Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $136.9 million, representing a 26% year-over-year increase [7][23] - Operating margin improved to 18.7%, up from 13.5% in Q3 2024 [26] - Cloud revenue reached $63.4 million, a 50% increase year-over-year, accounting for 46% of total revenue compared to 39% in the prior year [24][26] - Gross profit was $114.9 million, with a gross margin of 83.9%, up from 82.8% in the year-ago period [25][26] - Net dollar retention was 118%, consistent with the prior quarter, indicating sustained growth among existing customers [9][25] Business Line Data and Key Metrics Changes - Enterprise Plus subscriptions contributed 56% of total revenues, up from 50% in the previous year, with a 39% year-over-year growth in revenue from these subscriptions [24][25] - Customers spending over $1 million annually grew to 71, a 54% increase year-over-year [8][26] - Customers spending more than $100,000 annually increased to 1,121, a 16% year-over-year growth [8] Market Data and Key Metrics Changes - The company noted strong cloud growth driven by increased usage of various software packages, including AI-related artifacts [8][10] - The demand for JFrog's security solutions has been a significant driver of cloud revenue growth [36] Company Strategy and Development Direction - JFrog aims to position itself as a foundational platform for software delivery, focusing on cloud and security solutions [7][10] - The company is embracing AI and machine learning, integrating these capabilities into its platform to enhance software supply chain management [16][22] - JFrog introduced the DevGovOps solution to address the growing need for governance and compliance in software delivery [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, emphasizing the importance of security and governance in the current market landscape [15][29] - The company is prepared for ongoing macroeconomic volatility while maintaining a focus on profitable growth [28][30] Other Important Information - JFrog completed payments of $5.7 million related to the acquisition of Qwak, which was finalized in July 2024 [28] - The company ended Q3 2025 with $651.1 million in cash and short-term investments, up from $522 million at the end of 2024 [28] Q&A Session Summary Question: Was there anything one-time in the cloud revenue results? - Management confirmed that the strong cloud revenue was not due to one-time events but a combination of strong usage across multiple package types and security solutions [36] Question: What has changed in the go-to-market execution for cloud? - Management highlighted consistent execution and a strategy of converting customers with overusage to higher commitments, leading to stable cloud growth [38] Question: Can you elaborate on the types of artifacts managed by Artifactory? - Management noted an increase in the usage of AI-related artifacts alongside traditional software artifacts, indicating a growing trend [42] Question: How relevant is the UI/UX change due to AI for JFrog? - Management acknowledged the importance of adapting to AI-driven software creation and emphasized the need for agentic capabilities in their offerings [45] Question: What is the outlook for net dollar retention? - Management indicated that net dollar retention remains stable at 118%, with expectations for continued growth driven by security solutions and increased cloud usage [50] Question: How is the pipeline for security deals tracking? - Management reported a growing pipeline for security solutions, although sales cycles are longer due to the need to displace existing solutions [88]

Financial Data and Key Metrics Changes - JFrog's total revenue for Q3 2025 was $136.9 million, representing a 26% year-over-year increase [7][23] - Operating margin improved to 18.7%, up from 13.5% in Q3 2024 [26] - Cloud revenue reached $63.4 million, marking a 50% year-over-year growth and accounting for 46% of total revenues compared to 39% in the prior year [24][26] - Net dollar retention was 118%, consistent with the previous quarter, indicating sustained growth among the customer base [9][25] Business Line Data and Key Metrics Changes - Enterprise+ subscriptions contributed 56% of total revenues, up from 50% in the prior year, with a 39% year-over-year growth in revenue from these subscriptions [24][26] - Self-managed or on-prem revenues were $73.5 million, reflecting a 10% year-over-year increase [24] Market Data and Key Metrics Changes - The number of customers spending over $1 million annually grew to 71, a 54% increase year-over-year [8] - Customers spending more than $100,000 annually increased to 1,121, representing a 16% year-over-year growth [8] Company Strategy and Development Direction - JFrog is focusing on becoming a foundational platform for software delivery, emphasizing cloud growth and security solutions [7][9] - The company is positioning itself as a universal binary repository and model registry for software supply chains, particularly in the context of AI and machine learning [10][16] - JFrog's strategy includes guiding cloud customers towards higher annual commitments to foster long-term partnerships [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, particularly in cloud adoption and security solutions, while acknowledging macroeconomic uncertainties [29][30] - The company anticipates continued strong demand for its security offerings due to increasing software supply chain attacks [14][15] - JFrog is preparing for the ongoing AI revolution, focusing on securing AI models and software packages [16][17] Other Important Information - JFrog completed payments of $5.7 million related to the acquisition of Qwak, which was finalized in July 2024 [28] - The company ended Q3 2025 with $651.1 million in cash and short-term investments, up from $522 million at the end of 2024 [28] Q&A Session Summary Question: Was there anything one-time in the cloud revenue results? - Management confirmed that the strong cloud revenues were not one-time but a result of strong usage across multiple package types and security solutions [36] Question: What has changed in the go-to-market execution for cloud growth? - Management highlighted consistent execution and a strategy of converting overusage customers to higher commitments as key factors for cloud growth [38] Question: Can you elaborate on the types of artifacts managed by Artifactory? - Management noted an increase in the usage of AI-related artifacts alongside traditional software artifacts, indicating a growing trend [42] Question: How relevant is the UI/UX change due to AI for JFrog? - Management acknowledged that the JFrog Fly release is designed to accommodate both developers and AI agents, reimagining the software supply chain [45] Question: What is the confidence level in closing big deals in the security pipeline? - Management indicated a growing pipeline for security solutions, with longer sales cycles due to the need for displacing existing solutions [88]

