GitLab (GTLB) 5 Sep 232024 Q2 Earnings call transcript

Thank you for joining us today for GitLab's Second Quarter of Fiscal Year 2024 Financial Results Presentation. GitLab's Co-Founder and CEO, Sid Sijbrandij; and GitLab's Chief Financial Officer, Brian Robins 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.

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

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

Our upon us. forward-looking reliance the reflect currently We or statement we obligation information caution statements unanticipated forward-looking of to undue occurrence any or undertake or forward-looking events are circumstances place to report statements or based revise future events. available update no duty to you to to on or and not any

discuss call measures comparable of for accordance measures also ir.gitlab.com. posted a non-GAAP replay comparable to differ supplemental may prepared measures contained our these U.S. in information included be and in which GAAP financial available are GAAP. performance that in A financial reconciliation These GAAP non-GAAP results. statements intended these press with most on measures from We release, not are our our ir.gitlab.com. at measures is earnings along today's additional be financial of with to will the also reconciliations A substitute

over call Chief and Co-Founder turn Executive Sijbrandij. GitLab's now to Sid will the I Officer,

our strong delivered Revenue demonstrate and We Thank XX% joining operating continue a quarter. significant model. today. you in us for to we grew leverage year-over-year

the This is And we Forrester importance. officially major and DevOps issued these category's platforms. reached and created. a also We category significance reports milestone. reports validate Gartner the recognizing

I'm solutions where market from point thrilled industry the place category. proved is analysts that to the We within GitLab with also these moving platforms.

Gartner, the Wave the ability And delivery for in integrated leader We in platforms. These all Magic, were platforms execute scored significant we highest Forrester momentum to only a participants. we in DevOps were GitLab. our the reports show and Quadrant of the leader named the software for

consistent faster Customers team with a to secure We better, do right also software to develop want more here. less. reinforced and we more want and

I'd today. topics key to like discuss

platform. First, further how our DevSecOps we're to differentiation for create innovating

DevSecOps go-to-market third, Second, are growth a in how even opportunity more to motion. business, with topic will And large drive how continuing cover strong in the capturing the we and Brian detail. we're this responsible

GitLab to We the also our product help of We'll of launch We help last new we platform. for AI-powered compliance. XX One GitLab event road overcome quarter. discussed share features the software. was companies able focused and is DevSecOps uniquely on coming year. complexity map our the which capabilities area developing

compliance several helps and leaders reports controls management, centralized and DevSecOps and compliance controls, compliance capabilities. We include frameworks. new Our the governance expanded platform right set policy shared These dashboards.

life to enables do Another teams area companies our faster for was catch It process. earlier in difficult security focus Point vulnerabilities it the GitLab supply while software and shift left their strengthen the to software contrast, helps companies strong practices earlier security. cycle. their chain maintaining make to platform it enables DevSecOps in In development security. security, solutions ship developers

without more posture solution differentiated verticals. automation multiple make enables data GitLab providers. also value chain. chain. This sacrificing to proposition security satisfaction. across Please consolidate turn their They let secure fragmented while software to And increasing platform. GitLab me and customer secure a BetterCloud a renewed SaaS software their deprecated with customers BetterCloud their resonates GitLab workflow This market-leading a as business provide is example. supply to QX, speed. point security all strengthened result, automation the In to tool enhancing they developer

Sigma create of Department and continuously to applications Navy. This Pearl Pearl demonstrates this Black modify the and is by is imperative uses a this quickly service Navy Navy GitLab Black requirements in is example U.S. vertical. developed to for Black proposition new priorities. mission evolving GitLab creates to customer, applications service code the Defense. public particular DevSecOps mission and Pearl managed One well. in response sector. Speed value

this Navy Using teams designed self-hosted deploy the Pearls' provides GitLab single-tenant operational private solution. complex also became is With customers costs. environments with generally fully our data custom regulatory QX. of and months. compliance on rather of full Dedicated, created control software offers source than Dedicated. in Dedicated days Black a address customers we these GitLab, and have a available isolation, GitLab that enables needs save offering SaaS code and GitLab data have compliance to DevSecOps Gilad and and It and networking. security the managed Many This platform, We operational within and requirements. residency

