Business Grew 74% Last Year
Sid Sijbrandij, GitLab’s chief executive, confirmed media reports that his company may file for an initial public offering (IPO). The company allowed its staff to offload up to “20% of their vested equity,” with prices at which transactions took place, valuing the business at around $6 billion.
GitLab’s solutions allow developers to share code and work together on projects. Its product helps developers accelerate the process of product updates, including lower operating costs and high-speed development. Its main competitors are Microsoft’s GitHub and Atlassian.
According to Sijbrandij, the company made $150 million in annual recurring revenue after seeing a 74% growth in the latest quarter. Last year, the business welcomed four new major clients to the business. The roster of new clients then included three airline companies and a travel management provider amid the coronavirus pandemic, which battered the travel industry.
“It was the hardest-hit industry last year and even they still bought,” said Sibrandij. “It’s been a tough year for many of our customers.”
The startup has previously announced its intention to go public by November 2020. However, the coronavirus outbreak in the spring of last year has caused a turn of events regarding its public debut.
The secondary offering aimed to “give our team members the opportunity to benefit from the value we created together,” Sijbrandij said. GitLab’s valuation jumped to $6 billion from a $2.7 billion valuation a year ago.
Current and former employees at the company with vested equity in the business were allowed to offload a total of 4.9 million shares. On the other hand, companies that bought the stock included Alta Park, HMI Capital, OMERS Growth Equity, TCV, and Verition. The startup hired the transaction software company Nasdaq Private Market for the transaction.
While Sijbrandij provided no information regarding the potential date for the company’s public debut, it is likely to happen this year, according to CNBC. GitLab can now choose between a number of ways of going public, some of them being direct listing, special purpose acquisition company (SPAC), and more.
GitLab CEO Sid Sijbrandij said his startup may go public and confirmed that the latest employee share sale brought the company’s valuation to $6 billion.
About the Author
Avi Ben Ezra is the Chief Technology Officer (CTO) and Cofounder of SnatchBot and SnatchApp (Snatch Group Limited). He leads the Group’s long-term technology vision and is responsible for running all facets of the tech business which includes being the architect of the platforms and UI interfaces.