Financial Data and Key Metrics Changes - JFrog's total revenue for Q3 2025 was $136.9 million, representing a 26% year-over-year increase [5][20][27] - Operating margin improved to 18.7%, up from 13.5% in Q3 2024 [24] - Cloud revenue reached $63.4 million, marking a 50% year-over-year growth and accounting for 46% of total revenues [22][27] - Gross profit was $114.9 million, with a gross margin of 83.9%, compared to 82.8% in the previous year [23][24] - Net dollar retention was 118%, consistent with the prior quarter, indicating strong customer growth [7][23] Business Line Data and Key Metrics Changes - Cloud revenue growth was driven by increased usage of software packages and artifacts, including PyPI, Docker containers, and NPM [6][10] - Self-managed or on-prem revenues were $73.5 million, up 10% year-over-year [22] - The number of customers spending over $1 million annually grew to 71, a 54% increase from the previous year [6][23] Market Data and Key Metrics Changes - JFrog's enterprise focus led to significant wins across various verticals and geographies, including a $9 million deal with the UK Customs and Revenue Agency [11][12] - The company noted a rise in software supply chain attacks, emphasizing the need for robust security solutions [12][13] Company Strategy and Development Direction - JFrog aims to be the universal binary repository and model registry for software supply chains, focusing on AI and machine learning developments [8][15] - The company is committed to integrating security solutions into its platform, addressing the growing demand for software supply chain security [12][41] - JFrog introduced new products like JFrog Uptrust to enhance governance and compliance in software delivery [17][60] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding future growth, particularly in cloud adoption and security solutions [26][30] - The company is monitoring AI-driven usage closely, believing it is still early to predict significant cloud usage growth [10][46] - JFrog's guidance for 2025 suggests sustained contributions from security products and customer commitments, with a projected revenue range of $523 million to $525 million [27][26] Other Important Information - JFrog completed payments of $5.7 million related to the acquisition of Qwak [25] - The company ended Q3 2025 with $651.1 million in cash and short-term investments, up from $522 million at the end of 2024 [25] Q&A Session Summary Question: Was there anything one-time in the cloud revenue results? - Management confirmed that the strong cloud revenues were not one-time but a result of strong usage across multiple package types and security solutions [31][32] Question: What has changed in the go-to-market execution for cloud growth? - Management highlighted consistent execution and a strategy of converting customers with overusage to higher commitments, leading to stable cloud growth [33] Question: Can you elaborate on the types of artifacts managed by Artifactory? - Management noted a growth in AI-related artifacts, including those from Hugging Face and various programming languages, indicating a trend towards using JFrog as a system of record for all packages [34][35] Question: How relevant is the UI/UX change due to AI for JFrog? - Management emphasized that JFrog Fly is designed to accommodate both developers and AI agents, reimagining the software supply chain [36][37] Question: What is the sustainability of new budgets allocated towards security? - Management indicated that there is an increasing focus on security budgets, especially in light of recent software supply chain attacks [50][52] Question: How is the pipeline for security tracking for Q4 and beyond? - Management reported a growing pipeline for security solutions, although sales cycles are longer due to the need for customers to upgrade from existing solutions [57][58]

Financial Performance - JFrog's 3Q'25 Last Twelve Months (LTM) revenue reached $503 million[7] - The company experienced a 23% year-over-year (YoY) revenue growth in 3Q'25 LTM[7] - JFrog's 3Q'25 LTM Free Cash Flow was $141 million[7] - The Net Dollar Retention Rate for 3Q'25 LTM was 118%[7] - The company projects FY'25 revenue between $523 million and $525 million[145] Customer Base - JFrog has 7,300 customers as of FY24[7] - 82% of Fortune 100 companies are JFrog customers[7] Platform and Security - JFrog discovered over 2.8 million malicious artifacts[51] - JFrog Security Research has scored over 1700 CVEs[51] - JFrog Security Research has disclosed over 200 zero-day vulnerabilities[51] Economic Impact - The JFrog platform accelerates software delivery time, resulting in $13.5 million in value[27] - Automation of activities on Open Source Software (OSS) contributes $6.7 million in economic impact[27] - Increased productivity due to JFrog leads to $3.4 million in value[27]

