Gitlab Inc (GTLB)

“We expect to name James Shen, vice president of finance, as interim CFO and to promote controller, Simon Mundy, as chief accounting officer.”

“Really excited by the beta feedback so far. Again, we're aiming for GA at the end of this year.”

“Yeah. No changes to the compensation plan. No changes to the territories and customer assignments. This is really about beginning to ramp up and hire new teams and adjustments to the enablement and training and the sales plays that they go execute every quarter. So I don't expect them to be disruptive. We've included all of that factored into our guidance for the remainder of the year.”

“Against this, we have raised our full-year profit outlook, reflecting strong operating leverage in the business and a commitment to responsible, sustainable growth.”

“Additionally, we're seeing incremental softness in SMB that we expect will persist through the rest of this year.”

“We expect a non-GAAP net income per share of 82¢ to 83¢, assuming 171 million weighted average diluted shares outstanding.”

“We expect a non-GAAP operating income of $133 million to $136 million, and we expect a non-GAAP net income per share of 82¢ to 83¢, assuming 171 million weighted average diluted shares outstanding.”

“For the full year of FY 2026, we expect total revenue of $930 million to $942 million, representing a growth rate of approximately 24% year over year.”

“We expect a non-GAAP net income per share of 19¢ to 20¢, assuming 171 million weighted average diluted shares outstanding.”

“We expect non-GAAP operating income of $31 million to $32 million, and we expect a non-GAAP net income per share of 19¢ to 20¢, assuming 171 million weighted average diluted shares outstanding.”

“For the third quarter of FY 2026, we expect total revenue of $238 million to $239 million, representing a growth rate of approximately 23% year over year.”

“Thus, for FY 2026 modeling purposes, we forecast approximately $18 million of expenses related to Jihu compared with $13 million from last year.”

“This means our business model will evolve from a purely seat-based model to a hybrid seat plus usage-based model.”

“We plan to charge for all of this work done via usage charges, whether that work is done by our agents or our partner's agents hosted and integrated into our platform.”

“Both of those in terms of timeline will begin ramping now throughout H2. And we hope to see early returns on that in FY 2027.”

“As we look to FY '27 and beyond. Specifically, first, as I shared, we're focusing on a new ramping a new business division. This is really focused on first order acquisition, and post-sales motion to accelerate value realization and module by enterprise customers that'll ramp across H2 and then we hope to see some results early in FY '27.”

“Our GitLab Duo Workflow product that's been in private beta has been getting really strong feedback as well, and we're on track to make that public beta available later this summer as well as GA to come later in the winter.”

“Finally, we remain on schedule to launch GitLab Duo Workflow, our agentic AI solution, this winter.”

“We expect this will create a nice tailwind in our public sector business with Dedicated for Government.”

“By lowering barriers to adoption and expanding the serviceable market with more flexible packaging, we believe we will be able to unlock more Duo adoption in coming quarters.”

“Thus for FY '26 modeling purposes, we forecast approximately $18 million of expenses related to JiHu compared with $13 million from last year.”

“We also continue to see a tailwind on mix of seats from the large deal we signed in Q4, which will continue through Q3 of this year.”

“We expect a non-GAAP operating income of $117 million to $121 million, and we expect non-GAAP net income per share of $0.74 to $0.75, assuming 172 million weighted average diluted shares outstanding.”

“For the full year FY '26, we expect total revenue of $936 million to $942 million, representing a growth rate of approximately 24% year-over-year.”

“Our intention is to move swiftly into public beta this summer.”

“Thus, for FY2026 modeling purposes, we forecast approximately $18 million of expenses related to Jihoo, compared with $13 million.”

“As a result, we anticipate non-GAAP operating margin to be flat from Q1 to Q2 FY2026.”

“For the full year FY2026, we expect total revenue of $936 million to $942 million, representing a growth rate of approximately 24% year over year.”

“We expect a non-GAAP net income per share of $0.14 to $0.15, assuming 172 million weighted average diluted shares outstanding.”

“We expect the same amount of incremental impact next year as we did this year.”

