GTLB - Earnings call transcript Q1 2023

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Operator

Thank you for joining us today for GitLab’s First Quarter of Fiscal Year 2023 Financial Results Presentation. GitLab's Co-Founder and CEO, Sid Sijbrandij; and GitLab’s Chief Financial Officer, Brian Robbins will provide commentary on the quarter and fiscal year. Please note, we will be opening up the call for panelists’ questions. To ask a question, please use the chat feature and post your question directly to IR questions using the drop down menu.

Before we begin, I'll cover the Safe Harbor statement.

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

discussion today complete with associated filings, recent our in business, our risk in to our quarterly these to most Form encourage SEC you of refer statements XX-Q. report earnings our a For forward-looking we release on distributed including

information we currently release to or the reflect upon or to undertake Our us. reliance statement, you unanticipated forward-looking based of update any occurrence statements duty caution available not forward-looking events, any circumstances on or We are or or any to to events. obligation forward-looking do to to undue revisions future place report statements, and not any

now the Officer, Chief is also with this call of discussed Co-Founder GitLab's be supplemental detail website. a additional measures Relations as by our earnings with call replay our during at referred accounting measures the in measures addition, contained are over that website, non-GAAP non-GAAP statements these principles differ reconciliation call, Executive U.S. period-to-period These prepared certain the today's turn press to evaluating reconciliations to performance in the as Exchange financial comparable Commission performance are assist in in comparable to Securities for substitute accordance our release A management and to measures supplemental accepted financial financial may In generally will SEC. the from to a on financial together We posted not Investor investors these schedules GAAP financial measures discussed results. and and in in Sijbrandij. included the the available release. measures. I greater be submitted our be earnings Sid believe will comparing measures operations intended and section most that These results non-GAAP of of non-GAAP and GAAP our of our information to

Sid Sijbrandij

fiscal of presentation. joining first quarter, us by I discussing for saddened earnings stated the the XXXX nation year the acts for quarter unprovoked deeply horrific and Thank remain all invasion its military before concerned sovereign you and we our unjustified quarterly results, violence the last terrible as to against But The people of Ukraine. of the in Russian and and impact region. those

in the over. We work continue with assistance the and to impacted (ph) a committed providing number and we're conflict members is GitLab small until them directly to of to ongoing team region, support

to turning company, to macroeconomic We every that results. the needs believe Now our company become regardless software environments. a of

platform our One DevOps drives business we distinct secure customers believe advantage, software being and with better to compelling (ph). able outcomes to providing be deploy, build, Our what competitive

a the across this and fiscal we market remain of guidance strong early are and we revenue pipeline million exceeded opportunities quarter XX% addressing of In of opportunity. stage Our with large XXXX, as of growth globe $XX.X revenue the year-over-year. represents our first

of threshold at investment and return of we this remains be which Our of significant dollar-based number exceeded we demonstrate The to continues net driver primary on to our provide. users metric rate XXX%. reporting customers, strong believe increasing an a retention level existing

underlying and believe We quarter the our grown responsible economics (ph) are in committed a demonstrate attractive business. to manner unit results our first

were accelerate to able leverage. While significant continuing to also show revenue operating growth, we

$X wins, new million deals. $XXX,XXX by improved in larger acceleration points X,XXX margin and basis year-over-year higher velocity growth strategic this commitments. as is deals achieved XXX quarter-over-quarter. in of basis by customer Our Underpinning revenue We as well both a non-GAAP momentum growth operating in points both

during proportional remains to volatile. a and upgrading our customers predicted number Ultimate to is are our portfolio compliance logos Today's represented new our of management. ago. months Ultimate of used a the for macroeconomic first few customers experience continue extremely highest landed quarter success and existing growing short environment have adoption Ultimate tier In tier. of few fastest signing There in addition, we strong and XXXX just new would by cases challenges security, addressing mix that very

and main customers the reasons durable growth is at more positioned and broader among interest financial believe the are rising unit over want GitLab time. large are There improving dive factors deeply grappling ongoing driving Ukraine, Our with with other well into economy to supply why disruptions to our achieve results. shortages, inflation, we the pandemic, four increasing economics chains I war related to issues. the rates in labor dislocated

