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GitLab Reports Third Quarter Fiscal Year 2023 Financial Results

Quarterly revenue of $113.0 million, up 69% year-over-year

Fiscal Third Quarter Highlights:

  • Total revenue of $113.0 million
  • GAAP operating margin of (50)%; Non-GAAP operating margin of (19)%
  • GAAP net loss per share of $(0.33); Non-GAAP net loss per share of $(0.10)

SAN FRANCISCO, Dec. 05, 2022 (GLOBE NEWSWIRE) -- All-Remote - GitLab Inc. (NASDAQ: GTLB), The DevSecOps Platform, today reported financial results for its third quarter fiscal year 2023, ended October 31, 2022.

“Companies cannot afford to slow down their software innovation,” said Sid Sijbrandij, GitLab CEO and Co-Founder. “In today's turbulent economic climate, they are turning to solutions like GitLab to reduce costs, drive efficiencies, fuel a fast pace of innovation, and meet customer demands. Our Q3 business results demonstrate GitLab’s value proposition as a mission critical DevSecOps platform for software innovation is resonating.”

“Our third quarter results continue to demonstrate our ability to drive high growth with improving margins,” said Brian Robins, GitLab CFO. “Revenue of $113.0 million grew 69% organically, and our non-GAAP operating margin improved by approximately 1,700 basis points year-over-year. Our dollar-based net retention rate again exceeded our reporting threshold of 130%, which we believe remains best in class and consistent with our track record as a public company.”

Third Quarter Fiscal Year 2023 Financial Highlights (in millions, except per share data and percentages):

 Q3 FY 2023 Q3 FY 2022 Y/Y Change
Revenue$113.0  $66.8   69%
GAAP Gross margin 87%  89%  
Non-GAAP Gross margin 89%  90%  
GAAP Operating loss$(57.0) $(32.5) $(24.5)
Non-GAAP Operating loss$(21.6) $(23.9) $2.3 
GAAP Net loss attributable to GitLab$(48.5) $(41.2) $(7.3)
Non-GAAP Net loss attributable to GitLab$(15.2) $(22.7) $7.5 
GAAP Net loss per share attributable to GitLab$(0.33) $(0.62) $0.29 
Non-GAAP Net loss per share attributable to GitLab$(0.10) $(0.34) $0.24 

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

Third Quarter Fiscal Year 2023 Business Highlights:

  • Customers with more than $5,000 of ARR increased to 6,469, up 59% from Q3 of fiscal year 2022.
  • Customers with more than $100,000 of ARR increased to 638, up 49% from Q3 of fiscal year 2022.
  • Dollar-Based Net Retention Rate above 130% in Q3 of fiscal year 2023.
  • Announced GitLab Govern, a new solution which brings together GitLab’s comprehensive capabilities to secure the software supply chain and enable compliance.
  • Released sixth annual global DevSecOps survey, which found that nearly three-quarters of respondents have adopted–or plan to adopt within the year– a DevOps platform in order to meet rising industry expectations around security, compliance, toolchain consolidation, and faster software delivery.
  • Introduced TeamOps, a new people practice and certification that brings precision and operations to how people work together.
  • Partnered with Google Cloud to launch Cloud Seed, allowing customers to migrate to the cloud using a single platform.
  • Welcomed Janelle Romano and Patty Molthen to the GitLab Federal, LLC Advisory Board, as the company continues to demonstrate the value of its best-in-class DevSecOps platform within the public sector.
  • GitLab partners completed 594 product certifications.
  • GitLab Inc. ranked #14 on Fortune’s Best Workplaces in Technology list.

