Friday, October 22, 2021

GitLab jumps on Nasdaq debut after setting IPO price above expected range

- Advertisement -

Must read

People celebrate the Gitlab IPO on the Nasdaq on October 14, 2021.

Source: Nasdaq

GitLab shares rose 22% on its first day of trading on Thursday after the developer collaboration software provider sold shares well above its expected range on its IPO.

Trading on the Nasdaq under the ticker symbol “GTLB,” GitLab priced its stock at $ 77 on Wednesday night, valuing the company at about $ 11 billion. GitLab had said that it would likely sell shares for between $ 66 and $ 69 each. The stock opened at $ 94.25.

Since its founding nearly a decade ago, GitLab has been pursuing GitHub in the source repository market, which also includes Atlassian’s Bitbucket. Microsoft acquired GitHub in 2018 for $ 7.5 billion, and since then GitLab has grown rapidly as the only major independent player in the market.

Revenues in the second quarter increased 69% from the prior year to $ 58.1 million. However, because GitLab spends the equivalent of three-quarters of its revenue on sales and marketing, primarily to build its developer user base, the company posted a net loss of $ 40.2 million in the latest quarter.

GitLab raised close to $ 650 million on the offering, and investors bought more than $ 150 million in additional shares of an entity affiliated with GitLab CEO Sid Sijbrandij.

GitLab offers a free version of what the company calls its DevOps platform, a term that refers to the combination of developers and IT operations. The software allows users to work on the code, package it, publish it, and monitor it. Customers can run GitLab on any public cloud, their own data center, or as a GitLab-hosted service.

The company makes money with its Premium products. For $ 19 / month per user, GitLab includes faster code reviews and enterprise tools, and for $ 99 / month, users get features like security and compliance. Some 383 customers spend at least $ 100,000 a year, GitLab said in its user information.

“Our future success depends, in part, on our ability to convert users of our free product offering into paying customers by selling additional products and selling additional subscription services,” said GitLab.

GitLab founders Dmitriy Zaporozhets and Sid Sijbrandij

GitLab

GitLab said its net revenue retention rate, a key metric for subscription software companies because it shows customer success, rose to 152% in the July period. That would place it among the top publicly traded software companies.

It is also the main reason, along with the growth of GitLab, why the company has such a high revenue multiple. With a market capitalization of $ 11 billion, GitLab would trade for roughly 47 times annual revenue, below just six of the 58 companies on the Bessemer Cloud Index, and just above Atlassian.

GitLab is widely known as a pioneer in remote work. While companies were forced to adapt to distributed work during the pandemic, GitLab started out that way and didn’t have to modify much for its 1,350 employees operating in more than 65 countries. In the header of your prospectus, Gitlab says “address not applicable.”

GitLab, which was founded in 2012 and incorporated two years later, was last valued at $ 6 billion in secondary financing, confirmed in early 2021, which allowed existing shareholders to sell up to 20% of their acquired capital. . That was up from a $ 2.7 billion valuation in a funding round in late 2019.

In its “equipment manual” on its website, GitLab had openly declared its plan to go public in November 2020. After the pandemic struck early last year, which shook the overall economy, the company dismissed the timing of its debut, stating that a public listing was still on the waybill.

GitLab co-founder Sijbrandij is the company’s largest shareholder, owning 19% before the offering, according to the prospectus. Khosla Ventures owns 14%, followed by ICONIQ at about 12%, August Capital at 11%, and GV (formerly Google Ventures) at just under 7%.

LOOK: The rise of open source software

Do Not Miss

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Lebanese President Aoun Rejects Electoral Bill | Political news

0
Aoun says holding elections in March, nearly two months ahead of schedule, would reduce voter turnout.Beirut, Lebanon - President Michel Aoun has sent a...

Gundy, the state of Oklahoma agrees to a perpetual five-year contract

0
It looks like the eighth-ranked team in AP's most recent college football poll will hang on to their head coach for a while. According to...

