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First 6 months of this year Gitlab took in $108M in revenue, and had $177M in expenses. Would you pay $10B to own a company that loses $10M/month, with the hop

First 6 months of this year Gitlab took in $108M in revenue, and had $177M in expenses. Would you pay $10B to own a company that loses $10M/month, with the hopes they will continue to increase revenue in the future and become profitable?

alangibson 5y ago
Personally I'd buy an aircraft carrier if I had $10B. Nevertheless, there are plenty of people willing to put it in Gitlab or they wouldn't IPO. A better question might have been: what's the bull argument for Gitlab?
- IggleSniggle 5y ago
  The usage argument is: buy your own "self-hosted" cloud offering, deployed over any combination of AWS/Azure/GCP/onprem that you like. The bull argument probably looks something like: replace Microsoft Office 365 / Azure with an integrated "self-hosted" solution, easily deployed to any commoditized compute...handled by GitLab for paying customers, assurances of "escape hatch" to DIY open-source when you stop paying.
mikeyouse 5y ago
In the 6 months before their IPO - Square had net revenue of $200 million and expenses of $260 million, also losing $10M/month. Would you have paid $3 billion in 2015 to own that business? If you had you would've had a 30x return today... (current market cap is ~$112 billion).
- user5994461 5y ago
  The large majority of the 30x return was over the past 2 years with the pandemic, which is not going to happen for Gitlab. God forbids if you bought square long ago and didn't hold long enough, they had multiple years of ups and downs. https://www.google.com/search?q=square+share https://www.google.com/search?q=square+share
byethewater 5y ago
There’s a Forbes article on the GitLab valuation which could be interesting to this thread: https://www.forbes.com/sites/greatspeculations/2021/10/12/gitlab-another-overpriced-tech-company/?sh=426e10c45286 https://www.forbes.com/sites/greatspeculations/2021/10/12/gi...

alangibson 5y ago

Personally I'd buy an aircraft carrier if I had $10B. Nevertheless, there are plenty of people willing to put it in Gitlab or they wouldn't IPO. A better question might have been: what's the bull argument for Gitlab?

IggleSniggle 5y ago
The usage argument is: buy your own "self-hosted" cloud offering, deployed over any combination of AWS/Azure/GCP/onprem that you like. The bull argument probably looks something like: replace Microsoft Office 365 / Azure with an integrated "self-hosted" solution, easily deployed to any commoditized compute...handled by GitLab for paying customers, assurances of "escape hatch" to DIY open-source when you stop paying.

mikeyouse 5y ago

In the 6 months before their IPO - Square had net revenue of $200 million and expenses of $260 million, also losing $10M/month. Would you have paid $3 billion in 2015 to own that business? If you had you would've had a 30x return today... (current market cap is ~$112 billion).

user5994461 5y ago
The large majority of the 30x return was over the past 2 years with the pandemic, which is not going to happen for Gitlab. God forbids if you bought square long ago and didn't hold long enough, they had multiple years of ups and downs. https://www.google.com/search?q=square+share https://www.google.com/search?q=square+share

byethewater 5y ago

There’s a Forbes article on the GitLab valuation which could be interesting to this thread: https://www.forbes.com/sites/greatspeculations/2021/10/12/gitlab-another-overpriced-tech-company/?sh=426e10c45286 https://www.forbes.com/sites/greatspeculations/2021/10/12/gi...