Core Insights - ThoughtSpot has appointed Micheline Nijmeh as Chief Marketing Officer, emphasizing its commitment to transforming business intelligence and empowering decision-makers with data [1][3] - Nijmeh brings extensive experience from leading companies like ZScaler, Salesforce, and JFrog, where she played a crucial role in brand evolution and post-IPO growth [2][3] - Under Nijmeh's leadership, ThoughtSpot aims to enhance its global marketing strategy, increase brand awareness, and drive market growth [3][4] Company Performance - ThoughtSpot reported a significant fiscal growth in Fiscal Year 2024, achieving 40% year-over-year SaaS growth and more than doubling its monthly active users [4] - The company has expanded its AI capabilities with the launch of Spotter, an agentic AI analyst, and Analyst Studio, which supports data teams in preparing data for AI and analytics [4] Leadership Changes - The company has strengthened its senior leadership team, including the appointments of Ketan Karkhanis as CEO, Brad Roberts as CFO, and others in key positions [5] Company Mission and Offerings - ThoughtSpot's mission is to create a fact-driven world by enabling users to explore data, ask questions, and uncover actionable insights quickly [6] - The platform features intuitive natural language search and offers a low-code solution for developers to integrate AI-powered analytics into their products [6] - Industry leaders such as NVIDIA, Hilton Worldwide, and Capital One utilize ThoughtSpot to enhance data-driven decision-making [6]

Group 1 - The stock market is currently fluctuating around all-time highs, leading to concerns about maintaining an overweight exposure in equities [1] - The portfolio is focused on "growth at a reasonable price" stocks, indicating a strategy that balances growth potential with valuation [1] - Gary Alexander has extensive experience in technology companies and startups, contributing to insights on industry trends [1] Group 2 - The article expresses a beneficial long position in the shares of FROG, indicating a positive outlook on this specific stock [2] - The author emphasizes that the article reflects personal opinions and is not influenced by compensation from any company mentioned [2]

Financial Performance - Total revenues for the years ended December 31, 2024, 2023, and 2022 were $428.5 million, $349.9 million, and $280.0 million, respectively, representing growth rates of 22% and 25% for 2024 and 2023[84]. - The company incurred net losses of $69.2 million, $61.3 million, and $90.2 million for the years ended December 31, 2024, 2023, and 2022, respectively, resulting in an accumulated deficit of $359.7 million as of December 31, 2024[93]. - JFrog Ltd. recognized Self-managed subscription revenue of $238.9 million and Self-managed license revenue of $21.6 million for the year ended December 31, 2024[357]. Customer Growth and Retention - The number of customers with Annual Recurring Revenue (ARR) of $100,000 or more increased from 886 in 2023 to 1,018 in 2024, while those with ARR of $1,000,000 or more rose from 37 to 52 in the same period[84]. - The company expects to derive a substantial portion of revenue from renewals of existing subscriptions, which may fluctuate based on customer satisfaction and product performance[105]. - There is a dependency on customer support quality for achieving renewals and increasing sales, with larger enterprise customers requiring higher levels of support[123]. Operational Challenges - The company anticipates that operating expenses will increase substantially in the foreseeable future due to product enhancements, customer base expansion, and hiring additional employees[93]. - The company has experienced fluctuations in its results of operations, which could adversely affect the trading price of its ordinary shares[89]. - The company has faced challenges in hiring and training qualified customer support employees, which could impact customer satisfaction and retention[124]. Competition and Market Dynamics - The company faces significant competition from existing and potential competitors, some of whom have greater financial and technical resources[98]. - The markets for the company's products are maturing, making it difficult to predict customer adoption and demand for its platform[94]. - The company expects revenue growth rates to decline in future periods due to factors such as increased competition and macroeconomic conditions[87]. Strategic Initiatives - The company released significant enhancements to JFrog Advanced Security and expanded MLOps functionality with the acquisition of Qwak AI, Ltd. in 2024[85]. - The company has acquired Qwak, an AI development platform, and previously acquired Vdoo and Upswift, indicating a strategy of expanding through complementary acquisitions[151]. - The Company completed its acquisition of Qwak AI Ltd. for total consideration of $177.5 million on July 9, 2024, accounting for it as a business combination[362]. Human Resources and Corporate Culture - Employee headcount increased from approximately 1,400 as of December 31, 2023, to approximately 1,600 as of December 31, 2024[84]. - Competition for skilled personnel is intense, particularly in engineering and development roles, which may impact the company's operational capabilities[112]. - Maintaining corporate culture is essential for fostering innovation and creativity as the company grows[139]. Cybersecurity and Data Protection - The company collects and stores sensitive and proprietary information, which may be targeted by cyberattacks, increasing the risk of data breaches[176]. - The company has experienced significant supply chain attacks and cannot guarantee the security of its systems or those of its vendors[177]. - The company expects costs related to security measures to increase as it enhances its systems to prevent future breaches[177]. Regulatory and Compliance Risks - The company is subject to stringent and changing laws related to privacy and data protection, which could harm its business if not complied with[184]. - The company anticipates increased compliance burdens and costs due to evolving laws and regulations regarding data security and privacy[182]. - Compliance with export controls and trade sanctions is critical, as violations could lead to civil and criminal penalties, including substantial fines[197]. International Operations and Geopolitical Risks - The company has customers in over 90 countries and aims to continue international expansion, which involves various operational risks[192]. - The company is exposed to geopolitical tensions, such as the war between Israel and Hamas, which could affect its international operations[192]. - Operations in China are subject to risks related to economic and political systems, including potential adverse effects from government policies and geopolitical tensions[195]. Financial Position and Shareholder Considerations - As of December 31, 2024, insiders owned approximately 22% of the company's ordinary shares, potentially limiting other shareholders' influence on corporate matters[214]. - The company has not declared or paid any cash dividends historically and does not intend to do so in the foreseeable future, relying on share price appreciation for investor returns[223]. - The company is authorized to issue up to 500 million ordinary shares and 50 million preference shares, which could lead to dilution for existing shareholders[217].

Core Insights - JFrog reported better-than-expected fourth-quarter results, with earnings of 19 cents per share, surpassing the analyst consensus estimate of 14 cents, and quarterly revenue of $116.08 million, exceeding the estimate of $114.19 million and showing an increase from $97.26 million in the same period last year [1] - The CEO highlighted the rapid evolution of DevOps, DevSecOps, and MLOps landscapes, emphasizing customer demand for comprehensive solutions that unify and secure the software supply chain while enabling responsible GenAI adoption, which contributed to the company's success in 2024 [2] - JFrog expects first-quarter revenue between $116 million and $118 million, slightly below the estimate of $117.37 million, and EPS between 15 cents and 17 cents, aligning with the 15-cent estimate. For fiscal 2025, the company projects revenue between $499 million and $503 million, in line with the estimate of $499.62 million, and EPS between 67 cents and 69 cents, slightly above the 66-cent estimate [3] Analyst Reactions - Following the earnings announcement, analysts adjusted their price targets for JFrog. Needham analyst Mike Cikos maintained a Buy rating and raised the price target from $39 to $46. Canaccord Genuity analyst Kingsley Crane also maintained a Buy rating, increasing the price target from $38 to $45. Morgan Stanley analyst Sanjit Singh maintained an Overweight rating and boosted the price target from $36 to $44 [4][5]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $428.5 million, up 22% year over year [8][24] - Q4 2024 total revenues were $116.1 million, up 19% year over year [24] - Cloud revenue for 2024 was $168 million, representing 41% year-over-year growth [8][24] - Gross margin for the year was 83.8%, with a Q4 gross margin of 83.2% [9][34] - Free cash flow for 2024 was $107.8 million, with a free cash flow margin of 25% [9][37] Business Line Data and Key Metrics Changes - Cloud revenues in Q4 2024 grew to $49.4 million, up 37% year over year, representing 43% of total revenues [24][26] - Self-managed or on-prem revenues in Q4 were $66.7 million, with full-year 2024 at $260.5 million, up 13% year over year [27] - Revenue contributions from enterprise plus subscriptions grew 35% year over year in 2024, comprising 54% of total revenues [29][30] Market Data and Key Metrics Changes - The number of customers with ARR over $100,000 grew to 1,018, up from 886 in the previous year [20] - Customers with ARR exceeding $1 million increased to 52, up from 37 in the previous year [20] - Net dollar retention for the trailing four quarters was 100%, with gross retention at 96% for 2024 [32] Company Strategy and Development Direction - The company is focused on enterprise adoption of its cloud platform and building tighter relationships with cloud partners like AWS, Google Cloud, and Microsoft Azure [12] - A strategic collaboration agreement with AWS aims to enable joint enterprise customers to scale their DevSecOps AI-driven software solutions cost-effectively [12][85] - The company is committed to consolidating security solutions into a single platform to enhance operational efficiency and budget optimization for users [14] Management's Comments on Operating Environment and Future Outlook - Management noted that despite a tight budgetary environment, large companies are demonstrating confidence with multiyear commitments [11] - The outlook for 2025 includes a conservative estimate of cloud growth between 30% to 32% and net dollar retention stabilizing in the mid-teens [42] - Management emphasized a disciplined approach to spending and investment in innovation to expand platform capabilities [43] Other Important Information - The company ended 2024 with $522 million in cash and short-term investments, down from $545 million at the end of 2023 due to the acquisition of Quack AI [39] - Remaining performance obligations (RPO) totaled $403 million, a 55% increase year over year [39] Q&A Session Summary Question: Insights on security traction and customer conversations - Management noted an increase in CIOs and CISOs looking to consolidate point solution tools, indicating a positive trend in prospective customer conversations [52] Question: Guidance assumptions regarding net dollar retention - Management expects net dollar retention to stabilize in the mid-teens, with minimal changes anticipated in migration activity [56][57] Question: Clarification on cloud revenue and database contributions - The $1.3 million in Q4 cloud revenue was from customer migrations to a new enhanced cloud database product, which will be reflected in future cloud guidance [25][65] Question: Customer optimization and investment cycles - Management indicated that large projects typically begin in the second half of the year, suggesting a similar pattern for 2025 [74] Question: Changes in sales motion for security solutions - Management confirmed that the sales force is equipped to scale the security offering, with significant traction observed in large contracts [77] Question: Incremental margin contribution from security adoption - Management stated that gross margins are expected to remain between 82.5% and 83.5%, capturing all products holistically [114] Question: Impact of AI on opportunities - Management highlighted that enterprise customers are increasingly interested in using JFrog as a model registry for AI, presenting a significant opportunity [125] Question: Customer account changes and focus on enterprise - Management confirmed a strategic focus on enterprise customers, resulting in a reduction of lower subscription customers to enhance overall business focus [128]

