Summary of JFrog (FROG) FY Conference Call - August 12, 2025 Company Overview - **Company**: JFrog (FROG) - **Industry**: Software Development and Binary Management Key Takeaways Financial Performance - JFrog reported strong results for the recent quarter, driven by three main areas: cloud adoption, increased usage, and conversion of customers to larger annual contracts [4][5] - The company experienced a significant increase in revenue from its cloud services, with guidance raised to a growth rate of 34% to 36% [37] Customer Activity and Product Traction - There was notable growth in cloud services, particularly in security-related products, which contributed to a strong first half of the year [36][40] - The company has seen a shift in customer behavior, with longer contract durations (2-3 years) as customers standardize on JFrog for security solutions [19][49] Security and Binary Management - JFrog emphasizes the importance of binaries in the software development lifecycle, highlighting the shift in how malicious packages are introduced into systems [6][7] - The company is focusing on consolidating security tools to minimize vendor sprawl, offering a platform that integrates multiple security technologies [13][49] Partnerships and Market Position - JFrog is strategically partnering with companies like GitHub and Hugging Face to enhance its offerings and improve security for model registries [14][20] - The partnership with Hugging Face aims to secure AI models, addressing vulnerabilities and fostering community trust [21] Market Trends and Future Outlook - The company is witnessing a trend towards cloud migration, with a focus on hybrid deployment options to accommodate both cloud and on-premise needs [31][33] - JFrog is preparing for potential shifts in workload management as AI technologies evolve, indicating readiness for both cloud and self-hosted solutions [32][33] Growth Metrics - JFrog reported a 75% growth in Remaining Performance Obligations (RPO) and a 43% growth in Contracted Remaining Performance Obligations (CRPO) [53] - The company has expanded its customer base significantly, with a notable increase in million-dollar customers [46] Investment and Operational Efficiency - JFrog is committed to balancing growth and profitability, with a focus on responsible investment in next-generation technologies [44][45] - The company has generated a free cash flow of 29% over the past four quarters, allowing for reinvestment in growth opportunities [44] Additional Insights - The integration of AI tools is expected to increase the demand for binary management solutions, with JFrog looking to develop lighter versions of its products for smaller companies [26][27] - The company is aware of the evolving security landscape, particularly with the rise of MLSecOps, and is positioning itself to adapt to these changes [51] This summary encapsulates the key points discussed during the JFrog FY Conference Call, highlighting the company's performance, strategic initiatives, and market positioning.

JFrog (FROG) Conference Summary - August 11, 2025 Company Overview - JFrog was founded in February 2008 and operates in the DevOps and DevSecOps space, also expanding into ML Ops [4][5] - The company focuses on fast and secure software releases, addressing the needs of developers and Chief Security Officers (CSOs) [5] Financial Performance - JFrog reported a cloud growth of 45% in Q2, with sustained usage and increased annual commitments from customers [6][7] - The company observed significant usage across its portfolio, particularly with Docker, Hugging Face, and PyPI [6][8] Key Drivers of Growth - The growth is attributed to the adoption of security products and increased developer workloads, rather than solely AI workloads [10][11] - JFrog is seeing momentum in discussions with customers to increase their annual commitments, indicating a shift from experimental to sustained usage [7][10] AI and Security Initiatives - JFrog is working with three of the top five AI native companies, with one expanding its subscription significantly during Q2 [13][16] - The company emphasizes the importance of security in its offerings, with a focus on X-ray and advanced security products [18][19] - JFrog's security products are gaining traction, with large enterprises making multi-year commitments [22][24] Strategic Partnerships - The partnership with GitHub is highlighted as a significant strategic move, enhancing distribution and product integration [35][36] - JFrog aims to provide a comprehensive solution from source code to binary management, leveraging the GitHub relationship [38][41] Market Position and Differentiation - JFrog positions itself as a consolidator of security solutions, reducing vendor sprawl for customers [33][34] - The company is focused on being the system of record for binaries, which enhances its value proposition in security [34] Go-to-Market Strategy - JFrog has made significant investments in its enterprise sales team to better engage with C-suite executives [63][64] - The company is also enhancing its product marketing capabilities to explain complex solutions effectively [66] Cloud Migration Trends - JFrog supports customers in migrating workloads from self-hosted environments to the cloud, viewing this as a significant growth driver [67][68] - The company anticipates that as customers migrate, they will also add security solutions, further increasing deal sizes [69] Future Outlook - JFrog is exploring opportunities in AI, particularly in securing AI-generated code and models [42][50] - The acquisition of Quark is expected to enhance JFrog's capabilities in ML Ops, aligning with the growing demand for managing large language models [51][53] Conclusion - JFrog is experiencing robust growth driven by increased cloud adoption, security product demand, and strategic partnerships, positioning itself as a leader in the DevSecOps space while expanding into ML Ops and AI security solutions.