Financial Performance - Arog's earnings are jumping, with shares up significantly by 26-27% [1] - Earnings per share (EPS) reached $0.22 adjusted, exceeding estimates of $0.16 [1] - Revenue surpassed expectations, reaching $137 million versus the expected $128 million [1] - The company's fourth-quarter EPS guidance is $0.18 to $0.20 per share, ahead of the $0.16 estimate [1] Market Drivers - Cyber security challenges are contributing to Arog's success, as the company plays a role in securing software [2]

Core Insights - Arog's earnings have significantly increased, with shares rising by 26-27% following the announcement [1] - Adjusted earnings per share (EPS) came in at 22 cents, surpassing estimates of 16 cents [1] - Revenue also exceeded expectations, reported at $137 million compared to the anticipated $128 million [1] - The company provided optimistic fourth-quarter guidance for both EPS and revenue, with EPS guidance set at 18 to 20 cents, again above the 16 cents estimate [1] Industry Context - Cybersecurity challenges in the market are influencing Arog's performance, as the company plays a role in securing software amidst these challenges [2]

Core Insights - JFrog reported Q3 CY2025 revenue of $136.9 million, exceeding Wall Street expectations by 6.6% and reflecting a year-on-year growth of 25.5% [6][8] - The company provided a positive revenue guidance for Q4 CY2025 at $137.5 million, which is 4.8% above analyst estimates [6] - Non-GAAP profit per share was $0.22, surpassing analysts' consensus by 34.4% [6] Company Overview - JFrog is a software supply chain platform that enables organizations to securely create, store, manage, and distribute software packages [4] - The company is recognized as a foundational element in modern software supply chains, particularly in the context of AI [3] Revenue Growth - Over the last five years, JFrog has achieved a compounded annual growth rate of 29.3%, outperforming the average software company [5] - The company reported an annualized revenue growth of 23.6% over the last two years, indicating healthy demand despite being below the five-year trend [7] Financial Performance - Adjusted operating income was $25.61 million, with an 18.7% margin, significantly beating analyst estimates [6] - The operating margin improved to -15.8%, up from -27.4% in the same quarter last year [6] - Free cash flow margin was reported at 21%, a decrease from 27.9% in the previous quarter [6] Customer Metrics - JFrog has 1,121 customers paying more than $100,000 annually, demonstrating a strong customer base [6] - The net revenue retention rate stood at 118%, consistent with the previous quarter [6] Market Position - JFrog's market capitalization is currently valued at $5.38 billion [6] - Billings reached $163.8 million at the end of the quarter, reflecting a year-on-year increase of 24.1% [6]

Financial Performance - Total revenues for Q3 2025 were $136.9 million, representing a 26% year-over-year increase[7] - Cloud revenues reached $63.4 million, up 50% year-over-year, accounting for 46% of total revenue compared to 39% in the same period last year[8] - Total subscription revenue for Q3 2025 reached $136.9 million, a 25.5% increase from $109.1 million in Q3 2024[32] - Gross profit for Q3 2025 was $106.0 million, compared to $81.8 million in Q3 2024, reflecting a 29.6% year-over-year growth[32] - GAAP gross profit was $106.0 million with a gross margin of 77.4%, while non-GAAP gross profit was $114.9 million with a gross margin of 83.9%[8] - Operating loss for Q3 2025 was $21.6 million, an improvement from a loss of $29.9 million in Q3 2024[32] - Net loss for Q3 2025 was $16.4 million, compared to a net loss of $22.9 million in Q3 2024, indicating a reduction of 28.5%[32] - Non-GAAP operating income for Q3 2025 was $25.6 million, resulting in a non-GAAP operating margin of 18.7%[8] - GAAP net loss for Q3 2025 was $16,431 thousand, improved from a loss of $22,945 thousand in Q3 2024[38] Cash Flow and Assets - Operating cash flow for the quarter was $30.2 million, with free cash flow of $28.8 million[8] - Cash and cash equivalents increased to $78.4 million as of September 30, 2025, up from $49.9 million at the end of 2024[34] - Total current assets rose to $800.2 million as of September 30, 2025, compared to $649.2 million at the end of 2024, marking a 23.2% increase[34] - Net cash provided by operating activities for Q3 2025 was $30.2 million, compared to $27.6 million in Q3 2024, showing an increase of 5.9%[36] - Free cash flow for Q3 2025 was $28,811 thousand, up from $26,704 thousand in Q3 2024, marking an 8.0% increase[39] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $95,034 thousand, compared to $61,806 thousand in the same period of 2024, a 53.5% increase[39] Customer Metrics - Customers with annual recurring revenue (ARR) greater than $1 million increased to 71, a 54% year-over-year growth from 46[8] - The net dollar retention rate for the trailing four quarters was 118%[8] Future Outlook - The company provided a Q4 2025 revenue outlook of $136.5 million to $138.5 million, and a fiscal year 2025 revenue outlook of $523 million to $525 million[14] Expenses - Research and development expenses for Q3 2025 were $51.2 million, a 19.0% increase from $43.0 million in Q3 2024[32] - Total operating expenses for the nine months ended September 30, 2025, were $365.8 million, compared to $308.3 million for the same period in 2024, reflecting an increase of 18.6%[32] Deferred Revenue and Performance Obligations - Remaining performance obligations stood at $508 million as of September 30, 2025[8] - Deferred revenue increased to $281.0 million in Q3 2025, up from $247.2 million in Q3 2024, representing a 13.6% growth[34] Product Development - JFrog launched "AppTrust" for governance and compliance and "AI Catalog" for secure AI model delivery during the quarter[7]