“I think if you talk about Duo workflow, we're very, very early. It's in the hands of a few customers, but we're looking forward to a beta this winter. But we're early; don't expect a lot this year, this fiscal year.”

“Thus, for FY'25 modeling purposes, we forecast approximately $14 million of expenses related to JiHu compared with $18 million last year.”

“We expect a non-GAAP operating income of $69 million to $70 million, and we expect a non-GAAP net income per share of $0.63 to $0.64, assuming $168 million weighted average diluted shares outstanding.”

“For the full year FY'25, we expect total revenue of $753 million to $754 million, representing a growth rate of approximately 30% year-over-year.”

“We expect non-GAAP operating income of $28 million to $29 million, and we expect a non-GAAP net income per share of $0.22 to $0.23, assuming $170 million weighted average diluted shares outstanding.”

“For the fourth quarter of FY'25, we expect total revenue of $205 million to $206 million, representing a growth rate of 25% to 26% year-over-year.”

“We really expect AI to start contributing to the model in FY 2026 and beyond.”

“We continue to guide to strong top-line growth rates and improving non-GAAP operating margins.”

“Going forward, we expect the price increase to continue to layer in overtime as we cycle through the renewal portfolio.”

“Thus, for FY25 modeling purposes, we forecast approximately $14 million of expenses related to JiHu, compared with $18 million last year.”

“And, we expect a non-GAAP net income per share of $0.45 to $0.47, assuming 168 million weighted average diluted shares outstanding.”

“We expect a non-GAAP operating income of $55 million to $58 million.”

“For the full year FY25, we expect total revenue of $742 million to $744 million, representing a growth rate of approximately 28% year-over-year.”

“We expect a non-GAAP net income per share of $0.15 to $0.16, assuming 168 million weighted average diluted shares outstanding.”

“We expect a non-GAAP operating income of $19 million to $20 million, and we expect a non-GAAP net income per share of $0.15 to $0.16, assuming 168 million weighted average diluted shares outstanding.”

“For the third quarter of FY25, we expect total revenue of $187 million to $188 million, representing a growth rate of 25% to 26% year-over-year.”

“I expect next year to continue to see the benefit of that.”

“We're partially there, but we'll see impact throughout this year and next year related to that.”

“The revenue that we're expecting ramps consistent with what the quarterly spread has been. And so first quarter seasonally is our weakest, fourth quarter seasonally is our strongest, and second and third quarters are relatively about the same.”

“We do foresee the majority of impact in coming fiscal years, not this year.”

“Thus, for FY 2025 modeling purposes, we forecast approximately $14 million of expenses related to JiHu compared with $18 million in FY 2024.”

“We expect a non-GAAP net income per share of $0.34 to $0.37, assuming $168 million weighted average diluted shares outstanding.”

“We expect the non-GAAP operating income of $34 million to $38 million and we expect a non-GAAP net income per share of $0.34 to $0.37, assuming $168 million weighted average diluted shares outstanding.”

“For the full year FY 2025, we expect total revenue of $733 million to $737 million, representing a growth rate of approximately 26% to 27% year-over-year.”

“We expect a non-GAAP net income per share of $0.09 to $0.10, assuming 167 million weighted average diluted shares outstanding.”

“We expect a non-GAAP operating income of $10 million to $11 million, and we expect a non-GAAP net income per share of $0.09 to $0.10, assuming 167 million weighted average diluted shares outstanding.”

“For the second quarter of FY 2025, we expect total revenue of $176 million to $177 million representing a growth rate of 26% to 27% year-over-year.”

“Thus far, customer behavior has been in line with our expectations, and we expect to be $10 million to $20 million of incremental revenue in FY'25.”

“We plan to be free cash flow positive again in FY'25, excluding any nonrecurring cash tax payments related to the bilateral advanced pricing agreement.”

“We expect total revenue of $165 million to $166 million, representing a growth rate of 30% to 31% year-over-year.”

“I’m pleased to guide to a profitable non-GAAP operating income in Q4.”

“We're already signing large deals, including eight-figure contracts in the automotive sector, and we expect more to come.”