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) JFrog Ltd.'s unaudited financial statements detail its financial position, performance, and cash flows for the three and six months ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) JFrog Ltd.'s balance sheets reflect growth in total assets, liabilities, and shareholders' equity as of June 30, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total assets | $1,208,185 | $1,129,906 | | Total liabilities | $381,731 | $356,380 | | Total shareholders' equity | $826,454 | $773,526 | | Cash and cash equivalents | $51,277 | $49,869 | | Short-term investments | $560,423 | $472,138 | | Deferred revenue (current) | $260,066 | $247,187 | - Total assets increased by **$78,300 thousand**, or **6.9%**, from December 31, 2024, to June 30, 2025, primarily due to growth in short-term investments[18](index=18&type=chunk) - Total shareholders' equity increased by **$52,900 thousand**, or **6.8%**, from December 31, 2024, to June 30, 2025[18](index=18&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) JFrog Ltd. reported increased subscription revenue but a wider net loss for the three and six months ended June 30, 2025 Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total subscription revenue | $127,220 | $103,043 | $249,627 | $203,354 | | Gross profit | $97,018 | $81,150 | $189,244 | $160,857 | | Operating loss | $(25,971) | $(19,127) | $(48,941) | $(35,763) | | Net loss | $(21,675) | $(14,303) | $(40,178) | $(23,093) | | Net loss per share, basic and diluted | $(0.19) | $(0.13) | $(0.35) | $(0.21) | - Total subscription revenue increased by **23%** for both the three and six months ended June 30, 2025, compared to the corresponding periods in 2024[20](index=20&type=chunk) - Net loss increased by **51.5%** for the three months ended June 30, 2025, and by **74.0%** for the six months ended June 30, 2025, year-over-year[20](index=20&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Comprehensive loss improved for the three months ended June 30, 2025, driven by positive changes in derivative instruments Condensed Consolidated Statements of Comprehensive Loss Highlights (in thousands) | Item | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(21,675) | $(14,303) | $(40,178) | $(23,093) | | Other comprehensive income (loss), net of tax | $6,962 | $(1,583) | $5,084 | $(2,740) | | Comprehensive loss | $(14,713) | $(15,886) | $(35,094) | $(25,833) | - Other comprehensive income (loss) improved significantly, primarily driven by a net change in derivative instruments, which moved from a loss of **$1,400 thousand** in Q2 2024 to a gain of **$7,000 thousand** in Q2 2025[22](index=22&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity grew to $826,500 thousand by June 30, 2025, primarily from share-based compensation and comprehensive income Condensed Consolidated Statements of Shareholders' Equity Highlights (in thousands) | Item | Balance as of December 31, 2024 | Six Months Ended June 30, 2025 Changes | Balance as of June 30, 2025 | | :----------------------------------- | :------------------------------ | :------------------------------------ | :-------------------------- | | Ordinary Shares Amount | $315 | $11 | $326 | | Additional Paid-in Capital | $1,132,224 | $88,011 | $1,220,235 | | Accumulated Other Comprehensive Income | $655 | $5,084 | $5,739 | | Accumulated Deficit | $(359,668) | $(40,178) | $(399,846) | | Total Shareholders' Equity | $773,526 | $52,928 | $826,454 | - Share-based compensation expense contributed **$74,900 thousand** to additional paid-in capital for the six months ended June 30, 2025[26](index=26&type=chunk) - Issuance of ordinary shares from share options, restricted share units, and employee share purchase plan contributed to the increase in ordinary shares and additional paid-in capital[26](index=26&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased for the six months ended June 30, 2025, with investing activities shifting to a net outflow Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $64,877 | $34,166 | | Net cash provided by (used in) investing activities | $(85,330) | $88,267 | | Net cash provided by financing activities | $21,097 | $11,922 | | Net increase in cash, cash equivalents, and restricted cash | $1,408 | $133,538 | | Cash, cash equivalents, and restricted cash—end of period | $52,035 | $218,315 | - Net cash provided by operating activities increased by **89.9%** year-over-year for the six months ended June 30, 2025[29](index=29&type=chunk) - Investing activities shifted from a net inflow of **$88,300 thousand** in 2024 to a net outflow of **$85,300 thousand** in 2025, primarily due to increased purchases of short-term investments[29](index=29&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover JFrog's accounting policies, revenue, investments, and share-based compensation, highlighting SaaS growth - JFrog provides a hybrid, universal, end-to-end software supply chain platform for delivering trusted, secure software updates, aiming to be the single source of truth for an organization's software footprint[31](index=31&type=chunk) Revenue Disaggregation by Category (in thousands, except percentages) | Category | Three Months Ended June 30, 2025 (Amount / % of Revenue) | Three Months Ended June 30, 2024 (Amount / % of Revenue) | | :-------------------------- | :------------------------------------------------ | :------------------------------------------------ | | Self-managed subscription | $70,118 / 55% | $63,765 / 62% | | SaaS | $57,102 / 45% | $39,278 / 38% | | Total subscription revenue | $127,220 / 100% | $103,043 / 100% | - Remaining performance obligations totaled **$476,700 thousand** as of June 30, 2025, with **67%** expected to be recognized as revenue over the next **12** months[44](index=44&type=chunk) - Amortization of deferred contract acquisition costs increased by **42.4%** to **$4,700 thousand** for the three months ended June 30, 2025, from **$3,300 thousand** in the prior year[45](index=45&type=chunk) - Marketable securities increased to **$427,400 thousand** as of June 30, 2025, from **$366,600 thousand** at December 31, 2024[47](index=47&type=chunk) - Total share-based compensation expense increased by **33%** to **$38,000 thousand** for the three months ended June 30, 2025, and by **34%** to **$74,900 