 My name is Sid, on the agenda today, a possible fundraise, a disclaimer about fundraises. It's not an exact science, and this is all speculation. We have a board meeting next week, and we still need even board commitment for this. This is a draft, like many things in GitLab. Second thing, please don't get distracted. Most companies don't even talk about fundraising to the rest of the people in the company. We do, but your commitment is to not get distracted with it too much. We do have a Slack channel for it. Feel free to post things there. And these things might not happen at all. The proposal we're putting forward to the board is to raise $100 million and a billion valuation at the end of the first quarter and start the fundraising process February 25th. So kind of we have the first quarter numbers come in and raise on that. We should be at 50 million ARR at that point. There is significant interest from multiple VCs to do something similar to that number sooner. So that's very, very exciting. Like every day of the week now, I'm talking to a VC. It's also because if you want to raise next year, it's good to give them kind of an early picture of the company so they can see a line. Nobody wants to invest in a dot, even though we have a great track record, they want to see it for themselves that we actually do what we promise. What you can do to make the fundraise more successful, depending on your role, keep shipping, keep selling, keep putting out those marketing campaigns, keep answering questions, make sure our finances are in order, just run a great company. They will get it and they will pay for that. The Meltano project, maybe I should have included the link, although I don't know what the Google score is by now, but I think the extractors are on a roll. Like we're getting more and more systems of GitLab getting the data out of it. Jacob Schatz started Melt as an alternative to Looker. Looker right now is the only proprietary thing in our stack. We're not sure if it should be a part of GitLab or a really separate thing. We're just looking at the options there. And there's a risk that we don't attract, oh, there's a cliffhander, contributors. This is a project that started internally. So there's a big risk that if we don't open up the project enough, no one will contribute to it. And that's what's the case right now. We have zero contributions. It's extremely worrying. So it's very important for the team to not talk amongst themselves, but to record everything, push things out, put it into documents. And that's not intuitive for the team. So that is a constant source of worry for me to make sure that we are an open source project and not just some hobby project in a company. Thanks, first remark and question. The background, yeah, awesome background. In Zoom, if you have a green screen, you can just put any image up there. I'm going to show off a bit because yesterday, McBright said, hey, can't you just be on the moon if you're doing stuff like that? And two minutes later, I was like, yeah. And I think someone else said, certainly Sid is coming out of the bushes, not quite bushes, but this is a default background. So we got a super cheesy one, which doesn't look realistic at all. But this is by far the favorite. This is just something if you Google for GitLab background image, it's on the internet. Clement, should we try to get Meltano presented in conferences? Yeah, so present at conferences for sure. I think Jacob Schatz gave the right example there. He at the local Vue meetup, he presented his melt project to great enthusiasm. My moon is fluttering on the side. Yeah, I think, look at this, it's all fake. So I think there's something that needs to happen here, but I'll do that later. So fix it a bit by just doing that. And we're asking you to use a video background as far as I know, you can't do that. And Taylor says that he'll be talking at the Nashville's Analytics Summit. We'll be talking a lot about Meltano, so that's awesome to hear. Now, mind you, Taylor is in the data team, not the Meltano team. So Meltano team, if you're watching, be inspired. We should be, we probably should be participating. And doesn't necessarily have to be at a conference, just putting stuff on YouTube. Like it's a half a minute, just doing half an hour session. I think one of the founders of Heptio, I think its name is Jim. There's a beers with Jim every Friday where he opens up a beer and answers questions about Kubernetes from the community. He's one of the creators. Something like that would be, I think, awesome. Jacob is already up to three conferences. Well done, Jacob. Could you do slides as a background? I think you can screenshot them and switch them so that they can be possible. Here, you'd have the same problem as the weather people that they all point in the general direction, can't quite see themselves. Meltano asked me anything. I think that's a good idea. I think you should even prime the audience a bit. Like, explain what Meltano is at the beginning. I think otherwise you'll have a few questions. Gabriel, thanks for the background settings. If someone could put that in the tools section, that would be great. Dimitri, my co-founder, became a fellow. And every quarter, he's going to ship three things. Three things that make a big difference in the adoption