GTLB - Earnings call 3 2024

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Unknown Attendee

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 panelist questions. [Operator Instructions] Before we begin, I'll cover the safe harbor statement.

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

including of please with release and refer in SEC discussion in forward-looking distributed our complete quarterly our business, recent report our to filings, XX-K. most a recent risks Form on these associated statements today report annual For on most Form XX-Q our our earnings

update statements, caution not are place to undue Our forward-looking information revise in intended upon our along additional or to and based or press undertake measures currently available also be to duty reconciliations on Sijbrandij. with statement a you forward-looking and forward-looking statements to reflect contained report measures events. We discuss are or will at statements the now to we GAAP. Officer, any substitute future no measures us. A of ir.gitlab.com. I will measures Chief financial Co-Founder non-GAAP GAAP replay our or on included call events comparable be not accordance Executive call performance supplemental turn We A any our in reliance or may and the measures these circumstances to in that for financial available comparable U.S. these reconciliation prepared to is Sid earnings the to non-GAAP unanticipated occurrence results. GAAP today's posted from GitLab's of which information These financial differ of with release, also are over obligation ir.gitlab.com. most

Sytse Sijbrandij

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Brian Robbins

Thank you, quarter. for Overall, we performance third saw everyone again you today. strong a Sid, joining us thank the in and

and pleased Our the large grew profit. year-over-year, in key our margin scaling At milestone business X,XXX address time, investments of us quarter points a governance, in revenue opportunity. share planning. product AI operating efficiently we These basis market the and make operating non-GAAP non-GAAP agile enterprise our to delivered expansion. I'm targeted to same is security include continue for major first and XX% over of areas. This we to

want QX have cycles, I 'XX, we quarter, FY sales seen with at contraction and some closely of overall Ultimate. In areas QX the lengthen. the win been include rates, share to we monitoring. cycles have back These of sales Looking comparing

QX, During segment buying our behavior stabilized. enterprise in

customers However, and to in cautious SMB, an uncertain we macro be the environment. continue see mid-market in

also quarter to customer QX over the year. value that have signaling and the improved go-to-market bookings resonating strong for continue QX, level use And results. In in with platform improved, adopted have finally, Ultimate adoption see rates last consecutive XX% predictable QX QX in third line proposition deliver of we Contraction wins ARR to and driven top of by is Ultimate, is our environment of the We our the represents in security cases. this market. of during approach our for and compliance strong tier. DevSecOps

of with ARR over X,XXX an ARR. to the turning quarter XX% the the in Now a $X,XXX customers X,XXX approximately rate QX over QX from of of We prior quarter least with This organically of X,XXX Revenue customers compares of $XXX.X in increase $X,XXX with represents This our to Currently, at of second million greater represents QX of prior XX% of XX%. approximately year. year. than customers compared this FY to customers ARR numbers. total over 'XX. growth in represent year-over-year ended the

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

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

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rate the over stabilized for and new retention quarter, and our have changes margin we reflect dollar-based the the revenue calculations. Non-GAAP dollar-based is retention were quarter, hierarchies. to from customer which This updated previous net third account operational represents our net of consistent year-over-year. slightly consistent The 'XX. rate preceding grew of been quarter SaaS based XX% of gross calculation trend declining methodology has both on to the XX% This FY rate quarter. total XX% with improved but

business. Operating able been income greater delivery. non-GAAP was quarter of FY revenue million to last the business. We we of proactively agreements in despite cost to $X.X use year. Since 'XX, continue yet efficiencies for $X.X This $X saw was compared JiHu, and year. to gross tax another operating last an use proposed company, compared or to advanced revenue profit FY the our efficiencies The of example non-GAAP $XX.X IRS million pricing or revenue. operating have of the million was the 'XX transfer majority-owned activities not negative third We operating Dutch stand-alone QX the is driven between bilateral operating in margins APA, quarter operating we the scale relating higher loss agreement, the as same drive between quarter and of GitLab $X.X and the U.S. a of X% improved best-in-class to the non-GAAP million QX have arrangements JV the Netherlands of realizing negotiating pricing leverage third maintain in or this the cash of continue a by the or of quarter $X.X basis, to cash million authorities. final. includes are This loss XX% a been in subsidiary. On how of million X% in of we largely SaaS

in discussions per future our our share. I an estimate income impact positions in the keep is payment during an long-term result authority parties, the nonrecurring cash However, third optimizing Dutch we will on this the given $XXX of tax GitLab of non-GAAP by The to believe adjustment. both the The we on and updated APA calls. future. stage does the will quarter, earnings recorded for future tax million ongoing team with position. The tax tax timing dependent exit work not earnings you adjustment

shows savings the tax be should payment over periods. modeling Our as exit future recouped

