Financial Data and Key Metrics - Total revenue for Q2 2023 was $84.2 million, up 24% year-over-year, driven by strong cloud business growth and higher subscription tiers [25][96] - Cloud revenue reached $27.6 million, up 44% year-over-year, while self-managed revenue was $51.8 million, up 17% year-over-year [78] - Gross profit was $70.4 million, with a gross margin of 83.6%, flat compared to the previous year [26] - Operating expenses were $62.2 million, down $1 million sequentially, representing 73.9% of revenue [26] - Net income for Q2 was $12.1 million, or $0.11 per diluted share, compared to a net loss of $2.2 million in the same period last year [87] - Cash and short-term investments stood at $470 million, up from $443 million at the end of 2022 [11] - Free cash flow margin was 19.3%, with expectations for low double-digit free cash flow margins for fiscal 2023 [11] Business Line Data and Key Metrics - The cloud business saw sequential expansion, with revenues of $27.6 million, up 44% year-over-year [78] - Self-hosted business growth remains constrained as customers transition to cloud and hybrid deployments [17] - Customers with ARR over $100,000 grew to 813, up 26% year-over-year, while customers with ARR over $1 million increased to 24, up 41% year-over-year [96] - Net dollar retention (NDR) for the trailing four quarters was 120%, a decline of 4 percentage points sequentially, with stabilization expected around this level [101][29] Market Data and Key Metrics - The company continues to see strong adoption of its security solutions, with tens of customers adding JFrog Advanced Security to their subscriptions [14] - JFrog Curation, a new security solution, has gained traction since its release in mid-July, with many customers exploring its capabilities [12][18] - The company is seeing consolidation of tooling around its binary-centric pipelines, with a Fortune 100 company migrating from Google's container management services to JFrog's platform [15] Company Strategy and Industry Competition - JFrog aims to provide end-to-end security across the software supply chain, with a focus on consolidating security solutions into a single platform [76][86] - The company believes its approach will outpace and displace point solutions in the market, particularly in the DevSecOps space [14] - JFrog is exploring AI-driven advancements to enhance its DevOps and security solutions, with a focus on managing AI models as binaries [74][77] - The company is leveraging partnerships with major cloud providers (AWS, GCP, Azure) to accelerate its go-to-market efforts [30] Management Commentary on Operating Environment and Future Outlook - Management expects cloud optimization to remain an ongoing exercise for large enterprises, with a baseline cloud growth rate of mid-40s for fiscal 2023 [78][41] - The company anticipates total revenue for 2023 to be between $343.5 million and $345.5 million, with non-GAAP operating income of $24 million to $25 million [60] - Management is optimistic about the potential of JFrog Curation and Advanced Security to re-accelerate revenue growth in the self-hosted business [17] - The company sees AI as a significant opportunity, with more code and binaries being generated, creating demand for JFrog's platform [74][56] Other Important Information - JFrog's annual swampUP user conference is scheduled for September 13, 2023, where the company will announce major product and strategy updates [103] - The company is exploring AI-driven enhancements for future versions of its DevOps and security solutions [77] - JFrog Curation is offered as an add-on to enterprise X and enterprise plus subscriptions, with a seat-based pricing model [12][120] Q&A Session Summary Question: Can you elaborate on the adoption of JFrog Curation and its impact on the DevSecOps lifecycle? [89] - JFrog Curation is targeted at both CIO and CISO offices, with demand driven by DevOps and DevSecOps engineers. It automates policy enforcement to prevent malicious binaries from entering the organization [18] Question: What is the outlook for net dollar retention (NDR) for the rest of the year? [43] - Management expects NDR to stabilize around 120% for the year, based on customer renewal trends and consumption patterns [29][64] Question: How is JFrog positioning itself in the AI space? [56] - JFrog sees AI as a driver of increased code and binary generation, with its platform well-positioned to manage AI models as binaries. The company is exploring AI-driven enhancements for its DevOps and security solutions [74][77] Question: Can you provide more details on the go-to-market strategy for security solutions? [143] - Security solutions are typically sold top-down, with decisions often involving both CIO and CISO offices. The company is focusing on consolidating security capabilities into a single platform to meet customer demand [117][118] Question: What is the TAM for JFrog Curation? [120] - The TAM for JFrog Curation aligns with the broader DevSecOps market, targeting all developers who consume software packages from external sources. The solution is priced based on the number of developers using it [147]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39492 JFrog Ltd. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) Israel 98 ...

