GitLab IPO: GTLB Stock Continues to Edge Higher in Pre-Open After Gaining 35% on Market Debut

The GitLab (NASDAQ: GTLB) stock price is up a further 4% in pre-open Friday after the company made a much-awaited stock market debut Thursday.

Shares of the company were priced at $77.00 per share late Wednesday, higher than the previously indicated range of $66.00 to $69.00 per share. However, the GitLab stock closed at $103.89 on Thursday to push its market capitalization to nearly $15 billion.

“Our future success depends, in part, on our ability to convert users of our free product offering into paying customers by selling additional products, and by upselling additional subscription services,” GitLab said in a press release.

The company was initially looking to hit a valuation of about $8 billion. However, the raised pricing yielded a higher valuation, as well as proceeds of just over $800 million.

GitLab posted revenue of $81.2 million and $152.2 million in fiscal 2020 and 2021, respectively, representing a growth of 87%. The company generated revenue of $63.9 million and $108.1 million for the six months ended July 31, 2020 and July 31, 2021, respectively, representing year-over-year growth of 69%.

Co-founder Sijbrandij is the largest stakeholder with a 19% stake before the IPO, while Khosla Ventures, ICONIQ, August Capital, and GV (formerly Google Ventures) were also listed as shareholders.

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