Let customer example. another me provide

requirements. One They move leading security choose choose Dedicated accomplish initiative. SaaS a first advisory QX. solution. multi-tenant of include cloud. customer duplicate firms management enabled teams compliance GitLab asset GitHub the the because Dedicated efficiency their operational not to These would accelerating over GitLab met world's to a and also allow objectives. and their Dedicated had They increasing SaaS GitLab in us security this eliminating other and tools, Their

GitLab greater management. with integrates across Customers business development multinational by and business practices. we life planning This In agile entire wanted into of to a Jira stream includes QX, all value expanded same development They moved an aspects can software efficiency GitLab. with (ph) of efficiency The rest their the planning the company. improve their drive productivity users from services enterprise customer thousands software enterprise of solution financial to platform. cycle. the and integrating agile

be to a product innovation. of continues key AI area

capabilities AI-powered the development across entire software cycle. life developing are We

a of capabilities. reviewers year. this to provides code developers, AI available leverages most security of code to just in to code. these about appropriate uses And on me suggest track generative suggestions Court to details suggested the generally few code. share vulnerability suggestions this Let identify Explain AI vulnerabilities remains potential later be reviewers

several in ways. AI to approach our differentiate We

use software differentiation development importance we AI our of our state entire study. This the of Today, further. and commitment cycle. the also even a findings life to of our have deliver and released AI We study the transparency DevSecOps throughout illustrates in we of privacy AI

June more surveyed These and about of operations X,XXX than We concerned tools, IT individual private in information that leaders respondents In security. development, are accessing software respondents. intellectual AI XX% and we found include contributors property. or XXXX,

is developers We their also spend time XX% found believe we code, of why that just only delivering code essential. beyond that's AI writing suggestions

of second to The to I market most the motion. as are opportunity strongly discuss a cycle. large is Cloud partnerships part want go-to-market offerings highlight to and the software two like intend execution Strategic Google life development Google strong delivering would how topic significant. we and important to with GitLab capture AWS Cloud are and our an enterprise committed DevSecOps go-to-market AI secure (ph) the of across I

to We working Google thrilled are Cloud with on be workflows. our AI-powered delivering of vision

AI-powered models, model users deliver software. family leveraging to new including experiences are in the foundational [indiscernible] involved secure creating to new coding We all

Next. achievements Google our year. GitLab of Google Our the in partnership to consecutive third with within application Google console. into Google GitLab extends Year also integrate Google GitLab received Cloud even We for the further. for Partner Google our Cloud the recognized year's Award announced XXXX At ecosystem. Cloud the plans development Cloud this the

delivery AWS code support to is Another leverage co-changes allows is AWS code QX, service. pipeline. test key new This gitlab.com code source AWS build, repository in GitLab developers pipeline. managed and capability fully introduced with This In their for and a continuous partner to AWS. AWS continuous deploy integration

security GitLab and Airlines, together Last world These developers, quarter, and in more cities DevSecOps embarked Delta Cisco. secure leaders. events can Lendlease happy road countries. bring partner feature also on build we Examples our to the taking GitLab use on software They learn technology and we're to organizations four speakers. We're faster, tour. XX how customer many include to operations

includes we Chris’ QX, Chief our will instrumental approach building XX phase experience brings of as from GitLab of of next leadership in appointment Chris Microsoft. announced the In multi-billion-dollar years organizations. sales skills be our Officer. sales growth. Revenue customer-first more as Weber than Chris This

demonstrate $XX second community contributions in well wider analyst pleased our thank and leadership. win our to for we billion like positioned like their I'm I'd partners estimated thank this closing, momentum market customer to and quarter. recent validation, lab are the quarter members, customers And our with results. also trusting solidify GitLab the for They GitLab. opportunity. category team to and With continued our In our

I'll now turn it over Officer. to Brian GitLab's Chief Robins, Financial

responsible for our you Sid, growth joining margin I'd about it's today. achieved emphasize, to of very with again happy and point operating our grew revenue key everyone expansion. driving that thank non-GAAP we you, basis over points as us year-over-year. and Thank I'm in QX like XX% X,XXX metrics

address find business We our to continue the more scaling to large efficient while become to market opportunity. ways