St. Mirren vs Rangers prediction, preview, team news and more

0
St. Mirren will welcome the Rangers to SMISA Stadium for Sunday's lunchtime kick-off in the Scottish Premiership.This match of the tenth day will face...

Pfizer says its vaccine is highly effective in children ages 5...

0
Pfizer reported Friday that its vaccine was 90.7 percent effective in preventing symptomatic Covid-19 in children ages 5 to 11, based on clinical trial...

SaaS in Oct 27 – TechCrunch

0
This year, automation took center stage when robotic process automation (RPA) provider UIPath went public after raising $ 2 billion in private investment. ...

Pledge Raises $ 4.5 Million Seed Round to Build Carbon Measurement...

0
With the climate crisis looming, many companies want to do their part. But asking customers to "offset the CO2 emission from this delivery"...

Pakistan eases travel restrictions and announces aid for Afghanistan | ...

0
Islamabad, Pakistan - Pakistan will provide more than $ 28 million in immediate humanitarian aid to Afghanistan and ease travel and trade restrictions at...

Lose sight of Warriors star Stephen Curry at your own risk

0
Welcome to "One Play!" Throughout the 2021-22 NBA season, our Sporting News staff will analyze certain possessions from certain games and will open...

South Korea’s Moon to Attend COP26 Climate Talks and G20 Summit

0
SEOUL: South Korean President Moon Jae-in will travel to Europe next week to attend a Group of 20 summit in Rome and the UN...

House of Representatives votes in contempt of Trump ally Steve Bannon

0
WASHINGTON (AP) - The House of Representatives voted to hold Steve Bannon, a former ally and aide to former President Donald Trump, in contempt...

Backstage details on who Roman Reigns will face at WrestleMania 38

0
Roman Reigns defeated Brock Lesnar at WWE Crown Jewel to retain the Universal Championship. However, the feud between the two men is far...

Do Intel’s weak sales mean that the PC pandemic boom is...

0
Computer sales had risen since the beginning of the pandemic, as people needed laptops to work from home.

ByteDance’s Douyin adds a mandatory five-second pause between videos to curb...

0
Tracy Qu / South China Morning Post: ByteDance's Douyin adds a mandatory five-second pause between videos to curb bingeing in China,...

Goldman Awards $ 30 Million Shares Over Five Years to Director...

0
Goldman Sachs has provided a bonus plan for its two top executives that could pay the couple tens of millions of dollars each if...

Having basketball, hockey, soccer, and baseball on the same night is...

0
Maybe I feel sad because last October we did not have our normal hours. There is a clock in this, a rhythm, with...

Probable XI, match prediction, live stream, weather forecast and field report

0
In match 19 of the ICC Men's T20 World Cup Africa Qualifier, Lesotho and Malawi will meet at the Integrated Polytechnic Regional Center, Kigali,...

Foreign aid lost in Syria exchange rate distortions

0
BEIRUT (AP) - Syrian President Bashar Assad's government has used distorted exchange rates to divert at least $ 100 million in international aid to...

Who won the F1 NBA free throw challenge?

0
The Aston Martin Racing team won the first ever F1 NBA Free Throw Challenge, a collaborative event of F1's exciting partnership with the NBA,...

The Face of Your Business: Are Your Employees Customer Friendly?

0
Customer service it is the foundation of any successful business. The employees charged with answering customer questions or concerns are known as the...

Dying For Debt Relief: Why Are New York Taxi Drivers On...

0
New York, USA - When Richard and Kenny Chow moved with their family to the United States from Taiwan in 1987, the iconic yellow...

WWE’s plans for Roman Reigns after defeating Brock Lesnar at Crown...

0
WWE President Vince McMahon reportedly has big plans for Universal Champion Roman Reigns after his successful title defense at Crown Jewel 2021.As reported by...