remain business we the conditions. First, macro of believe strong imperative transformations for regardless digital

proof We generational digital experiences are to becoming their whereby disruption, in defines at this software infrastructure their essence, companies mobile operational believe (ph) an In in all we we and to are has world great modern companies practices, company speed captivating provide innovation, become the software cloud increasing future and and in securing to software and where businesses operating competitive. a development to development, as to remain number requirements. and believe of midst designed embrace as every driven migrations, of deliver developing, engage of well software requires a a agility to customers,

early is billion time targeting estimated have that a place We business in competition selling We're market is Do-It-Yourself platform as $XX and nature. our the and our DIY value. we opportunity. largely very to solutions Second, DevOps on to DevOps in focused believe companies we known Thus, are stage today. is One outcome an addressing believe large a

your we provides that secure, to in platform any one for everyone brings of one GitLab’s operations, all is one end-to-end platform One infinity our business part location as of platform. Fourth, security, GitLab together that Third, an we're platform quickly possible. spot compliance, of one reports, as is main planning. we software place true time we and late and to DevOps being This market all deploy customer an do are And of to incorporated enterprises Ultimate contribute. provide first competitive value quarter. to credit possible of all of to cloud some refresh, opportunity of believe undertook code, differentiation. one estimated and cloud the DevOps in empowers leads addressing a believe capabilities innovation, values, product quarter, iteration large shorter deploy in a driver set place. capabilities compelling secure brand one our this so more including We enhancements collaboratively and in one interface, needs one to platform unified look address data, security, this so central frame. teams, improvements to build, IT across into of only the deeply Combining end-to-end DevOps the a creates this our development, We new with that Security first have strive area one smallest the in we logo, plan, as problems in platform. delivered the the DevOps DevSecOps. and To examples independent is to our the ingrained in

looking which customers and Our to pinpoint the a solve risk. experience, are of fragmented more innovation slows creates down security

workflow. and constrains merge ability have all history with and related tools merge starts capture digital tools more to disjointed We Platform. organization, increasingly capabilities as to or We The functionality to the recognized DIY their an One and part violation security track their key This the of introduced awareness all development as a of report new Most management to delivery they and which normal GitLab companies version a a This comprehensive time violations. of the the broadening juggling of factors groups. This digital to believe integrated DevOps about identify better scanning over integrations need. DevOps development is a will you version, help provides and predictability that in single is we a violation to compliance dependency and mentioned security efficiency among training improve the request to security launch within homegrown and improves take of resulting capitalize address software our Effective and is over issues four These transition for a variability Fully an collaborate excited tape. a in reporting, DIY growth durable more solution set area individual are more every their is prospects. and recommended enables product to can projects previous developers types practicing looking with results aims patterns customers over to released projects. which automating individual component tape request need believe innovation. security The deployment a recent huge only operations. compliance us to teams their issues. integrations reducing reports allows GitLab contribute. the opportunity from a the improvement and DevOps co-development, when compliance, which teams for compliance long to software enterprise and showed a in across in dedicated increasing growth ability opportunity. and view duct of available, begins of We is many Platform. value We're vulnerability the term that security a DevOps Equally see important report group. still in findings problem helping dependencies an violation and planning. of effort companies where where DevOps Platform a like deliver This Security end-to-end functionality requests, allow duct market won both time. earlier merge important it this different improvements that delivery. on are is This consists are given. single latest meets area now pipelines is presented in is Our

categories. that DIY number deliver associated now deliver cost single gone We back. the realizing DevOps the from tool and gains of conducted within that customers. Based software by can years faster, direct with We believe eliminating down DevOps this have are compliance. and with in a of companies issue. seeing their three accomplish to XXX% investment and productivity us, study GitLab business broken chains return DevOps and the be by identifying a to complex four them this manually means Forrester can We chain not our efficiency, And buyers helps the approach is of inherent perspective, and integrating we deployment saw security frequent platform. aim savings to To costs in application our benefits a where was the These on improve by joined indirect from both Consulting DIY complex tool that customers engagements our prospective organizational their more holding commissioned approach. on

direct eliminate consolidate as customers to a there's software tool point spend. cost are able software vendors and First, license reduction,

can remove chain customers tool Second, integration costs.

