GitLab To Go Public

GitLab, Inc. a cloud-based software company, has filed for an initial public offering on Friday after a record increase in net revenue in the recently ended quarter.

The company will vie for superiority against the likes of Atlassian and Microsoft’s GitHub. The company wants to be listed under “GTLB” on the New York Stock Exchange. GitLab has not yet revealed the terms of its offerings as of now.

The company develops tools for software developers that help the team members to collaborate on projects and share codes remotely and thus streamlining the work. As most of the companies are having to operate on a remote basis, tech companies like GitLab have enjoyed massive growth in the last 18 months.

GitLab has recorded a 69% increase in its revenue year-over-year but has also incurred a much wider loss. The annualized revenue for the company was $230 million and the revenue for the latest quarter was $58 million. The loss also increased to $40 million from $9.4 million last year. But the chief advantage for the company is that the number of subscribers to the services provided by the company has increased a staggering 152%. Among its clients are some of the leading companies like Nvidia, Siemens AG, and Goldman Sachs.

The company is chiefly backed by ICONIQ Capital and Khosla Ventures and it has around 1350 employees in the workforce who have been working from home since 2014. Therefore, the pandemic inflicted work-from-home regime has not troubled the company. The company is valued at $6 billion and will face steep competition from Microsoft’s GitHub which the tech giants acquired for $7.5 billion back in 2018. In the last few years, the company has managed to raise around $400 million in external fundings from names like Altimeter Capital, Franklin Templeton, TCV, and Coatue Management.

In its filing the company said, “Operating remotely allows us access to a global talent pool that enables us to hire talented team members, regardless of location, providing a strong competitive advantage.”

Source: Read Full Article