GitLab Reports Third Quarter Fiscal 2022 Financial Results

GitLab Reports Third Quarter Fiscal 2022 Financial Results

Quarterly revenue of $66.8 million, up 58% year-over-year
Strong Dollar-Based Net Retention Rate at over 130%

SAN FRANCISCO, Dec. 06, 2021 (GLOBE NEWSWIRE) -- ALL REMOTE -- GitLab Inc. (NASDAQ: GTLB), The DevOps Platform, today reported financial results for its third quarter of fiscal 2022, ended October 31, 2021.

“We are seeing viral adoption and expanded use of The DevOps Platform, growing our revenue by 58% year-over-year this quarter,” said Sid Sijbrandij, GitLab CEO. “Customers use GitLab for their most immediate needs and then expand usage over time. This enables them to quickly modernize their software development to meet the demands of digital acceleration. As we look to the fourth quarter and fiscal 2023, we see continued strong momentum toward our large addressable market.”

“We performed well during the quarter and believe our business is set up for continued strength,” said Brian Robins, GitLab CFO. “We are pleased with our Dollar-Based Net Retention of over 130% and the positive business outcomes we continue to drive for our customers across all verticals around the world. The market for DevOps platforms is underpenetrated, and as a pioneer of The DevOps Platform, GitLab is well positioned to make the most of the substantial market opportunity before us.”

Third Quarter Fiscal 2022 Financial Highlights (in millions, except per share data and percentages):

 Q3 FY 2022 Q3 FY 2021 Y/Y Change
Revenue$66.8  $42.2  58%
GAAP Gross margin89% 89%  
Non-GAAP Gross margin90% 89%  
GAAP Operating loss$(32.5) $(24.5) $(8.0)
Non-GAAP Operating loss$(23.9) $(22.3) $(1.6)
GAAP Net loss attributable to GitLab$(41.2) $(28.6) $(12.6)
Non-GAAP Net loss attributable to GitLab$(22.7) $(22.3) $(0.4)
GAAP Net loss per share attributable to GitLab$(0.62) $(0.57) $(0.05)
Non-GAAP Net loss per share attributable to GitLab$(0.34) $(0.44) $0.10 

A reconciliation between GAAP and non-GAAP financial measures is contained in this release under the section titled “Non-GAAP Financial Measures.”

Recent Business Highlights:

  • Customers with more than $5,000 of ARR increased to 4,057, up 66% from Q3 of fiscal 2021.
  • Customers with more than $100,000 of ARR increased to 427, up 73% from Q3 of fiscal 2021.
  • Dollar-Based Net Retention Rate, which we report on a threshold basis, remained above 130%.
  • New and expansion customers included Suzuki Motor Corporation, Smartsheet, and Lockheed Martin.
  • GitLab ranked #11 on the Forbes Cloud 100.
  • Released GitLab versions 14.2, 14.3 and 14.4, marking 121 consecutive months of innovation.
  • Appointed Sunny Bedi, chief information and chief data officer of Snowflake, to GitLab’s Board of Directors.
  • GitLab completed its initial public offering. GitLab is listed on the NASDAQ under the ticker symbol “GTLB.”

Financial Outlook

For the fourth quarter of fiscal year 2022, GitLab Inc. expects (in millions, except per share data):

 Q4 FY 2022 Guidance FY 2022 Guidance
Revenue$69.5 - $70.5 $244.0 - $245.0
Non-GAAP operating loss$(33) - $(32) $(104) - $(103)
Non-GAAP net loss per share assuming approximately 144 million and
80 million weighted average shares outstanding as of Q4 FY2022 and FY22, respectively
$(0.26) - $(0.25) $(1.43) - $(1.42)

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Guidance for non-GAAP financial measures excludes stock-based compensation expense, amortization of acquired intangible assets, and non-cash unrealized foreign exchange (gain) loss. We have not provided the most directly comparable GAAP financial guidance measures because certain items are out of our control or cannot be reasonably predicted. Accordingly, a reconciliation of non-GAAP guidance for operating loss and net loss per share to the corresponding GAAP measures is not available.