thousand** for the six months ended June 30, 2025, primarily due to grants to new and existing employees[73](index=73&type=chunk) - Unrecognized share-based compensation cost related to unvested awards was **$287,100 thousand** as of June 30, 2025, expected to be recognized over a weighted-average period of **2.5** years[73](index=73&type=chunk) - JFrog operates in one operating and reportable segment. Long-lived assets are primarily located in Israel (**$9,000 thousand**) and the United States (**$4,700 thousand**) as of June 30, 2025[84](index=84&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses JFrog's 23% revenue growth, increased net loss from investments, and substantial free cash flow growth for H1 2025 - JFrog's total revenue grew by **23%** for both the three and six months ended June 30, 2025, compared to the corresponding periods in 2024[90](index=90&type=chunk) - Revenue from SaaS subscriptions increased its contribution to total revenue, reaching **45%** for the three months and **44%** for the six months ended June 30, 2025, up from **38%** and **37%** respectively in 2024[87](index=87&type=chunk) - The company's net dollar retention rate was **118%** as of June 30, 2025 and 2024, indicating strong expansion within existing customers[97](index=97&type=chunk) Customer Growth with Annual Recurring Revenue (ARR) (in thousands) | Customer Segment | As of June 30, 2025 | As of December 31, 2024 | | :-------------------------------- | :------------------ | :---------------------- | | Customers with ARR of $100,000 or more | 1,076 | 1,018 | | Customers with ARR of $1.0 million or more | 61 | 52 | Free Cash Flow (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | Net cash provided by operating activities | $64,877 | $34,166 | | Less: purchases of property and equipment | $(1,274) | $(1,573) | | Free cash flow | $63,603 | $32,593 | - Free cash flow increased by **95.1%** for the six months ended June 30, 2025, compared to the same period in 2024[104](index=104&type=chunk) - Gross margin decreased from **79%** in Q2 2024 to **76%** in Q2 2025, primarily due to the shift in revenue mix towards SaaS subscriptions, which incur higher hosting costs, and increased intangible amortization[120](index=120&type=chunk)[129](index=129&type=chunk) - Operating expenses, including Research and Development, Sales and Marketing, and General and Administrative, increased across the board, driven by increased headcount and share-based compensation expenses[121](index=121&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk)[124](index=124&type=chunk) - As of June 30, 2025, JFrog had **$611,700 thousand** in cash, cash equivalents, and short-term investments, which management believes will be sufficient to meet liquidity needs for the next **12** months and long-term[137](index=137&type=chunk) Contractual Obligations as of June 30, 2025 (in thousands) | Obligation Type | Total | 2025 (Remainder) | 2026 and Thereafter | | :------------------------ | :------ | :--------------- | :------------------ | | Operating lease obligations | $14,865 | $4,369 | $10,496 | | Purchase obligations | $80,148 | $12,327 | $67,821 | | Total | $95,013 | $16,696 | $78,317 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) JFrog faces foreign currency and interest rate risks, partially mitigated by hedging, with inflation not yet material - JFrog's primary foreign currency exposure is to the exchange rate movements of the U.S. dollar against the New Israeli Shekel (NIS), as a significant portion of operating costs in Israel are NIS-denominated[150](index=150&type=chunk) - The company utilizes foreign currency forward and option contracts to hedge against foreign exchange risks, with a hypothetical **10%** change in exchange rates not materially impacting results for the reported periods after considering hedging programs[151](index=151&type=chunk) - As of June 30, 2025, cash, cash equivalents, and short-term investments totaled **$611,700 thousand**, primarily denominated in U.S. dollars, and a hypothetical **1%** increase in interest rates would not materially affect their fair value[154](index=154&type=chunk) - Inflation has not had a material effect on the business, but sustained inflationary pressures on costs could harm financial condition if not offset by price increases[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded JFrog's disclosure controls were effective as of June 30, 2025, with no material changes in internal control - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[157](index=157&type=chunk) - No changes in internal control over financial reporting materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the period[158](index=158&type=chunk) - The effectiveness of any internal control system is subject to inherent limitations, providing reasonable, not absolute, assurance[159](index=159&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) JFrog is unaware of any legal proceedings that would materially adversely affect its business or financial position - JFrog is not currently aware of any legal proceedings that would have a material adverse effect on its business, financial position, results of operations, or cash flows[66](index=66&type=chunk)[161](index=161&type=chunk) [Item 1A. Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) JFrog faces risks from growth, competition, customer/personnel reliance, product defects, geopolitical tensions, and AI regulations - JFrog has experienced significant growth, with total revenues growing **23%** for both the three and six months ended June 30, 2025, and employee headcount increasing from approximately **1,400** to **1,600** employees from December 31, 2023, to December 31, 2024[165](index=165&type=chunk) - The company has a history of losses, with net losses of **$69,200 thousand**, **$61,300 thousand**, and **$90,200 thousand** in 2024, 2023, and 2022, respectively, and may not achieve consistent profitability due to substantial increases in operating expenses[174](index=174&type=chunk) - JFrog faces intense competition in a highly fragmented and rapidly evolving market, with competitors often possessing greater financial and technical resources[179](index=179&type=chunk)[182](index=182&type=chunk) - The business is highly dependent on customer renewals and the ability to expand sales to