be wide designed from range to acceleration Fortune numbers zoology. of overall to customers to productivity happening very better experience. business companies, users, C of to facing finally, customers And platform Z, from outcomes the due deployed a customer of developer organizations of A a can the The and to Third, faster from tens achieved small greater and aerospace as single increasing at for positive conversations realize remain thousands be revenue delivers faster. applications with innovation We DevOps One strategic encouraged users level. from XXX can

We our continue increased have And depth our traction partners. Partners. we Alliance the increasing channel with see over of number to and last year,

We have you wins please representing invest logo give examples program. some let in our to also And and both continued expansions. me new partner customer

transformation the over based in and first broad goods homeware XXXX. employees which and sells to their They shift chain their became of of was is existing culture key with GitLab XXX a Their their holding FY shift a replace household over DevOps a UK practice. to chain mix strategy. that retail tool DevOps back contained outlets quarter agile digital GitLab SaaS Ultimate and This XX,XXX customer chose First, Do-It-Yourself to future approach. tools,

primarily based CICD and usage and and a drive their improve that experiencing worse migrated productivity outages we with capabilities. In package they GitLab performance teams, management their productivity. over became capabilities. utilizing Second, late development enabling North And company became GitLab's vendor XXXX, American to continue uses time. developer They another technology to throughout SCM efficiency evaluated

developer scale, that through workshops strategic advanced availability to fiscal more dedicated them self-service, QX to seats. allow able implemented automation, quickly high team Premium they growth over XX,XXX services addition, drive and training, partnering them expand to with and In This company GitLab's to brought across professional infrastructure leading in outcomes was XXXX planning. to and

X e largest They serve day. XX Turkey. the company is million shoppers, Trendyol in than more Third, than more million every commerce packages deliver

using teams services As a and has single and of to Trendyol has of had stable diverse and operations organize tools. simplify expanded Adopting its amassed DevOps platforms. developer Its its allowed complex a platform. GitLab teams Premium DevOps assortment

I'm As all times the pleased launch reduction and and the a who ability productivity and new GitLab In to summary, XX% with result, Trendyol has XX% members, improvement and in team build our faster. experienced quarter our a application XX% to developer customers I'm to a community in results. the a wider grateful contributed partners, extraordinarily

momentum As I'll Platform. we continued seeing GitLab's look to Brian for call turn over Officer. now forward, customers the adopting strong One we DevOps are Financial our Chief Robbins,

Brian Robbins

and strong recap into results will today. some for quickly strong our a business, conclude you thank for how joining our introduce translates first operating profile. metrics, demand us I Thank platform you, and Sid and quarter to again and FY regarding with our XXXX key guidance additional context financial everyone DevOps

First, the let turn me to quarter.

from unit hear economics them. our our as that continues macroeconomic to results strategic a GitLab platform high perform We a improving is level customers volatility. very at business our continually demonstrating highly despite for with pleased are We

free Our we Premium subscription two-paid call with which tiers, and and platform is a Ultimate. version offered

with user tier. tiers are which transparent us features priced paid Our keep business an per is model the within and easy different same helps understand. organization to on user our per Every plan,

diversified verticals, any in sizes, not the industry regions. key business customer metrics any across and base We during is very slowdown customer do Our geographic quarter. see well

in pipeline than In fact, it's our been. ever actually EMEA is stronger

We a new this team growing in added people previous we on of steadfast are member in manner. commitment as executed we happy hiring to more We organization quarters. our remain each eight quarter the in with to responsible the than how

as hiring team for new a the view in benefit economy uncertainty members. the macro also We

