GitLab IPO price set at $77 • The Register
The one-stop approach from DevOps’ favorite GitLab seems to have attracted initial public offering price of 77 dollars, giving the losing business a potential valuation of $ 11 billion
Finally GitLab applied for an IPO in September and this week raised the estimated share price up to between $ 66 and $ 69. The eventual price turned out to be $ 77, well above initial $ 55 to $ 60 is calculated first.
8.42 million shares of ordinary Class A shares were sold. Founder and CEO Sytse Sijbrandij sold another 1.98 million shares, according to the filing. If that $ 77 price survives early trading today, GitLab’s market value will jump above $ 11 billion.
GitLab has continued to burn money over the years. The net loss for the six months ended July 31, 2021 was $ 69 million, compared to $ 43.5 million for the same period last year. Despite the forecast for a jump in the quarterly rate to 233 million dollars in the prospectus for the IPO for the second quarter of FY22 (from 137 million dollars in the second quarter of 2011), GitLab faces strong competition in the arena of DevOps. He notes that Microsoft (thanks to the acquisition of GitHub) is a major competitor, but believes that their one-stop shop, covering the entire average life cycle of DevOps, would be enough to repel competitors.
Some assessments of the software development company were sharp, with one observer calculation it was “overrated” and suggested that even a bottom-up estimate of $ 8 billion would still mean reaching some “very optimistic milestones.”
GitLab claims 3,632 base customers (those with more than $ 5,000 in annual recurring revenue) and 383 customers with annual recurring revenues of $ 100,000, according to the IPO documentation. He also said that his experience had been growing rapidly, but acknowledged that it depended on the conversion of non-paying consumers to paying consumers and had “limited historical data on the number of current and previous free users and percentages. by which customers become paying customers. “
However, the company noted that it is trying to encourage customers to its paid products by stopping the starting and bronze levels. GitLab will have to accelerate this trend to justify what appear to be very ambitious prices. ®