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You made me curious and I checked their financial report. Gitlab spent 310M of their total 580M$ of operational costs in sales in 2022. Those seem crazy numbe
by epolanski 4y ago
You made me curious and I checked their financial report.
Gitlab spent 310M of their total 580M$ of operational costs in sales in 2022.
Those seem crazy numbers, I see similar ratios in other financial reports (such as Cloudflare's).
On one side it means that those companies are essentially cash positive the moment they cut sales expenses, on the other hand GitLab imho does not provide enough over some competitors such as GitHub to make me bet on them 10 years from now.
- aeyes 4y agoWithout knowing anything my guess is that they give big discounts to large accounts and write that off as sales/marketing cost. Only that it doesn't work because if you don't give me that price again I'll just pull the plug. This only works if you have no competition.
- epolanski 4y agoOh interesting, good to know. I couldn't figure out how could they spend more than a million per business day in sales.