These areas. AI target in compliance, We also planning. product continue make and investments to include agile security, key

over the year, in years. for to continue is April We strategy our this premium price our of pricing and of SKU first the our line packaging. five this that optimize responsible we the value months raised In new time of first with customer and Part investment expectations. for growth added our frame, to time behavior our we price Over was over XXX years. the customers better In features. past we in aligns four the five made believe post-launch, with

we current the reminder, this minimal year. impact financials anticipate As our in change to a from

a the have expect impact beyond. much in to and We 'XX price larger FY increase

patterns, contraction to customer at I buying back quarter. trends. the want Looking touch on ultimate and

buying patterns was consistent FY appear of have stabilized. with purchasing believe customer First, QX to in We QX 'XX. behavior

Second, 'XX contraction was lower of FY and appears stabilizing. be QX than to

for to ultimate, by adoption driven see wins cases. Third, compliance security tier top customer our strong use continues and

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

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

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

$XXX the same XX% This quarter, to total million year-over-year RPO cRPO time million. to grew $XXX grew for XX% frame.

retention quarter based XXX%. We a dollar rate with net ended our of second

months tier XX reminder, that of compares expansion XX-month with our last compared ultimate this the to As of of a XX-month during FY tier, is ARR growing FY of for over that metric The with customers prior trailing second period. a same quarter cohort continues be in activity the ARR fastest 'XX, XX% 'XX. XX% quarter the second the of of representing customers

XX% gross preceding the the ARR. with SaaS consistent FY slight of quarter XX% is This over Non-GAAP from quarter, margins which of of second is were 'XX. a improvement represents quarter.

able of been is cost higher non-GAAP maintain the business. we efficiencies drive have to We best-in-class gross of This SaaS the despite another continue how to example delivery. in margins

negative of includes greater subsidiary. We scale XQ and revenue million saw X% $XX $X.X compared of business. majority-owned an loss improved of the This efficiencies $X.X year. of or this for realizing to a our loss by quarter, driven negative loss last to operating continue JiHu, of million of as JV leverage revenue or in we operating million Non-GAAP XX% operating largely

We last a stand-alone million of of cash flow generated the GitLab cash quarter operating the year. a in activities $X.X FY quarter in same $XX.X positive basis, second use $XX.X loss compared million. to of of operating the On was in 'XX, million operating

overall to let's business assuming loss few change continue. Now that There in guidance. to last the over the we (ph). We're guidance has trends our quarters seen the no have turn been

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

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

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

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

Excluding that will a of the impact breakeven on basis reach 'XX. in operating of GitLab non-GAAP JiHu, it's third income likely FY quarter

at operating unit that improvement focus basis FY will points our to 'XX. FY on responsible economics. yield We a non-GAAP percentage remain the We improvements On a 'XX further believe cash year-over-year of our basis, midpoint for in flow of free guidance our track approximately new growth guidance. on continued X,XXX achieve breakeven implies annual our

are which is in a business our fuel in There believe introducing help FY our the on are number of I one drivers earlier, 'XX. we touched we the tier. that premium first increase price should

we free users early, in user we to Additionally, QX, upgrade free limits but premium. enforcing our started additional sized seen It's tier. on have

The third the This allows for new complex driver compliance and requirements. Dedicated. is of companies address us launch with to opportunity security

an Finally, our year. functionality add-on monetize we launching to that co-suggestions will capabilities later plan include this AI by

venture. our I like JiHu, Separately, would on China update joint an to provide

goal JiHu. Our remains deconsolidate to

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

business In our with DevSecOps market. the resonating value market-leading of closing, pleased We I'm platform our in proposition momentum. is believe the continued

prioritize we manner. growth a continue forward, Looking to in revenue driving responsible

that, to With move for question. a now the Q&A. please directly We're we'll and use post questions questions. chat first your the IR ready question, to feature ask To

Our first question Sterling at from comes MoffettNathanson.

actually I Auty. on well. is hope of say kind Sterling Billy I for This and you look guys. Hey, Fitzsimmons you're great, doing

In few the with had investors firm gave in a then remarks. update Sid the in still innings months But and seeing? early here. I AI an double-clicking talk adoption deeper, on the prepared products' terms you feedback maybe through you, customer and we're through us Duo early a question, little you're ago, imagine talk discussion generative to of the and curious kind obviously, products in if AI-based you of on the But what could these can going for and trends, hearing

the months, us now like But Thank been of one a XXXX and earlier hearing you maybe And give on on this structured sneak kind for can that lot in increase, then you trends several of retention the price fiscal that an XXXX. year, that's in, could seeing stuff that? you're a Brian. it's maybe be and if price increase update and I customers you another felt way you. what announced won't Obviously, from until

to DevOps of published Yeah. need only time publishing we've not Duo is for very XX% AI Thanks question. kind we're actually, And cycle. the need for but And report a Customers state they feedback spent coding, it been third of the throughout even features a elsewhere. coding, And has for it they a is that their of just, early developers, today, the platform, life get positive. just which of the DevOps. DevSecOps only is time of XX% their example,

a we life really have We're important the features of it's XX throughout to there that cycle. features So have really already. happy out set

has oldest feature And have over some suggested the today. XXX,XXX reviewers of we users

