On October 14, GitLab, a ten-year old coding platform company with just 1,350 employees, went public at a valuation of $11 billion. Just over two weeks later, the stock is up over 50%, giving the company a market capitalization of $17 billion. This valuation is for a business with revenues of $108.1 million in the six months ending on July 31, 2021, and a net loss of $69 million in the same period, albeit with revenues growing at 69% year over year.
This is further confirmation that the world is now increasingly software driven. Microsoft acquired competitor GitHub in 2018 for $7.5 billion and Prosus acquired Q&A site Stack Overflow for $1.8 billion in June 2021. There’s a pattern here.
Read the full article on forbes.com.
As I’ve argued before, with all companies now having to act like software companies the market for solutions that facilitate this transformation is growing rapidly.
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