Now let's guidance. to turn

the in few the seen we We over quarters the last have continue. are assuming that business trends

revenue For fourth to quarter of XX% a million representing $XXX FY total rate 'XX, we growth XX% $XXX expect of of to million, year-over-year.

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

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

economics. I'm yield our $X new We guidance. of expect to income outstanding. On non-GAAP million. operating basis, of $X.XX, $XX average 'XX share our non-GAAP And we loss on weighted unit XXX basis midpoint X,XXX million annual per diluted FY of a guidance our expect that assuming shares at to growth net pleased non-GAAP approximately percentage points implies our million $X.XX of improvement year-over-year the We number believe continued we fuel a operating focus success improvements will in our responsible platform business our FY customer to of value operating beyond. to breakeven FY free payments the We excluding in on tax will any for success. in remain achieve income discussed with cash continuing customers' to guide drivers 'XX nonrecurring are result I earlier. There to our XQ. cash At flow and our deliver a our with track core, aligns profitable to APA 'XX, related DevSecOps non-GAAP believe further

expectations. we years. with raised price time far, the the line behavior customer tier in first been April in Additionally, our year, this has Premium in our Thus of for X our

FY a as this financial impact 'XX. reminder, we real through the from Although anticipate change

compliance release. Separately, security in to allows of China 'XX signed Dedicated. regulated JiHu, industries month, FY the Dedicated. The Code GitLab companies for on the us GitLab December the Another driver driver joint we availability capabilities. TCV our was X-figure is highly and expected monetization largest on I'd The of and venture. update to beyond auto we is serve product final of our general complex an Last with deal like in AI an is Duo Suggestions Dedicated requirements. provide our expansion announced with QX in launch an company

deconsolidate to remains JiHu. goal Our

the expenses purposes now Thus, $XX However, likelihood 'XX, cannot timing potentially FY forecast million for $XX we predict million related in JiHu to FY we of this occur. modeling of to compared for when may approximately or 'XX.

breakeven non-GAAP a our we of strong impact market the FY our consistent has and to with driven led new partners Chris, income 'XX. In pleased quarter. drive by GitLab to JiHu, sales CRO, commitment Excluding anticipate will team in capturing operating and our platform large closing, execution be market-leading I'm our with business momentum our approach opportunity.

manner. With growth driving are that, for we move we'll revenue Instructions] the [Operator responsible to Looking ready We forward, to question. in a prioritize continue first now Q&A.

Unknown Attendee

our And of Bank with question comes first Instructions] [Operator America. Koji from

Koji Ikeda

times was you couple the in remarks, highlighting A guys I of thought agile that guys enterprise planning. pretty mentioned interesting are prepared that you that.

you just How this Is So it's side. replacement make on there. curious understand to planning what want I believe to I the model. believe is in do included pricing about here think hear we we sure that? the opportunity a opportunity big the the opportunity?

Sytse Sijbrandij

Thanks platform of people our for to today, the And We DevSec where management we really very who but can note, portfolio Ultimate work. these can Yes. in and into users project still planning the about it's want reach feel audience, included we And planning we a SKU shown that it will thousands bring days this enterprise introduced features. pricing use this. but engineers a with agile Ops is agile we've successfully. I and question. market different nonengineering the not for new the migrate planning, we early opportunity where same the capabilities enterprise

is this year fiscal -- fiscal biggest take impact in expected And that QX. come to a for not impact anticipated limited the following the the the is to time but includes years in The in some years after. coming long-term guidance will fruition. our strategy So

Unknown Attendee

Up we Karl have with next, UBS.