Conference Call Information

GitLab will host a conference call today, December 6, 2021, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its third quarter fiscal 2022 financial results. Investors and analysts should register for the call in advance by visiting A replay of the call will be available on the investor relations website (

About GitLab

GitLab is The DevOps Platform that empowers organizations to maximize the overall return on software development by delivering software faster and efficiently, while strengthening security and compliance. GitLab’s single application is easier to use, leads to faster cycle time and allows visibility throughout and control over all stages of the DevOps lifecycle. With GitLab, every team in your organization can collaboratively plan, build, secure, and deploy software to drive business outcomes faster with complete transparency, consistency and traceability.

Non-GAAP Financial Measures

GitLab believes non-GAAP measures are useful in evaluating its operating performance. GitLab uses this supplemental information to evaluate its ongoing operations and for internal planning and forecasting purposes. GitLab believes that non-GAAP financial information, when taken collectively with its GAAP financial information, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. We define non-GAAP financial measures as GAAP measures, excluding stock-based compensation expense, amortization of acquired intangible assets, and non-cash unrealized foreign exchange (gain) loss. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Forward-Looking Statements

This press release and the accompanying earnings call contain “forward-looking statements” as that term is defined under the U.S. federal securities laws. Although we believe that the expectations reflected in the forward-looking statements contained in this release and the accompanying earnings call are reasonable, they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results or outcomes to be materially different from any future results or outcomes expressed or implied by the forward-looking statements. These risks, uncertainties, assumptions, and other factors include, but are not limited to the following:

  • our ability to appropriately manage future growth;
  • our revenue growth rate in the future;
  • our ability to achieve and sustain profitability, our business, financial condition, and operating results;
  • our intense competition and loss of market share to our competitors;
  • the market for our services may not grow;
  • a decline in our customer renewals and expansions;
  • our transparency;
  • our publicly available company Handbook;
  • security and privacy breaches;
  • customers staying on our open-source or free SaaS product offering;
  • fluctuations in our operating results;
  • our limited operating history;
  • our ability to manage our growth effectively;
  • our ability to respond to rapid technological changes;
  • our ability to accurately predict the long-term rate of customer subscription renewals or adoption, or the impact of these renewals and adoption; and
  • our hiring model.

Further information on these and additional risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those included in or contemplated by the forward-looking statements contained in this release are included under the caption “Risk Factors” and elsewhere in the filings and reports we make with the Securities and Exchange Commission. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Operating Metrics

Annual Recurring Revenue (“ARR”): We define annual recurring revenue as the annual run-rate revenue of subscription agreements, including our self-managed and SaaS offerings but excluding professional services, from all customers as measured on the last day of a given month. We calculate ARR by taking the monthly recurring revenue (“MRR”) and multiplying it by 12. MRR for each month is calculated by aggregating, for all customers during that month, monthly revenue from committed contractual amounts of subscriptions, including our self-managed license, self-managed subscription, and SaaS subscription offerings but excluding professional services.

Dollar-Based Net Retention Rate: We calculate Dollar-Based Net Retention Rate as of a period end by starting with our customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The calculation of Current Period ARR includes any upsells, price adjustments, user growth within a customer, contraction, and attrition. We then divide the total Current Period ARR by the total Prior Period ARR to arrive at the Dollar-Based Net Retention Rate.

