As the AI race shows no signs of slowing, GitLab (GTLB) CFO Brian Robins joins Morning Brief to discuss how the technology will transform the software company's outlook, especially when it comes to its pricing strategy.

GitLab uses a seat-based pricing model, where companies are charged based on the number of users who have access to the product. Robins argues that this model is much easier to buy, explaining, "you know exactly what to budget and how many seats you're going to buy."

As AI becomes more integrated, Robins believes that the technology will create "more complexity in the software development process." Thus, he believes that GitLab will be "well positioned with AI" to develop "software with security, compliance, privacy, IP protection, and so forth."

He notes that the spending environment has changed, explaining that pre-pandemic, companies would buy as many seats as they could to accommodate for future hiring and future projects. Now, however, companies are operating in a "more cautious spending environment" and instead are focusing on purchasing solely what's needed on a quarterly basis. As this corporate spending pattern has shifted, Robins explains that it is "baked into" GitLab's model.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl