SUNNYVALE, Calif. & PARIS--(BUSINESS WIRE)--(KubeCon + CloudNativeCon Europe) — JFrog Ltd. (“JFrog”) (NASDAQ: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today released the findings of its annual Software Supply Chain State of the Union report 2024, which identifies emerging development trends, risks and best practices for securing enterprise software supply chains. “DevSecOps teams worldwide are navigating a volatile field of software security, where inno ...

SUNNYVALE, Calif.--(BUSINESS WIRE)--JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced a new technology integration with Qwak, a fully managed ML Platform, that brings machine learning models alongside traditional software development processes to streamline, accelerate, and scale the secure delivery of ML applications. “Currently, data scientists and ML engineers are using a myriad of disparate tools, which are mostl ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) JFrog provides an end-to-end 'Liquid Software' platform, automating and securing the software supply chain with Artifactory at its core - JFrog's vision is to enable "Liquid Software" through its end-to-end, hybrid, universal Software Supply Chain Platform, which bridges software development and deployment[22](index=22&type=chunk)[23](index=23&type=chunk) - The company's platform is built around JFrog Artifactory, the first universal package repository, which acts as the central "database of DevOps" for an organization's software packages[26](index=26&type=chunk)[35](index=35&type=chunk)[38](index=38&type=chunk) | Metric | Value (as of Dec 31, 2023) | | :--- | :--- | | Total Customers | ~7,400 organizations | | Fortune 100 Customers | ~83% | | Customers with ARR > $100,000 | 886 | | Customers with ARR > $1.0 million | 37 | | Revenue from outside the U.S. (FY 2023) | ~38% | - JFrog's business model combines a bottom-up, community-focused approach with a top-down enterprise sales strategy, offering multi-tiered subscriptions (Pro, Pro X, Enterprise X, Enterprise Plus)[46](index=46&type=chunk)[47](index=47&type=chunk) [Our Platform and Products](index=7&type=section&id=Item%201.%20Business%23Our%20Platform) The JFrog Platform, centered on Artifactory, offers integrated products for curation, security, distribution, and CI/CD - The platform offers a cohesive, end-to-end solution with JFrog Artifactory at its core, supplemented by products for curation, security, distribution, and CI/CD[37](index=37&type=chunk)[40](index=40&type=chunk) - Key products include: - **JFrog Artifactory:** Universal package repository and single source of truth - **JFrog Curation:** Controls admission of open source packages - **JFrog Xray & Advanced Security:** Scans for vulnerabilities, license compliance, and provides advanced binary-focused security - **JFrog Distribution & Artifactory Edge:** Enables reliable and efficient software distribution to multiple locations and edge devices - **JFrog Pipelines:** Automates and orchestrates the CI/CD workflow[38](index=38&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk) - The platform is expanding to include MLOps functionality, managing machine learning models and their dependencies to unite MLOps with DevSecOps practices[39](index=39&type=chunk) [Business Model and Growth Strategies](index=12&type=section&id=Item%201.%20Business%23Business%20Model) JFrog employs a hybrid go-to-market strategy with multi-tiered subscriptions, focusing on technology leadership and customer expansion - The company utilizes a dual bottom-up (community-focused) and top-down (enterprise-focused) sales approach[46](index=46&type=chunk) - Subscription tiers include JFrog Pro, Pro X, Enterprise X, and the full-platform Enterprise Plus. Optional add-ons like JFrog Advanced Security and JFrog Curation are available for higher tiers[47](index=47&type=chunk)[50](index=50&type=chunk) - Key growth strategies include: - Extending technology leadership in DevSecOps, MLOps, and edge solutions - Expanding within the existing customer base, highlighted by a net dollar retention rate of **119% as of Dec 31, 2023** - Acquiring new customers through free trials, open source versions, and targeting new user personas like AI/ML Engineers - Expanding channel and alliance partnerships, especially with cloud providers[50](index=50&type=chunk)[51](index=51&type=chunk) [Competition](index=17&type=section&id=Item%201.%20Business%23Competition) JFrog faces fragmented competition from in-house solutions, DevOps vendors, cloud providers, and security point solutions - Competition is fragmented and comes from various sources: - **Home-grown solutions:** In-house tools built by companies for specific needs - **DevOps vendors:** Companies like Microsoft's GitHub, GitLab, Cloudsmith, and Sonatype - **Cloud providers:** AWS, Microsoft Azure, and Google Cloud, which offer competing functionalities - **Security point solutions:** Aqua Security, Snyk, Sonatype, and Synopsys - **Diversified vendors:** IBM (Red Hat) and Broadcom (VMware)[63](index=63&type=chunk)[71](index=71&type=chunk) - Many competitors possess greater financial resources, brand recognition, and larger sales forces[64](index=64&type=chunk) [Human Capital](index=20&type=section&id=Item%201.%20Business%23Human%20Capital) JFrog has approximately 1,400 global employees, guided by a 'CODEX' culture and committed to Diversity, Inclusion, and Equity - The company had approximately **1,400 employees globally** as of December 31, 2023, with about **750 in Israel** and **350 in the U.S**[74](index=74&type=chunk) - The corporate culture is guided by the "CODEX," a set of values created by employees, emphasizing integrity, community, innovation, and teamwork[75](index=75&type=chunk)[76](index=76&type=chunk) - JFrog highlights its commitment to DEI, noting that three of its nine board members and four of its twelve executive management team members are women[79](index=79&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from rapid growth, net losses, competition, cybersecurity threats, and geopolitical instability in Israel - The business has experienced rapid growth, and failure to manage future growth, improve systems, and maintain corporate culture could adversely affect operations[89](index=89&type=chunk)[91](index=91&type=chunk) - The company has a history of net losses (**$61.3 million in 2023, $90.2 million in 2022**) and may not achieve profitability on a consistent basis as it continues to invest in growth[94](index=94&type=chunk) - A breach of security measures or unauthorized data access could lead to loss of customer trust, litigation, and significant liabilities. The company is subject to complex and changing privacy laws like GDPR and CCPA[192](index=192&type=chunk)[179](index=179&type=chunk) - A material part of R&D is conducted in Israel, and operations could be adversely affected by geopolitical conditions, such as the Israel-Hamas war, which has led to employee reservist call-ups[239](index=239&type=chunk)[240](index=240&type=chunk)[241](index=241&type=chunk) - The business is highly dependent on its core product, JFrog Artifactory. Any decline in its demand or performance would significantly impact the company's financial condition[117](index=117&type=chunk) [Cybersecurity](index=69&type=section&id=Item%201C.%20Cybersecurity) JFrog's cybersecurity program, led by the CSO, is certified against ISO and SOC 2 standards, with Board oversight - The cybersecurity program is led by the Chief Security Officer (CSO) in partnership with the Chief Information Officer (CIO), who leads the Governance Risk and Compliance (GRC) function[264](index=264&type=chunk) - The company's information security controls are certified against ISO 27001, ISO 27701, ISO 27017, and SOC 2 Type II standards, and are aligned with NIST cybersecurity practices[267](index=267&type=chunk) - The Board of Directors, through its Audit Committee, provides oversight of the information security program, receiving updates at least twice a year[272](index=272&type=chunk) - As of the report date, JFrog is not aware of any cybersecurity threats that have materially affected or are reasonably likely to materially affect the company[271](index=271&type=chunk) [Properties](index=71&type=section&id=Item%202.%20Properties) JFrog leases all its facilities, with co-headquarters in Sunnyvale, California, and Netanya, Israel - The company is co-headquartered in Sunnyvale, California, and Netanya, Israel[275](index=275&type=chunk) - JFrog leases approximately **49,000 sq. ft. in Sunnyvale, CA** (leases expiring through 2026) and **52,000 sq. ft. in Netanya, Israel** (lease expiring in 2026)[275](index=275&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=72&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) JFrog's ordinary shares trade on Nasdaq under 'FROG', with no cash dividends paid or anticipated in the foreseeable future - The company's ordinary shares are listed on the Nasdaq Global Select Market under the ticker symbol "FROG"[280](index=280&type=chunk) - JFrog has never declared or paid cash dividends and does not intend to in the foreseeable future[282](index=282&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=74&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) JFrog's 