Karl Keirstead

results. on question Congratulations the to I'll this pose you.

last things that that interesting that was was very Atlassian beginning a you thought we in suggested beginning called bank the out you And of I might earnings One said of on the for that. large displacement call at cycle to Jira. the a you last be fact do

the starting passage evidence Any giving on another or you mind months, conviction you updating in that? there Sid, that's X you any other anecdotes share? fact of metrics Is happen? further do With to us that could that's

Sytse Sijbrandij

our being pipeline very product. of we moving planning are they're And Yes. their deprecated, of with end stock of new by Atlassian's to helped always not Thanks lot even taking pleased it's support agile enterprise self-managed. for customers for asking. for of this in have. SKU being GitLab We're that at. Because this And they're server where a

to they planning them and work operations move to with time. advantage to -- Sometimes of security CD The but for cycle users it, faster the point those natural the is GitLab it a SaaS, together a get a bringing people their time their and engineered tighter people. evaluate

Unknown Attendee

comes next from at Mike Needham. Our question

Michael Cikos

want did I just to double check.

like first line appreciate piece So increase Q price is It here, Brian, the Premium tracking the expectations. sounds with in the I update.

any QX out Just was color guys price wanted we and to is putting the today? there could if changed tackle there your that any Premium guidance assumptions there has first. that SKU out just like parse you about more Would way are see for that you think -- if to when or in that

Brian Robbins

line It's of Yes. price with with in We're SKU. modeled. we Mike. the performance the happy Thanks, what Premium

SMB the line mid-market, One And happy than that impact, lower and in that the $X,XXX. it's greater we've first with expectations. especially are our base But of Premium and the you'll of than things expected. some price orders, of in with see we're in overall, is customers noted

Michael Cikos

you could -- and help mid-market a elongated with SMB any think the the think sequential on deal that saw as Is on well. cited you I there we us cycles about basis. And way

you help those it to what elongation leave can when us exposure and So as revenue And start I'll show as company's about well there. did SMB mid-market think is the to itself? customers that

Brian Robbins

of the -- over total total the the Sec a Yes. then XX% percentage It's of XX%. is enterprise base. pretty consistent. has around We've remained And little

remainder. and mid-market up makes the SMB So

Unknown Attendee

hear Ryan Barclays. now will from of We

Ryan MacWilliams

to see the retention. One for for in improvement one and Brian, strong Brian Sid. net great

was generative calculus from from AI, retention the that see your comes purposes, decision. to or wondering, was increase? to at just they're new customers like their cloud? when between price and to that modeling for capabilities shifted Premium interest Just what net all the choosing for self-hosted the it has benefit number about the And how maybe Just thinking around the between love Sid,

Brian Robbins

I'll dollar-based net Yes, the take retention first.

out, that call the we've this change And itself. dollar-based rate the quarter calculated better so we've wanted retention to business in net reflect a to made way

is something, parent then did that a new to account it of a XX actually churn takes into actually a if the old new old And be basically XX, so a quarter, flat, or a did if down X the being merger, way, The way kept account this but static view you showed hierarchies. the X new way And accounts. subsidiary, it shut there business. and division we

growth change to in we just and better This what's the a give in going business. QX between on reflection made, QX. the it's all. is and that to of so important at for reflected business note, new our change And shifts doesn't XX-Q It the

disclosures XX. new method, Sid, method, it's over to so -- million the and under there. it's can the And see X But X X to it was under XX, the you old you. XX

Sytse Sijbrandij

Thanks.

then having AI installation security with the of are increased kind to convenience and posture keep that there self-managed, combines and self-managed. like able AI of positive on very SaaS-first AI if most is we with have about to you're they and a comes self-managed, -- then SaaS. then the And got ship go offering plan of Regarding with SaaS self-managed things some our The Dedicated do single-tenant the all. What to because AI AI way for versus SaaS we also come to available will at it that. to and SaaS SaaS purely only features self-managed using

features the to want customers I the but if self-managed on SaaS, installation. keep think they that's their going that solve, use to self-managed AI make in great we having can interim, even sure our be a

So priority us. for a that's

Ryan MacWilliams

Dedicated. Yes, prior method, under net increase net you the Brian, feedback GitLab range, Excellent. if the retention from side. out the that new quick, on be price good just just or like was really on me would general real And contribution what heard that X parse the quarter? what we've on could XX, helpful retention was the

Brian Robbins

Yes.

is a -- Q. be We'll the our roughly break in It up from out one total price -- increase change net X/X I seat the perspective, break the little change, we of less things XX%, retention retention then don't rate. XX%. guess, change difference price and than in about particular. XX%. they'll XX%. today. seat a dollar been little same, follow roughly But And price price the than increase, net and tier of change have seat change talk change I change later about So was roughly has is don't between of rate, tier Because dollar we about the quarter-to-quarter. that percentage now out well, the and the change about up is less change. Historically, The the been was the the makes flat in of the tier Price a what

Unknown Attendee

Goldman hear We with now from will Kash Sachs.