Duo. excited need great excited that we're therefore, that So further. and progressing of AI features, it's we're they about about customers recognize And a that to see suite

quarter last had we data. of only a month we increase, had the price on when call, And our

happy three to we our data slightly the and this months happy to above in I'm been quarter results. It's line with of say expectations. So have

XXX price As we we platform a wanted because value and to customer. that that increase reminder, we to we new match are in features the our providing the implemented put the

of the come through all be with FY year revenue the the XXXX the when FY just -- the renewals of increase, as ratable in the impact we impact so of this little realized due in year well very and talked that and year, for there XXXX. quarter full we includes that in we went up impact. When And the price as the the coming the would guidance impact FY nature would provided we majority about announced to XXXX

Perfect. Thank you, both.

comes KeyBanc. question Michael next at Our from

your perhaps and are perception seeming One, Hey, talk a we still new relative cloud evening. but factors. of a where driver of in as guys. application optimization are development the that pace for From macro a terms -- you? application especially development, developer to seats also Good then perspective, you slow, can with about and of where to we where the couple there,

seats to great. Sid, you then go the and happy be through go that if application want Yeah. to would development through I'm

stabilization quarters. general, seats talked buying on buying about are this today a With for hired they customers has QX. that over number Just of people in QX what And buying different would for more funded have the that And they currently plan. products they're only that right? patterns of say in the and have in the said I we've we though, seen changed,

And we factor into overall macro. so guidance, that our the

as that guidance. can application And question year the Sid, repeat development your third so full our you be the in that's on Maybe guidance great. quarter just included well would for

question optimization how isn't of done. but maybe development the extent the the slowing, or to in of are in helping pace that cloud terms do not I drive Where the you cloud Sid, was we your seen business? that Sure. application we've and think is to think,

Yeah.

I optimization patterns of think of a hit. consumption that lot has were that cloud been kind

less we impacted expansion hiring seen of do by of and like I -- the think less decline much that. developers We things that. were more of the kind of kind have

I We cloud, still far native. practices. They're regularly development still big need headwind still way go. things us. of that's and a as think to I as think are A application been to have lot of lot they have not partner think to a a not still companies, to with And we the long that I things modern for move cloud moving DevOps.

ahead a still shift big of us. So there's

Those there. leave question. I’ll are it two sort of

everybody. thanks So

Michael Thanks,

from Next, we have Joel Truist.

for my Brian, Hey, one question. taking for you Thank you.

leverage great a job the on side. Just operating

which that deconsolidated operating at on to wanted rest and know margin the point. XQ line, takes puts understand some in to the be going JiHu, notwithstanding is year I of Just hopefully and

increased I'm I continue do went get leverage GitLab super quarter that we a have before that consistent Sid Thanks, the is this in in but number This very quarter. that grow, messaging our Joel our absolutely. with public public, positive was of goal we and for to We been to business. non-GAAP And since going Yeah, the $X.XX. the question. responsibly. a we'll EPS achieved every big milestone operating happy in for one

other actually money. lost so quarter, And every we've

leverage, to expense. of million of $XX we In we year. And million the operating did $XX over show approximately just revenue -- million with that incremental QX, delivered XQ of last $XX additional

half first of revenue half $XXX at for If additional delivered you were million only $XX with million adjusted versus we've first JiHu. and this year last approximately of look expense, of year, of of both those

prepared my In remarks, also reach income to operating positive did reconfirm and then being And I that positive in we'll it's committed likely free cash flow say 'XX. we FY in non-GAAP XQ.

Thank Great. you.

Thank you.