Now, As of prior ARR of customers XX% growth $X,XXX X,XXX with Revenue in a $XX.X prior to ARR rate prior of in Currently, customers This greater approximately compared million XX% an year turning organically total $X,XXX we represents represents quarter represents in increase from over at the end, the XX%. to and of quarter customers year. over had of X,XXX quarter our than numbers. the least customers this the of with ARR. approximately year-over-year X,XXX

we we to Just some annual for this amount that analyze XX% cause on with If have of were license we normalize this a ASC-XXX, revenue recognize reminder, recognition year-over-year. we fluctuations revenue grew upfront. to an This may the upfront some change quarter, still basis. required

rate than We quarter of we performance At $XXX,XXX and customers, the also to so ARR with XXX define our XXXX. with us. quarter, measure spending XXX growth first in end ARR we of year-over-year larger the This represents of and XX%. the XXXX, the had at $XXX,XXX, in customers in XXX prior those of first compared customers least as approximately the more growth customers FY FY quarter of of a

we a prepaid that good believe our to prior be for many comparisons a As not period Most be factors. know, given of indicator by deals. of you impacted billings calculated our number business, large of can do history notably, multiyear

of compared our revenue XXXX. for with FY XXXX quarter the Non-GAAP to FY for of XXXX, $XXX to We first recurring XX% of gross to reported recurring retention This XXX%. XX% of of fastest margins RPO quarter exceeding and of continuing net first threshold the rate tier and the were XX% XX% quarter is the our in grow annual representing XX% our grew growing quarter in annual dollar-based the for for now of quarter, with The XXX%. quarter revenue preceding immediately XX% tier, first year-over-year compares first FY which quarter total excess million ended Ultimate

of largely We includes extraordinary to FY we related XXXX, across quarter a leverage $X.X set in of continued is used growth our line, JV rapid to the of $XX.X QX the revenue business subsidiary. improved moderate or saw expenses XX% FY XX% business the summary, loss first Operating SaaS compared we bottom XXXX metric used of this first In the of a the to to quarter majority this we year-over-year are As owned for and quarter, million million performed million in move by forward, our up of or revenue loss year. of during the and million reduction offering. on due we the same QX and year. cash well estimating compared in strength. was rate million both quarter fiscal was $XX.X in revenue Non-GAAP believe last $XX.X of operating $XX.X outperformance. driven FY our last XXXX operating top

turn let's Now to guidance.

XX% For the million, we expect to second $XX.X million quarter of XXXX, revenue growth rate FY year-over-year. total of $XX.X of a representing to XX%

to to million operating $XXX million. million non-GAAP outstanding. expect $XX non-GAAP $X.XX weighted loss And of of we loss assuming share net average expect per $X.XXX We $XX shares a

total year full rate $XXX now to growth XX% XXXX, year-over-year. FY a expect the of of representing to million we XX% revenue million, For $XXX

expect expect to $X.XX share operating assuming million $XXX.X to loss the of $XXX million we non-GAAP shares non-GAAP a We weighted of and per million average loss $X.XX net $XXX.X outstanding.

earlier, we the believe Despite under that not we in any philosophical macroeconomic positioned well volatility long There and market the substantial term. value seen run of a outsized no to over it. the very we're that change environment in we first to As the business. our Sid capture business portion to mentioned is we're quarter, an maximize has penetrated a been currently how have impact shareholder addressing

on be improvements incremental in while our growth of guidance continue A our and driving business. economics We unit more the on to model. focused details few

related marketing public were I resumption million events mentioned the $XX of of travel quarters customer that last costs well XXXX. FY in to in company as we three of as As and approximately new first the incremental quarter, incurred will expenses person incur not

and a compares to $XX note, XXXX. forecast China we cost expenses million venture. to of of related $XX addition, we In million FY like approximately JiHu combined in basis, operating non-GAAP a guidance This joint Meltano now a FY year-over-year I'd our points XXX our our ranges. of XXXX annual implies our majority approximately owned guidance margin the basis deconsolidated have subsidiary. new Meltano improvement of percentage midpoint at JiHu, On

we move the term, we'll longer that, unit growth in With the ask continued question, business feature post believe will economics. to further yield on now targeted question a that the IR focus in the directly and use To Over questions. Q&A. improvements scale to and your please initiatives chat

for ready first the question. are We

Operator

Brian. you, Thank

your will at Sachs. Kash We verbalize you Goldman to please begin going will Kash, question. by

