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GitLab adopts officer exculpation amendment, re-elects directors

Published 2024/06/13, 23:50

SAN FRANCISCO – GitLab Inc. (NASDAQ:GTLB), a leader in the prepackaged software industry, has announced amendments to its corporate governance and the results of its annual stockholders meeting, according to a recent 8-K filing with the Securities and Exchange Commission.

On Monday, the company’s stockholders approved an amendment to GitLab’s Restated Certificate of Incorporation to exculpate its officers, a move made possible by recent changes to the Delaware General Corporation Law. This amendment, filed with the Delaware Secretary of State, aligns with the company's efforts to modernize its corporate governance structure.

In the same stockholders meeting, two Class III directors, Sundeep Bedi and Sue Bostrom, were re-elected to serve three-year terms expiring at the 2027 Annual Meeting of Stockholders. The election saw Bedi and Bostrom secure 323,436,858 and 323,159,336 votes for, respectively, with 19,668,022 broker non-votes for each candidate.

The appointment of KPMG LLP as GitLab’s independent registered public accounting firm for the fiscal year ending January 31, 2025, was ratified with an overwhelming majority of 372,357,701 votes for and only 1,225,512 against.

Furthermore, the compensation paid to the company’s named executive officers received advisory approval from the stockholders, with 335,815,214 votes in favor.

The filing also included a proposal to limit the liability of certain officers of the company, which was approved with 312,888,604 votes for, indicating strong stockholder support for the company’s strategic direction.

These corporate actions reflect GitLab's commitment to maintaining robust governance practices and transparency with its investors. The full details of the amendments and voting results can be found in the exhibits attached to the company’s 8-K filing.

GitLab, headquartered in San Francisco, operates as a remote-only entity, emphasizing its innovative approach to business structure and corporate operations. The information reported is based on a press release statement.

In other recent news, GitLab Inc. reported a 33% year-over-year increase in revenue to $169 million, primarily driven by its subscription business. This robust performance led to raised revenue guidance for fiscal year 2025. Despite this, several firms, including Canaccord Genuity, DA Davidson, RBC Capital, and KeyBanc, revised their price targets on GitLab's stock. Canaccord Genuity reduced its target to $65, maintaining a Buy rating, while DA Davidson, RBC Capital, and KeyBanc reduced their targets to $50, $65, and $62, respectively.

Piper Sandler confirmed its Overweight rating on GitLab with a steady price target of $75.00, expressing confidence in the company's growth trajectory and operational strength. Cantor Fitzgerald adjusted its target from $70 to $55, recognizing GitLab's potential in the evolving DevSecOps and Gen-AI technologies market. These adjustments reflect shifts in comparable company multiples and potential macroeconomic risks, despite GitLab's robust performance.

InvestingPro Insights

In light of GitLab Inc.'s recent corporate governance updates, investors may find the following insights from InvestingPro particularly relevant. GitLab, with a market cap of $7.35 billion, has been showing strong fundamental performance in some areas, with an impressive gross profit margin of 89.63% over the last twelve months as of Q1 2025. This underscores the company's ability to maintain profitability on its products and services. Additionally, GitLab's liquid assets exceed its short-term obligations, providing financial flexibility and stability.

InvestingPro Tips indicate that analysts have revised their earnings upwards for the upcoming period, reflecting a positive outlook on GitLab's future performance. Moreover, analysts predict the company will be profitable this year, which could be a significant turnaround considering the company was not profitable over the last twelve months. These insights may be of interest to investors as they consider GitLab's stock, which has taken a considerable hit over the last six months, with a 28.49% drop in price total return.

For a deeper dive into GitLab's financials and additional InvestingPro Tips, including an analysis of the company's revenue valuation multiple and Price/Book ratio, visit https://www.investing.com/pro/GTLB. There are 9 more InvestingPro Tips available to help investors make informed decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription and gain access to valuable investment insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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