of GitLab, that really go forward in our vision. And last quarter, he helped with the Cloud Native installation. He got Jupyter integrated into GitLab, which is an awesome thing. And there's still some work ongoing there. Using our own features, that was harder, turns out that right now you can't really use other DevOps through the Rails app. It doesn't know how to talk to a database. It doesn't do HTTPS. So we still got some work to do before we have kind of, I would say the minimum viable auto DevOps thing, because like a Rails app, had a minimum pass thing. Hiroku is based on that. Most of us, most of the developers here are Rails developers. So that's some work to do. For this quarter, Dimitri is focused on the Android import and that shipped. Thanks, Dao, for reviewing that. It's going to be in 11.2, which is amazing, because of subgroups, you have the unique ability to import Android repos. And I'm very excited that that's part of it. And the next thing is the Maven support, which would be a big thing. I visited a lot of customers, mostly in the financial industry. A few weeks ago, they all thought we were version control and CI. So we need to tell the story of complete DevOps. And the old requested features we already had. So we need to point out that how our features map to their situation. I started something here. Welcome any contributions to that. I'm excited that the forecast for Q3 is looking good. The commit is higher than planned, which is, I'm not sure it ever happened before. It's a good sign. And the best case, we go over 10 million in a quarter, which would be pretty insane. Mind you, last year, the whole year, we did 10 million incremental ACP. So now we have a shot at doing that in a quarter. CMO search is at 60 days. We had some promising candidates, but nothing, we didn't get to offer it. With anybody, they didn't quite meet the par. We're having a lot of success with people that are not based in Silicon Valley, because for them, it's very slim pickings if you want to join an exciting startup. So GitHub is really, really interesting to them. Cool. And this is what you make of it. So please ask questions. Also feel free to speak up, even though there's still questions in chat and everything just hit that mic button. Taylor asks, is there a pattern between the requested features that people are asking for that they didn't know we have? The pattern is basically the stuff I put on that page, like the financial services, like separation of duties and other kind of regulations that they have to comply with, they all asked for that. So there was certainly a pattern. And it's just probably general patterns and patterns per vertical, where if you're in healthcare, you need to comply with HIPAA. We need to explain how to comply with HIPAA. And what we have right now is I think one paragraph about that. And it's basically saying HIPAA doesn't apply. I think we can do better than that. And if we do better than that, people will understand, hey, there's other people in my industry using GitHub. That's why they have these texts about them. So it's a great way to show that it's an appropriate solution to their problems. Jason says, C is as a GitOps company, instead of a Git company, it's good for us, for understanding the market. Yeah, like they should see us as a DevOps company. We do complete DevOps. I love the term GitOps. I think it's still a bit fringe. And what our problem is, we need to appeal to like C-level execs to sell GitLab Ultimate. They have never heard of GitOps. And frankly, probably GitOps is pushing it a bit too far. For example, deploying to a production environment. If you do that with like a branch merge, I'm not sure that's what people do. It's not what we do. It might be taking it slightly too far. So there's some logic in GitLab that's not in Git. I think that's fine. I think for them to understand where you really do ops is to get away from the term Git. So DevOps is a great term that really talks about our scope. Clemente asks, how will the possible fundraise impact our IPO target date? So we're still on track for November 18, 2020. Any fundraise shouldn't impact that. Now, if we raise a bit sooner, we can like expand our R&D marketing efforts sooner. R&D and marketing efforts sooner. So the earlier you raise, the better it is. On the other hand, the earlier you raise, the lower the valuation you're gonna get. And for example, getting to like a unicorn valuation, $1 billion of post-money valuation. That would really help with customers and public clouds understanding that we're here for the long-term and that we're gonna stay an independent company. Now, that's not to be said if we raise a bunch load of money from a good VC and we're not a unicorn, that that's a problem, but it's an additional consideration. Yeah, Matt, lots of tray shows coming up each month. I think in the beginning of our road show, we ask people, hey, do you know what GitLab is or do you kind of need a primer? Like do we need to update you? Almost everyone said, no, we know what GitLab is. And then halfway through the conversation, we found out with everyone that they've just thought of us as version control and CI. So we stopped asking and we just told that story. And I think it's really important to kind of have those slides from the pitch deck up that