Financial Data and Key Metrics Changes - JFrog's Q1 2023 revenue was $79.8 million, reflecting a 25% year-over-year growth [5][28] - Cloud revenue reached $25 million, increasing 49% year-over-year [5][28] - Self-managed revenues were $54.8 million, up 17% year-over-year [16] - Gross profit was $66.2 million, with a gross margin of approximately 83% compared to 84% in the previous year [17] - Non-GAAP operating profit was $2.7 million, representing a 3.4% operating margin, compared to 0.9% in the prior year [18] - Net dollar retention for the trailing four quarters was 124%, a decline of 4 points due to macroeconomic headwinds [16] Business Line Data and Key Metrics Changes - Customers with ARR over $100,000 grew to 785, a 31% increase year-over-year [5] - Customers with ARR over $1 million increased to 21, also up 31% year-over-year [5] - 44% of total revenue came from Enterprise Plus subscriptions, up from 35% in Q1 2022 [16] Market Data and Key Metrics Changes - The company noted an acceleration in cloud usage, particularly in pay-as-you-go and annual SaaS customers [62] - The transition of pay-as-you-go customers to annual contracts is a natural progression, indicating increased customer commitment [73][120] Company Strategy and Development Direction - JFrog aims to support enterprises in their cloud migration and hybrid topology adoption [10] - The company is focusing on consolidating security capabilities within its platform, positioning itself as a comprehensive DevSecOps solution [25][64] - JFrog anticipates a 5-year revenue CAGR of 22% to 24% through fiscal year 2027, with a potential revenue range of $775 million to $825 million [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about customer growth and efficiency improvements moving forward [15] - The company believes that the need for software generation remains a secular trend despite macroeconomic challenges [15] - Management highlighted the importance of security in driving future revenue growth, particularly with the launch of JFrog Advanced Security [48][110] Other Important Information - JFrog ended Q1 2023 with $447 million in cash and short-term investments, up from $443 million at the end of 2022 [19] - The company made a strategic hire, welcoming a new CIO with extensive experience in IT and cybersecurity [14] Q&A Session Summary Question: Demand trends throughout the quarter - Management noted that cloud consumption started similarly to Q4 trends but accelerated as the quarter progressed [38][44] Question: Confidence in long-term growth model - Management cited the cloud business and security investments as key drivers for sustainable growth over the next five years [47][48] Question: Impact of Advanced Security SKU - The self-hosted version of Advanced Security launched in March did not have a material impact on quarterly results, but customer engagement is promising [50] Question: Transition of pay-as-you-go customers - The transition to annual contracts is a natural progression, allowing for better long-term planning and value delivery [73][120] Question: Capital deployment and M&A appetite - Management indicated a willingness to explore M&A opportunities in a fragmented market while also considering stock buybacks [111]

Table of Contents JFrog Ltd. (Exact name of Registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39492 (State or other jurisdiction of incorporation or organization) Israel 9 ...

JFrog Ltd. (NASDAQ:FROG) Q4 2022 Earnings Conference Call February 8, 2023 5:00 PM ET Company Participants Jeff Schreiner - VP, IR Shlomi Ben Haim - CEO and Co-Founder Jacob Shulman - CFO Conference Call Participants Pinjalim Bora - JPMorgan Sanjit Singh - Morgan Stanley Kingsley Crane - Canaccord Genuity Koji Ikedawith - Bank of America Jonathan Ruykhaver - Cantor Fitzgerald Mike Cikos - Needham Ittai Kidron - Oppenheimer Michael Turits - KeyBanc Ethan Weeks - Piper Sandler Operator Ladies and gentlemen, t ...

The Liquid Software Company This presentation contains forward-looking statements that reflect our current views with respect to, among other things, the operations and financial performance of JFrog Ltd. and its subsidiaries (collectively, "JFrog," "we," "us," or "our"). All statements other than statements of historical facts contained in this presentation, including statements regarding matters such as our industry, business strategy, goals, and expectations concerning our market position, future operati ...