Kasthuri Rangan

waiting AI And be actually see be to perspective Happy the How or Atlassian take tone your for nascent gives It consider level opportunities? And align the and do things stronger perspective to is advantage of these we what Microsoft a are has conviction more to a that you and weren't generative after final, able GitLab go-to-market than -- sorts? with before. or holidays. and for far what looks full-blown efforts from your the I'm that a you Google. opportunity level what and for we to curious, Google competitive how second Sid, the are integration -- tone a and confidence It's to to competitiveness? and in of close product going results. like closely you. to with from to closely question announcement pursue conviction align great you the

Sytse Sijbrandij

as and have Thanks, on engineering in the value and seeing in been heard NatWest that AI remarks, their And using customers positive. brings. customer efficiency productivity Kash. the Nasdaq functionality Yes, the feedback prepared our it are might like and and has you teams it the

Our believe Code said upwards XX% they We they agency, with recently better quality with features that they Suggestions. the customers a leading that international improvements there. GitLab of and reported have offers travel a tested, efficiency spoke

Duo finding also We and a book with is generating and team configurations, GitLab about their work. technology for company, automating operational generation, spoke using test excited multinational financial

So a we're broad for platform customers across cycle have we today. do we features that that very with XX so the can excited AI life available

You're muted.

Kasthuri Rangan

Sorry.

competitiveness to product and The to take the of have against and a go-to-market from things what Microsoft, other are question, the do you opportunity? the opportunity really perspective see, Atlassian you replacement advantage the that

Sytse Sijbrandij

Yes.

apart to I think think compliance. AI, from to I better and have really unique security it's GitLab

and container SaaS like features Our compliance API to scanning DaaS, security, management are unique GitLab.

AWS, stream are partnered as planning for And platform. European We about GitHub. to example, We think a against also a a and DevOps talked talked that dorametrics all at enterprise GitLab had about we but telecom. value and the also planning deal management QX won and and of with we management features, we agile unique there

Kasthuri Rangan

Happy holidays.

Sytse Sijbrandij

You too.

Unknown Attendee

next. is Scotiabank with Nick

Nicholas Altmann

generative and functionality functionality like and versus there's of difference into think Ultimate just follow-up SKU, that, any into you sort be layering you about Ryan's sort as there's ask not in Premium feature with sounds But feature to of AI be more about more that then I folding And in going in how just functionality whether self-managed. some into a the to additional to I around of going SaaS as functionality wanted It Duo. layer really how wanted enhancements GitLab question to do and there. difference the you build of on new any broadly, think Ultimate kind to guys pricing?

Sytse Sijbrandij

is -- But today. I GitLab the comparable to the think our having unique AI is think available to very platform I in I market. Yes, Code customers XX Suggestions, what's a features about think,

big a that's differentiation. think I

will how free it, not a do but available and GitLab customers be might for some and Ultimate be that paying As also we example, Code different features Suggestions, for Premium SKU, then for today. to just sell that's not

And then term. be exciting SKUs we're some the even going an there put the to introduce we into that's long think opportunity, or in extra and Premium, might of I the features especially Ultimate future. over

Unknown Attendee

Michael is with next. KeyBanc

Michael Turits

and weakness call given perspective, specific So sales that cycle bit did it from quarter, just so of drove in in size the be SMB about a really some call more an what more to better? you upside cloud the how this to and optimizations a companies out can do cloud related little be things public? the stabilize some might of enterprise of and/or seeming seen seeming some with model And you we've the to consumption quarter that broadly

Sytse Sijbrandij

Yes.

cloud it's our an at business, look business. but consumption, small you it's currently our part relatively increasing If of a of part

consumption So cloud affected materially we by stabilizing. aren't the

Michael Turits

Right. I that perspective, demand I the are more subscriptions, general demand cetera? or meant really seats, that And offsetting driving from other it in again, quarter? Is using words, cloud. GitLab more people et drove weakness what's in a SMB that need more the guess upside