show our competitors and that show the scope of our product. I think those slides really resonated. I'll put them up on the screen right now. And the pitch deck, I hope you're using it. It's public, you can send it to customers. And those are very powerful things and we're gonna try to put it on the homepage as well. So this is one of the two slides showing, hey, you're using all these things now. This is what GitLab is an alternative for. And the next one is it's an alternative for that because these are the features GitLab will have by the end of 2018. And then the pitch is, look, you have between 20 and 60 people doing DevOps tooling integration right now in your company. That's undifferentiated heavy lifting. What you should be doing is that, is join 100,000 organizations that are collaboratively working on that. More than 2000 people contributed code. That's a better, you'll get a better result than you can achieve on your own. And the people in your company will be able to focus on what's unique to your company and contribute that to GitLab. And by making it a single application, you can get to a three times faster DevOps lifecycle. You can get faster time to value, more motivated people. That's what we're selling. Chad asks, is there a common team that the CMO candidates do not have? You mentioned none of them hit the bar we have. What is the gap? It's a couple of things. We focus a lot on demand generation, people knowing that, modern account based marketing practices. Another thing we're looking for is scale. So having worked with large teams like the marketing department is now close to 60 people and it's just gonna grow from here. And the last thing is results. So we had one candidate who came really far but didn't have great references. So I think those are three things that are really important to us and that people that not everyone meet or that so far nobody met. Dawa, if we can't get 100 million at a billion in Q1 2019, would you rather wait longer or take the lower offer? Answers, I'm not sure. It depends on like the macro, like the macro economics, like the market is very profing out. Like people are paying amazing valuations for startups. It just takes one major trade war to impact that. So if the market is different, like you're not gonna move the market, et cetera. And it also depends, what you do with it, it also depends on the alternative. So it's hard to say. So William asked, if GitLab is holding us back, do we need to look at a rebrand? Rebrands, rebrands are extremely painful, especially since people have GitLab installed in their computers, people have it in URLs, et cetera. So instead, look Airbnb, people understand that you can get something else than airbats to sleep on from Airbnb. So it's just about educating the market. The end, the name shouldn't matter. Would I choose the same name today? Probably not. Does it matter? Nope, it's just about us going out and creating awareness. Michael Lassio is also enthusiastic about those slides. Great Michael, those are great slides and we're trying to get them up on our homepage. And I'm even pushing the product marketing team a bit to get our competitors brand logos on there. So we'll see how that goes. Jacob asked the great question, a hundred million at a billion. It means that we raise a hundred million dollars. So that means you give out new shares to the new investor and they pay a hundred million dollars for it. And afterwards you have a hundred million dollars more in your bank account. And one billion means that the pre-money valuation is a billion dollars. So after investing a hundred million, they have I think slightly less than 10% of the company. If we're going into there, anyway, a unicorn means that your post-money valuation is a billion. So that will be like, even if you raise a hundred at 900, you would get there because you can, the difference between the pre and post-money valuation is the money you raise. So 900, it's pre-money valuation. You get a hundred million, you end up with a company that's theoretically worth a billion dollars. And the new investor has 10% of that. Emily asked, how is hiring the GM for Meltano? Slightly frustrating, we had a great candidate, but the candidate now hit the pause button. So that was slightly annoying. So we got to go back and look at other candidates. Thomas says, probably also immediately draw comparisons to GitHub's price tag, yes. And then it's kind of normal that an acquisition offer is higher 50 to 100% higher than a financing offer. I'm not sure about those percentages, but it's normal that it's high enough and raising. How much of the company belongs to the VCs? Jaepgab asked, it's the majority of our company belongs to the people that put money in the investors. Although I bootstrap the company, I don't consider myself an investor. Sean asked, did you get a feel for the financial services would actually investigate GitHub after hearing what we do? As you mentioned, they've invested a lot in their current tool chain. Some have, so we talked to the person from Capital One. Look, they've made an amazing tool chain and they have products like Hygia that were an inspiration for our psychoanalytics. So I think they'll be not the first ones to switch. But even they were looking at a new CI system. So no one's gonna throw away