Kash Rangan

as Sure. impressive financial will to a Ultimate revenue furlough Happy as wide I I'm possible just there. edition. the company's is. prioritize that so And curious model edition. product which much. to as roadmap it a you targets to. you be your And as Ultimate on the What getting would in, Congrats of investing ambitions quarter. be features to take well, to Brian, maximize if the What of to therefore, Sid, the ambition and as on logical with be from the works Congratulations as to of out so the Thank on get wonder you how also follow-up productivity. again. numbers that's whatever respect the sequence the And users company? the could company's or many impact it? that

Sid Sijbrandij

for On going solutions, and if into average, question. point know investment the is to one, on We're solutions four they see can Thanks point If DIY three. replace our a so your replace from focusing term we two, for create, they The Yeah. to code year converge that, in verify much major investment. to month, We our platform. of year our great majority GitLab year they're in enable and making return able annual in we're compliance and Brian? do to investment can go DevOps June. and the model in they our to excited of that. future development, development we're the ready the released AI week ops, in will having with long model This ML release that be third launch because Example, and software but investments. event ops, want see XX, also we and about GitLab secure, people

Brian Robbins

the Appreciate Kash. Thanks, question.

outcomes Ultimate, from Ultimate. adoption our who customers of adopt we tremendous see terms business In for

developer over company, year. per adopt of as $X,XXX And Ultimate the price per a customer given time, every we, owing the at value believe so GitLab that tremendous should point

vulnerability ultimately, few. name to a management and gives so it just customers features, our enhanced forth So compliance, security

And so first ARR to Ultimate of from quarter you, XX% Now, year. XX% remind our of just up last

Kash Rangan

you Got much. it. so Thank

Sid Sijbrandij

Thanks, Kash.

Operator

Great.

from be at next question KeyBanc. Our will Michael

Michael Turits

Didn't trying How Just guys. please. are to gratefully Hey, you? on [indiscernible], -- happen mute.

Sid Sijbrandij

Doing well.

Michael Turits

Thanks, Sid.

quarter can are projects then (ph) development development you a But Sid And the and enterprises, Brian, results no see shifting down or fantastic saying, customers, speed if hear, on I to of questions reacting inflation, maybe midsize to are on they basis. one you those impact. full any and were how to projects have So in terms Are of -- not great fantastic development priority seeing fears drill you Brian, just okay, ahead. from JV next? negative simply in they for you the problem recession

Sid Sijbrandij

that. company for we to Airlines that And Thanks question. I them pandemic. their do plus Yeah. company story during that what the saw regardless to help in software global them with at And that can We partnered a environment transformation. believe of the what way is. their crash, footprint become needs make is to a reduction Great GetLabs maybe and time, expand every macroeconomic that share to happened And help Global airlines revenue the XX% three revenue. DevOps.

consolidate And both save money Brian? tools. well. integration The approach that, customers on to So costs. helps on they message with platform our resonates and licensing

Brian Robbins

JV? question to And what Michael, regards your in was the

Michael Turits

Do So money, -- follow-up them see do if priority are seen you question. and there, saving shift you? through just got well, projects. but type you're the of to to the any say to change you've be, you get before just quick JV the want a I in they this projects on Obviously, the is to -- of this

Brian Robbins

changes indicators, in ever stronger seen than pipeline In it’s not in fact, is been. [indiscernible] our I Europe believe we've

Michael Turits

XX% expenses to that income Is then there by those benefit the JVs, to JiHu on the right. the XX% time line? moving go And All of expenses all in below below line above Brian, any the statement deconsolidated. so the from

Brian Robbins

did say last be be be that consolidating we're are to would now is million $XX it's that We Chinese going deconsolidating. approximately we're venture. Meltano still quarter this $XX thing the joint because No. it. about our and deconsolidating million only it We would that JiHu,

And so evening. this guidance our incorporates JiHu on our details when of us all you'll file XX-Q see we later and basically the

Michael Turits

Okay.

million JiHu the So from $X benefit consolidation.