We will Rob Piper Sandler. now from to move

contracted much you Thank wanted macro I and that and Brian, commentary just NRR sequentially. very a touch bit to the the a little noting question. taking little I Great. again my thanks appreciate bit more. on for

So stabilization that metrics rails out. consistent, any behavior other us put I being a with some of where might around the threw guideposts think you around you or of gave lot can indications that go? you

where So NRR might to understand that just bottom? want maybe

key that then a of And bit your still those only help SaaS us what for incremental maybe Sid, it's some as more SaaS of you drive XX% features demand. the might talk understand Thanks, guys. be noting will about little ARR, offering,

I'll second question. over the to NRR question turn to your first Sid answer answer and it

over stabilization did see So some Customers they what mentioned need. QX. we in earlier, still are as QX buying I

more, net am still a expanding. buying year they why say they're rate. the you're year, last every drop that a need is buying seeing launched in since in that happy fact this retention they're the just to so I we've dollar year, lot slight And is what

-- that business they've customers contraction bought so talked the at look buying sort expansion in When watch and our around premium are historically. year-over-year about of I've contraction, historically more was was the in still primarily that you seats. what point And primarily than

out. is, has actually forward. going target of But been or quarter. out those and had think I'm sort we both number in where good of bottom much smaller. of always expansion has what out quarter, guidance leveled are give happy we the this a We Contraction reflected churn very didn't a

look in fourth you late business the quarter If contraction though, started last year. in of

about And three is length this. we're into so Average quarters contract XX little months. a over

we the buying quarters we expect another quarter, cycle X.X I through So until of patterns. ago work the new have

it revenue Dedicated, which our self-managed see as for question. Rob, things. is going see understood like Thanks I SaaS. that revenue. offering, drive to big what's new two single-tenant to I I SaaS And

which have to about We maintain gitlab.com, address great SaaS most complex compliance to this complex platform, a the the it excited multiple-tenant is get the we and offering, new requirements. requirements way our most where to with but customers super biggest it's up SaaS them. for We're

self-managed. to order Another for features be connection of can We additional functionality to driver the SaaS this GitLab a them. Plus for call and to some SaaS AI GitLab the of consume will move example, require in

of So but there's thought not features features yet but that about, additional a of more launched, kind get kind we've to hybrid installation.

of Some on-prem. is it

the move of kind over. features SaaS provided gradually new cloud in of and Some those the are customers

Great. Thank you.

Rob. Thanks,

Koji we Next, from America. Bank have of

categorize I you. type product? wanted And some in on guys. category. analyzed vendor customer that it page I the the really metrics, When investor what to you would the why this category investor the question. be And product of I of looked presentation, metrics tracing. category? at like GitLab Thanks go you could looks is the the taking the for Thank wanted maybe would versus I deck, and on traditional new logging maybe traces a category in or with for to guess and ask focus vendors at logging this Hey, a and competing other about

Yes. Thanks question. for the

logging and tracing. the specifically So metrics

APM category, called I Datadog performance think application New like vendors management are Relic. popular and that's vendors and the there

But beginning, basic the functionality. very early start -- features with just competing in we'll with be really them. So over time, we'll the

competing nonconsumption. as vendors. big not with the we're So with much We're competing

beginning that because model contribute open can logging alternative just and basic. time, things they core not start where The -- is offer over really our really GitLab -- will features the customers be in up are the of like contributing. But metrics would setting to our and because we

August, across had in monthly XX.X last platform. release, Our GitLab from XXX contributions our the it customers

over time, and become functionality will best-in-class time best-in-class years, over compete those over is with and improve, the So solutions. to many the goal

Just one there. if I may follow-up,

You be to into Sid. Thanks, there a bit little log infrastructure mentioned or maybe any APM just would further too. go thinking plans monitoring out, analytics

logging, a to Yeah. makes me logging do analytics as category. sense we If

you look infrastructure we already If at infrastructure, functionality. scope have

For example, our TerraForm (ph) support.

So attention. that has certainly something our

we Derek Next, Cowen. on to move from

Great. Thanks, guys.

talked for up You've vendor over has That for definitely more consolidation some landscape opportunity about few key as a GitLab the software theme across popped hit the time. last since quarters. the macro

that of Just share business percentage for business cadence to you of of you if in have in a I displacement? guys metrics like terms up, of all just growing then quick have wondering if kind terms any And picked expansion vendor follow-up. of at a

category for Brian I is by for tailwind is we're this of going starting Forrester to the to it to this future. seeing my that add get the think is real us answer, I'll market Yeah. customers of be DevOps introduction the and platform to but let And because that. is Gartner like I Thanks what a it. think signifies

wanted our at report, compromise organizations of chains, DevOps to you want they XX% tool of If state but consolidate on functionality. don't look said XXXX to they

consolidate. customers gets that more complete an take solutions, GitLab trend the able to point and more that is want to as So is on amazing