existing customers, which can fluctuate due to various factors including satisfaction, pricing, and economic conditions[185](index=185&type=chunk)[188](index=188&type=chunk) - Reliance on key executive officers and highly skilled employees, particularly in engineering and sales, poses a risk due to intense competition for talent and high attrition rates[191](index=191&type=chunk)[193](index=193&type=chunk) - The company depends on strategic relationships with third parties, including public cloud providers (AWS, Microsoft Azure, Google Cloud) and channel partners, and any failure to maintain or expand these relationships could harm results[196](index=196&type=chunk)[200](index=200&type=chunk) - A limited-functionality version of JFrog Artifactory is available under an open source license (AGPL), which could negatively affect monetization and intellectual property protection[202](index=202&type=chunk)[204](index=204&type=chunk) - Products are complex and may contain defects or security vulnerabilities, leading to potential liability, revenue loss, and reputational damage, especially as use expands to more sensitive applications[209](index=209&type=chunk) - Unfavorable economic conditions, such as inflation and recession, may adversely affect business by reducing enterprise IT spending and demand for products[229](index=229&type=chunk)[230](index=230&type=chunk) - Issues in the development and use of AI technologies, combined with an uncertain regulatory environment (e.g., EU AI Act), may result in reputational harm, liability, or increased operating costs[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) - Failure to protect proprietary technology and intellectual property rights, including challenges from open source software use and potential litigation, could substantially harm the business[247](index=247&type=chunk)[253](index=253&type=chunk)[259](index=259&type=chunk) - The company is subject to stringent and changing laws and regulations related to privacy, data protection, and cybersecurity, with actual or perceived failures to comply potentially leading to significant liabilities and reputational harm[269](index=269&type=chunk)[271](index=271&type=chunk) - International operations and expansion expose JFrog to risks including managing a distributed workforce, differing labor regulations, and compliance with various global laws, particularly in Israel, the EU, India, and China[278](index=278&type=chunk)[283](index=283&type=chunk) - Geopolitical tensions, including the conflicts in the Middle East (Israel, Hamas, Hezbollah, Iran) and the Russia-Ukraine war, pose risks to operations, economic stability, and employee availability, particularly given JFrog's significant R&D presence in Israel[317](index=317&type=chunk)[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk) - The market price of JFrog's ordinary shares may be volatile due to various factors, including operating performance, competition, and geopolitical events, and the concentration of insider ownership (**21%** as of June 30, 2025) may limit other shareholders' influence[302](index=302&type=chunk)[304](index=304&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - No unregistered sales of equity securities or use of proceeds were reported for the period[343](index=343&type=chunk) [Item 3. Default Upon Senior Securities](index=95&type=section&id=Item%203.%20Default%20Upon%20Senior%20Securities) This item is not applicable for the reporting period, indicating no defaults upon senior securities - This item is not applicable[344](index=344&type=chunk) [Item 4. Mine Safety Disclosures](index=95&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the reporting period, indicating no mine safety disclosures - This item is not applicable[345](index=345&type=chunk) [Item 5. Other Information](index=95&type=section&id=Item%205.%20Other%20Information) CFO and a board member adopted Rule 10b5-1 trading arrangements for ordinary share sales during Q2 2025 - On May 16, 2025, CFO Eduard Grabscheid adopted a Rule 10b5-1 trading arrangement for the sale of up to **98,842** ordinary shares, terminating by June 30, 2026[346](index=346&type=chunk) - On May 29, 2025, board member Yvonne Wassenaar adopted a Rule 10b5-1 trading arrangement for the sale of up to **10,172** ordinary shares, terminating by June 5, 2026[347](index=347&type=chunk) - No other officers or directors adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[348](index=348&type=chunk) [Item 6. Exhibits](index=96&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and XBRL documents - Includes certifications of the Principal Executive Officer (Exhibit **31.1**, **32.1**) and Principal Financial Officer (Exhibit **31.2**, **32.2**) as required by the Securities Exchange Act and Sarbanes-Oxley Act[352](index=352&type=chunk)[353](index=353&type=chunk) - Contains Inline XBRL Instance Document, Taxonomy Extension Schema Document, and Cover Page Interactive Data File[352](index=352&type=chunk) [Signatures](index=97&type=section&id=Signatures) The report was duly signed on August 8, 2025, by the Chief Executive Officer and Chief Financial Officer - The report was signed by Shlomi Ben Haim, Chief Executive Officer, on August 8, 2025[357](index=357&type=chunk) - The report was signed by Eduard Grabscheid, Chief Financial Officer, on August 8, 2025[357](index=357&type=chunk)

Core Insights - JFrog Ltd reported better-than-expected Q2 financial results, with earnings of 18 cents per share, surpassing the analyst consensus estimate of 16 cents per share, and quarterly sales of $127.22 million, exceeding the estimate of $122.75 million [1] - The company raised its FY2025 sales guidance from a range of $500 million-$505 million to $507 million-$510 million, indicating positive growth expectations [1] - JFrog's CEO emphasized the company's focus on DevOps, Security, and MLOps, positioning it as a leader in the AI ecosystem [2] Financial Performance - Q2 earnings per share: 18 cents, beating the consensus estimate of 16 cents [1] - Q2 sales: $127.22 million, exceeding the estimate of $122.75 million [1] - FY2025 sales guidance raised to $507 million-$510 million from $500 million-$505 million [1] Analyst Ratings and Price Targets - Needham analyst Mike Cikos maintained a Buy rating and raised the price target from $46 to $55 [8] - Piper Sandler analyst Rob Owens maintained a Neutral rating and raised the price target from $40 to $48 [8] - Barclays analyst Ryan Macwilliams maintained an Overweight rating and raised the price target from $45 to $52 [8] - Keybanc analyst Jason Celino maintained an Overweight rating and raised the price target from $46 to $52 [8] - Stifel analyst Brad Reback maintained a Buy rating and raised the price target from $45 to $53 [8]