Sound alike.

Brian Robbins

Correct.

Michael Turits

Thanks.

Operator

you. Thank

on at to moving we're Joel Now Truist. Fishbein

Joel Fishbein

Congrats love I on address two often. you them just questions get I the to both. strong -- have I execution.

First on competition of you're competitive some profitability. balance then discuss and profitability about going growth Can you And us on give color balance how the and forward? maybe Thanks. win thinking the or the rates?

Brian Robbins

Thanks, we're and Absolutely. to Joel. main competition and market our secure DIY I need really, and plan, early deploy we guess way about DevOps. in first, software. it's really as say to important talk to be build $XX billion a continues a Companies

half against of the we into we what we look deals It's Jenkins. in the XX% You enter to When Microsoft, else total XX% than a the of in make you rate on we is identical. Microsoft, have. if the they're about typically deal almost whether of that deals. a important in, against run most amount They Microsoft Atlassian and accounts they deal. in run or for our that over three less deals do into in. currently the what And see at we the that DIY we're deals them note anyone win not We're are or don't up that companies, competing deal see see deals, and

that, over years land time cohorts us and still which profitability, to extremely they're not quarterly six predictable. remarkable, these just over and with our are to still And back On are which I ago so want And we expanding, is the and cohorts, the rate. expanding net only retention dollar expand competition go everyone, helps from little they a that's small on side. remind bit

show we're unit economics continuing business. so improving to the in And

As at a or grow a in company public public we’re uncertain times. a private newly company company, any expense

have (ph). deviated not bit our from Strategy one We

And quarter actually last this demonstrated look this quarter versus think year, if that. you we so at I

$XX consistent basically identical versus as last same you gave income XX%, guidance JiHu, grew added is for And revenue almost operating for this the quarter revenue If we year, full the exclude which the million well. we this we of absolute year really had non-GAAP profitability. with quarter

before, I, we're and growth. we this and and said to committed as Sid responsible remain so as And we

Joel Fishbein

That's fantastic. Thank you.

Brian Robbins

Joel. Thanks,

Operator

Matt at RBC.

You next have question. the

Matt Hedberg

question. me for Thanks the from as well. Congrats

had to perspective? hear in Sid, security, GitLab are a come success making question, from all a increasingly advancements the about you're the seeing So, first it's with great platform. you all to the security I'm I wondering customers in

Sid Sijbrandij

an main think Ultimate, driver that the fastest I important is driver. security growing We and know it's Ultimate for is tier. our

and So a in need the DevOps and We prepared already very common isn't their important that they increasingly are know level consolidate. DIY driver. C exec’s(ph) it's us to said remarks, they to scaling

to So that's point, auditors helping easier that so selling first very easier to I GitLab, increasingly compliance a much shift to that where the point at security with believe encouraging. static And our be have done incorporate. it that's everything our needed. testing, also you've earlier just very security do customers it's comprehensive left, with it's is container can can analysis, more and and solution we something. dynamic is it scanning, They that a prove strong offering

customers doing have are that make to would the today that of lot of all documentation all with DevOps DIY themselves. have where a You relevant

So it's just increasing not company, and a DevOps ourselves DevSecOps more as we more view company. but and a

Matt Hedberg

hear I level That's Is fantastic. think EMEA, to of do question, priority list. spend. guys as on you slow indicate. get one customers as that pipeline your certainly I pretty I a record kind in up driven the our priority that spending? what it's economy. are the is If what a great we it well? think how you of couldn't we important. And hearing agree all prioritize delivering here economy all there's guess believe think is security in to an you're angle I just your you well, And if the were as more that here have phone especially of to be question what mean, and I suppose I apps super the is on then checks a criticality? we're high And that And

Sid Sijbrandij

global the airlines. Brian, I think add anything that? that on to you to with I've touched have

