GitLab Inc at Cantor Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : But to get started, Brian, maybe just talk about fiscal 2025. It just kind of feels like it's -- when the demand trends improved, your execution improved, some of the products, particularly security seem to be doing better -- just -- and when we saw 4Q, I think the billings growth was strong. RPO growth was 40%. Your SaaS growth was 40%. So those are all very impressive numbers. Can you just talk about how you saw 2025 play out and how you see demand trends in the overall market as you go into fiscal '26.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : So I just want to touch on that seat expansion opportunity. Over the last couple of months, I think this concern has died down a lot, but with all these Gen AI-enabled software development tools, that this -- or the threat that could pose to developer seats. That doesn't seem to be case. If REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 5:00PM, GTLB.OQ - GitLab Inc at Cantor Global Technology Conference anything, you saw that we see the need for more tools, more platform capabilities to really address the increased code that you see generated from these new AI types of solutions. So what are your thoughts on that? How do you see that dynamic?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Okay. So the seat expansion you see in -- that's mainly a reflection of adoption of additional products and the seat associated with that.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Okay. Understood. So we had JFrog this morning and I asked a similar question. Just when you look at the software development life cycle market, you see a lot of different tools. They're disparate. They work independently of each other. And that's basically how software development was done historically. Now you talk about a platform and JFrog comes at it from the binary, the repository angle. You are very strong in CI/CD. But beyond that, there's a lot of other areas within that life cycle. Just talk about your positioning, your strength in CI/CD and then how you view the overall platform where you see the strongest adoption where you have more room to make improvements.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. So the portion of the market that you think is DIY Dev Ops. What do you think that looks like? How many companies are actually moved to a platform. I think it's probably pretty small, right, because who else is out there maybe GitHub but no one else really.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. So talk about security. We've been hearing about this ship left into the development cycle, the need to do testing, software composition analysis, all those things before you go into a production environment. Just talk about the solutions you have there and how they're performing.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : I'd love to hear your thoughts on the repository, the binary management portion of that development life cycle. Do you have a product in that area. And what kind of adoption have you seen for that in particular?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Can you actually see the usage across all the different solutions when people buy the high-end package?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Okay. And looking at the SaaS customers then, is there a pretty broad usage across all the applications.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Okay. So that really does validate that platform positioning. Yeah, again, it's just modern software development. It's not like the old days. It's like some of the companies I cover on the security side, they introduce new code into their products almost weekly. And why they used to have these milestone type of development cycles where that would happen once a year. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 5:00PM, GTLB.OQ - GitLab Inc at Cantor Global Technology Conference

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah, it's a very dynamic market. Another topic that comes up a lot is just regarding code gen and you see these tools from GitHub Cursor, Anthropic is coming out with Cloud Code, I think they call it. But historically, it was the developer who essentially ensure that certain guardrails were in place and you get here to certain standards of trust and security and compliance. And that's just throwing out the wind up with these new solutions. And so I think when I look at the market, the thesis is that all of this is a positive, it could be an inflection point in terms of the need for a more holistic approach. And we saw really good growth from you last year. I'm wondering, is that a dynamic that you think is impacting your business yet? I think it's very early. So it might not be, but just your thoughts on how that could shape the opportunity to look it out in the next couple of years.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. So I just wanted to kind of take a step back and talk about the CEO change briefly. Bill Staples, I think was appointed in December. He was at New Relic. When he was at New Relic, he moved to a seat-based pricing model to a usage consumption model. And we do see a number of your peers operating under more consumption or usage model. And just the question I have is, is there a discussion on maybe some products moving to consumption base? And then just big picture thoughts on his role in the company where he's focused relative to Sid, who was the previous CEO. So a lot in there.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : As it relates to the go-to-market and the focus -- the higher incentives on new logos. Can you just put that into context in terms of how that looked last year fiscal '25 and what that is expected to drive that to this year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 5:00PM, GTLB.OQ - GitLab Inc at Cantor Global Technology Conference

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : So how should we think of NRR as we move through the year? Is it likely to continue to slowly tick down as a result, and the focus should be on new customer lands. I mean we love those new customer cohorts because it's expansion opportunity for the next two or three years.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : So we should be looking at Ultimate adoption. As a result because it represents the platform, I think 50% or more or slightly more of ARR comes from Ultimate. But that would be the strategy to get that wall-to-wall type of purchase, and it would show up in Ultimate.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. And if a customer bought Ultimate for $99 a seat a month, there's always an opportunity for Duo and other new products that are coming out.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. So that product grew 90%. Just to kind of put that into perspective for us. I know it's off a small base, but is there a specific industry, specific type of customer? Is it sovereign nations, I mean it seems like that the product could become pretty material as a percentage of overall revenues.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. Okay. Well, let me ask if anybody have a question in the audience? We're good. So when you look at competition, Microsoft, GitHub is obviously a competitor worth watching long term. But then you have the other cloud providers that don't have this capability. And you have a partnership with Amazon, and you had Duo Q, you went into preview in December. So talk about that partnership, how strategic is it and what are these lines could potentially mean from a monetization standpoint. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 5:00PM, GTLB.OQ - GitLab Inc at Cantor Global Technology Conference

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. Okay. So is that going to impact financials at some point? And what would that be?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. So with Duo, the code assist opportunity, you talked about some pretty notable wins in the quarter, I think Barclays, Zscaler, Capgemini, it's early. So just talk about how the demand is at this stage for those products? Was that something that sales reps had been involved with for some time, and you got to the finish line? Or is there something else in the market that kind of drove a shorter sales cycle just because those companies are really serious about having that capability.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Any kind of incentives around that product? Or it seems like that natural attach it doesn't require any extra type of incentive to --? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 12, 2025 / 5:00PM, GTLB.OQ - GitLab Inc at Cantor Global Technology Conference

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. I bet sales guys are pretty excited about that. So product-led growth had been kind of the foundation of the company way back when and you've been moving this more kind of C-level suite approach tapping into those bigger budgets. Just talk about how you balance that. And then also with the new CEO, I think he has worked when he was at New Relic with the SI channel more closely. Just talk about that as a potential opportunity as well from a channel perspective.

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Okay. I'm curious, when you look at the success with Ultimate, the more wall-to-wall platform type success, is that isolated to a certain segment of the market, a certain size of company? I'm just trying to figure out when you talk about the do-it-yourself type of mentality that we see in the industry. How much of the industry can go -- will go to more of a commercial type platform? Is it just large enterprise, do you see evidence that it's broader than that?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Okay. And there seems to be pricing leverage in the industry. The number of companies we've talked to have been able to take pricing up pretty successfully year in, year out, and you've taken prices up as well. Just talk about that dynamic, the financial implications of which product it impacts the most?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : And so the 2023 increase, is that fully flowed through the model at this point? Or is there still a positive impact?

Question: Jonathan Ruykhaver - Cantor Fitzgerald - Analyst : Yeah. Okay. Understood. All right. We've hit our time limit. Thanks, everybody. Brian, thank you very much for --