Fourth Quarter and Fiscal Year 2023 Financial Outlook

For the fourth quarter of fiscal year 2023, GitLab Inc. expects (in millions, except share and per share data):

 Q4 FY 2023 Guidance FY 2023 Guidance
Revenue$119.0 - $120.0 $420.5 - $421.5
Non-GAAP operating loss$(27.0) - $(26.0) $(100.0) - $(99.0)
Non-GAAP net loss per share assuming approximately 150 million and 148 million weighted average shares outstanding as of Q4 FY2023 and FY23, respectively$(0.15) - $(0.14) $(0.56) - $(0.55)

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, foreign exchange (gain) loss, and equity investment (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 5, 2022, at 1:30 p.m. (PT) / 4:30 p.m. (ET) to discuss its third quarter of fiscal 2023 financial results. Investors and analysts should register for the call in advance by visiting A replay of the call will be available on GitLab’s investor relations website (

About GitLab

GitLab is The DevSecOps 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 DevSecOps 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, foreign exchange (gain) loss, (gain) loss from a deconsolidation of a subsidiary, equity investment (gain) loss, and change in the fair value of acquisition related contingent consideration. 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” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. 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;
  • fluctuations in our operating results;
  • our ability to manage our growth effectively;
  • our transparency;
  • our publicly available company Handbook;
  • security and privacy breaches;
  • customers staying on our open-source or free SaaS product offering;
  • our limited operating history;
  • 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;
  • our hiring model;
  • the effects of the armed conflict in Ukraine on our business; and
  • general economic conditions (including changes in interest rates and inflation) and slow or negative growth of our markets.

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, 2022(1) January 31, 2022(1)
Cash and cash equivalents$372,169  $884,672 
Short-term investments 555,583   50,031 
Accounts receivable, net of allowance for doubtful accounts of $950 and $1,098 as of October 31, 2022 and January 31, 2022, respectively 97,580   77,233 
Deferred contract acquisition costs, current 23,599   24,363 
Prepaid expenses and other current assets 20,454   15,544 
Total current assets 1,069,385   1,051,843 
Property and equipment, net 5,560   3,271 
Equity method investment 13,624    
Goodwill 8,145   8,145 
Intangible assets, net 4,484   6,285 
Deferred contract acquisition costs, non-current 14,240   14,743 
Other long-term assets 4,803   7,151 
TOTAL ASSETS$1,120,241  $1,091,438 
Accounts payable$6,233  $4,984 
Accrued expenses and other current liabilities 23,753   24,571 
Accrued compensation and benefits 16,716   32,820 
Deferred revenue, current 217,777   179,224 
Total current liabilities 264,479   241,599 
Deferred revenue, non-current 28,946   32,568 
Other non-current liabilities 12,125   18,002 
TOTAL LIABILITIES 305,550   292,169 
Preferred stock, $0.0000025 par value; 50,000 shares authorized as of October 31, 2022 and January 31, 2022; no shares issued and outstanding as of October 31, 2022 and January 31, 2022     
Class A Common stock, $0.0000025 par value; 1,500,000 shares authorized as of October 31, 2022 and January 31, 2022; 91,151 and 27,141 shares issued and outstanding as of October 31, 2022 and January 31, 2022, respectively     
Class B Common stock, $0.0000025 par value; 250,000 shares authorized as of October 31, 2022 and January 31, 2022; 58,503 and 119,747 shares issued and outstanding as of October 31, 2022 and January 31, 2022, respectively     
Additional paid-in capital 1,453,349   1,320,479 
Accumulated deficit (686,915)  (553,337)
Accumulated other comprehensive income/(loss) (2,874)  7,724 
Total GitLab stockholders’ equity 763,560   774,866 
Noncontrolling interests 51,131   24,403 