Customer Growth and Employee Headcount - The total number of customers grew to approximately 7,200 organizations as of December 31, 2022, up from approximately 6,650 organizations as of December 31, 2021, representing an increase of about 8.3%[91] - Employee headcount increased significantly from approximately 1,000 as of December 31, 2021, to approximately 1,300 as of December 31, 2022, indicating a growth of 30%[91] Financial Performance - Total revenues for the years ended December 31, 2022, 2021, and 2020 were $280.0 million, $206.7 million, and $150.8 million, respectively, reflecting a growth rate of 35% for 2022 and 37% for 2021[95] - The company incurred a net loss of $90.2 million, $64.2 million, and $9.4 million for the years ended December 31, 2022, 2021, and 2020, respectively, leading to an accumulated deficit of $229.2 million as of December 31, 2022[97] Market and Competition Risks - The markets for the company's products are new and evolving, which may develop more slowly than expected, impacting future growth and demand[98] - The company faces risks related to competition, technological developments, and market acceptance, which could impact its financial condition and results of operations[99] - The company faces competition from various vendors, including home-grown solutions, DevOps-focused vendors, and cloud providers, which may impact market share[113] Revenue Recognition and Subscription Model - The company recognizes a significant portion of revenue from subscriptions over the term of the relevant subscription period, affecting the immediate reflection of sales downturns or upturns in results[91] - A significant portion of subscription revenue is recognized over the subscription period, leading to delayed reflection of sales downturns in financial results[122] - The company’s subscription structure is critical, with JFrog Artifactory at the core, and any decline in its demand will negatively impact overall business performance[115] Operational Challenges - The company anticipates that operating expenses will increase substantially in the foreseeable future due to efforts to enhance products and expand operations[97] - The company has experienced seasonality in customer bookings, with a higher percentage of subscription agreements typically occurring in the fourth quarter[119] - The company’s ability to integrate products with third-party technologies is essential for maintaining competitiveness and marketability[107] Customer Relations and Support - Customer satisfaction and the perceived need for additional features significantly influence the expansion of deployments within existing customers[118] - Customer support quality is crucial for renewals and sales; inadequate support could adversely affect business and reputation[140] Compliance and Regulatory 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[173] - Non-compliance with privacy laws, such as the California Consumer Privacy Act, could result in significant liability and impact the company's reputation[177] - The General Data Protection Regulation (GDPR) imposes heavy penalties for non-compliance, potentially resulting in fines up to €20 million or 4% of global annual turnover[179] Intellectual Property Risks - The company’s ability to protect its intellectual property rights is crucial for its success, and failure to do so could harm its business[163] - The incorporation of open source software in products may lead to compliance risks and potential litigation, affecting product commercialization[172] Economic and Geopolitical Factors - The ongoing COVID-19 pandemic and geopolitical tensions may continue to harm the company's business and results of operations[91] - Adverse macroeconomic conditions, including inflation and reduced IT spending, may negatively impact consumer and business demand for the company's products[152][153] Financial Management and Capital Structure - The company had net operating loss carryforwards of $107.3 million in Israel, $0.2 million in U.S. federal, and $48.8 million in U.S. state as of December 31, 2022[221] - The company does not intend to pay dividends in the foreseeable future, relying on share price appreciation for investor returns[236] International Operations and Currency Risks - The company has customers located in over 90 countries and aims to continue international expansion[199] - The company utilizes foreign currency contracts to protect against foreign exchange risks, particularly with the NIS against the U.S. dollar[213] Management and Governance - The management team has limited experience managing a public company, which may strain resources and divert attention from daily operations[248] - The company is subject to significant legal and financial compliance costs due to its public company status, which may increase over time[249]

JFrog Ltd. (NASDAQ:FROG) Q3 2022 Earnings Conference Call November 2, 2022 5:00 PM ET Company Participants Jeff Schreiner - VP of IR Shlomi Ben Haim - CEO and Co-Founder Jacob Shulman - CFO Conference Call Participants Mike Cikos - Needham & Company Brad Reback - Stifel Kingsley Crane - Canaccord Bob Guan - Morgan Stanley Pinjalim Bora - JPMorgan Jason Ader - William Blair Ethan Weeks - Piper Sandler Ittai Kidron - Oppenheimer Operator Ladies and gentlemen, thank you for joining us, and welcome to JFrog's T ...

