Two Leading Public DevOps Companies Worth Watching for Software Investors

As digital transformation accelerates globally, the software development lifecycle has become increasingly critical to competitive advantage. Companies today face mounting pressure to deliver updates faster, respond to market changes quicker, and meet ever-evolving customer demands. This reality has put a spotlight on public DevOps companies—firms that provide the platforms and tools enabling organizations to streamline their development processes and accelerate software delivery at scale.

The DevOps market represents one of the most compelling opportunities in enterprise technology. Market research from Technavio indicates the platform segment could expand by approximately $25 billion between 2022 and 2027, representing a compound annual growth rate exceeding 24%. KeyBanc’s 5-star analyst Jason Celino sees this as validation that DevOps isn’t a niche category but rather a foundational requirement for modern enterprises.

“In today’s world, every company must become a software company to effectively compete,” Celino explains. “This reality drives demand for faster delivery cycles and better tools to enable continuous innovation.” He continues: “Through generative AI, we’re seeing the potential for democratized software development, which will further accelerate the need for robust DevOps solutions. We view this as a critical subsector and a must-own category for software investors.” His research team has identified two standout public DevOps companies that demonstrate this potential, with Wall Street consensus rating both as Strong Buys and projecting double-digit upside.

GitLab: Building the Comprehensive DevSecOps Platform

The first public DevOps company in focus is GitLab, a specialist platform provider offering end-to-end DevSecOps solutions. Founded on the principle that collaborative development drives innovation fastest, GitLab combines source code management, CI/CD automation, and security tooling into a single platform.

The company operates a successful freemium model, offering its open-source platform freely while monetizing through premium features and enterprise support. This approach has scaled impressively: GitLab boasts over 30 million users globally, with approximately 1 million paying active subscribers. The company employs over 2,000 team members across 60 countries, with more than 3,300 open-source contributors worldwide enhancing the platform continuously.

Recent developments underscore GitLab’s expanding capabilities. Most notably, the company acquired Oxeye, a cloud-native application security firm, enabling enhanced vulnerability detection and compliance tracking. This acquisition allows GitLab to strengthen its Static Application Security Testing capabilities and trace security issues directly from code through to cloud deployment—a critical competitive advantage in an environment where security cannot be an afterthought.

Financially, GitLab’s recent quarter results demonstrate solid execution. The company reported $163.8 million in revenue, up 33% year-over-year and exceeding expectations by $5.54 million. Non-GAAP earnings per share came in at 15 cents, beating forecasts by 7 cents. While near-term guidance disappointed some investors due to cautious projections, Celino remains bullish. He notes that GitLab holds a commanding position as “the broadest independent DevSecOps platform in a $120+ billion addressable market.”

Celino projects that with multiple near-term catalysts—including new product launches and free-to-paid conversion opportunities—GitLab could achieve sustained mid-20% growth, with potential for upside toward 30% in the near term. The stock carries an Overweight rating from Celino with a $70 price target. Across Wall Street, 16 Buy ratings against just 3 Holds establish a Strong Buy consensus, with an average price target of $73.35 implying 25% upside potential.

JFrog: Reimagining Software Delivery as “Liquid Software”

The second public DevOps company deserving attention is JFrog, which has built its platform around the concept of “liquid software”—a vision of seamless, continuous software updates flowing directly from developers to end-users without friction or visible disruption.

JFrog’s approach solves a persistent operational challenge: how to maintain systems with continuous updates while avoiding user interruption. By automating the entire software delivery pipeline, the platform enables enterprises to deploy changes instantly across environments. This universal, hybrid, and multi-cloud architecture serves DevOps teams, security operations, and IoT organizations alike.

The company has cultivated an impressive customer base, growing to 7,400 customers as of the end of 2023, representing 2.8% year-over-year growth. More significantly, the company’s customer quality metrics have strengthened considerably. JFrog reported 886 customers paying more than $100,000 in annual recurring revenue—up 20% year-over-year—and 37 customers with over $1 million in ARR, a remarkable 94% increase. These metrics signal strong product-market fit and customer retention.

JFrog’s financial performance reflects this momentum. In its most recent reported period, the company generated $97.3 million in revenue, up 27% year-over-year and beating estimates by $4.4 million. Non-GAAP EPS came in at 19 cents, 7 cents better than anticipated. The stock itself has appreciated significantly, with a 134% gain over a 12-month period in the prior year.

Celino identifies several catalysts supporting continued growth for this public DevOps company. “JFrog possesses core product leadership with its Artifactory platform,” he states, “with clear opportunities to expand post-build security tooling and consolidate fragmented market segments.” He adds that generative AI-assisted coding tools may increase software artifact volumes, creating additional demand for JFrog’s infrastructure. His research suggests the company can sustain low-to-mid 20% revenue growth, with catalysts potentially driving upside toward the mid-20s% range. The analyst rates JFrog shares as Overweight with a $52 price target.

Street-wide consensus supports this optimism: 10 Buy recommendations against 2 Holds generate a Strong Buy rating, with the average price target of $49.45 suggesting 12.5% upside from recent levels.

The Strategic Case for Public DevOps Companies

What ties these two public DevOps companies together is their positioning at the intersection of several powerful trends. First, enterprise software delivery has shifted from episodic to continuous—a change requiring dedicated platform infrastructure. Second, security has become non-negotiable, no longer acceptable as a bolt-on afterthought. Third, emerging technologies like generative AI are expanding the volume and complexity of code requiring management.

Both companies benefit from consolidation in the developer tools market. Historically fragmented, the space is seeing enterprises prefer integrated platforms over piecemeal tooling. Additionally, as businesses recognize that competitive advantage flows from faster time-to-market, budget allocation toward development infrastructure has accelerated.

Key Takeaways for Investors

For investors assessing the DevOps opportunity, these two public DevOps companies demonstrate how specialized platforms capturing fundamental market needs can scale profitably. Neither company competes primarily on price; instead, they deliver measurable value through time savings, security assurance, and operational reliability.

The growth trajectory of public DevOps companies aligns with broader digital transformation initiatives that show no signs of slowing. As enterprises continue modernizing infrastructure and deploying applications more frequently, the tools enabling this acceleration become increasingly critical—and increasingly valuable.

Disclaimer: The analysis presented is based on publicly available research and analyst commentary. Past performance does not guarantee future results. Investors should conduct independent analysis and consult financial advisors before making investment decisions.