Brian? the hope Now are to the kind we in and to saying that. of the go majority from early analysts it, early adopters

absolutely. to to said of say couple what a extra words Sid just And Yeah. is

will. journey, in you sort seeing think I the this customer if we're of

then landing company so premium, within they're relatively they're on departments Ultimate. they're the to division landing expanding upgrading actually then ultimately small, And

caused people a they're a platform, or this continues journey Despite technology customer to ways software developing to more macro selecting show. software cheaper be to how and make evaluate the when so think faster, And new wouldn't the secure. really new has exploring that better, you and people

so as just think see the to I from well perspective customer consolidation. vendor is, Sid we're what what a we're continuing said as And seeing

a just about decision-making. C-level is And guys purchase you involvement last quarter, more in Great. talked follow-up

what to of tweaks light second that of the maybe new and adopt this be year? to kind tweak looking in a you'd how go-to-market environment, Just you've of in half in maybe curious leadership especially the place of kind

not very is kind map been don't in are thing that, of replace we gradually and But We plan. those where we how Yeah. X we a do all into the on And It's disruptions have transition focused seamless can their go value C-level a existing buyers. customer, major so bank, stream our assessment on but get And renewals we any tools go-to-market. their tools. -- of solve that a come be so problems as they a problems. be it it's or behind a installation problem upgraded, their need biggest security integrate big my as can up set I'm as can it's and they Jenkins we like biggest security, I to

is I've the it I have I prove Where the compliance can tools, there? security that. doing.

the is that keeping in up solution So kind the to the their up are, up DIY depending management middle on engaged highest of and of frequently and what in Typically, them, level running. their organization. needs we with make plan goes kind a with

in decision it's to talk makers to So us the those important for top.

Perfect. Thank you.

Karl to Next, we'll on at move UBS.

for ask for Great. Okay. one Brian Maybe one and I'll Sid.

$XXX at the million that's the up typically end, of guide in actual XQ. percentage double-digit on up only a your the smidge basis. XQ Brian, So from revenue high It's on

-- there with or Sid. then mind And So your XQ I I'll that was follow up little you'd wanted to a out? that on one-time-ish in call that's maybe -- like to XQ ask I'll anything felt in

that anomalous through, nothing is look go nothing I in there Thanks and that revenue. would There an XQ's XQ just Yeah. for say was was XQ Karl. you at guidance. sick the revenue if was, there and was actual

Yeah.

Jira in you out Sid, called large Okay. a multinational displacement a sense. Makes Hey, bank.

Brian have I a very that Is couple last that cadence. it's GitLab stage think and you in of there that displacing often the and don't years You be hear said software. Jira to often for early change over

customer, now. This the The for was know is getting point happy as very far us. as I We're closer proof a with change.

can And So to to point very we've automating human are portfolio gone having the get because good in what's management complex moving more. to that we is hoped that's from happening. instances, you people And being also needs something something a enterprise solutions are for from Jira time to this any up. happening cycle our just companies sign-offs like Jira going work from lots of streams enough replace is that platform

do those of enabling For scans people. every you're check that, going that's all can code example, you force that. management all us with in that, that compliance also and automate X security piece of signing example, to and Jira is Instead what boxing reviewed by or for people off to

Okay. Congrats on the good results.

Thanks, Karl.

Next, RBC we have from Matt

taking -- effectively a any does you seeing -- you for color it's Ultimate? Are mean? I I you've think, Sid, and price expectations. click it’s more that but What Does line about that mean behavior just great too, but factor, to wanted typically on that to just expectations so to bit that with really the I as comment Great, -- look increase? any good a Just I in -- know wanted bit. with means? talked Brian, what your on premium guys. that moving well. not that to questions, in the customer ask double my was line they're a maybe they're taking little about, see price Thanks increases your that’s are

bookings, net we the Matt. would what at we did Yeah. on bookings. looked forecast with came we internal churn, did increase, be model an the price our that we and When Absolutely, thought overall up

churn our less. is forecast say positive would more and is internal I so overall bookings And than

so seeing how signs from bookings element we're every it perspective. a churn and positive And modeled we of on

