GitLab Inc. (NASDAQ:GTLB) Q3 2024 Earnings Call Transcript

Unidentified Analyst: Okay. Thank you very much.

Brian Robins: Thank you.

Operator: Allan with Wolfe Research.

Allan Verkhovski: Hey guys. Just a quick last question for me. Brian, that $10 million to $20 million is the comment you made to next year’s numbers from the pricing increase was really helpful. Would love to understand what gross turn or NRR has been for Premium customers renewing over the last few quarters? And what kind of rough assumptions are you using to get to that $10 million to $20 million next year?

Brian Robins: Yeah. So similar to what we walked through before, where we took a certain amount of bookings, we saw when they’re coming up for renewal, what the stage would be with the one year for existing customers and then the price increase for new customers and then taking an average of — our average contract term right now is roughly about 15 months and in building that waterfall model. And so I’ve talked about historically that it is ratable, and you have to build the ratable sort of nature of the waterfall out. Since there’s been so many estimates that have come out in the various models, we thought it would be good just to quantify what the impact for next year would be to help you with modeling.

Allan Verkhovski: Thank you.

Operator: Jonathan with Cantor Fitzgerald.

Unidentified Analyst: Hi, thank you. So I wanted to ask about the concept of software bill of materials. We’ve seen a lot of software supply chain attacks. I think the Biden administration’s executive order really seem to elevate importance of software supply chain security. So I’m just kind of curious how you see that playing out in the market. And then the second part of that question is CycloneDX is an open-source tool that a lot of companies can use to create these [Dev bombs] (ph). So I believe you used that tool. So beyond that, where do you look to differentiate?

Sid Sijbrandij: So we have software build of materials in GitLab today. It’s a super important thing to know what you’re using within a company. For example, in GitLab, you can also have allow list and deny list based on the licenses that software has. Of course, it also has security implications. We help customers with that too. A feature that will be coming out from us is the ability to have a global SBOM, kind of aggregate the SBOMs throughout your company, deduplicate it and get that overall view, which I think we will be one of the first with — one of the first companies to do that.

Unidentified Analyst: Okay. Helpful. Thank you.

Sid Sijbrandij: Thank you.

Operator: That concludes our Q3 FY ’24 earnings presentation. Thanks again once more for joining us. Have a great day. Good bye.