road, but growth, this do quarters. that about of on When was team quarter Yeah. the added Sid we six I question. any the wanted responsibly. to the Thanks were the objective

and so fell had a the in bottom anticipated to big And We'll did look that back in we we it reinvesting we members, business less quarter the line. have that at but team when so vetted can.

Koji Ikeda

Thanks, Thanks, it. it. Brian. Got Appreciate XX:XX guys.

Brian Robins

Thank XX:XX you.

Operator

Jeff Moving I a question, now XX:XX on Hickey. believe, to from

Jeff Hickey

take some guys. Karl. Hi, XX:XX Thanks on for

The estimated technical you how about do the audience. but there more have the opportunity think opportunity first of have out broader the number is, much numbers I users, thirty the registered outside you you have with of question million around professional is over developers, maybe broader

think the be, from move do first moving you part as that just So away cases forward source focused about how would code use primarily you management? on

Brian Robins

Jeff. Thanks, opportunity is the enormous. We think that XX:XX broader

If TAM and getting we combined a you It's look three dollar at we're billion with us GitHub, than we're think, started. less percent. forty just combined today

driving make positive. we're market. has and you're outcomes So companies software the lose we're really that -- in early are better, software helping to extremely and or in business a software going faster Every we're and company the company to helping companies become we're more secure the ROIs

So of opportunity in front us. about the we're excited really

Jeff Hickey

would quick it. just Got one growth. be the XX:XX then And billings follow-up on

it metric on do forward you And QX think be you were elaborate or volatile? guys a in is I deal big last that? to going expect focus you year. we something really Could on more or should lapping a billings

Brian Robins

steer is road, in quarter, percent the the from growth XQ and is remove quarters. in see true exceeded XX-Q, from XX:XX away largest we short this and services little particular we're on people to a if professional so Yes, when choppy quarter. you ups a and tried But billings grew little term billings billings seventy rate from billing When deals of our consistent our that. for of couple and the ARR last you one RPO the year-over-year history last the company lower is growth then

Jeff Hickey

it. you. Thank XX:XX Got

Operator

question. our has next XX:XX Matt Hedberg

Matt Hedberg

for Thanks XX:XX questions. taking my Hi, guys.

is in it open from platform one it's think, new even robust, to percent, of growing the leverage mentioned customer to Brian make benchmarking more perspective? I for hundred the you you up to that ways maybe mix? even SaaS north is data Does increase a continues

Sid Sijbrandij

I'll It's Yes. that don't you a new possibilities. open does Matt. take and question mind, XX:XX question if great does, up it it

You mentioned benchmarking.

that cycle accelerates can we train ML models is that time. thing Another

suggestions relevant frequently them our customers, something to these also also just out figure benefit assign who customers. don't we new SaaS our example, For we can embrace functionality. to. benefit to GitLab And more reuse make improvements And to can self-managed

Matt Hedberg

question, considering where XX:XX security DevSecOps exciting security my portfolio is today? second of beyond growth you then of longer sort think think about That of product. When you the do shift we're And movements think releasing on that sort super term, in about the and package the can take left. you your all that how side, aware I

Sid Sijbrandij

for Yeah. that. XX:XX Thanks

have. We already are what really we bullish on

in quality, API detection, analysis, offering container Our Secure further stage, basic most management. container compliant we'll versions scanning, we scanning, security and is network offer In anticipate license Protect of Stage. dynamic security, whole Stage security. secret into the orchestration, that's first testing, security and container code complete that the that already be market, vulnerability dependency expanding We static analysis,

Matt Hedberg

done, Well XX:XX guys.

Brian Robins

Thank XX:XX you.

Sid Sijbrandij

you. Operator Derrick Thank And from XX:XX question Wood. now a XX:XX

Derrick Wood

echo XX:XX Great. my congrats. I'll Thanks. And

selling one more out area that could a and wanting companies landing see as the is First of a of DevOps you trend expanding motion of it for to still we out sold I then Sid. of something from initial there? an going mean Platform, verify, or given and bundles about gate, be sale more is to one buy the in how think the do like of create gate,

Sid Sijbrandij

is for that that Thanks Yes. know includes tier important every And about to model pricing our what's question. stage. XX:XX every

it's executive, on free at and at If Ultimate change gradual in it's aimed look possible even not of stages to everything so that to really one. replace. customers customers will our a our It's This process. adopt what how So it, is get core that. GitLab. of DevOps process it functionality tier. to We day charge rip all top hard do, the an you XX:XX be for tier, If in is functionality you

find at in solutions three-point second If Forrester released you customers a first look we in year replace linear you the the together, then that study adoption. and the third of year, the pace year,

keep GitLab So very very, can growing with for customers time. a long

Derrick Wood

And, pretty in is That you're modeling minimal XX:XX deceleration growth helpful. in QX. Brian,

decent in is remind in then, I why of of it? a a mean questions. second is what alluded Is does out in Just more QX was motions. downtick else guess a -- some there QX? of half normalize can about kind government And I amount seasonal QX, So have comp guys think the the to there think you us that business, tough government QX? you seasonality flush there seasonal anything I and couple in you to

