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]

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 September 30, 2024 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) Israel 98-0680649 (State or other jurisdiction of incorporation or organization) (I.R ...

Financial Data and Key Metrics Changes - JFrog's total revenue for Q3 2024 was $109.1 million, representing a 23% year-over-year increase [11][20] - Cloud revenue reached $42.4 million, up 38% year-over-year, accounting for 39% of total revenues compared to 35% in the prior year [20][11] - Self-managed revenue was $66.7 million, reflecting a 15% year-over-year increase [20] - Net dollar retention for the trailing four quarters was 117%, with a gross retention rate of 97% [21] - Gross profit was $90.3 million, resulting in a gross margin of 82.8%, down from 83.7% in the previous year [23] - Operating profit was $14.7 million, with an operating margin of 13.5%, slightly up from 13.4% in the year-ago period [25] Business Line Data and Key Metrics Changes - The number of customers with an ARR over $100,000 increased to 966, up from 848 in the previous year [11] - Customers with an ARR exceeding $1 million grew to 46, representing a 53% year-over-year increase [12] - 50% of total revenue came from Enterprise Plus subscriptions, up from 46% in the prior year, with revenue contribution from these subscriptions growing 35% year-over-year [22] Market Data and Key Metrics Changes - The cloud business experienced sequential growth driven by increased migration activity, although overall usage trends remained moderate compared to the previous year [13] - The market continues to demand higher standards for software integrity, with enterprises prioritizing modernization of their software supply chain security [15] Company Strategy and Development Direction - JFrog is focused on a unified platform experience, integrating DevOps, DevSecOps, and MLOps into one solution [8] - The company aims to expand its security offerings, with JFrog Runtime Security being recognized as a critical solution for organizations [8][15] - The strategic partnership with GitHub aims to enhance security capabilities and integrate AI functionalities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook regarding large migration deals in the 2024 pipeline, indicating that customer migration activity has not yet fully turned the corner [14] - The company anticipates cloud revenue growth of around 40% year-over-year for 2024, with year-to-date cloud growth currently at 42% [29] - Management remains focused on expense discipline while investing in future growth opportunities [24] Other Important Information - JFrog's acquisition of Qwak closed in early July, contributing less than 0.5% to Q3 revenue [31] - The company ended Q3 2024 with $467.8 million in cash and short-term investments, down from $591.3 million as of June 30, 2024 [26] Q&A Session Summary Question: How did Q3 results come in compared to expectations? - Management indicated that Q3 performance was largely due to significant projects that were closed, including deals pushed from Q2 [37] Question: What gives confidence for 2025 being a year of material contribution from security? - Management noted that security was a critical component of large deals secured in Q3, and they see more opportunities combining cloud growth and security [39] Question: What is the customer behavior regarding renewals with a security component? - Management observed that customers are adopting and expanding their security solutions, with a focus on large projects [44] Question: How should 2025 be viewed in terms of growth? - Management is being conservative in building the outlook and guidance for 2025, considering the macro environment [47] Question: How is macro impacting cloud usage? - Management noted that while customers are planning to migrate to the cloud, execution is taking longer than expected [56] Question: What are the contributing factors to cloud growth? - Management mentioned that large-scale wins, annual customer commitments, and smaller migrations are contributing to cloud growth [60] Question: How is JFrog addressing deployment integration bottlenecks? - Management emphasized the importance of consolidating solutions and providing support for customers to overcome integration challenges [65] Question: What is the status of the partnership with GitHub? - Management highlighted ongoing co-engineering efforts and the potential for innovation and customer retention through the partnership [68] Question: What is the outlook for AI integration in revenues? - Management indicated that while AI is a significant opportunity, it will take time for it to translate into revenue as customers are still in the experimental phase [85]

If a Bloomberg article proves to be accurate, the company might change hands before long. On the last trading day of the week, investors traded on rumor rather than hard news about software tools specialist JFrog (FROG 4.47%). After a media report stated that several potential acquirers are circling around the company, market players bid the shares up by just under 5% on the day. That performance trounced the 0.8% increase of the benchmark S&P 500 index. A report says potential suitors are sniffing around I ...

NEW YORK, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of JFrog Ltd. ("JFrog" or "the Company") (NASDAQ: FROG). Investors who purchased JFrog securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/FROG. Investigation Details On August 7, 2024, JFrog released its second quarter 2024 financial results and lowered its fiscal year 2024 ...

Editor's note: Seeking Alpha is proud to welcome The Matadors as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access. Click here to find out more » Editor's note: Seeking Alpha is proud to welcome The Matadors as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get publi ...

JFrog Ltd. (FROG) reported $103.04 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 22.4%. EPS of $0.15 for the same period compares to $0.11 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $103.53 million, representing a surprise of -0.47%. The company delivered an EPS surprise of +7.14%, with the consensus EPS estimate being $0.14. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

JFrog Ltd. (FROG) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this company would post earnings of $0.14 per share when it actually produced earnings of $0.16, delivering a surprise of 14.29%. Over the last four quarters, the company has s ...