GitLab plans an IPO, as revenue and losses rise

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GitLab, a provider of cloud services for software developers to share code and collaborate on projects, announced on Friday that it plans to go public with an initial offering of stock.

The San-Francisco-based company, which counts GitHub and Atlassian as its competitors, did not reveal how much it plans to raise or its plans for the IPO.

The company was last valued at $6 billion after a secondary share sale in January and has raised $400 million in total from investors that include Coatue Management, Khosla Ventures, TCV, Franklin Templeton, and Altimeter Capital.

Profits and losses

The filings come when software and cloud companies are going public amid an appetite, on the investors’ part, to see initial offerings. The need for IPOs extends to companies that show rapid growth, even if they are losing tons of money, including GitLab.

The company reported revenue of $108.1 million for the six months that ended July 31, a 69% increase from the same time the previous year.

The annualized revenue hit $233 million in the most recent quarter. However, the company also reported a net loss of $69 million in the same period, up from $43.5 million a year ago.

Putting GitLab in the public eye

GitLab’s CEO Sid Sijbrandij spoke to SiliconANGLE last year about the value of an IPO, saying that one of the big things holding GitLab back is that the company is not well-known, which the IPO should fix, by bringing the spotlight over to the company.

GitLab was well-prepared for the pandemic shifts. Its 1,350 workers in more than 65 countries have worked remotely since 2014, after spending three years offering an open-source project.

The shares will float under the ticker symbol GTLB, with Goldman Sachs, J. P. Morgan, and BofA Securities as the lead underwriters.