GitLab Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share data)
 October 31, 2021(1) January 31, 2021
Cash and cash equivalents$824,714  $282,850 
Short-term investments100,031   
Accounts receivable, net of allowance for doubtful accounts of $697 and $1,022 as of October 31, 2021 and January 31, 2021, respectively56,976  39,651 
Deferred contract acquisition costs, current19,880  18,700 
Prepaid expenses and other current assets10,749  7,292 
Total current assets1,012,350  348,493 
Deferred contract acquisition costs, long-term11,433  11,776 
Intangible assets, net515  797 
Other long-term assets4,510  1,500 
TOTAL ASSETS$1,028,808  $362,566 
Accounts payable$4,943  $3,111 
Accrued expenses and other current liabilities9,572  7,348 
Accrued compensation and benefits16,980  13,179 
Deferred revenue, current147,395  103,543 
Total current liabilities178,890  127,181 
Deferred revenue, long-term27,589  30,625 
Other long-term liabilities12,922  11,078 
TOTAL LIABILITIES219,401  168,884 
Commitments and contingencies   
Convertible preferred stock, $0.0000025 par value; no shares and 79,959 shares authorized as of October 31, 2021 and January 31, 2021, respectively; no shares and 79,551 shares issued and outstanding as of October 31, 2021 and January 31, 2021, respectively  424,904 
Preferred stock, $0.0000025 par value; 50,000 shares and no shares authorized; no shares issued and outstanding as of October 31, 2021 and January 31, 2021   
Class A Common stock, $0.0000025 par value; 1,500,000 and 163,000 shares authorized; 12,591 and 1,151 shares issued and outstanding as of October 31, 2021 and January 31, 2021   
Class B Common stock, $0.0000025 par value; 250,000 and 163,000 shares authorized; 131,955 and 52,468 shares issued and outstanding as of October 31, 2021 and January 31, 2021   
Additional paid-in capital1,292,710  186,892 
Accumulated deficit(507,552) (398,199)
Accumulated other comprehensive loss(758) (19,915)
Total GitLab stockholders' equity (deficit)784,400  (231,222)
Noncontrolling interests25,007   

(1) As of October 31, 2021, the consolidated balance sheet includes assets and liabilities of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD (“JiHu”), of $20.5 million and $3.0 million, respectively. The assets of JiHu can be used only to settle obligations of JiHu and creditors of JiHu do not have recourse against the general credit of the Company.

GitLab Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
 Three Months Ended October 31, Nine Months Ended October 31,
 2021 2020 2021 2020
Subscription—self-managed and SaaS$59,774  $36,665  $156,542  $92,254 
License—self-managed and other7,026  5,487  18,315  13,775 
Total revenue66,800  42,152  174,857  106,029 
Cost of revenue:       
Subscription—self-managed and SaaS5,608  3,671  16,366  9,487 
License—self-managed and other1,587  966  4,446  2,751 
Total cost of revenue7,195  4,637  20,812  12,238 
Gross profit59,605  37,515  154,045  93,791 
Operating expenses:       
Sales and marketing50,543  34,837  133,562  99,164 
Research and development24,664  19,042  68,607  57,942 
General and administrative16,939  8,090  40,276  22,113 
Total operating expenses92,146  61,969  242,445  179,219 
Loss from operations(32,541) (24,454) (88,400) (85,428)
Interest income127  97  226  1,007 
Other income (expense), net(10,209) (4,005) (21,252) 13,447 
Loss before income taxes(42,623) (28,362) (109,426) (70,974)
Provision for (benefit from) income taxes(875) 246  1,370  1,182 
Net loss$(41,748) $(28,608) $(110,796) $(72,156)
Net loss attributable to noncontrolling interest(521)   (1,443)  
Net loss attributable to GitLab$(41,227) $(28,608) $(109,353) $(72,156)
Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted$(0.62) $(0.57) $(1.89) $(1.45)
Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted67,018  50,306  57,789  49,806 