Brian Robbins

to one and been uncertainty guess earnings Matt. for listened economic right run catalyst is every manage, heard the call, some the plan, a in outcomes, Absolutely, And we I of software. announcements. I spot secure Yeah, is, deploy and of learned I a the company for digital one we this and great prep several theme transformation. platform, earnings has I common we And critical you at sit where business have that downturn

the we’re positioned really this more our the metrics value well across in customers we're really proposition customers. we're the We base that extremely that. to board so that than positive. history think with offering And I And quarter of attributed added company. And is the

Matt Hedberg

it. Makes a Well lot done of Got guys. sense.

Sid Sijbrandij

Matt. Thanks

Operator

Karl your you please ask UBS. question? at Will

Karl Keirstead

Thanks, on GitLab. great. companies team. I'm headcount. to being line by smaller everybody a forced Sid. and just tech the Sid, about assuming VC internet think focused way Hey, are for has young heard OpEx that anecdotes those Maybe wondering companies I backed a whether the of and use -- engineering I'm one that cut lot of lot this their

you. to the us might bit under remember a you is related XX% exposure think of I little time of you from the number, younger have two-fold. So duress? able is secondly, IPO, Are seeing a that your the enterprise these may And correctly. customer any by Brian, to that, how to GitLab? I so trying be offset been question, really Thank at Are pressure exposure the at of that if large question you gave that customers enterprise just a date maybe cohort strength? get

Sid Sijbrandij

you add the you to answer. point question. question. Great that have like for GitLab of let my best Thanks is the Brian a replace. when ton I'll solutions

the can compliance requirements, the bigger So organization, value we complex add. the more more the the

strong in very most people see GitLab now a large there what hiring aren't you been is organizations. but is that slowdown, always maybe we've on yet. So And

with -- their want more get bring. they hiring, So an people GitLab room to expand of lot are instead Brian? less existing that's we billion as people. end. have we And down we believe slow to within have a in do market. that of forced what can They X% can to landed. already having without and out And the GitLab the they GitHub, already of more to $XX be Together, organizations of customers which than

Brian Robbins

absolutely. Yeah,

said be. comprised looked backed community Just what ways to of see less current much on. VC it what the much our we how of said looked ARR different Sid and it X% Sid that of we And to and think echo how it. was every it sort was We at spot and cut was way several we than that and will startup at

There's really so percent really of -- amount continues And no enterprise And by you been the volume. about really, total absolute the as change then that. the when of be to small same. ARR and to sort a

So it's XX%. approximately

and If PubSec you're so on you that, combined two the XX% throw pretty over of is strong. those

total. And PubSec. percentage the when consistent so add of a approximately and little period It's up went to and as you XX% of backed Enterprise exposure VC and long Enterprise very companies start we time. very public And been is for since a

Karl Keirstead

it. metrics. are great both quarter. Thank on helpful really Got Those you a congrats and

Sid Sijbrandij

Karl. Thanks, it. Appreciate

Operator

of Bank of Koji from is question America. next Our

Koji Ikeda

questions. the taking for guys. Hey, Thanks

Brian. one me is for Maybe Just for this here. question

months Just you magnitude lot and revenue XX% to of question your XX% clearly the above go better the kind few a about and the end high of could clearly the quarter. line performance wanted ask the We beat question. thinking versus B top guide of here the here past over last where this it quarter, got of this

in beat or the the just environment? what annual guidance quarter, you the especially to the just high from Sure. you're way or that cadence, thought level process experienced any demand the had change methodology considering a in the guide versus about thinking commentary raised with first we So the the

Sounds even EMEA, today. stronger even strong there with out than really

your sort any should way Thank thinking methodology? you. there we guidance the about help So in be of

Brian Robbins

and philosophy. There's and and question. so Thanks It we no Super in the we and is which excellent the quarter great lots quarter obviously did a in happy number, with Koji. was to revenue, for that change year the million results. at to overall growth. quarterly XX% year-over-year the beat delivering of had guidance in raise. committed there's we the approximately Early of happy so midpoint Appreciate, an variables the we $XXX guidance guided

favorite the of One into we things business. visibility that model the our most our about is have

you little up which easier. it a of with revenues -- guidance, all And so almost makes our bit makes come ratable when

remainder And and guidance. we I like as the the results happy for so the year. And raised we we're quarter, our of with reported said, extremely guidance our

Koji Ikeda

growth, that a a just how follow-up. little million just than break there professional the down in services you or bit? of anticipated license And you talk there? and it. $XX just Real services could and quick could a with one Kind more little there about Was bit of professional the the Got maybe bit components line kind strong self-managed other has the quarter.

