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Business Operations Business Models

How Does GitLab Make Money (Business and Revenue Model)

The GitLab business model

GitLab logo
Here’s what you should know:
  • What is GitLab, and how does GitLab work?
  • How does GitLab make money?
  • Subscription Revenue (GitLab Premium)
  • Subscription Add Ons
  • GitLab subsidiaries, acquisitions, and exits
  • GitLab profit and revenue
  • What is the GitLab business and revenue model?
  • GitLab funding, net worth, and market cap

How does GitLab make money and how is it free to use? Well, here is a full, in depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the GitLab business and revenue model, how much GitLab makes per year, and how GitLab works.

What is GitLab, and how does GitLab work?

GitLab is a web-based git repository and DevOps software package that allows developers the ability to develop, secure, and operate software all within a single application.

Developed and launched in 214 by Sytse Sijbrandij and Dmytro Zaporozhets, GitLab began trading on the NASDAQ on October 14, 2021, under the ticker symbol “GTLB”.

Since that time, GitLab now has more than 30 million registered users as well as 1+ million active license users deploying applications using GitLab.

So, how does GitLab work? To use GitLab, developers can first create a GitLab account and install GitLab onto their computer (this can be done in most GNU/Linux distributions, and with several cloud providers).

Once done, developers can use GitLab to begin building their application(s) by setting up their organization, managing projects, and tracking the work all within GitLab. After, you can then deploy and monitor the application + runner performance. As well as manage the infrastructure of the app.

Some of GitLab’s competitors include GitHub, and other software development platforms to store / manage code and deploy applications from.

How does GitLab make money?

According to GitLab, they have more than 30 million registered users as well as 1+ million active license users.

So how does GitLab make money off of all those users?

Below is a breakdown of how much money GitLab makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 2 ways of how GitLab makes money in 2022

GitLab has a revenue model that makes money in two (2) ways; subscription revenue and add-ons.

#1. Subscription Revenue (GitLab Premium)

GitLab makes most of its money through the subscription service they offer to its customers.

Although GitLab is free to use, they also offer two (2) paid subscription tiers for customers who need more; Premium and Ultimate. Both of which offer their own set of perks that the free version does not offer like 10,000 to 50,000 CI/CD minutes per month, security risk mitigation, customer support, and more.

How much does GitLab cost?

  • Premium: $19 per user, per month
  • Ultimate: $99 per user, per month
How much does GitLab cost? | GitLab pricing | GitLab Business Model | How Does GitLab Make Money | How Does GitLab Work
Source: GitLab

Note: GitLab has more than 30 million registered users and 1+ million active license users.

#2. Subscription Add Ons

GitLab also makes money from the two (2) additional add ons users can tack onto their subscription plans.

These add ons are; CI/CD minutes and Storage. Which each has its own added value to a GitLab developer and each of which comes with its own set of additional costs, which you can see below.

GitLab pricing:

  • CI/CD minutes: $10 per 1,000 minutes (one time payment)
  • Storage: $60 per 10GB of storage (charged monthly)

GitLab subsidiaries, acquisitions, and exits

To date, GitLab Inc. has made a total of 7 acquisitions.

Mergers and acquisitions business model
Source: Crunchbase | GitLab

GitLab profit and revenue

In 2021, GitLab reported $252.7 million in revenue.

Note: Because GitLab Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of GitLab’s publicly released financial reports, including annual reports, through GitLab’s investor section on their website.

What is the GitLab business and revenue model?

GitLab makes money through a few revenue models that they combine within their company, they are:

  • Freemium business model
  • Software as a service (SaaS) business model
  • Upselling revenue model
  • Licensing revenue model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

GitLab funding, net worth, and market cap

According to GitLab’s Crunchbase profile, GitLab has raised $413.5 million over 6 rounds and has a market cap of $8.02 billion as of July 2022.