Understanding The Bull Case For Investing In GitLab

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Software development platform GitLab (NASDAQ:GTLB) reported its first quarter fiscal year (“FY”) 2025 earnings on June 3, 2023. It beat analysts’ consensus revenue estimates by nearly 2% and exceeded non-GAAP (Generally Accepted Accounting Principles) earnings-per-share (“EPS”) estimates by 75%. Although the company beat

Quarter Base Customers Year/Year % growth Customers generating > 100K ARR % Year/Year growth
Q1 FY 2025 21.19% 34.86%
Q4 FY 2024 22.85% 37.01%
Q3 FY 2024 26.37% 36.99%
Q2 FY 2024 33.27% 36.59%
Q1 FY 2024 43.30% 39.44%

The third quarter of FY 2024 reported Free Cash Flow TTM

(Trailing 12 months in millions)

$82
Terminal growth rate 3%
Discount Rate 11%
Years 1 – 10 growth rate 29.4%
Current Stock Price (June 7, 2024, closing price) $43.59
Terminal FCF value $1.112 billion
Discounted Terminal Value $4.894 billion
FCF margin 13%