“The early work that we've done, we believe that the Premium price increase will contribute roughly $10 million to $20 million in revenue for next year.”

“So our guidance includes the limited anticipated impact for Q4. This is a long-term strategy that will take some time to come to fruition. The biggest impact is not expected in the coming fiscal year, but in the years after.”

“Thus, for modeling purposes for FY '24, we now forecast approximately $22 million of expenses related to JiHu, compared with $19 million in FY '23.”

“Excluding the impact of JiHu, we anticipate GitLab will be non-GAAP operating income breakeven in FY '24.”

“And we expect non-GAAP net income per share of $0.12 to $0.13 assuming 162 million weighted average diluted shares outstanding.”

“We expect a non-GAAP operating loss of $10 million to $9 million.”

“For the full year FY '24, we now expect total revenue of $573 million to $574 million, representing a growth rate of approximately 35% year-over-year.”

“And we expect a non-GAAP net income per share of $0.08 to $0.09, assuming 164 million weighted average diluted shares outstanding.”

“We expect a non-GAAP operating income of $5 million to $6 million.”

“For the fourth quarter of FY '24, we expect total revenue of $157 million to $158 million, representing a growth rate of 28% to 29% year-over-year.”

“We also reconfirmed and committed to being free cash flow positive in FY '25.”

“We remain on track to achieve free cash flow breakeven for FY '25.”

“Thus, for modeling purposes for FY '24, we now forecast approximately $25 million of expenses related to JiHu compared with $19 million in FY '23.”

“Finally, we plan to monetize our AI capabilities by launching an add-on that will include code suggestion functionality later this year.”

“On a percentage basis, our new annual FY '24 guidance implies a non-GAAP operating improvement of approximately 1,500 basis points year-over-year at the midpoint of our guidance.”

“Excluding the impact of JiHu, it's likely that GitLab will reach breakeven on a non-GAAP operating income basis in the third quarter of FY '24.”

“we expect the non-GAAP net loss per share of $0.08 to $0.05, assuming 154 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $33 million to $30 million, and we expect the non-GAAP net loss per share of $0.08 to $0.05, assuming 154 million weighted average shares outstanding.”

“For the full year FY '24, we now expect total revenue of $555 million to $557 million, representing a growth rate of approximately 31% year-over-year.”

“we expect a non-GAAP net loss per share of $0.02 to $0.01, assuming 155 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $6 million to $5 million, and we expect a non-GAAP net loss per share of $0.02 to $0.01, assuming 155 million weighted average shares outstanding.”

“For the third quarter of FY '24, we expect total revenue of $140 million to $141 million, representing a growth rate of 24% to 25% year-over-year.”

“As a reminder, we anticipate minimal impact to our financials from this change in the current year. We expect the price increase to have a much larger impact in FY '25 and beyond.”

“code suggestions are on track to be generally available later this year.”

“However, contraction began in the last quarter of last year, and we are about three quarters into that trend. The average contract length is just over 14 months, so I anticipate it will take another quarter to a quarter and a half to fully adjust to the new buying patterns.”

“Regarding free cash flow breakeven, we are committed to achieving this by fiscal year 2025.”

“It's certainly something we're going to market with, and as you said, our goal is 100% of the Fortune 100.”

“We continue to observe macro trends that are affecting seat counts, similar to last quarter, and we expect this trend to persist.”

“Thus, for modeling purposes for FY'24, we now forecast approximately $29 million of expenses related to JiHu compared with $19 million in FY'23.”

“The guidance has us on track to achieve cash flow breakeven for FY'25.”

“On a percentage basis, our new annual FY'24 guidance implies a non-GAAP operating improvement of approximately 1200 basis points year-over-year at the midpoint of our guidance.”

“We expect non-GAAP operating loss of $47 million to $43 million, and we expect a non-GAAP net loss per share of negative $0.18 to negative $0.14, assuming a 153 million weighted average shares outstanding.”

“For the full year FY'24, we now expect total revenue of $541 million to $543 million, representing a growth rate of approximately 28% year-over-year.”