Sytse Sijbrandij

is. that I has it benefit complex GitLab, think the the biggest organization with your more

complex time. together see mainframe agile. the in heterogeneity you shine. projects on one is to kind By platform, and security latest or So Xx go typically having the more more a we we bringing see governance, from where acceleration that the of really cycle where of That in your can projects all

if more just kind same we market, problems, getting So having where all going things, of give look you do. We the time, and at these enterprises move the security but fast, us questions to have shine the do having that's having keep and of complex. time move all they to to most believe it's -- so the are compliance to hardest the at having hardest far, that the overall really

have everyone. more You coming regulatory get for AI you'll now, friction

us future. So about that gives optimism lot of a the

Unknown Attendee

Piper Sandler. with Ethan

Ethan Drake Weeks

how this of just wanted as And curious Rob to about of down, into customer your of topic filling the that new talk of just head topic. for to in maybe slow these start are kind been companies about thinking I kind we trending on projects, cloud conversations of to same have the I'd come optimizations. XXXX? especially here to on as afternoon. how ramping hear development velocity kind of be Kind

Sytse Sijbrandij

to fast at? One really for deploy. of today more? there's should frequently important with ROI. getting important code And I out to the focus customers. measures of there? We've initiatives. everything is efficiency. to to able because Also, as stream It's if much you're I time lot a looking, in make for have become industry hey, metric at platform. learned practices an we go those and not focus we best it what I something you cycle planning say, at think from -- more of how do against not how know easily to can it's my look has on I written. can move How And able to able measure a I'm progress do value Like good faster a example, we on And most lines metrics you're GitLab, GitLab, look Dorametrics, to single

Unknown Attendee

Matt with comes question RBC. next from Our

Matthew Hedberg

for Congrats either from me as well. Maybe of you.

One to of that over the free is couple about drivers we years the pay. think next of

little base. bit you I Can that slightly think usage seeing are QX how talk within sort that a any And about philosophically? your guys have in more results? you the from about changed you of benefit free-to-pay think you

Brian Robbins

the I'll take Thanks Matt, that. Yes, question. for

a user good on led it's to and limit did we implement gitlab.com, paid. so from conversion And free

fall the report. customer we However, is limit that the majority base vast below $X,XXX,

continuing low. the be impact it's guidance. We to so growth. built relatively pursue into think We're product-led is will it -- our that And

on just of of lot We're halfway the price a FY range now. take this as know through have an you for And increase. opportunity. so Premium XXXX related wide free that's A of outputs a in the model to right process planning I had also lot to our pay. I'll

So the we've early million will contribute increase done, to million roughly $XX for It's guidance next in But price we the revenue year. work for we a year. that that believe bit early. $XX next still giving Premium aren't

you And so out a it from help should modeling perspective.

Unknown Attendee

Truist with up is Joel next.

Joel Fishbein

Sid, updates would you you mentioned cetera. get the there the with from and maybe in deal the is partnerships a go-to-market some little to color on and some GitHub. where terms bit I et sizes, maybe more call on you and deal beat out Google working -- of AWS that driving how and love AWS

Sytse Sijbrandij

Joel. Yes. Thanks,

accelerate partnerships strong with recently, thing GitLab integrating AWS. and workloads. Google into We with help And both And them GCP. interesting cloud to we interested customers we be we help announced got we've they're they'll did that Google their Google development an moving their for move So faster. those at their Next because console

will many a the off as pay over that's term. development that I things really longer think interesting

I of with think mentioned earlier. I together partnerships these to it example speaks the strength AWS the

Joel Fishbein

would Can a that with helpful you follow-up. competitive quick being Amazon maybe be conjunction Just just us part at explain a how -- in to as well. may product? Q, you as That work

Sytse Sijbrandij

sure can with make we're really work sure. GitLab. Yes, We're with how going well discussing we for Q Amazon to

Unknown Attendee

JPMorgan. with Pinjalim

Pinjalim Bora

the on Congrats quarter.

actually a number, for Has a heard me. on put can as price ARR, dramatically I like for of of seat seems a you Premium the I Or reverse Just It XX% Premium correctly. slowed one upgrade big uptick Has increase sequentially? I that Ultimately, seems cycle growth guess it if driven Ultimate? kind big like question ARR the was big sequentially. well.