Core Insights - JFrog Ltd. reported revenue of $116.08 million for Q4 2024, marking a year-over-year increase of 19.4% and exceeding the Zacks Consensus Estimate of $114.16 million by 1.69% [1] - The company achieved an EPS of $0.19, consistent with the previous year, and surpassed the consensus EPS estimate of $0.14 by 35.71% [1] Financial Performance Metrics - The number of customers generating over $100k in ARR reached 1,018, exceeding the average estimate of 999 from two analysts [4] - Revenue from self-managed licenses was reported at $6.47 million, significantly higher than the estimated $5.09 million, reflecting a year-over-year increase of 24.3% [4] - Subscription revenue from self-managed and SaaS totaled $109.61 million, slightly above the average estimate of $109.04 million, with a year-over-year growth of 19.1% [4] Stock Performance - JFrog's shares have returned 11.1% over the past month, outperforming the Zacks S&P 500 composite, which saw a change of 3.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

JFrog Ltd. (FROG) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 35.71%. A quarter ago, it was expected that this company would post earnings of $0.10 per share when it actually produced earnings of $0.15, delivering a surprise of 50%.Over the last four quarters, the company has surp ...

Revenue Performance - Total Fiscal 2024 Revenues reached $428.5 million, representing a 22% Year-over-Year increase[5] - Cloud Revenues increased by 41% in 2024, driven by migrations and large customer wins[5] - Fourth Quarter 2024 Revenue was $116.1 million, up 19% Year-over-Year[6] - Cloud Revenue for Q4 2024 was $49.4 million, a 37% Year-over-Year increase, representing 43% of total revenue[6] - Total subscription revenue for Q4 2024 reached $116,078 thousand, a 19.3% increase from $97,260 thousand in Q4 2023[32] - First Quarter 2025 Revenue Outlook is projected between $116.0 million and $118.0 million[9] - Fiscal Year 2025 Revenue Outlook is projected between $499.0 million to $503.0 million[9] Profitability Metrics - GAAP Gross Profit for Fiscal 2024 was $330.2 million, with a GAAP Gross Margin of 77.1%[6] - Non-GAAP Operating Income for Fiscal 2024 was $63.3 million, with a Non-GAAP Operating Margin of 14.8%[6] - Gross profit for the year ended December 31, 2024, was $330,188 thousand, up 21.0% from $272,843 thousand in 2023[32] - Non-GAAP gross profit for the year ended December 31, 2024, reached $359,056 thousand, compared to $292,992 thousand in 2023, reflecting a 22.5% growth[38] - Non-GAAP net income for the year ended December 31, 2024, was $74,672 thousand, up from $56,127 thousand in 2023, marking a 33.1% increase[38] - Net income per share - diluted for the year ended December 31, 2024, was $0.65, compared to $0.51 in 2023, reflecting a 27.5% increase[38] Losses and Expenses - Operating loss for Q4 2024 was $(25,415) thousand, compared to $(15,378) thousand in Q4 2023, indicating a 65.5% increase in losses[32] - Net loss for the year ended December 31, 2024, was $(69,236) thousand, a 13.5% increase from $(61,256) thousand in 2023[32] - GAAP operating loss for the year ended December 31, 2024, was $91,098 thousand, compared to a loss of $75,548 thousand in 2023, reflecting a 20.6% increase in operating losses[38] - Share-based compensation expense for the year ended December 31, 2024, was $131,106 thousand, a 37.7% increase from $95,171 thousand in 2023[32] - Total