5 Interesting Learnings from GitLab at $400,000,000 in ARR


So Gitlab is the latest SaaS and Cloud leader to do what seems almost impossible.  To grow even faster as it scales.

At $250m in ARR, it was growing a stunning 69%.  Fast forward to today, at $400m in ARR, it’s now growing even faster, at 75% year-over-year.

Wow.  Just Wow.

5 Interesting Learnings:

#1.  GitLab still has Free and Cheap editions, but the real growth is all in $100k+ ACV accounts.  The six-figure accounts have grown 55% by logo count (even more than other editions) and much more by total revenue.  Overall account growth is 65%.

#2.  NRR remains top-tier at 130%, but has come down from the crazy 150% after its IPO.  Still impressive, but it’s come down to a more earthly metric.

#3.  Sales & Marketing coming down over time, but still 68% of revenue.  GitLab may have a PLG motion and a lot of self-serve customers, but it still doesn’t sell and market itself.  Sales & Marketing expenses are as high as pure B2B companies without a PLG motion.

#4.  1700 employees, so about $240,000 in revenue per employee.  Not hyper-efficient, but above many of its peers.

#5.  Free users still critical to scaling and GTM motion.  Yes, GitLab’s revenue is driven by enterprise buyers.  But they often come in via a Free edition.

 

GitLab is just firing on all cylinders.  No, it’s not profitable yet and will likely need to get to $1B in ARR like many SaaS companies to get there.  It is spending a fair amount on sales & marketing.  But there’s so little to criticize, and so much to be in awe of.  It keeps closing customers of all sizes, and even with a Free edition, is expanding the ACV of its $100k+ Customers. It’s not only growing at a stunning rate at $400m ARR, but it’s growing even faster than at $240m in ARR.

It’s a good one. 🙂

 

Published on September 14, 2022

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