“We expect non-GAAP operating loss of $11 million to $10 million, and we expect a non-GAAP net loss per share of negative $0.03 to negative $0.02, assuming a 153 million weighted average shares outstanding.”

“For the second quarter of FY'24, we expect total revenue of $129 million to $130 million, representing a growth rate of 28% to 29% year-over-year.”

“We shared that we expected the premium price increase to have minimal impact in FY'24 with greater impact in FY'25 and beyond.”

“Later this year, we plan to introduce an AI add-on focused on supporting development teams. This new add-on will include Code Suggestions functionality. We anticipate this will be priced at $9 per user per month, billed annually. This add-on will be available later this year across all our tiers.”

“Code Suggestions is available on gitlab.com for all users while in beta; we expect Code Suggestions will be generally available later this year.”

“We anticipate that Intelligent Code Security will automatically detect and remediate code quality and security vulnerabilities.”

“And we expect non-GAAP net loss per share of $0.15 to $0.14 assuming 151 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $27.0 million to $26.0 million.”

“For the first quarter of FY 2024 we expect total revenue of $117.0 million to $118.0 million, representing a growth rate of 34% to 35% year-over-year.”

“As we move forward, we are estimating a moderate reduction in this metric due to the rapid year-over-year growth rate of our SaaS offering.”

“Ultimately, I think this will lead to an increase in revenue over the long term.”

“Over the longer term, we believe that a continued, targeted focus on growth initiatives and scaling the business will yield further improvements in unit economics.”

“With the planned general availability of GitLab Dedicated anticipated next year, our DevSecOps platform will be available in three deployment methods: GitLab.com, a multi-tenant SaaS platform; GitLab Dedicated, a single-tenant SaaS platform; and Self-Managed, a download that provides users the ability to run GitLab anywhere.”

“In addition, we're targeting to be free cash flow breakeven for FY 2025.”

“In addition, we forecast approximately $20 million of expenses related to JiHu, our China joint venture.”

“We now estimate that we will incur approximately $16 million of incremental expenses related to the resumption of travel and in-person customer and marketing events as well as new public company costs that were not incurred during FY 2022.”

“On a percentage basis, our new annual FY 2023 guidance implies non-GAAP operating margin improvement of approximately 1,525 basis points year-over-year at the midpoint of our guidance ranges.”

“We expect non-GAAP net loss per share of $0.56 to $0.55, assuming 148 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $100 million to $99 million, and we expect non-GAAP net loss per share of $0.56 to $0.55, assuming 148 million weighted average shares outstanding.”

“For the full year FY 2023, we now expect total revenue of $420.5 million to $421.5 million, representing a growth rate of 66% to 67% year-over-year.”

“We expect non-GAAP net loss per share of $0.15 to $0.14, assuming 150 million weighted average shares outstanding.”

“We expect non-GAAP operating loss of $27 million to $26 million, and we expect non-GAAP net loss per share of $0.15 to $0.14, assuming 150 million weighted average shares outstanding.”

“For the fourth quarter of FY 2023, we expect total revenue of $119 million to $120 million, representing a growth rate of 53% to 54% year-over-year.”

“As we move forward, we estimate a moderate reduction in this metric due to the rapid year-over-year growth rate of our SaaS offering.”

“In addition, we forecast approximately $20 million of expenses related to JiHu, our China joint venture.”

“We now estimate that we will incur approximately $17 million of incremental expenses related to the resumption of travel and in-person customer and marketing events, as well as new public company costs that were not incurred in the first three quarters of FY 2022.”

“On a percentage basis, our new annual FY 2023 guidance implies non-GAAP operating margin improvement of approximately 1,250 basis points year-over-year with the midpoint of our guidance ranges.”

“We expect a non-GAAP net loss per share of $0.67 to $0.64, assuming 148 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $111.5 million to $108.5 million, and we expect a non-GAAP net loss per share of $0.67 to $0.64, assuming 148 million weighted average shares outstanding.”

“For the full year FY 2023, we now expect total revenue of $411 million to $414 million, representing a growth rate of 63% to 64% year-over-year.”

