By
Tolu Ajiboye
March 8th, 2024
Goldman Sachs, JPMorgan, and BofA Securities are said to be the lead underwriters for the GitLab IPO.
Microsoft GitHub’s rival, GitLab, the firm that specializes in providing cloud-based software, allows developers to share code and partner on projects, has filed for initial public offering (IPO), becoming the latest among flourishing tech companies to do so.
On Friday, the company revealed its proposed IPO and noted it would list on Nasdaq under the ticker symbol “GTLB.” GitLab plans to surpass Atlassian and GitHub, which Microsoft acquired for $7.5 billion 3 years ago.
Its excellent performances over the years have made it long overdue for an initial public offering that has highly been expected, considering the following. Per Pitchbook data, the firm generated over $280 million at a post-money valuation of nearly $2.8 billion. The same data shows that GitLab performed a secondary transaction worth more than $190 million at the start of the year, which gives the company a $6 billion valuation.
GitLab’s revenue has rallied nearly 70% to $58.1 million in the last quarter, with over $230 million annually. However, it also recorded a net loss which has grown from $9.4 million previous year record to over $40 million now.
As of July 31, a-six month revenue of GitLab stood at little over $108 million, representing a 69% increase year-over-year. Similarly, the net loss of the same period stood at %69 million compared to a year later figure of $43.6 million.
Available information shows that GitLab pioneered remote work that companies were forced to adapt to during the outbreak of pandemics. It started distributed ledger as far back as 2014 and did not necessarily have to adjust anything.
According to GitLab, “Operating remotely allows us access to a global talent pool that enables us to hire talented team members, regardless of location, providing a strong competitive advantage.”
The company boasts of over 1,350 workforces from over 65 countries that have been working remotely since 2014 when it began as an open-source project.
The company has raised capital from big investors such as Altimeter Capital, Franklin Templeton, TCV and Coatue Management. So far, GitLab has raised over $400 million in external funding.
As GitLab prepares to join the league of cloud software companies to take advantage of an ongoing bull market, It is worth noting that Toast, which sells software and hardware to help restaurants manage orders and move to takeout, will also debut next week. Together with Freshworks, a smaller competitor to Salesforce in providing software to customer service and sales organizations.
Goldman Sachs, JPMorgan, and BofA Securities are the lead underwriters for the GitLab IPO. Law firms Fenwick & West LLP and Latham & Watkins LLP are advisors on the deal.