Tehran holds first public Friday prayers in nearly 2 years

0
TEHRAN, Iran (AP) - The Iranian capital, Tehran, held its main public prayer service on Fridays for the first time in 20 months, after...

Henry Cejudo criticizes Conor McGregor for hitting Italian DJ Francesco Facchinetti

0
Conor McGregor and Machine Gun Kelly get into the #MTVVMAS red carpet 👀 (via @tmz_tv) TMZ reports that "Conor asked MGK for a photo,...

Sreesanth Suggests Team India’s “Deadliest” Opening Combination

0
Former India pacemaker S Sreesanth feels that captain Virat Kohli should open the innings with Rohit Sharma in the 2021 T20 World Cup. According...

Trump SPAC’s market cap is approaching $ 4.7 billion – TechCrunch

0
For a roundup of the biggest and biggest TechCrunch stories in your inbox every day at 3pm PDT, subscribe here. Friday! Dear friends, we...

Award-winning teenage rapper shot dead in Sweden

0
STOCKHOLM: An award-winning 19-year-old Swedish rapper was shot and killed in the south Stockholm in an incident that the media suggested Friday could be...

Denver Broncos running back Melvin Gordon is better than you think

0
The Denver Broncos got embarrassed last night. The Broncos, who started the season 3-0, I remind you, lost to the Browns' practice squad...

Willie Taylor clarifies why he left his wife and children (video)

0
Willie Taylor took to the live show to clear up a few things after his wife Shanda claimed he left her and their...

Afghanistan’s Sikhs ‘Will Choose Between Converting To Islam Or Leaving The...

0
KABUL: As the security landscape in Afghanistan continues to deteriorate, Sikhs, a community that was already in dire straits before the collapse of the...

First: House votes to find Steve Bannon in criminal contempt |...

0
Good Morning,In a vote of 229 to 202 yesterday, the House found Trump ally Steve Bannon in criminal contempt of Congress for his refusal...

Pomelo, which was founded earlier this year to create a fintech...

0
Mary Ann Azevedo / TechCrunch: Pomelo, which was founded earlier this year to create a fintech infrastructure as a service for...

Russia Strengthens Its Internet Censorship Powers

0
Russia's boldest moves to censor the internet began in the most mundane way - with a series of bureaucratic e-mails and forms.The messages, sent...

Digested week: it feels outrageous to have a cold again |...

0
MondayIt is a characteristic of single parenting that you must outsource some aspects of your children's education to people beyond the immediate family. ...

3 really cool jobs you can apply for this weekend

0
If you are looking for a new job, you have surely come to the right place! We have a host of incredible opportunities...

Five Police Officers Face Hearings Over Messages About The Sarah Everard...

0
Five police officers from four forces will face disciplinary proceedings after a separate watchdog investigates social media posts related to Wayne Couzens, the killer...

Renault doubles lost production estimate as chip crisis deepens

0
Renault has warned that its production will be hit harder by the industry's chip shortage than the French automaker feared just two months ago.The...

New space race? United States tests components for hypersonic weapons...

0
The tests come amid President Joe Biden's concerns about Chinese hypersonic weapons that can evade advanced radars.US forces have conducted three prototype tests of...

Petito: The boyfriend of American adventurer Gabby Petito is found dead

0
MIAMI: The human remains found in a Florida nature preserve belong to the boyfriend of murdered traveler Gabby Petito, US authorities said Thursday. The...

Advance Wars delay, PS5 sales and Cole Cassidy | GB...

0
Join the leaders of online gaming at GamesBeat Summit Next on November 9-10. Learn more about what's next. GamesBeat Decides must continue. ...

Canada launches standard passport for vaccines

0
new video uploaded: Canada launches standard passport for vaccinestranscriptionbehindtranscriptionCanada launches standard passport for vaccinesPrime Minister Justin Trudeau of Canada said a national standard for...
- Advertisement -

Don't Miss