Core Insights - JFrog Ltd. reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing an increase from $0.15 per share a year ago, resulting in an earnings surprise of +12.50% [1] - The company achieved revenues of $127.22 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.57% and up from $103.04 million year-over-year [2] - JFrog shares have increased approximately 42.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] Earnings Outlook - The future performance of JFrog's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $125.48 million, and for the current fiscal year, it is $0.69 on revenues of $503.28 million [7] Industry Context - The Internet - Software industry, to which JFrog belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - GitLab Inc., another company in the same industry, is expected to report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of +6.7% [9]

Financial Data and Key Metrics Changes - JFrog's total revenue for Q2 2025 was $127.2 million, representing a 23% year-over-year increase [5][18] - Operating margin improved to 15.2%, up from 13.2% in the previous year [6][21] - Cloud revenue reached $57.1 million, a 45% increase year-over-year, accounting for 45% of total revenue compared to 38% in the prior year [6][18] - Net dollar retention rate for the trailing four quarters was 118%, up two points sequentially [20] - Free cash flow for Q2 was $35.5 million, or a 28% margin, compared to $16 million, or a 15% margin, in the year-ago period [22] Business Line Data and Key Metrics Changes - Cloud revenue growth was driven by increased annual commitments and the adoption of security products [18][19] - Self-managed or on-premises revenues were $70.1 million, up 10% year-over-year [19] - Revenue contribution from Enterprise Plus subscriptions grew to 55% of total revenues, up from 50% in the prior year [19] Market Data and Key Metrics Changes - JFrog's RPO (Remaining Performance Obligations) totaled $476.7 million, a 75% increase year-over-year, benefiting from multi-year commitments [22] - The company noted a strategic shift in customer infrastructure towards hybrid solutions due to the unpredictable costs associated with AI [10][11] Company Strategy and Development Direction - JFrog aims to become the system of record for all software packages, focusing on DevOps, security, and MLOps [7][12] - The company is deepening partnerships with AI industry leaders and expanding support for the AI ecosystem [13][14] - JFrog is positioning itself as a model registry for AI, emphasizing the importance of a unified software supply chain [13][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's alignment with modern software demands and the ongoing growth in cloud and security solutions [8][11] - The company is cautious about future guidance due to macroeconomic uncertainties but expects continued growth in cloud commitments and security adoption [23][25] - Management highlighted the resilience of the team amid external challenges, reinforcing the strength of the business [26][27] Other Important Information - JFrog will hold its Annual User Conference on September 9, 2025, to announce new products and strategic partnerships [17] - The company is committed to addressing emerging security threats associated with AI and MCP (Model-Centric Programming) [14][100] Q&A Session Summary Question: Can you discuss the evolution of customer hesitations regarding self-managed data centers? - Management noted that customers are rethinking their cloud strategies due to the unpredictability of AI costs, leading to a more cautious approach to cloud migration [34][35] Question: How has the sunsetting of JFrog Pipeline affected partnerships with CI/CD players? - The decision to sunset JFrog Pipeline has allowed for better integration and partnerships with companies like GitHub, focusing on security and cloud migration [38][39] Question: Can you provide insights into the pipeline of large enterprise deals? - Management highlighted a focus on migrating workloads to the cloud and the addition of security solutions as key factors driving large enterprise deals [43][45] Question: What impact have AI coding tools had on the DevOps toolchain? - The introduction of code assistance tools has changed the developer landscape, increasing the need for a model registry and security solutions [85][88] Question: How is JFrog leveraging hyperscaler partnerships for co-selling? - Collaboration with cloud providers is crucial for accelerating deals and optimizing costs, with strong relationships established with AWS, GCP, and Microsoft Azure [78][79] Question: What is the outlook for security's contribution to JFrog's business? - Management plans to provide metrics around security's contribution and sees strong momentum in this area [92]

Core Insights - JFrog reported Q2 FY2025 earnings with GAAP revenue of $127.2 million, exceeding analyst expectations of $122.8 million, and non-GAAP EPS of $0.18, surpassing the expected $0.16 [1][2] - The company experienced significant growth in its cloud segment, with cloud revenue reaching $57.1 million, a 45% increase year-over-year, now accounting for 45% of total revenue [1][5] - Customer expansion was notable, with the number of customers generating over $1 million in annual recurring revenue (ARR) increasing to 61, a 45% rise from the previous year [1][6] Financial Performance - Non-GAAP operating income improved to $19.4 million, up from $13.6 million year-over-year, with a non-GAAP operating margin of 15.2%, an increase of 2 percentage points [2][9] - Free cash flow (non-GAAP) more than doubled to $35.5 million, reflecting a 122.3% increase from the prior year [2][9] - Remaining performance obligations (RPO) stood at $476.7 million, indicating strong momentum in onboarding large customers [10] Business Overview and Strategic Focus - JFrog's platform aids organizations in