I two believe just did And Dedicated. a it. -- think follow-up quarter, two large Got on you you quick customers, last have had I customers Thanks. on maybe Dedicated.

of a I on just that. to And like dedicated? there's a if little -- Sid, know giving you But there when more color think, perspective seeing customers you're hosting a number that sort bit layer that? are what then spend take mentioned customer they I you maybe maybe of from

Yeah.

is seats. we're Dedicated there for Dedicated. minimum for think Ultimate I you of with can GitLab go now, if happy you a pipeline the get only and Right number

and that that demand on the has bigger attractive move So been that's coming There's for an the to We're people currently happy the with And list to it is demand, the seats need for self-managed. pipeline. offering X,XXX organizations. Dedicated. like you

runs of like no offering, They're on They and it latest that sure at people their kind operational that in VPC, can they get they lab the the the the the burden. only We everything completely self-managed and they where what and those don't this and to dedicated that. but make set has experts up customer. have it of internally they're separated. same about version don't security need they're And longer

Thanks Got lot a it. guys.

move will from to we Now Ryan Barclays.

the Thanks for question.

(ph) platform are model to for considerations mostly they these on other For and there customers or AI? in is those today, play evaluating customers DevOps large Sid, weeds who at smarter language more focused on are adding the co-digestions still their features get as increasingly

Yeah.

more as be customers think get seeing cycle. throughout the I sophisticated, they're life AI should that

call, Ops, this in those earlier like DevSec like make mentioned As and to efficient. it's AI features security you need more

color, thing only code, If it. produce that's those they producing do more need. And the not more that's going not to you just of developers

more want that really they sophisticated, more we already. get customers features happy AI XX as features, and So have out we're

The they to never privacy be to want going intellectual guarantees their good people is enhance their second like of inter that other property property. their used is thing platform,

in think I have a really So compelling story. both, we

know Brian. cRPO Excellent. those billings lumpiness gauge then the on for on coming anything and one just first given the longer-term just But I of two contracts. a perfect quarter. about are business Brian, in metrics a strong to think your quarterly quarter off basis, And the not in

platform, enterprise But rate. XQ, that typically deals a company number that didn't retention I for GitLab. it a where want do we historically wanting they because with such had was we multiyear think drive see multinational Yeah, platform earlier, and compensate don't to in multiyear deals. DevSecOps large to a high in commitment behavior we to gross DevSecOps said Once again, to company, in the deal of long-term want just Ryan. talked a largest did to the history In demonstration of want go clients a adopt XQ. big about We when to we making

Thanks, guys.

Needham. And move we'll to on from Mike

about as slightly take the comments the of this that have guidance guys you're And Hey. slightly your Sid, first clear, to from I positive. including been what and I make to great. year's more to know Thanks this be And from are is Matt price I are has you is change I'm sure if as bookings on you can think increase? wanted there like them one that, is But me guide? to talking questions, assumption separately. here, for forecast, But follow-up tires had sorry. benefit in could what again, increase your which kicking I hey, for had far the to any here. guys. getting I'll when us for some two just go price net just you I Brian Churn benefit remind we the that below

it's nature through And ratable No, this little in year. Thanks, the it's walk of impact when guidance. been included Mike. -- very the There's revenue, our absolutely. you

doesn't following it a any majority on we bookings and next where than impact and the are financial get little from way So doing we We'll perspective. have internally of year churn the better modeled year. impact the expected really meaningful a it this then year. that the

timing? what's around Thanks the we've Brian. just heard really well spoken Got of about of but code A today all XQ you we've out. Sid, help us hash know is year. SKU it. this I XQ externally the a I suggestions. for last then it as we're that as for couple the I that later expected for launching more when focus think main to here, about questions and wanted or can well, as that, excited it event think And AI quarter Is

that SKUs to And features AI functionality added rolling actually of AI some that a there to good, or I'm little separate a more maybe or multiple like as is hoping, almost the will market. if SKUs, that have are well potential or additional Thanks. the you better, be about elaborate bit best SKU to could thinking a out on you

that. for Thanks Yeah.