everything they've made and adopt GitLab. That never happened in the history of the company. So what you try to do is just get in there. And then probably the last the company has made so far, the more you can take out, but that doesn't mean there's not an entry way into every single company. Thanks, Bill. Yeah, there was a column in Forbes published. Mark, I was given our direction with Meltana. Are there large data science shows that we will have a presence that going forward? Basically the Meltana project doesn't have the budget for that. And that's okay. It has to, like Dimitri attracted 300 contributors in the first year of GitLab without much marketing or any marketing. So maybe the people at Meltana will give talks, but it's not like we're gonna rent a booth or something like that. There's just the product has to make money before we can afford that. And it's a long way away from making money. The first thing for Meltana is to get contributors. The second thing is to get users. And the third thing is to get customers. So it will have to go to all those stages. So for now it's about telling people that exists and asking them to contribute. Hey, Paul gave some specifics. 50% of GitLab is owned by VCs. Thanks, Paul. Paul, does that include or exclude our seed investors? It includes our seed investors. Thanks. Hey, Sid, I have a question. On the slides that you shared from Excel or Excel, I don't know how to pronounce their name. Excel, like Accelerate. Okay. They, there was mentioned or there was a slide on potential acquisition targets for us to acquire a company. I think white source was on there. Is that something that they did on their own or are you, are there any potential acquisition targets that you've been looking at? What's our appetite for something like that at this point? Yep, thanks for the question. Low appetite, that slide is something they did. Like they want you to take their money. So they're like, they think of something for you to buy. What they don't know is that we have enough, we've got a lot of product ideas and things. We just need people to kind of realize them. So I don't think we'll spend a lot of money on acquisitions, although yeah, never say never. They made a case for white source, which is interesting. White source does dependency analysis, like we do, like with gymnasium makes, but they go one step further. They look not only on is the dependency you're using vulnerable or not, but also are you hitting that code path where the vulnerability is in? I think source clear that the same thing they were just acquired by CA. So it's kind of a more advanced version. I didn't hear any customer ask for that yet. So I'm not sure we should pick up for that. It seems like something that's also pretty hard to maintain because it means every vulnerability that's out there on the internet. Now you got to find out what code paths it hits, et cetera. But we're open to acquisitions when they kind of quickly add to completing our vision. So the gymnasium team was a great collaboration how they came in and from Dmitri made a start with our security products and they just completely blew me away with the speed at which they executed. And the amazing thing to see was that those financial services companies two meetings with super big clients, they put on the agenda, hey, can we please have an ultimate license so we can try out the security products? So there's a lot of demand for it and people are willing to pay up. And Paul says that like investors have 55% of the company like I said, it's the majority of the company. No, I was answering Jacob's question about if we did a $100 million valuation or a $100 million raise, how much would they then own? It would be 55%. Amazing. Wow, you were on point with that 50%. That was kind of skeptical, like 50% 50.0, like how much exactly? Good questions, Dawa. What do you think, Paul, is it 50.000%? That's getting a little bit too precise for me, but you can attend the next finance FGU and find that out specifically. Ah, I like that. Cliffhangers and the cross promotion. Okay, gonna wrap up the questions that are still there. So Jacob asked, yeah, if they invest yet, then VCs own more of the company. So if we get 5 million from a VC and 100 million from a VC, 1 to 100 million VC own a much larger percentage, you're on the money, Jacob. You could work on in VC now. It's the more you invest, the more you own. So how much you get depends on how much money you put in and the valuation of the company. That determines your share percentage. Paul asked customers with existing tool chains best ways to introduce GitLab adoption right now. It's source control, CI, issue tracking, probably source control, CI, even more because the big ones all have JIRA and they like the extensive feature set. But hopefully as our other offerings mature, we get some traction there, container registry, et cetera. That'll ask 50% of the voting rights yet. Right now all the voting rights are kind of 1x except for a thing we put in for the future, maybe have a bit more, have 10x voting rights for the founders, but we're not sure how that works, will work and whether they'll accept that. Shot spell, there's venture capital. Yep, cool. Thanks everyone. I want you to be on time for the team call. Thanks for the questions. Really enjoyed it.