Gitlab Inc Valuation As A Inftrastructure As A Service

Gitlab Inc, the code collaboration and repository service is undervalued, according to Wolfteam Ltd.'s projections and estimates

The cloud computing market or Software as a Service, SaaS market soon will surpass 700 billion USD in revenue a year. Gitlab Inc is one of the leaders in the Infrastructure As A Service, the largest part of the SaaS market. Only the Infrastructure as a Service market's yearly revenue is calculated to about 400 billion USD a year.

Gitlab Inc reported 163.78 mln. USD in quarterly revenue in the last reported fiscal quarter, revenue growing at 33.25 % year on year. That said, Gitlab reported - 22.27 % negative net profit margin in the last reported quarter and Gitlab is consistently unprofitable. Gitlab's revenue and negative net profit figures are typical for a fast growing , capital hungry technology startup.

So using certain range of typical valuation metrics Gitlab's intrinsic value is 32 billion USD, according to Wolfteam Ltd.'s projections and estimates. That compares with Gitlab's current market capitalization of 8.77 billion USD. The room for growth of Gitlab is just too great. If Gitlab's management executes Gitlab strategy well and finally manages to make Gitlab profitable, Gitlab's market capitalization could shoot up through the roof.

Currently, the Infrastructure as a Service several hundred billions USD in revenue a year market is basically in code collaboration part is a duopoly between Microsoft's GitHub and Gitlab. Microsoft acquired GitHub for 7.5 billion USD. Gitlab holds huge unrealized value, which if Gitlab becomes profitable can be unlocked in vast amounts.