So available it's year. generally this to later be projected

Difficulty] a end that includes of or up made reviewers package, might different included QX be paying with haven't existing available some for people yet. a of the decision without in will [Technical Q the features We example, also more AI to QX It's is it. separately for likely coming suggested between already alternate the AI features although

it's of mix those a probably things. So to going be

you. Thank Perfect.

move at now Blair. William Jason to We

the I you free did Yeah. mentioned been could tier. -- about Thank that what Sid, ask you the or Brian, there. everyone. what and us what with user mentioned it just be? on happened you Could remind that. you. to maybe familiar and what impact I wanted Good you I'm think afternoon, has the limits not super

want you it? to take you want Do do Sid, that? me

said, start you limits, add you user PT apply and to don't a got we that the on is than reason for more for I'll you users, significant people gitlab.com. answer. (ph). have off, But hosting my free can to getlab.com to to kind But five costs tier, the hey, if of they our we installations. self-managed switch using And have

So It term we although, wanted leading $X,XXX conversions the to to cutoff. to the long those good majority of sustainable. add? be want customer you anything is below are conversion, base Brian,

impact minimal. free-to-pay with our the of was ratable the of conversion you will covered guidance. Yeah. on built recognition, The top the is add that thing year once nature I'll most be it again, think that, also this I into only And revenue of

follow-up. Great. And a then quick

XXX, you in then idea potentially opportunity how (ph) a just us also gauge what would on lot Just could with give the spending get deal, customers Can of history. big so largest annually to? largest that your can And How large kind customers customer? XXX,XXX-plus an the Brian, for on sure we ARR where you, of is XXX,XXX much be size? those they company of they're

Yeah.

It So then multiyear we we deal. have quarter customers signed several the a $XX over year. a that past largest And $XX this million. deal was was approaching million

Thanks. Helpful.

Pinjalim JPMorgan. move at We to now

Ultimate ask of of kind you upgrading some price, are premium customers the upgrade looking higher pay Great. lead premium you happen to capabilities existing as Hey, guys. those some in like seeing Congrats you to more. on well to of from the especially kind Ultimate, to the to quarter. as as cape look conversations flow conversations on Are people I wanted to have and of suggested AI to the customers starting reviewers.

which ultimate guidance, being to expect people for seeing I reevaluate going reason Whatever Yeah. more on. be people. mind for and of seeing that is a is we're we but am our baked into top more tier we're to it And

on decided yet. of haven't the We the features AI packaging

we're the So features. se is the significant driving conversation, working it's our because AI although for of still not on a Ultimate AI per part packaging

that seems if think, it. like wondering call anything below QX for build, out. One Brian. the Brian, does of like which I to the happen, seems on to Got sequential anything but not typically QX, out It side. in there's call was DR

total deferred was QX the growth XX% mean I year-over-year. specific. Nothing revenue

growth is RPO. XX% makes our of RPO XX%. growth total cRPO Our cRPO our was XX%, about approximately and up

pleased And so the quarter. really overall with

you. Thank Understood.

Our comes final Wolfe from question Allan from Research.

question. the you Hey, guys. Thank for taking

what So of help is following Weber, looking for year? company sales can about CRO, potential scale thinking just to he's phase Chris disruption you And next What’s are been the growth? how about appointment you he on. of focused the implement the guys talk to the

question. Yeah. the Thanks for

customers, our the have side. a hit to we, go very for our very no Weber organizations, that's us responsible transition sales We executive. been to as smooth Chris to board. multibillion-dollar So we're a setting excited to so what company, go-to-market, really big team. There's sales has on the listening listening want very spent future. time sales up from to He's He's a in experienced lot and and changes our in seamless of for our success been

of guys noticed quick code be suggestions Thanks. of of the incremental base there looks about And the the R&D behind a just goal. one Can your just guys users would kind change that and growing release suggestions, it target as looking And on helpful. Understood. background, follow-up. had page it X talk kind you your now on million users. before you (ph) color it's more kind of generally you to a launch? push are maybe Any guys about I side like code

extremely lease, that GitLab transparent year generally our ambitious. So to at company people our extremely an OKRs, we're and push publishes be we

For example, goals we our of OKRs, only for be to our expect XX% met.

There's communication. like over ambitious investor We especially view long-term communications our a (ph) that. taking game, OKR that. in there's something thousand this. handbook. in goal. the or project, couple our set of not and that investor they're of things wouldn't pages them, of was beginning And any this a through of people So -- long appreciate to part not weight we're of a part the That's I we is an but going add official

Thank you, Sid.

That QX joining concludes day. again for more a us, have presentation. once Thanks FY great our XQ earnings and