Brian Robins

sixty from Thanks there be or XQ and biggest acceleration a in quarter to number, calculated was and total percent the them, that. the sixty normalization the guided then eight for the the and the growth, on full the to growth revenue billings explain quarter, it current reference billing for scheme one year-over-year wanted year-over-year public calculated of and question. the this at the billings velocity so, was really growth implied growth, us to And percent Absolutely. the is the perspective Derrick for billings And rate then XX:XX on in on so XQ. lower year we fifty percent. lighter

Derrick Wood

XX:XX Helpful. Got it. Thank you.

Sid Sijbrandij

Thank Yep. you. XX:XX

Operator

XX:XX All right.

Michael to on Moving Turits.

Michael Turits

XX:XX Sid, congratulations. guys. Brian everybody, Hey

you is down you build to Brian going, are with it the starting question in of see and opposed bottoms what especially across market top of customers. up up to standardization as enterprise move more that and enterprise to developers as force go kind you sales So of in for and are terms you the selling selling? out as the you How engagement to terms

Brian Robins

results Yes. that's and comments early just additional Michael added sales the the very Thanks are -- the since to normal sort where We to are UBS company's than positive market land inception. such over in small some go did as We've XX:XX you a quarter. new, so, wall enterprise on and are there motion and to really of year, motion channel which the been sales sort motions so our you are within we last implementation alliances, but the partnerships a then very examples, wall expand but direct of relatively less XX:XX as appreciate the client, And forth. and is the know year.

do as land the And so at some top times we well.

a both in And the the normal more motions, time one so, licenses one us. is at division probably we for the do hundred you but motion where department, land

Michael Turits

then you. Sid, one I with And if could XX:XX in squeeze

there? side customers, management of little talked to a might as direction? but pipeline little about you bit, many successful a more think been -- I expansion CD but And and you about I talk I FCM want can security, the you into know bit have in core think code many, you your talk CI, think how that repository

Sid Sijbrandij

question, also testing Michael. XX:XX now management the and land. with for land and code that proper do We is code source Thanks testing code

just not it's So source land and the secure two code. control, uses some areas in expand package testing exclusively from for customers release. From there, we those

lot things like scripts When maintain. Those auto like made our we are the investing one customers has checkmarks, projects like Synopsys, the better a to would are release to and be there of replacing So Ultimate, hundred of driven it's percent we hard Secure we're commonly BlackRock customer that of one really like time. factory. test expansion important tiering JFrog because replace custom for secure up package before hundred solutions percent replacing their to points and especially

Michael Turits

Thanks, right. Brian. Thanks, All XX:XX Sid.

Sid Sijbrandij

Thank XX:XX you, Michael.

Operator

from Jason question a take we'll And Ader. XX:XX

Jason Ader

two, calendar hi XX:XX on the twenty accelerants question twenty guys. Yeah, is fiscal to three. My twenty in growth twenty

whether to have accelerants head more releases. thinking accelerants kind of about three product think other are you kind more not of those count, adding alliances that sales How elements, more you maybe about? through talk or it's If some would the channel there I'm or different

Brian Robins

XX:XX Jason. Yes. Thanks,

dollars different more billion penetrated earlier, a the stated more do differentiated getting it's we more One so so the of I outcomes. positive TAM As and business a investment we're is product, to barely and the more the in continue areas. there and investment forty is, do driving -- product lot

Secondly will land is, we new logos.

logo channel We're new in investing have then up TAM. also obviously we and also we tier expansion. alliances expand And and we doing international when expansion, hit we're and them them. so And landed can then

that I there to in opportunity areas enormous so different number very think to a give this And market. continue us is grow of

Jason Ader

ARR, And you Brian the to expect average new trend XX:XX do continue to higher.

Brian Robins

XX:XX that historically, every It historically. it a I statement. forward-looking has has But done quarter. make can't

Jason Ader

guys. you, Thank XX:XX

Brian Robins

XX:XX Yes. Jason. appreciate I it

Operator

over closing that, with any for back remarks. additional And I'll turn to or XX:XX Sid things

Sid Sijbrandij

questions. this much joining thank want for investors, to GitLab contributing. very our able so some I you great much. Those thanks thank first Yeah, and around earnings I wider XX:XX announce our were the be community call. It's to to great

great members, Thank quarter. our the customers users much. our very Our team you for and

Operator

a gentlemen. us. XX:XX Ladies Have Thanks great again day for joining more and once

GitLab (GTLB) 7 Dec 212022 Q3 Earnings call transcript