managing, automating, and securing software packages throughout the development lifecycle, focusing on binary management, vulnerability scanning, and compliance [3] - The company emphasizes integrating security into software development processes and expanding support for emerging technologies like machine learning [4] - Strategic partnerships with major players in cloud and AI sectors are crucial for sustaining growth and enhancing the company's value proposition [4] Product Innovation - New MLOps modules were launched, allowing organizations to manage and secure AI and machine learning model artifacts [7][12] - Enhanced security functions for both standard software components and machine learning models were introduced, addressing the growing need for security in AI applications [7] - Collaborations with NVIDIA, Hugging Face, and GitHub are driving new enterprise deals and platform adoption [8] Outlook and Guidance - For Q3 FY2025, JFrog expects revenue between $127.0 million and $129.0 million, with non-GAAP EPS projected in the range of $0.15 to $0.17 [13] - The full-year revenue outlook for FY2025 has been raised to between $507.0 million and $510.0 million, with non-GAAP operating income projected between $75.0 million and $78.0 million [13][14] - Management maintains a conservative forecasting approach, not factoring in potential upside from large enterprise deals or continued high cloud usage [14]

Financial Performance - JFrog's 2Q'25 Last Twelve Months (LTM) revenue reached $475 million, demonstrating a YoY growth of 22%[6] - The company's 2Q'25 LTM Free Cash Flow was $139 million[6] - JFrog's 2Q'25 LTM Net Dollar Retention Rate stood at 118%[6] - The company projects FY'25 revenue between $507 million and $510 million[81] Market and Customer Base - JFrog estimates its Total Addressable Market (TAM) to be over $40 billion[6] - The company has a customer base of 7,300 as of FY24[6] - JFrog serves 82% of the Fortune 100 companies[6] Platform and Strategy - JFrog's platform manages binaries from creation to distribution, covering the entire software supply chain[24] - The company emphasizes a land and expand growth strategy, showcasing consistent expansion within existing customer accounts[70, 71, 72, 73, 74, 75] - JFrog is focused on extending its technology leadership, expanding within its existing customer base, acquiring new customers, and developing its technology partnership ecosystem[69]

[Q2 2025 Earnings Announcement](index=1&type=section&id=Q2_2025_Earnings_Announcement) JFrog reports strong Q2 2025 financial results, driven by its unified platform and growing presence in the AI ecosystem [Executive Summary](index=1&type=section&id=Executive_Summary) JFrog achieved strong Q2 2025 financial results, fueled by its unified platform and expanding role in the AI ecosystem [CEO Commentary](index=1&type=page&id=CEO_Commentary) CEO highlights JFrog's leadership in the AI ecosystem and disciplined execution for sustainable growth - JFrog is positioned as a system of record for software packages and a leader in the AI ecosystem as a gold-standard model registry, with a unified focus on DevOps, Security, and MLOps[4](index=4&type=chunk) - Q2 results reflect strong execution amidst ongoing uncertainty, with a focus on disciplined operations and driving high-quality, sustainable growth[4](index=4&type=chunk) [Second Quarter 2025 Financial Highlights](index=1&type=page&id=Second_Quarter_2025_Financial_Highlights) Key financial metrics for Q2 2025 show significant revenue and cloud revenue growth, along with increased high-value customers Q2 2025 Key Financial Highlights | Metric | Q2 2025 Value | YoY Change | | :-------------------------------- | :------------ | :--------- | | Total Revenues (in millions) | $127.2 | +23% | | Cloud Revenues (in millions) | $57.1 | +45% | | Customers with ARR > $1 million (count) | 61 | +45% | | GAAP Gross Profit (in millions) | $97.0 | - | | GAAP Gross Margin (%) | 76.3 | - | | Non-GAAP Gross Profit (in millions) | $105.7 | - | | Non-GAAP Gross Margin (%) | 83.1 | - | | GAAP Operating Loss (in millions) | ($26.0) | - | | Non-GAAP Operating Income (in millions) | $19.4 | - | | GAAP Net Loss Per Share ($) | ($0.19) | - | | Non-GAAP Diluted EPS ($) | $0.18 | - | | Operating Cash Flow (in millions) | $36.1 | - | | Free Cash Flow (in millions) | $35.5 | - | | Cash, Cash Equivalents and Investments (as of June 30, 2025, in millions) | $611.7 | - | | Remaining Performance Obligations (as of June 30, 2025, in millions) | $476.7 | - | - Cloud revenue constituted **45% of total revenue** in Q2 2025, up from 38% in the prior-year period[8](index=8&type=chunk) - Net Dollar Retention rate for the trailing four quarters was **118%**[8](index=8&type=chunk) [Recent Business & Product Highlights](index=1&type=page&id=Recent_Business_Product_Highlights) Recent product innovations and strategic partnerships underscore JFrog's platform expansion and customer adoption - JFrog released a remote AI MCP server to enable agentic AI interaction with the JFrog Platform[7](index=7&type=chunk)[8](index=8&type=chunk) - The company deepened its relationship with NVIDIA as part of their 'Enterprise AI Factory' validated design[7](index=7&type=chunk)[8](index=8&type=chunk) - Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented **55% of total revenue** in Q2 2025, an increase from 50% in the year-ago period[8](index=8&type=chunk) Customer Growth Metrics | Metric | Q2 2025 (count) | Q2 2024 (count) | YoY Change | | :-------------------------- | :-------------- | :-------------- | :--------- | | Customers with ARR > $1 million | 61 | 42 | +45% | | Customers with ARR > $100K | 1,076 | 928 | +16% | [Detailed Financial Performance](index=1&type=section&id=Detailed_Financial_Performance) This section details JFrog's Q2 and H1 2025 GAAP financial performance, covering operations, balance sheet, and cash flows [Condensed Consolidated Statements of Operations](index=6&type=page&id=Condensed_Consolidated_Statements_of_Operations) Presents GAAP statements of operations for Q2 and H1 2025, showing revenue growth and increased net losses Condensed Consolidated Statements of Operations (GAAP) - Q2 2025 vs Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :--------- | | Total subscription revenue | $127,220 | $103,043 | +23.46% | | Total cost of revenue—subscription | $30,202 | $21,893 | +37.96% | | Gross profit | $97,018 | $81,150 | +19.55% | | Total operating expenses | $122,989 | $100,277 | +22.65% | | Operating loss | ($25,971) | ($19,127) | +35.79% | | Net loss | ($21,675) | ($14,303) | +51.54% | | Net loss per share, basic and diluted | ($0.19) | ($0.13) | +46.15% | Condensed Consolidated Statements of Operations (GAAP) - Six Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :--------- | | Total subscription revenue | $249,627 | $203,354 | +22.76% | | Total cost of revenue—subscription | $60,383 | $42,497 | +42.09% | | Gross profit | $189,244 | $160,857 | +17.65% | | Total operating expenses | $238,185 | $196,620 | +21.14% | | Operating loss | ($48,941) | ($35,763) | +36.84% | | Net loss | ($40,178) | ($23,093) | +74.07% | | Net loss per share, basic and diluted | ($0.35) | ($0.21) | +66.67% | [Condensed Consolidated Balance Sheets](index=7&type=page&id=Condensed_Consolidated_Balance_Sheets) Provides GAAP balance sheet data for June 30, 2025, and December 31, 2024, detailing asset and liability changes Condensed Consolidated Balance Sheets (GAAP) - June 30, 2025 vs December 31, 2024 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | Change | | :------------------------------------ | :------------ | :---------------- | :----- | | Total current assets | $737,203 | $649,227 | +13.55% | | Total assets | $1,208,185 | $1,129,906 | +6.93% | | Total current liabilities | $346,722 | $317,515 | +9.20% | | Total liabilities | $381,731 | $356,380 | +7.11% | | Total shareholders' equity | $826,454 | $773,526 | +6.84% | | Cash and cash equivalents | $51,277 | $49,869 | +2.82% | | Short-term investments | $560,423 | $472,138 | +18.69% | | Deferred revenue (current) | $260,066 | $247,187 | +5.21% | [Condensed Consolidated Statements of Cash Flows](index=8&type=page&id=Condensed_Consolidated_Statements_of_Cash_Flows) Outlines GAAP cash flow statements for Q2 and H1 2025, highlighting operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (GAAP) - Q2 2025 vs Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | YoY Change | | :------------------------------------ | :------------------------------- | :------------------------------- | :--------- | | Net cash provided by operating activities | $36,085 | $16,697 | +116.11% | | Net cash provided by (used in) investing activities | ($39,548) | $135,188 | -129.25% | | Net cash provided by (used in) financing activities | $9,592 | ($4,673) | +305.29% | | Net increase in cash, cash equivalents, and restricted cash | $6,927 | $146,918 | -95.29% | Condensed Consolidated Statements of Cash Flows (GAAP) - Six Months Ended June 30, 2025 vs 2024 | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | YoY Change | | :------------------------------------ | :----------------------------- | :----------------------------- | :--------- | | Net cash provided by operating activities | $64,877 | $34,166 | +89.89% | | Net cash provided by (used in) investing activities | ($85,330) | $88,267 | -196.68% | | Net cash provided by (used in) financing activities | $21,097 | $11,922 | +76.96% | | Net increase in cash, cash equivalents, and restricted cash | $1,408 | $133,538 | -98.95% | [Outlook](index=2&type=section&id=Outlook) JFrog provided financial guidance for the third quarter and full fiscal year 2025, projecting continued revenue growth and non-GAAP operating income, along with non-GAAP diluted earnings per share [Third Quarter 2025 Outlook](index=2&type=page&id=Third_Quarter_2025_Outlook) Provides specific financial guidance for Q3 2025, including revenue, non-GAAP operating income, and EPS Third Quarter 2025 Outlook | Metric | Range | | :-------------------------------- | :-------------------------- | | Revenue | $127.0 million - $129.0 million | | Non-GAAP operating income | $16.5 million - $18.5 million | | Non-GAAP net income per diluted share | $0.15 - $0.17 (assuming ~122M shares) | [Fiscal Year 2025 Outlook](index=2&type=page&id=Fiscal_Year_2025_Outlook) Presents full fiscal year 2025 financial guidance for revenue, non-GAAP operating income, and EPS Fiscal Year 2025 Outlook | Metric | Range | | :-------------------------------- | :-------------------------- | | Revenue | $507.0 million - $510.0 million | | Non-GAAP operating income | $75.0 million - $78.0 million | | Non-GAAP net income per diluted share | $0.68 - $0.70 (assuming ~121M shares) | [Non-GAAP Financial Information and Operating Metrics](index=2&type=section&id=Non-GAAP_Financial_Information_and_Operating_Metrics) This section details JFrog's use of non-GAAP financial measures, providing definitions, rationale for their use, and reconciliations to the most directly comparable GAAP measures. It also defines key operating metrics such as ARR and Net Dollar Retention rate [About Non-GAAP Financial Measures](index=2&type=page&id=About_Non-GAAP_Financial_Measures) Explains JFrog's rationale for using non-GAAP measures and the types of adjustments made - JFrog uses non-GAAP measures (e.g., operating income, gross profit, net income, free cash flow) internally for budgeting, forecasting, and evaluating financial performance, believing they supplement GAAP measures for investors[17](index=17&type=chunk) - Non-GAAP adjustments include share-based compensation, amortization of acquired intangibles, acquisition-related costs, and income tax effects, as these are considered non-operational or non-recurring[20](index=20&type=chunk)[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk)[24](index=24&type=chunk) - Free cash flow is defined as net cash provided by operating activities minus capital expenditures, viewed as a necessary component of ongoing operations[20](index=20&type=chunk)[26](index=26&type=chunk) [Reconciliation of GAAP to Non-GAAP Results](index=9&type=page&id=Reconciliation_of_GAAP_to_Non-GAAP_Results) Reconciles GAAP to non-GAAP gross profit, operating income, and net income for Q2 2025 and Q2 2024 Reconciliation of GAAP to Non-GAAP Gross Profit and Margin - Q2 2025 vs Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | GAAP gross profit | $97,018 | $81,150 | | Non-GAAP gross profit | $105,724 | $86,932 | | GAAP gross margin | 76.3% | 78.8% | | Non-GAAP gross margin | 83.1% | 84.4% | Reconciliation of GAAP to Non-GAAP Operating Income and Margin - Q2 2025 vs Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | GAAP