(1) As of October 31, 2022 and January 31, 2022, the condensed consolidated balance sheet includes assets of the consolidated variable interest entity, GitLab Information Technology (Hubei) Co., LTD (“JiHu”), of $59.5 million and $17.7 million, respectively, and liabilities of $4.5 million and $3.7 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,
  2022   2021   2022   2021 
Subscription—self-managed and SaaS$98,435  $59,774  $264,294  $156,542 
License—self-managed and other 14,546   7,026   37,135   18,315 
Total revenue 112,981   66,800   301,429   174,857 
Cost of revenue:       
Subscription—self-managed and SaaS 11,113   5,608   29,717   16,366 
License—self-managed and other 3,451   1,587   7,725   4,446 
Total cost of revenue 14,564   7,195   37,442   20,812 
Gross profit 98,417   59,605   263,987   154,045 
Operating expenses:       
Sales and marketing 81,080   50,543   228,479   133,562 
Research and development 41,113   24,664   112,463   68,607 
General and administrative 33,186   16,939   88,182   40,276 
Total operating expenses 155,379   92,146   429,124   242,445 
Loss from operations (56,962)  (32,541)  (165,137)  (88,400)
Interest income 4,657   127   8,247   226 
Other income (expense), net 2,661   (10,209)  22,609   (21,252)
Loss before income taxes and loss from equity method investment (49,644)  (42,623)  (134,281)  (109,426)
Loss from equity method investment, net of tax (756)     (1,775)   
Provision for (benefit from) income taxes 65   (875)  2,519   1,370 
Net loss$(50,465) $(41,748) $(138,575) $(110,796)
Net loss attributable to noncontrolling interest (2,010)  (521)  (4,997)  (1,443)
Net loss attributable to GitLab$(48,455) $(41,227) $(133,578) $(109,353)
Net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted$(0.33) $(0.62) $(0.90) $(1.89)
Weighted-average shares used to compute net loss per share attributable to GitLab Class A and Class B common stockholders, basic and diluted 148,883   67,018   147,812   57,789 

GitLab Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

  Nine Months Ended October 31,
   2022   2021 
Net loss, including amounts attributable to noncontrolling interest $(138,575) $(110,796)
Adjustments to reconcile net loss to net cash used in operating activities:    
Stock-based compensation expense  88,926   17,242 
Amortization of intangible assets  1,767   251 
Depreciation expense  2,198    
Amortization of deferred contract acquisition costs  32,693   23,555 
Gain from deconsolidation of Meltano Inc.  (17,798)   
Loss from equity method investment  2,247    
Net amortization of premiums or discounts on short-term investments  (3,346)   
Unrealized foreign exchange (gain) loss  (4,081)  19,752 
Other non-cash (income) expense  439   (128)
Changes in assets and liabilities:    
Accounts receivable  (22,163)  (17,350)
Prepaid expenses and other current assets  (5,320)  (3,373)
Deferred contract acquisition costs  (33,145)  (24,642)
Other long-term assets  2,050   (3,120)
Accounts payable  1,393   1,786 
Accrued expenses and other current liabilities  3,249   1,019 
Accrued compensation and benefits  (15,150)  3,812 
Deferred revenue  40,200   41,469 
Other long-term liabilities  (1,272)  1,803 
Net cash used in operating activities  (65,688)  (48,720)
Purchases of short-term investments  (631,951)  (100,031)
Proceeds from maturities of short-term investments  122,701    
Purchases of property and equipment  (5,018)   
Deconsolidation of Meltano Inc.  (9,620)   
Net cash used in investing activities  (523,888)  (100,031)
Proceeds from initial public offering, net of underwriting discounts     654,552 
Proceeds from the issuance of common stock upon exercise of stock options, including early exercises, net of repurchases  17,454   14,574 
Issuance of common stock under employee stock purchase plan  9,554    
Repurchase of common stock in a tender offer     (590)
Contributions received from noncontrolling interests, net of issuance costs  61,726   26,450 
Partial settlement of acquisition related contingent cash consideration  (3,137)   
Payments of deferred offering costs     (3,398)
Net cash provided by financing activities  85,597   691,588 
Impact of foreign exchange on cash and cash equivalents  (8,524)  (973)
Net increase (decrease) in cash and cash equivalents  (512,503)  541,864 
Cash, cash equivalents, and restricted cash at beginning of period  887,172   282,850 
Cash, cash equivalents, and restricted cash at end of period $374,669  $824,714 
Reconciliation of cash, cash equivalents and restricted cash within the condensed consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:    
Cash and cash equivalents $372,169  $824,714 
Restricted cash, current included in prepaid expenses and other current assets  2,500    
Total cash, cash equivalents and restricted cash $374,669  $824,714 