Revenue Growth - JFrog generated revenue of $72.0 million for the three months ended September 30, 2022, representing a 34% growth compared to $53.7 million in the same period of 2021[81]. - For the nine months ended September 30, 2022, JFrog's revenue was $203.5 million, a 38% increase from $147.4 million in the corresponding period of 2021[81]. - Revenue from SaaS subscriptions contributed 29% of total revenue for the three months ended September 30, 2022, up from 24% in the same period of 2021[78]. - Total subscription revenue increased by $18.3 million, or 34%, for the three months ended September 30, 2022, compared to the same period in 2021, reaching $71.99 million[109]. - Total subscription revenue for the nine months ended September 30, 2022, increased by $56.0 million, or 38%, reaching $203.5 million, with approximately $50.1 million of the increase attributed to growth from existing customers[119]. Customer Metrics - The net dollar retention rate for JFrog was 130% as of September 30, 2022, compared to 129% in the same period of 2021[86]. - As of September 30, 2022, JFrog had 696 customers with an ARR of $100,000 or more, an increase from 537 customers as of December 31, 2021[87]. - Approximately $15.4 million of the revenue increase was attributed to growth from existing customers, with the remainder from new customers[109]. Financial Performance - JFrog incurred a net loss of $23.6 million for the three months ended September 30, 2022, compared to a net loss of $20.5 million in the same period of 2021[81]. - The net loss for the three months ended September 30, 2022, was $23.55 million, compared to a net loss of $20.46 million in the same period of 2021[105]. - Operating loss for the three months ended September 30, 2022, was $23.44 million, compared to an operating loss of $20.92 million in the same period of 2021[105]. - Net cash provided by operating activities for the nine months ended September 30, 2022, was $14.1 million, an increase from $10.2 million in the same period in 2021[134]. - Net cash provided by operating activities for the nine months ended September 30, 2022, was $14.1 million, related to a net loss of $67.0 million adjusted for non-cash charges of $69.6 million[135]. Expenses - Research and development expenses rose by $8.6 million, or 37%, for the three months ended September 30, 2022, totaling $31.70 million[112]. - Sales and marketing expenses increased by $8.8 million, or 36%, for the three months ended September 30, 2022, amounting to $33.15 million[113]. - General and administrative expenses decreased by $1.0 million, or 6%, for the three months ended September 30, 2022, totaling $14.68 million[114]. - Research and development expenses rose by $34.1 million, or 64%, for the nine months ended September 30, 2022, totaling $87.7 million, primarily due to increased headcount and share-based compensation[123]. - General and administrative expenses decreased by $3.1 million, or 7%, for the nine months ended September 30, 2022, totaling $41.4 million, primarily due to a reduction in share-based compensation[125]. Cash and Investments - JFrog's cash, cash equivalents, and short-term investments totaled $434.0 million as of September 30, 2022[81]. - Cash, cash equivalents, and short-term investments amounted to $434.0 million as of September 30, 2022, providing sufficient liquidity for at least the next 12 months[131]. - Net cash used in investing activities for the nine months ended September 30, 2022, was $35.9 million, primarily from net purchases of short-term investments of $31.9 million and capital expenditures of $3.7 million[137]. - Net cash provided by financing activities for the nine months ended September 30, 2022, was $9.7 million, mainly from employee share purchases under the ESPP of $5.2 million and proceeds from the exercise of share options of $4.7 million[139]. - As of September 30, 2022, cash and cash equivalents totaled $54.0 million, and short-term investments amounted to $380.0 million[151]. Internal Controls and Risks - There were no changes in internal control over financial reporting that materially affected, or are likely to materially affect, the company's internal control over financial reporting during the period covered by the report[156]. - The effectiveness of internal control over financial reporting is subject to inherent limitations, including the exercise of judgment in design and evaluation[157]. - Management acknowledges that internal controls can only provide reasonable assurance, not absolute assurance, of achieving control objectives[157]. - Resource constraints impact the design of disclosure controls and procedures, requiring management to evaluate benefits relative to costs[157]. - Future evaluations of effectiveness are at risk due to potential changes in conditions or compliance deterioration[157]. - The company intends to monitor and upgrade internal controls as necessary but cannot guarantee that improvements will be sufficient[157]. Market Conditions - The company does not believe that inflation has had a material effect on its business, financial condition, or results of operations, other than its impact on the general economy[152]. - A hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the company's results of operations for the three and nine months ended September 30, 2022[148]. - The company’s hedging program aims to reduce the impact of foreign exchange risks associated with forecasted future cash flows and certain existing assets and liabilities[148]. Product Development - JFrog launched JFrog Advanced Security in October 2022, enhancing its product offerings in the security domain[83]. - The company plans to increase investment in sales and marketing to support growth and attract new customers[101].

The Liquid Software Company DISCLAIMER This presentation contains forward-looking statements that reflect our current views with respect to, among other things, the operations and financial performance of JFrog Ltd. and its subsidiaries (collectively, "JFrog," "we," "us," or "our"). All statements other than statements of historical facts contained in this presentation, including statements regarding matters such as our industry, business strategy, goals, and expectations concerning our market position, fut ...