operating loss | ($25,971) | ($19,127) | | Non-GAAP operating income | $19,355 | $13,617 | | GAAP operating margin | (20.4)% | (18.6)% | | Non-GAAP operating margin | 15.2% | 13.2% | Reconciliation of GAAP to Non-GAAP Net Income - Q2 2025 vs Q2 2024 | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | | GAAP net loss | ($21,675) | ($14,303) | | Non-GAAP net income | $22,034 | $17,461 | | Non-GAAP net income per share - diluted | $0.18 | $0.15 | | Non-GAAP weighted-average shares used to compute net income per share - diluted | 120,578 | 115,194 | [Reconciliation of GAAP Cash Flow to Free Cash Flow](index=10&type=page&id=Reconciliation_of_GAAP_Cash_Flow_to_Free_Cash_Flow) Reconciles GAAP operating cash flow to free cash flow for Q2 and H1 2025 and 2024 Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $36,085 | $16,697 | $64,877 | $34,166 | | Less: purchases of property and equipment | ($627) | ($732) | ($1,274) | ($1,573) | | Free cash flow | $35,458 | $15,965 | $63,603 | $32,593 | [Operating Metrics Definitions](index=4&type=page&id=Operating_Metrics_Definitions) Defines key operating metrics such as Annual Recurring Revenue (ARR) and Net Dollar Retention rate - Annual Recurring Revenue (ARR) is defined as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter, including monthly subscription customers[27](index=27&type=chunk)[28](index=28&type=chunk) - Net Dollar Retention rate is calculated by comparing ARR from the same set of customers (Base Customers) across comparable periods, capturing upsells, contraction, and attrition, and is averaged over the trailing four quarters[29](index=29&type=chunk) [Company Overview and Disclosures](index=2&type=section&id=Company_Overview_and_Disclosures) This section provides background on JFrog, including its mission and platform, along with important legal disclaimers regarding forward-looking statements and details for the upcoming conference call and investor contact [About JFrog](index=2&type=page&id=About_JFrog) Introduces JFrog's mission, unified platform capabilities, and global customer reach - JFrog Ltd. (Nasdaq: FROG) is the creator of a unified DevOps, DevSecOps, and MLOps platform, aiming to deliver software without friction from developer to production[12](index=12&type=chunk) - The JFrog Software Supply Chain Platform acts as a single system of record for building, managing, and distributing software quickly and securely, ensuring availability, traceability, and tamper-proof integrity, with integrated security features[12](index=12&type=chunk) - JFrog's hybrid, universal, multi-cloud platform is available as SaaS and self-hosted, serving millions of users and over **7,000 customers worldwide**, including a majority of the Fortune 100[12](index=12&type=chunk) [Forward-Looking Statements](index=2&type=page&id=Forward-Looking_Statements) Discusses the nature of forward-looking statements and associated risks and uncertainties - The press release contains forward-looking statements regarding JFrog's future financial performance, market potential for its platform and products (Artifactory, Xray, Curation, Advanced Security, ML, Runtime Security), growth potential of its cloud business, and opportunities within DevOps, DevSecOps, Security, AI, and MLOps[13](index=13&type=chunk) - These statements are based on current assumptions and are subject to substantial risks and uncertainties that may cause actual results to differ materially, including risks related to rapid growth, history of losses, customer retention, sales and marketing capabilities, acquisitions, security breaches, and general economic conditions[15](index=15&type=chunk)[16](index=16&type=chunk) [Conference Call Details](index=2&type=page&id=Conference_Call_Details) Provides information regarding the Q2 2025 earnings conference call and webcast access - JFrog's Second Quarter 2025 Financial Results Conference Call was scheduled for Thursday, August 7, 2025, at 2:00 p.m. PT (5:00 p.m. ET)[14](index=14&type=chunk) - A live webcast of the conference call is accessible from the investor relations website at https://investors.jfrog.com/events-and-presentations[11](index=11&type=chunk) [Investor Contact](index=5&type=page&id=Investor_Contact) Specifies the contact information for investor inquiries - Investor inquiries can be directed to Jeff Schreiner at jeffs@jfrog.com[30](index=30&type=chunk)

Core Insights - Frog Creek Partners is collaborating with the city of Cheyenne, Wyoming, to launch a stormwater initiative aimed at protecting Crow Creek from pollution, funded by Microsoft [1][2] - The project will install 127 Gutter Bin® stormwater filtration systems, estimated to prevent over 10 tons of pollution annually from reaching Crow Creek [2][5] - This initiative supports Microsoft's commitment to be water-positive by 2030, which includes reducing water-use intensity and replenishing more water than consumed in priority locations [2][6] Project Details - The new Gutter Bins will enhance the effectiveness of previous installations, which included 67 Gutter Bins set up in 2021, already capturing significant amounts of pollution [3][5] - Crow Creek is listed as an impaired waterway due to sediment and E. Coli pollution, necessitating measures to comply with total maximum daily load (TMDL) limits [4] - The existing Gutter Bins have captured tens of thousands of pounds of pollution and filtered millions of gallons of water, contributing to the city's pollution reduction efforts [4] Community and Corporate Responsibility - The collaboration reflects a growing trend of companies partnering with local governments to actively engage in community resource stewardship [7] - Cheyenne's City Council has adopted a resolution to clean Crow Creek, with Microsoft playing a significant role in this initiative [7] - Frog Creek's expertise in stormwater filtration positions it as a valuable partner for advancing Microsoft's water replenishment goals [7] Broader Impact - Similar Gutter Bin installations in other locations, such as Colorado Springs and Vail, have demonstrated significant pollution reduction and improvements in local ecosystems [8][9] - The goal of the Cheyenne project is to restore Crow Creek to a fishable, swimmable, and ecologically healthy state, benefiting both the community and future generations [10][11]