Core Insights - Analysts project that JFrog Ltd. (FROG) will report quarterly earnings of $0.16 per share, reflecting a year-over-year increase of 6.7% [1] - Revenue is expected to reach $128.4 million, marking a 17.7% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1] Revenue Estimates - 'Revenue- License- self-managed' is estimated at $5.71 million, showing a year-over-year change of +2.6% [4] - 'Revenue- Subscription- self-managed and SaaS' is projected to be $122.50 million, indicating an 18.4% year-over-year increase [4] - 'Revenue- Subscription- SaaS' is expected to reach $58.03 million, reflecting a significant change of +37% from the previous year [4] Subscription Metrics - The estimated 'Revenue- Self-managed subscription' stands at $70.29 million, suggesting a year-over-year increase of +5.4% [5] - Analysts predict that the number of 'Customers >$100k in ARR' will rise to 1,107, compared to 966 in the previous year [5] Market Performance - JFrog shares have experienced a -2% change in the past month, contrasting with a +1% move of the Zacks S&P 500 composite [5] - With a Zacks Rank 2 (Buy), FROG is anticipated to outperform the overall market in the near future [5]

Core Insights - JFrog has seen significant increases in institutional ownership, with 85.02% of its stock currently held by institutional investors and hedge funds [1] - Analysts have generally positive outlooks on JFrog, with multiple firms raising their target prices and maintaining "buy" or "outperform" ratings [2] - The company's recent quarterly earnings report showed a revenue increase of 23.5% year-over-year, surpassing consensus estimates [4] Institutional Holdings - Vanguard Group Inc. increased its position by 0.4%, owning 8,871,984 shares valued at $283.9 million after purchasing an additional 35,458 shares [1] - TimesSquare Capital Management LLC raised its holdings by 6.5%, now owning 3,622,911 shares valued at $115.9 million after an additional purchase of 222,635 shares [1] - AllianceBernstein L.P. significantly increased its position by 1,974.0%, owning 2,151,008 shares worth $68.8 million after acquiring 2,047,294 shares [1] Analyst Ratings - Canaccord Genuity Group raised its target price from $52.00 to $55.00, maintaining a "buy" rating [2] - KeyCorp increased its target price from $52.00 to $57.00, giving an "overweight" rating [2] - The average rating for JFrog's stock is "Moderate Buy" with a consensus target price of $53.44 [2] Stock Performance - JFrog's stock opened at $47.48, with a market cap of $5.54 billion and a PE ratio of -61.66 [3] - The stock has a 52-week range with a low of $27.00 and a high of $51.94 [3] Earnings Report - JFrog reported earnings per share (EPS) of $0.18, exceeding the consensus estimate of $0.16 by $0.02 [4] - Revenue for the quarter was $127.2 million, above the consensus estimate of $122.8 million [4] - The company has set FY 2025 guidance at 0.680-0.70 EPS and Q3 2025 guidance at 0.150-0.17 EPS [4] Insider Transactions - CRO Tali Notman sold 13,067 shares at an average price of $50.26, reducing her position by 1.94% [5] - Director Yvonne Wassenaar sold 1,372 shares at an average price of $47.94, decreasing her ownership by 4.47% [5] - Over the last ninety days, insiders sold 481,492 shares worth $23.1 million, with insiders currently owning 14.10% of the stock [5] Company Overview - JFrog Ltd. provides a hybrid software supply chain platform, including products like JFrog Artifactory and JFrog Xray, which help organizations manage and secure their software packages [7]