GitLab Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
 Nine Months Ended
October 31,
 2021 2020
Net loss, including amounts attributable to noncontrolling interest$(110,796) $(72,156)
Adjustments to reconcile net loss to net cash used in operating activities:   
Stock-based compensation expense17,242  5,678 
Other non-cash expense (income)(128) 293 
Amortization of intangible assets251  137 
Amortization of deferred contract acquisition costs23,555  12,442 
Unrealized foreign exchange (gain) loss19,752  (13,614)
Changes in assets and liabilities:   
Accounts receivable(17,350) (18,511)
Prepaid expenses and other current assets(3,373) (1,952)
Other long-term assets(3,120) (536)
Costs deferred related to contract acquisition(24,642) (21,582)
Accounts payable1,786  318 
Accrued expenses and other current liabilities1,019  1,683 
Accrued compensation and benefits3,812  632 
Other long-term liabilities1,803  688 
Deferred revenue41,469  40,260 
Net cash used in operating activities(48,720) (66,220)
Intangible assets acquisitions, net of cash acquired  (933)
Purchases of short-term investments(100,031)  
Net cash used in investing activities(100,031) (933)
Proceeds from initial public offering, net of underwriting discounts654,552   
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases14,574  6,619 
Repurchase of common stock(590)  
Contributions received from noncontrolling interests26,450   
Payments of deferred offering costs(3,398)  
Net cash provided by financing activities691,588  6,619 
Impact of foreign exchange on cash and cash equivalents(973) 485 
Net increase (decrease) in cash541,864  (60,049)
Cash and cash equivalents, beginning of period282,850  343,327 
Cash and cash equivalents, end of period$824,714  $283,278 
Supplemental disclosure of cash flow information:   
Cash paid for income taxes$1,111  $1,921 
Cash donations$1,000  $ 
Supplemental disclosure of non-cash investing and financing activities:   
Vesting of early exercised stock options$5,425  $1,882 
Issuance of common stock upon conversion of preferred stock$424,904  $ 
Unpaid deferred offering costs$1,309  $ 

GitLab Inc.
Reconciliation of GAAP to Non-GAAP
(in thousands, except per share data)
 Three Months Ended October 31, Nine Months Ended October 31,
 2021 2020 2021 2020
Gross profit on GAAP basis$59,605  $37,515  $154,045  $93,791 
Gross margin on GAAP basis89 % 89 % 88 % 88 %
Stock-based compensation expense331  74  722  206 
Gross profit on non-GAAP basis$59,936  $37,589  $154,767  $93,997 
Gross margin on non-GAAP basis90 % 89 % 89 % 89 %
Sales and marketing on GAAP basis$50,543  $34,837  $133,562  $99,164 
Stock-based compensation expense(2,562) (813) (5,688) (2,319)
Sales and marketing on non-GAAP basis$47,981  $34,024  $127,874  $96,845 
Research and development on GAAP basis$24,664  $19,042  $68,607  $57,942 
Stock-based compensation expense(2,147) (635) (4,653) (1,902)
Research and development on non-GAAP basis$22,517  $18,407  $63,954  $56,040 
General and administrative on GAAP basis$16,939  $8,090  $40,276  $22,113 
Amortization of acquired intangibles(82) (83) (251) (137)
Stock-based compensation expense(3,539) (534) (6,179) (1,251)
General and administrative on non-GAAP basis$13,318  $7,473  $33,846  $20,725 
Loss from operations on GAAP basis$(32,541) $(24,454) $(88,400) $(85,428)
Stock-based compensation expense8,579  2,056  17,242  5,678 
Amortization of acquired intangibles82  83  251  137 
Loss from operations on non-GAAP basis$(23,880) $(22,315) $(70,907) $(79,613)
Other income (expense), net on GAAP basis$(10,209) $(4,005) $(21,252) $13,447 
Unrealized foreign exchange (gain) loss9,913  4,147  19,752  (13,614)
Other income (expense), net on non-GAAP basis$(296) $142  $(1,500) $(167)
Net loss attributable to GitLab common stockholders on GAAP basis$(41,227) $(28,608) $(109,353) $(72,156)
Stock-based compensation expense8,579  2,056  17,242  5,678 
Amortization of acquired intangibles82  83  251  137 
Unrealized foreign exchange (gain) loss9,913  4,147  19,752  (13,614)
Net loss attributable to GitLab common stockholders on non-GAAP basis$(22,653) $(22,322) $(72,108) $(79,955)
Net loss per share on GAAP basis$(0.62) $(0.57) $(1.89) $(1.45)
Non-GAAP adjustments to net loss per share0.28  0.13  0.64  (0.16)
Net loss per share on non-GAAP basis$(0.34) $(0.44) $(1.25) $(1.61)
Shares used in per share calculation - diluted on GAAP and non-GAAP basis67,018  50,306  57,789  49,806 

Media Contact:
Rachel Romoff
GitLab Inc.
[email protected]

Investor Contact:
Willa McManmon
The Blueshirt Group
[email protected]