Image: Gitlab

Cloud based business Gitlab files for an IPO

GitLab, a cloud-based software business that allows engineers to exchange code and collaborate on projects, is the latest high-growth tech company to file for an initial public offering.

Image: Gitlab

The business announced its intention to list on the Nasdaq under the ticker code “GTLB” on Friday. GitLab is collecting funds to compete with Atlassian and GitHub, which Microsoft purchased in 2018 for $7.5 billion.

GitLab has joined the ranks of cloud software firms preparing to capitalize on a prolonged bull market that prioritizes growth. Toast, which provides software and hardware to help restaurants handle orders and transition to takeaway, and Freshworks, a smaller competitor to Salesforce in delivering software to customer support and sales companies, are both set to launch next week.

GitLab’s revenue increased 69 percent year over year in the most recent quarter, reaching $58.1 million, or over $230 million on an annualized basis. The company’s net loss, meanwhile, increased to more than $40 million from $9.4 million a year before.

In July month, GitLab’s net revenue retention rate, which is a crucial measure for subscription software businesses since it demonstrates client success, increased to 152 percent. That would make it one of the most valuable publicly listed software firms.

GitLab is largely regarded as a pioneer in the field of remote work. During the epidemic, firms were obliged to adjust to dispersed work, although GitLab started doing so in 2014 and didn’t have to make any changes. Gitlab’s prospectus mentions “address not applicable” in the header.

According to the filing, “operating remotely gives us access to a worldwide talent pool that allows us to employ talented team members regardless of location, giving us a substantial competitive advantage.” GitLab employs over 1,350 people in over 65 countries.

In a subsequent fundraising round, GitLab was valued at $6 billion, allowing current owners to sell up to 20% of their vested shares. In the late-2019 funding round, the company was valued at $2.7 billion.

GitLab has said openly on its website in its “team manual” that it planned to go public by November 2020. After the epidemic wreaked havoc on the economy early last year, the business postponed its launch while signaling that a public offering was still on the cards.

According to the report, GitLab co-founder and CEO Sid Sijbrandij is the company’s largest shareholder, owning 18.9% of Class B shares. Khosla Ventures owns 14% of the company.

GitLab plans to go public on the Nasdaq under the ticker code “GTLB.” The firm’s IPO filing cites a $100 million fundraising estimate as a placeholder, but that amount will alter once the company establishes an initial pricing range for its shares. Its fiscal year finishes on January 31, which means that its quarters are one month behind standard calendar times.