operating expenses for the year ended December 31, 2024, were $421,286 thousand, up 20.9% from $348,391 thousand in 2023[32] Cash Flow and Assets - Cash and cash equivalents decreased to $49,869 thousand as of December 31, 2024, down from $84,765 thousand in 2023[34] - Total assets increased to $1,129,906 thousand in 2024, compared to $972,556 thousand in 2023, reflecting a 16.2% growth[34] - Free cash flow for Q4 2024 was $48,484 thousand, compared to $31,975 thousand in Q4 2023, representing a 51.5% increase[39] Customer Metrics - Customers with Annual Recurring Revenue (ARR) greater than $1 million increased to 52, up 41% Year-over-Year[5] - Net Dollar Retention rate for the trailing four quarters was 116%[6] Research and Development - Research and development expenses for the year ended December 31, 2024, were $160,864 thousand, a 19.5% increase from $134,584 thousand in 2023[32] Margins - GAAP gross margin for Q4 2024 was 75.4%, down from 79.0% in Q4 2023, showing a decline of 4.6 percentage points[38] - Non-GAAP gross margin for the year ended December 31, 2024, was 83.8%, slightly up from 83.7% in 2023[38] - Non-GAAP operating income for Q4 2024 was $20,945 thousand, up from $16,175 thousand in Q4 2023, indicating a 29.0% increase[38]

Core Viewpoint - JFrog Ltd. (FROG) has shown strong performance in the stock market, with a 13.6% increase in shares over the past month, outperforming both the Zacks Internet - Software industry and the S&P 500 index [1] Group 1: Company Performance - FROG has a gross retention rate of 97% and a Net Dollar Retention of 117%, indicating strong customer loyalty and expansion potential [2] - The company is projected to achieve approximately 40% growth in cloud revenues for the entirety of 2024, with total revenues estimated at $426.6 million, reflecting a year-over-year growth of 21.9% [5] - FROG's stock is currently trading above its 50-day and 200-day moving averages, suggesting a bullish trend [10] Group 2: Product Offerings - JFrog has launched JFrog ML, a solution that integrates DevOps, DevSecOps, and MLOps into a single platform, addressing the evolving demands of the software supply chain market [2][4] - The company also introduced JFrog Runtime Security, which enhances visibility from development to production [2][4] - Other offerings like JFrog Advanced Security and JFrog Curation have contributed to securing several deals, further solidifying FROG's market position [4] Group 3: Strategic Partnerships - FROG has established partnerships with major cloud providers including Microsoft Azure, Amazon Web Services, and Google Cloud, facilitating customer transitions across platforms [7][8] - Collaborations with NVIDIA and GitHub aim to enhance software development platforms, integrating advanced technologies for improved efficiency [7][9] - These partnerships not only strengthen FROG's product offerings but also increase visibility in leading marketplaces, enhancing customer reach [8][9]

Market Overview - Stock markets are exhibiting signs of strain in early 2025, indicating that investors may be holding onto their significant winners and delaying sales until the new tax year begins [1] Analyst Background - Gary Alexander has extensive experience covering technology companies on Wall Street and working in Silicon Valley, along with serving as an adviser to several seed-round startups, providing insights into current industry themes [1]