Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

GitLab IPO

How to trade GitLab’s IPO

US DevOps platform GitLab has reportedly filed to go public on the Nasdaq in October 2021. Learn how to get involved with GitLab’s upcoming IPO and learn about the company’s business model, financials and potential valuation upon listing.

UK flag logo
FCA regulated
FSCS logo
Segregated funds
LSE logo
LSE listed

14 October

GitLab going public

$10bn

GitLab’s valuation

143% YoY

GitLab’s revenue increase

Auto populate with H2 title tags
To override set attribute data-secondarysidenav-title="New Title" to parent section module

What is GitLab?

GitLab is a software platform that focuses on developer operations, or ‘DevOps’. It’s a direct competitor of the similarly named company GitHub, which was bought by tech giant Microsoft in 2018 for $7.5bn. GitLab creates online tools to reduce the software development cycle by allowing teams to work together more efficiently.

GitLab has over 100,000 customers in over 55 countries, including market leaders such as Verizon, Siemens, Nvidia and Alibaba. While some companies use a larger number of applications to build and release their software, GitLab instead specialises in product, project planning, security, operations and source code management through one single platform app, making it a rather unique business model.

When is GitLab’s IPO date?

GitLab is expected to go public on 14 October 2021.

The company first set a date to go public back in November 2020, but this was delayed due to the Covid-19 pandemic. It will be listing on the Nasdaq exchange in New York, which is a popular choice for software technology companies, using the ticker ‘GTLB’.

Sign-up below to register your interest in GitLab going public. When the stock is available to trade as a spread bet or CFD (as applicable) on our platform, you will receive an email with the full details. You could also take a look at our upcoming IPOs article to discover which other companies are in the process of listing on the stock market.

GitLab’s share price and valuation

GitLab has priced its shares between $66 and $69 apiece, aiming to raise around $717.6m.

The company was valued at approximately $6bn after a secondary share sale in December 2020, but has since raised this to $10bn. In 2015, companies such as IBM and SpaceX invested $1.5m into the company, and additional funding rounds between 2015 and 2020 increased this amount to $434m. The most recent major round occurred in September 2019, when GitLab raised $268m. This allowed current and former employees with vested equity to sell a total of 4.9 million shares.

How to trade on GitLab stock

1. Register with CMC Markets

You can spread bet or trade CFDs on 9,000 shares within our product library, including GitLab’s competitors while you’re waiting for the IPO to complete.

2. Sign up for email alerts

By registering your interest in the sign-up box near the top of the page, you will receive a one-time email when GitLab has officially listed on the Nasdaq and is available to spread bet or trade a CFD (as applicable) on our platform.

3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Control your risk

Traditional and guaranteed stop-loss orders can help to close you out of a losing position, regardless of slippage or market volatility.

How has GitLab been performing financially?

GitLab’s CEO, Sid Sijbrandij, has reported an annual revenue of $152m in 2020 with a profit growth of over 143% year-on-year, according to Forbes. GitLab’s solid earnings growth could be attributed to its ‘freemium’ pricing model, where users can take advantage of GitLab’s basic tools, although they must sign-up for the subscription-based model to access more valuable and technical features.

However, the CEO also stated that the company isn’t yet profitable and doesn’t have a cashflow break-even point, but its margins are said to be way north of 80%.

Please remember that past performance is not a reliable indicator of future results.

Potential benefits of a GitLab IPO

As shown in the statistics above, revenues are continuing to grow year-on-year. In its IPO prospectus, GitLab expects revenues to increase to $233m in the current financial year, compared to the $152.2m reported in fiscal 2021.

The company has low operational costs as its employees have been working remotely since its inception. This may have been particularly beneficial throughout the Covid-19 pandemic when workers across the US were forced to work from home, as GitLab were already prepared with the appropriate and effective software, offsetting a potentially negative impact.

Potential downfalls of GitLab’s IPO

In its S-1 filing, GitLab claims that while revenues have increased, losses have also widened. The net loss in the financial year of 2020 was $130.7m, which has grown to $192.2m in fiscal 2021. GitLab therefore needs to start showing more stable cash flows and balance sheets in order to be seen as a potentially profitable company in the future.

The company has spent more money on sales and marketing than it generated in gross profit in the past two fiscal years, according to TechCrunch. However, this may pay off in the long run as GitLab is dedicated to acquiring new customers, expanding its global footprint, and developing further its SaaS (software-as-a-service) offering.

Trade on GitLab’s competitors

Atlassian
- All clients
86%
Long

86% of CMC client accounts with open positions on Atlassian expect the price to rise.

Microsoft
- All clients
96%
Long

96% of CMC client accounts with open positions on Microsoft expect the price to rise.

Micro Focus
- All clients
100%
Long

100% of CMC client accounts with open positions on Micro Focus expect the price to rise.

Alphabet
- All clients
95%
Long

95% of CMC client accounts with open positions on Alphabet expect the price to rise.

Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

FAQS

Who is GitLab backed by?

GitLab is backed by a number of large investors, including Iconiq Capital, Goldman Sachs, GV, August Capital, and Tiger Global Management. These are all financial companies that operate within sub-sectors such as banking, insurance, and investments.

How can I get alerted for GitLab’s IPO?

To receive a one-time notification for when GitLab stock is officially listed on the Nasdaq and is available to trade as a derivative via spread bets and CFDs, enter your email address into the sign-up box near the top of this page. Alternatively, you could sign up for an account now and enable trading alerts.

Will GitLab’s IPO be a good investment?

There is never a way of knowing if a particular IPO will be a good investment, even if GitLab boasts growing revenues and promising plans for the future. Therefore, you should always take risk-management precautions when spread betting or trading CFDs on a newly listed share.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on IPOs on-the-go

Download our mobile app for iOS or Android to get started. Once the shares are available on our platform, you will be able to spread bet or trade CFDs on our GitLab share price.