GitLab Inc. (NASDAQ:GTLB) Q4 2023 Earnings Call Transcript

Shebly Seyrafi: Okay. The other part for me is, in fiscal 2025, it seems like there could be an exciting story for you because more of the existing premium subs are going to be moving to $29. And I’m also wondering whether the $33 loss from JiHu in 2024, does it go away in 2025? Any kind of thoughts? And so you’re going to have a combination of it’s — potentially better revenue growth and better margin expansion. But I just want to hear from you the opportunity you see for revenue acceleration in 2025, and does that JiHu $33 go away or does it go to a much smaller number?

Brian Robins: Yeah. Let me just — for those who aren’t as familiar with JiHu, I’ll just give a quick overview. So JiHu is a joint venture that we contributed the IP have not contributed any money. So the joint venture raised their own cash and due to the VIE accounting structure, we need to consolidate our results. And so we’ve done JV’s cash and it’s their expenses. From a guidance perspective, we’ve been conservative in the sense that we don’t include any revenue and we include all the expenses because it’s a JV that we don’t control. And so, we’ve been working with our auditors to see if the facts and circumstances have changed to see if we could de-consolidate that. And we’re in the process of going through that exercise.

It was de-consolidated, you would actually obviously see it all come out and we would account for it differently. And so, from a revenue driver perspective, it’s been somewhat of the same. We continue to sell new customers, we’re going to expand existing customers, we’re going to go into new geos where we currently aren’t today — geographies. We’re also — we have the benefit of the price increase as well that will happen. And so, there’s a number of different revenue drivers for the company. And then also, last call, we announced Dedicated, which is a single-tenant offering that we’re rolling out right now.

Shebly Seyrafi: Okay. Thank you.

Operator: That concludes our 4Q FY 2023 earnings presentation. Thanks again for joining us, and have a great day.