2023 revenue grew 25% to $349.9 million, with improved net loss and strong liquidity, driven by customer expansion | Financial Metric | FY 2023 | FY 2022 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $349.9M | $280.0M | 25% | | Net Loss | ($61.3M) | ($90.2M) | (32%) | | SaaS Revenue % of Total | 34% | 28% | N/A | | Enterprise Plus Revenue % of Total | 46% | 38% | N/A | - The net dollar retention rate was **119%** as of December 31, 2023, down from 128% as of December 31, 2022. The company expects this rate to stabilize around current levels[304](index=304&type=chunk) - The number of customers with ARR of **$100,000 or more grew from 736 in 2022 to 886 in 2023**. Customers with ARR of **$1.0 million or more increased from 19 to 37** in the same period[305](index=305&type=chunk) - The company generated positive free cash flow of **$72.2 million in 2023**, a significant increase from $17.1 million in 2022[310](index=310&type=chunk) [Results of Operations (2023 vs. 2022)](index=82&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Results%20of%20Operations) Total revenue increased 25% to $349.9 million, with stable gross margin and reduced operating loss, improving net loss to $61.3 million | Metric | 2023 (in thousands) | 2022 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $349,886 | $280,040 | 25% | | Gross Profit | $272,843 | $217,753 | 25% | | Gross Margin | 78% | 78% | 0% | | Operating Loss | ($75,548) | ($89,840) | (16%) | | Net Loss | ($61,256) | ($90,184) | (32%) | - The increase in total revenue was driven by approximately **$64.5 million in growth** from existing customers[327](index=327&type=chunk) - Total share-based compensation expense increased by **39% to $95.2 million in 2023** from $68.7 million in 2022, primarily due to grants to new and existing employees[333](index=333&type=chunk) [Liquidity and Capital Resources](index=85&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%23Liquidity%20and%20Capital%20Resources) JFrog maintains strong liquidity with $545.0 million in cash and investments, generating $74.2 million in operating cash flow in 2023 - The company's principal sources of liquidity as of December 31, 2023, were cash, cash equivalents, and short-term investments totaling **$545.0 million**[337](index=337&type=chunk) | Cash Flow Activity (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,155 | $21,425 | | Net cash used in investing activities | ($53,476) | ($53,338) | | Net cash provided by financing activities | $18,371 | $11,027 | - As of December 31, 2023, the company had non-cancelable contractual obligations totaling **$56.1 million**, primarily for hosting services and operating leases[346](index=346&type=chunk) [Financial Statements and Supplementary Data](index=90&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents audited consolidated financial statements for 2021-2023, with an unqualified auditor's opinion - The independent auditor's report, issued by Kost Forer Gabbay & Kasierer, expressed an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting[363](index=363&type=chunk)[373](index=373&type=chunk) - The auditor identified the evaluation of Standalone Selling Prices (SSPs) for self-managed subscription and license performance obligations as a critical audit matter due to the subjective judgment required[368](index=368&type=chunk)[369](index=369&type=chunk) | Balance Sheet Item (in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $972,556 | $871,221 | | Total Liabilities | $293,433 | $246,448 | | Total Shareholders' Equity | $679,123 | $624,773 | | Statement of Operations (in thousands) | FY 2023 | FY 2022 | FY 2021 | | :--- | :--- | :--- | :--- | | Total Revenue | $349,886 | $280,040 | $206,683 | | Gross Profit | $272,843 | $217,753 | $164,860 | | Operating Loss | ($75,548) | ($89,840) | ($68,369) | | Net Loss | ($61,256) | ($90,184) | ($64,203) | [Controls and Procedures](index=132&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and internal control over financial reporting as of December 31, 2023 - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[516](index=516&type=chunk) - Management concluded that the internal control over financial reporting was effective as of December 31, 2023, a conclusion audited and confirmed by the company's independent registered public accounting firm[518](index=518&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended December 31, 2023, that have materially affected, or are reasonably likely to materially affect, the internal controls[519](index=519&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, and