Brian Robbins

things to there for Yes. A Thanks couple unpack. the questions. of

were that clarity, the than of for said comprises as greater our of security to Ultimate. relates be within primarily Ultimate bookings. that's it our tier to total. XX% we And Just and the Ultimate the remarks total in bookings fastest-growing of found prepared Ultimate ARR compliance XX% continues

hope I helps from so out that standpoint. clarity a And

Unknown Attendee

with Gregg is Next Mizuho.

Gregg Moskowitz

by data which within updates there longer-term if features. is seats way, were that just of years. have of excellent, And wondering the I'm to way that impact any basis, in than of if which about share of the One And lot over more half able you're you might that secondly, eye GenAI recent could said in the in some in AI or that development will think a software GitLab X a the Regarding of are thinking other the course. way next their then changes points. your Suggested on replace Duo, the any my caught interesting usage that really is there respondents that state number role they wondering Reviewers report, for be AI of

Sytse Sijbrandij

Yes. Thanks that. for

more in also be AI to study time operations. needs the increase spend multiple other tasks. that like for another that the is and to was really as productivity interesting that a And get only more they productive, need think of is XX% that coding, you of I code, things, developer write security thing on and developers XX% throughout the of cycle life

life So cycle. we're focused on making throughout it the work

you'll lot this being and We think increases. the will also lead see also up to increase involved But units will a that up see affordable, get needed something that people becomes in of If goes software overall more in thing going the replaced. the creating number roles more we're what in medium amount might parts a still of consumption good affordable. I software sector. the writing. even the being happen for of of And sometimes of is And think will people an term. productivity number I be

Unknown Attendee

Andrew with Cowen. is Next

Unknown Analyst

Congrats quarter. of GA Could your you be. to driver You Derrick. on deal. Andrew on this about year for It's Talk offering great hear. Sid, the trends how a since been June. Dedicated big That's talk the about X-figure mentioned could there? has demand next growth large

Sytse Sijbrandij

Thanks. Yes. about We're really Dedicated. excited

isolation like increased to of a single reminder, through the get self-managed increased manage security just or best and -- as self-managed a For combines have gitlab.com, Gitlab.com it and that. you we tenant, -- it everyone's like but

convert believe we especially huge it's opportunity, customers. So current self-managed our a to

over years. think I many out play going it's to

we're the just at So starting point.

We expansion a space. our today. signing the TCV there's there of customers, for see And considering larger option. X-figure Brian coming. a self-managed large And huge mentioned, opportunity the revenue the deals great that this are automotive from is We think self-managed in comes more those I majority

Unknown Attendee

Peter with Bernstein.

Unknown Analyst

seen into over and console talked kind and pipeline. Cloud code either I think relationships, the and contracts through AWS introducing existing of you seeing more AWS, we specifically things last about and Google GitLab of the the should or Google new initial the Cloud several for support both think we quarter, exciting about can about with customers? think Or are that? How I in mean, Google how impact integration AWS of being we GitLab AWS? these

Brian Robbins

Yes, I'm on that. to start happy

go way. hyperscalers several have we ways and to We market, the through that one is

before, mentioned -- by report But of us the wide nature almost bookings they because I've somewhat business that their happy As they're year-over-year they customers. is lumpy approximately bring almost increased to base XXX%. I'm to selling in that a

had we great them so And this quarter. from contributions

enablement. And so partners we them with We're well. continue them as also technology to on with work

And with broad-based a so we partnership both hyperscalers. have pretty

Unknown Attendee

next with comes Our Blair. from William Jason question

Jason Ader

it or about want X. is single on been or to vision for they DevOps wanted years tool. really Just you talking a happening certainly a perspective, single that that like the want now. from many XX sound consolidation you've tools doesn't maybe They larger But there seems want platform DevOps X of instead -- Sid. XX, ask enterprises It

are First with under not And the of XX% that far then Do for vision? evidence over realistic change of that's mid-market, large towards all, time. And that? sort could those you single do how so you platform that agree customers? so any it is think that enterprise, they for gravitating that DevOps