Brian Robbins

absolutely. Yes,

more year. As price and remarks, little alone I said every prepared analysis stand we in we're revenue. bit our This a taking reevaluate my is required selling upfront

that And had so of about $X.X worth this quarter, roughly revenue we million took. we

would growth still been have rate XX%. Our

reminder, practice the our we've Additionally, licensing in around as earlier business year. our changed a

And from one so pretty year last gone ups SSP in canceled year. True out true much have this down difference another. ups the to

into baked the all for full year. so our And this is guidance

Koji Ikeda

much. guys. it. the Thanks Appreciate Thank Got so color. you

Brian Robbins

Koji. Thanks,

Operator

like Wood verbalize our please final Thank your question Cowen. Derrick Can you. looks question? at And it is from you

Derrick Wood

to more to companies of open more agenda Congrats Thanks. feet comment moving those I'd guys the and order some if maybe customer strong get would of guys. three Great. of and but rank from you source And variables seeing in of direct you number new you of mentioned mean, Fine. street DevOps putting we've the that very that Yeah. for drives of, kind commercial what strength wanting versus quite time. had around generation. think think on But on the How versus C kind about kind been of core I sales, a vendor. on level platform initiatives a the drivers? off

Sid Sijbrandij

Thanks for the question. great

in really think I the So channel. what's increase is important

can something I'm you there's platform hey, to in know, just had start that? from, me more DevOps and getting us. to years is convinced come look, important is already looking thing for I consolidate. the they seeing need level and want maybe other they platform. said, I look, best say, for And thing. the where Increasingly, are Today, just channel few ago, some there. tools, doing out a I'm control we exec’s sell want So you C we're And this consolidate that version more that DIY and better. to they There's DevOps a

So that us helps and recognition. that great see it's to

realized we first was it maybe see and customers. competitors now think who it and I traction us and the Brian? with analysts our

Brian Robbins

Derrick. motions new we Great those. question. Yeah, about all were adding. the from When starting go-to-market We're absolutely, we're going see that to public, I all benefit the talked

transformation. deals as great economy, the whole well. to happy with AWS aligned see with the GCP overall a that as getting momentum fact the specific Switzerland the well that think and Really sort it's catalyst for the been with I we're uncertainty plus one there's provider, we're this a digital aren't the of that since and cloud them

Derrick Wood

a looking follow-up same that on guess Chief Kramer be hired board? she topic Officer. I trying guys And Ashley Great. going Anything highlight to you that she's we what that just as of Strategy out as Marketing do on be at should to is and

Sid Sijbrandij

Yeah. to the be She's have in talented. We're super really to organization. her happy able

and to we I both to think us appeal what's that buyers users. is important for

We're question DIY the and of, we're hey, to do of efforts DevOps to from have focusing early it's on. very this the telling story right? in our move story, we like where both DevOps that's market going still So to platform. so you're And a telling marketing

Derrick Wood

again. Thanks Congrats guys. great. That's

Sid Sijbrandij

Appreciate it.

Operator

for you that, And things Thank turn for I'll back over questions. remarks. right. All with the closing to Sid

Sid Sijbrandij

trusting today. the team wider achieve thank thank members our our business and GitLab I'd GitLab time their objectives. contributions. for your to for for I'd to GitLab their like all help community partners, you also them like Thank to customers

all You you. a Thank had success. our in continued big part

GitLab (GTLB) 7 Jun 222023 Q1 Earnings call transcript