Principal Accountant Fees](index=134&type=section&id=Item%2010-14) Information on governance, compensation, and related matters is incorporated by reference from the forthcoming 2024 proxy statement - Information regarding directors, executive officers, corporate governance, executive compensation, security ownership, related transactions, and accountant fees is incorporated by reference from the forthcoming Proxy Statement[526](index=526&type=chunk)[528](index=528&type=chunk)[529](index=529&type=chunk)[530](index=530&type=chunk)[531](index=531&type=chunk) - The company has adopted a Code of Business Conduct and Ethics, which is available on its investor relations website[527](index=527&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=135&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section provides an index of all exhibits filed with the Form 10-K, including corporate governance documents and executive certifications - This section provides an index of all exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and executive certifications[534](index=534&type=chunk)[535](index=535&type=chunk) [Form 10-K Summary](index=137&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided in this report - No summary is provided for Item 16[539](index=539&type=chunk)

Financial Data and Key Metrics Changes - JFrog's Q3 2023 revenue was $88.6 million, reflecting a 23% year-over-year growth [8][56] - Non-GAAP profit for the quarter was $16.6 million, with free cash flow of $25.4 million [22][37] - Operating profit was $11.9 million, representing a 13.4% operating margin compared to 1.7% in the prior year [37] - Net dollar retention for the trailing four quarters was 119%, a decline of one point sequentially [36] Business Line Data and Key Metrics Changes - Cloud revenue reached $30.6 million, increasing 46% year-over-year [8][35] - Self-managed revenues were $58 million, up 14% year-over-year [57] - Customers with ARR over $1 million increased to 30, a 67% increase compared to the previous year [9] Market Data and Key Metrics Changes - Customers with ARR over $100,000 grew to 848, a 22% year-over-year increase [22] - 46% of total revenue came from Enterprise Plus subscriptions, up from 39% in Q3 2022 [36] Company Strategy and Development Direction - JFrog is focusing on large-scale enterprise adoption of its software supply chain platform, driven by strategic sales and cloud partnerships [11][31] - The company is expanding into machine learning operations and AI solutions, integrating security for ML models [33][54] - JFrog aims to consolidate security solutions under one vendor to enhance customer value [27][68] Management's Comments on Operating Environment and Future Outlook - Management remains confident in meeting 2023 business goals despite the ongoing conflict in Israel [7][21] - The company anticipates continued growth in cloud adoption and security solutions as key drivers for future revenue [35][57] - Management noted that macroeconomic headwinds are impacting the pace of migrations but cloud usage continues to grow [110] Other Important Information - JFrog appointed Orit Goren as Chief Sustainability Officer, emphasizing its commitment to responsible business practices [40] - The company has a strong cash position with $502 million in cash and short-term investments as of September 30, 2023 [59] Q&A Session Summary Question: Can you walk us through the cloud optimizations and the acceleration of cloud revenue growth? - Management noted positive momentum in cloud usage, driven by large customers and marketplace growth [64][65] Question: What is the opportunity for advanced security and curation going into Q4? - Advanced security and curation are expected to support revenue growth, with significant adoption already seen [68] Question: How does AI and ML impact the usage of the cloud Artifactory? - AI and ML adoption is expected to accelerate platform usage as enterprises seek to secure and automate their processes [102][104] Question: Can customers buy security solutions without Artifactory? - Currently, security solutions are integrated with the platform and not available as standalone products [100] Question: How are optimization headwinds affecting the company? - Management believes optimization headwinds are behind them, with continued growth in cloud usage [110]

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, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 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 98-0680649 (I.R ...

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 ...