GitLab Inc.
Reconciliation of GAAP to Non-GAAP
(in thousands, except per share data)

 Three Months Ended October 31, Nine Months Ended October 31,
  2022   2021   2022   2021 
Gross profit on GAAP basis$98,417  $59,605  $263,987  $154,045 
Gross margin on GAAP basis 87%  89%  88%  88%
Stock-based compensation expense 1,248   331   3,623   722 
Amortization of acquired intangibles 521      1,546    
Gross profit on non-GAAP basis$100,186  $59,936  $269,156  $154,767 
Gross margin on non-GAAP basis 89%  90%  89%  89%
Sales and marketing on GAAP basis$81,080  $50,543  $228,479  $133,562 
Stock-based compensation expense (12,905)  (2,562)  (34,807)  (5,688)
Sales and marketing on non-GAAP basis$68,175  $47,981  $193,672  $127,874 
Research and development on GAAP basis$41,113  $24,664  $112,463  $68,607 
Stock-based compensation expense (10,030)  (2,147)  (26,405)  (4,653)
Research and development on non-GAAP basis$31,083  $22,517  $86,058  $63,954 
General and administrative on GAAP basis$33,186  $16,939  $88,182  $40,276 
Amortization of acquired intangibles (70)  (82)  (221)  (251)
Stock-based compensation expense (9,525)  (3,539)  (24,091)  (6,179)
Change in the fair value of acquisition related contingent consideration (1,063)     (1,063)   
General and administrative on non-GAAP basis$22,528  $13,318  $62,807  $33,846 
Loss from operations on GAAP basis$(56,962) $(32,541) $(165,137) $(88,400)
Stock-based compensation expense 33,708   8,579   88,926   17,242 
Amortization of acquired intangibles 591   82   1,767   251 
Change in the fair value of acquisition related contingent consideration 1,063      1,063    
Loss from operations on non-GAAP basis$(21,600) $(23,880) $(73,381) $(70,907)
Other income (expense), net on GAAP basis$2,661  $(10,209) $22,609  $(21,252)
Gain from deconsolidation of Meltano Inc.       (17,798)   
Foreign exchange (gain) loss (2,855)  9,913   (5,361)  19,752 
Other income (expense), net on non-GAAP basis$(194) $(296) $(550) $(1,500)
Net loss attributable to GitLab common stockholders on GAAP basis$(48,455) $(41,227) $(133,578) $(109,353)
Stock-based compensation expense 33,708   8,579   88,926   17,242 
Amortization of acquired intangibles 591   82   1,767   251 
Change in the fair value of acquisition related contingent consideration 1,063      1,063    
Gain from deconsolidation of Meltano Inc.       (17,798)   
Loss from equity method investment, net of tax 756      1,775    
Foreign exchange (gain) loss (2,855)  9,913   (5,361)  19,752 
Net loss attributable to GitLab common stockholders on non-GAAP basis$(15,192) $(22,653) $(63,206) $(72,108)
Net loss per share on GAAP basis$(0.33) $(0.62) $(0.90) $(1.89)
Non-GAAP adjustments to net loss per share 0.23   0.28   0.47   0.64 
Net loss per share on non-GAAP basis$(0.10) $(0.34) $(0.43) $(1.25)
Shares used in per share calculation - diluted on GAAP and non-GAAP basis 148,883   67,018   147,812   57,789 

Media Contact:
Natasha Woods
GitLab Inc.

Investor Contact:
Jack Andrews
GitLab Inc.

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