Gitlab S-1 • Hacker News Board

Re: Gitlab S-1

#51

Post by joelbluminator » Fri, Sep 17, 2021, 5:56 PM UTC

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

Yes and seeing the loss grow like that yearly is not a good look. Otherwise the product is really good.

Re: Gitlab S-1

#52

Post by alberth » Fri, Sep 17, 2021, 5:57 PM UTC

dfee wrote: post #49

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

Isn’t your second sentence just a truism on the first sentence? profit = revenue - costs

Maybe a better way of saying what I meant is, gitlab is losing more than 2x their total generated. That’s what seems scary.

Re: Gitlab S-1

#53

Post by [deleted] » Fri, Sep 17, 2021, 5:57 PM UTC

dfee wrote: post #49

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

Isn’t your second sentence just a truism on the first sentence? profit = revenue - costs

[deleted]

Re: Gitlab S-1

#54

Post by jpollock » Fri, Sep 17, 2021, 5:57 PM UTC

dfee wrote: post #49

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

Isn’t your second sentence just a truism on the first sentence? profit = revenue - costs

he means losses > revenue, in other words costs > 2xrevenue.

Re: Gitlab S-1

#55

Post by mason55 » Fri, Sep 17, 2021, 5:58 PM UTC

joelbluminator wrote: post #51

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

Yes and seeing the loss grow like that yearly is not a good look. Otherwise the product is really good.

Can’t really say that without a cost breakdown. If the LTV of a customer is greater than the CAC then your losses will grow as you do until you reach a more steady state and reduce your marketing spend.

It takes awhile for a SaaS customer to pass their CAC. But if they do then they should be closer to 80% margin after that.

Re: Gitlab S-1

#56

Post by gigatexal » Fri, Sep 17, 2021, 5:59 PM UTC

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

Income of 152 with total expenses of 344 in 2021 and income of 81 and total expenses of 211 means expenses grow at 1.61x of revenue (344/211) whereas revenues are growing at 1.876x yoy so revenue growth exceeds loss growth in time they’ll be profitable. Especially if in 2021 they were profitable when companies were cutting down on things.

Re: Gitlab S-1

#57

Post by bink » Fri, Sep 17, 2021, 5:59 PM UTC

whateveracct wrote: post #35

ithinkso wrote: post #20

Earlier quoted context omitted.

It is good for GitLab, what a shame for GitLab's users

It's only a matter of time before I move to sourcehut I think.

Why?

Re: Gitlab S-1

#58

Post by bpodgursky » Fri, Sep 17, 2021, 6:00 PM UTC

alberth wrote: post #36

I realize plenty of tech companies IPO and aren’t profitable. But it seems scary to be losing more money than what you generated in total revenues. REVENUE: 2021: $152m (loss of $192m) 2020: $81m (loss of $130m) EDIT: reworded for clarity.

If that kind of growth is sustainable, it's only a couple years out from profitability. Admittedly it's a runway, but the growth is impressive.

Re: Gitlab S-1

#59

Post by jcdavis » Fri, Sep 17, 2021, 6:01 PM UTC

Was wondering why their FY21 costs where much higher than first half of this year, this probably explains it:

> Stock-based compensation expense for fiscal 2020 and 2021, and six months ended July 31, 2021 includes $32.7 million, $103.8 million, and $0.3 million, respectively, of compensation expense related to secondary stock sales described in Note 16 to our consolidated financial statements included elsewhere in this prospectus.

Which makes the numbers not as bad as they seem on first glance.

Re: Gitlab S-1

#60

Post by whalesalad » Fri, Sep 17, 2021, 6:02 PM UTC

If you are looking for a self-hosted git system, I highly recommend Gitea. Very lightweight and an order of magnitude easier to install and maintain. I am super impressed.