“We expect a non-GAAP net loss per share of $0.16 to $0.15, assuming 149 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $27.5 million to $26.5 million, and we expect a non-GAAP net loss per share of $0.16 to $0.15, assuming 149 million weighted average shares outstanding.”

“For the third quarter of FY 2023, we expect total revenue of $105 million to $106 million, representing a growth rate of 57% to 59% year-over-year.”

“As we move forward, we are estimating a moderate reduction in this metric due to the rapid year-over-year growth rate of our SaaS offering.”

“On a percentage basis, our new annual FY 2023 guidance implies a non-GAAP operating margin improvement of approximately 700 basis points year-over-year at the midpoint of our guidance ranges.”

“In addition, we now forecast approximately $22 million of expenses related to JiHu, our China joint venture.”

“We expect the non-GAAP net loss per share of $0.93 to $0.89, assuming a 148 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $130.5 million to $127.5 million and we expect the non-GAAP net loss per share of $0.93 to $0.89, assuming a 148 million weighted average shares outstanding.”

“For the full year FY 2023, we now expect total revenue of $398 million to $402 million, representing a growth rate of 58% to 59% year-over-year.”

“And we expect a non-GAAP net loss per share of $0.24 to $0.223, assuming 147 million weighted average shares outstanding.”

“We expect a non-GAAP operating loss of $34 million to $33 million.”

“For the second quarter of FY 2023, we expect total revenue of $93.5 million to $94.5 million, representing a growth rate of 61% to 63% year-over-year.”

“As we move forward, we are estimating a moderate reduction in this metric due to the rapid year-over-year growth rate of our SaaS offering.”

“Over the longer term, we believe that a continued targeted focus on growth initiatives and scale in the business will yield further improvements in unit economics.”

“We are making investments in this area and expect to see growth moving forward.”

“We recognize that it's important to exercise a disciplined approach to investments and note that our operating expenses are anticipated to rise in FY 2023 due in part to the resumption of travel and in-person customer and marketing events as well as new public company costs which, combined, we anticipate will be approximately $20 million.”

“And we expect a non-GAAP net loss per share of $0.28 to $0.27, assuming 147 million weighted average shares outstanding.”

“As we move forward, we're estimating a moderate reduction in this metric due to the rapid year-over-year growth rate of our SaaS offering.”

“We believe that the investments we are making in our business will enable us to sustain significant revenue growth rates for the next several years while continuing to improve our margins to ultimately drive long-term profitability.”

“Over time, we expect this to compress as our SaaS offering becomes a larger portion of our business and associated hosting costs will increase.”

“Over the longer term, we believe that a continued targeted focus on growth initiatives and scaling the business will yield further improvement in unit economics.”

“According to the latest Gartner numbers that came out in October, they see the adoption of DevOps platforms being at twenty percent right now. They see that grow to sixty percent by twenty twenty-four,”

“We anticipate that we'll be further expanding into Protect Stage.”

“We expect the non-GAAP operating loss of one hundred four million dollars to one hundred three million dollars and we expect the non-GAAP net loss per share of one point four three dollars to one point four two dollars, assuming eight million dollars weighted average shares outstanding.”

“We now expect total revenue of two hundred forty-four million dollars to two hundred forty-five million dollars, representing a growth rate of sixty percent to sixty-one percent year-over-year.”

“We expect the non-GAAP operating loss of thirty-three million dollars to thirty-two million dollars and we expect a non-GAAP net loss per share of zero point two six dollars to zero point two five dollars, assuming one hundred forty-four million dollars weighted average shares are outstanding.”

“For the fourth quarter of FY twenty twenty-two, we expect total revenue of sixty-nine point five million dollars to seventy-seven point five million dollars, representing a growth rate of fifty-one percent to fifty-three percent year-over-year.”

“As we move forward, we are estimating a moderate decline in this metric due to the rapid growth rate of our SaaS offering year-over-year, which remains above one hundred percent.”

“However, we expect the vast majority of our multi-year deals going forward will be invoiced annually.”

“Going forward, we expect our SaaS offering, which is recognized ratably to become a larger portion of our business.”