Sytse Sijbrandij

message, have happening. consolidation is I like happening happening. the finally Yes. would -- it's say gotten People it's the

seen ones, them the The we've thing the seen The time. the most they amazing faster cycle We've got more movement getting the the and of continue. X, doing more that will have hey, got customers they best next are XX we to to is X. more customers It's Like get results. having go to indeed X consolidate, consolidate, Some save; from the their and just advanced like, it. they tools. ones, they

yet. market code in We to Code great And important continue to APIs try haven't majority platform, And to keep to beating gotten Suggestions having want the But every to are. in. make going many it's the sure outcomes the they integrations. an the better really We and to allow everywhere more to open consolidate, open having open we'll be never know to of single there and that customer gets drum, very be there. open base, the our that customers we'll we

category. the analysts with repeating message the are now also creating DevOps a platform I think Gartner

Jason Ader

to fair compliance of CI, source so Is that it -- consolidation on point. into larger security an your terms code enterprise sort that's -- Is obvious and say that's of Management it that customers, of for putting in next the list it is bundle? sort

Sytse Sijbrandij

all bringing But security, spreading happening that's in in and people the The shift now that on customer platform. going Dev writing together Sec is development. Yes, but of is on. have And we're to I be one gotten think wall. is that's in the -- the it's dev Eventually, every kind different, cost DevSecOps message together.

Unknown Attendee

the with remaining Q&A. minutes is BTIG next. in We have Gray X

Gray Powell

on Maybe a of question things. the margin side

So there dollar of year, you main XX% every year? operating that in the is guidance, Can drivers year? of income are you is the what revenue add little any would the a continue the if then that new trend I'm line. looking next to not And for updated reason of over leverage through about at this this that talk flowing that,

Brian Robbins

our big reemphasized in history. This income Yes. on we'll were Super the we happy do show, Since of and that quarter, message, operating Great. Thanks every your the for is #X grow, to non-GAAP is positive. company quarter first responsibly. road milestone in question. we goal

And leverage so of get operating model. we've out continuing to getting been -- the continuing

income For QX additional of year-over-year, instance, expense, million approximately added we million of operating revenue positive we in $XX $X.X $XX of achieved non-GAAP million. for and

early give FY we're 'XX We'll earlier, on And so call. as process I quarter mentioned FY of 'XX. the in our fourth guidance

And disciplined in manner. so a operate to we'll continue

Unknown Attendee

Wolfe Research. with Allan

Allan Verkhovski

what $XX $XX made million kind really gross is are to to And of quarters? turn comment get you year? from million Would using question pricing helpful. has was or the to for the renewing that NRR what for the you rough that quick next $XX last love million to increase to to $XX me. been Brian, over few Just understand numbers year's a Premium next customers last assumptions million

Brian Robbins

Yes.

what average building price before, roughly -- in amount then X term the would is they're of when what So and coming year we average right the and walked up for stage now increase and customers certain renewal for with new of we through to contract took taking where we the that months an customers about waterfall our be for then model. XX existing similar bookings, saw a

for that the we models, in you the and help the good quantify year thought of ratable, many be impact have out. is to you it modeling. would talked been that so And about nature come just estimates the with of to it to out various historically build there's next ratable so sort waterfall have what be I've Since would

Unknown Attendee

Jonathan with Fitzgerald. Cantor

Unknown Analyst

materials. software seen bill a chain So I software wanted concept of about of to attacks. ask of the lot supply We've

I really the to elevate chain supply order security. importance Biden think software seem of executive administration's

out create So open-source second is in the that playing how a see DX question an that these tool of that I'm can then market. And use part the to Cyclo you B. just kind companies curious lot of is of

So you that used tool. I believe

look beyond So that, where do you to differentiate?

Sytse Sijbrandij

know we a in super what It's today. of GitLab within So bills important software you're to thing have materials a using company.

list For licenses example, software that you allow can on GitLab, list has. deny and in the based also have

one the the that one companies the Sons think throughout that. a Of global be with your -- first ability do of the coming course, will view, it also feature from company, so, is with too. A I has help we security that out overall which will deduplicate customers us to it first that be implications. of to get have We and aggregate of kind

Unknown Attendee

QX earnings once presentation. more Have us. again joining Thanks That FY our day a 'XX for great concludes

GitLab (GTLB) 4 Dec 232024 Q3 Earnings call transcript