Sid Sibrandiz, CEO of GitLab at a company event in London
Sid Sijbrandidge, CEO of GitLab, closes the sale of an employee share valued at $ 6 billion to his software start-up, saying he is still looking to make the company public, though he has in the past Many more options are available than are available.
Sijbrandij on Thursday confirmed CNBC’s valuation of the company in its secondary offering in late November, which allowed employees to sell up to 20% of their vested equity. He provided additional details on the deal size and investors as well as revenue growth and new customers.
GitLab’s cloud-based software is used by developers to share code and collaborate on projects. The company, which competes with Microsoft’s GitHub and Atlassian, has seen a spurt in demand as more industries have come to rely on software and digital devices to drive their operations. GitLab helps coders speed up product updates, reduce operating costs, and accelerate development.
GitLab reached $ 150 million in annual recurring revenue, after experiencing 74% growth in the most recent quarter, Sijbrandidge said. During 2020, the company signed three major airlines and a travel management provider, even as the travel industry was forced to make dramatic cuts due to the epidemic.
“It was the toughest industry last year and even they still bought,” Sibrandiz said. “It has been a difficult year for many of our customers.”
In its “Team Handbook” on its website, GitLab openly stated its plan to go public by November of 2020. After the epidemic hit early last year, cashing in on the macroeconomy, the company ended its start time, signaling it to go public. The list was still on the roadmap.
Sijbrandiz said that he “did secondary to give our team members the opportunity to benefit from the value we create.” The valuation of $ 6 billion has been reached at the end of late FY 2019 with a valuation of $ 2.7 billion.
GitLab allowed current and former employees to hold a total sale of 4.9 million shares with vested equity, bringing the total offering to $ 195 million. Investors who bought the stock included Alta Park, HMI Capital, OMRS Growth Equity, TCV and Verification. For transactions, GitLab used the Nasdaq private market, which helps provide secondary liquidity to private companies.
Sijbrandij said there is no timetable for the start of the public market, although people familiar with the matter told CNBC in November that it was likely to arrive in 2021. The company has several ways to consider going public that either did not exist or were relatively unused before last year.
An alternative is a direct listing, the path taken by Spotify, Slack, Palantir and Asana and being followed by Roblox, which allows employees to sell shares to new investors immediately. Other companies such as Unity, AirBnB and DoorDash chose a hybrid auction, which allows management to choose a price based on the bid. And an opportunity to go public through a reverse merger conducted by a Special Purpose Acquisition Company (SPAC), or so-called blank check entity.
“There are too many options and we are following the market,” Sijbrandiz said. SPACs present an “interesting option that is also on our radar”.
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