Core Insights - JFrog Ltd. reported revenue of $122.41 million for the quarter ended March 2025, marking a year-over-year increase of 22% and exceeding the Zacks Consensus Estimate of $117.19 million by 4.45% [1] - The company achieved an EPS of $0.20, which is an increase from $0.16 a year ago, resulting in an EPS surprise of 25% compared to the consensus estimate of $0.16 [1] Financial Performance Metrics - JFrog has 1,051 customers with over $100k in ARR, surpassing the average estimate of 1,037 based on two analysts [4] - Revenue from self-managed licenses was reported at $5.98 million, exceeding the average estimate of $5.40 million from seven analysts, reflecting a year-over-year change of 22% [4] - Subscription revenue from self-managed and SaaS totaled $116.43 million, compared to the average estimate of $111.71 million from seven analysts, also showing a year-over-year increase of 22% [4] - SaaS subscription revenue reached $52.61 million, exceeding the estimated $49.78 million from six analysts [4] - Revenue from self-managed subscriptions was reported at $69.80 million, surpassing the average estimate of $67.34 million from six analysts [4] Stock Performance - JFrog's shares have returned +16% over the past month, outperforming the Zacks S&P 500 composite's +13.7% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Part I [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section presents JFrog Ltd.'s unaudited condensed consolidated financial statements for Q1 2025, reporting **$122.4 million** in revenue and an **$18.5 million** net loss [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$1.16 billion** as of March 31, 2025, driven by short-term investments, with stable liabilities and growing equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $44,350 | $49,869 | | Short-term investments | $519,157 | $472,138 | | Total current assets | $682,134 | $649,227 | | Total assets | $1,156,229 | $1,129,906 | | **Liabilities & Equity** | | | | Deferred revenue (current) | $250,145 | $247,187 | | Total liabilities | $356,193 | $356,380 | | Total shareholders' equity | $800,036 | $773,526 | | Total liabilities and shareholders' equity | $1,156,229 | $1,129,906 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 total subscription revenue grew **22%** to **$122.4 million**, but operating and net losses widened due to higher expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total subscription revenue | $122,407 | $100,311 | | Gross profit | $92,226 | $79,707 | | Total operating expenses | $115,196 | $96,343 | | Operating loss | $(22,970) | $(16,636) | | Net loss | $(18,503) | $(8,790) | | Net loss per share, basic and diluted | $(0.16) | $(0.08) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations increased to **$28.8 million** in Q1 2025, while investing activities used **$45.8 million** for short-term investments Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $28,792 | $17,469 | | Net cash used in investing activities | $(45,782) | $(46,921) | | Net cash provided by financing activities | $11,505 | $16,595 | | Net decrease in cash, cash equivalents, and restricted cash | $(5,519) | $(13,380) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue disaggregation showing a SaaS shift, **$424.2 million** RPO, and **$36.8 million** share-based compensation Revenue by Category (Q1 2025 vs Q1 2024) | Category | Q1 2025 Revenue | % of Total | Q1 2024 Revenue | % of Total | | :--- | :--- | :--- | :--- | :--- | | Self-managed subscription | $69,797k | 57% | $63,390k | 63% | | SaaS | $52,610k | 43% | $36,921k | 37% | | **Total** | **$122,407k** | **100%** | **$100,311k** | **100%** | * As of March 31, 2025, remaining performance obligations (RPO) totaled **$424.2 million**, with **68%** expected to be recognized as revenue over the next 12 months[37](index=37&type=chunk) * Total share-based compensation expense was **$36.8 million** for Q1 2025, with **$290.6 million** unrecognized cost to be recognized over 2.6 years[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial performance, including **22%** revenue growth to **$122.4 million**, driven by SaaS and Enterprise Plus subscriptions * Revenue from SaaS subscriptions grew to **43%** of total revenue in Q1 2025, indicating a continued shift in business mix[80](index=80&type=chunk) * The net dollar retention rate was **116%** as of March 31, 2025, expected to remain relatively stable[89](index=89&type=chunk) * Customers with **$100,000+ ARR** increased to **1,051**, and those with **$1.0 million+ ARR** increased to **54** as of March 31, 2025[90](index=90&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Total revenue grew **22%** to **$122.4 million** in Q1 2025, while gross margin decreased to **75%** and operating expenses rose **21-22%** Revenue Change (Q1 2025 vs Q1 2024, in thousands) | Category | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total subscription revenue | $122,407 | $100,311 | $22,096 | 22% | * Cost of revenue increased **46%** year-over-year, driven by **$3.8 million** in third-party hosting costs and **$2.1 million** in intangible amortization[111](index=111&type=chunk) * Operating expenses increased across all categories, with R&D up **$7.5 million (21%)**, Sales & Marketing up **$9.2 million (21%)**, and G&A up **$2.1 million (12%)**[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Principal liquidity sources totaled **$563.5 million** as of March 31, 2025, with **$28.8 million** net cash from operations and **$61.0 million** in contractual obligations * As of March 31, 2025, principal liquidity sources were cash, cash equivalents, and short-term investments totaling **$563.5 million**[121](index=121&type=chunk) * Net cash provided by operating activities was **$28.8 million** for Q1 2025, driven by a net loss adjusted for **$44.0 million** in non-cash charges[124](index=124&type=chunk)[125](index=125&type=chunk) Contractual Obligations as of March 31, 2025 (in thousands) | Obligation Type | Total | 2025 (Remainder) | 2026 and Thereafter | | :--- | :--- | :--- | :--- | | Operating lease obligations | $12,644 | $6,144 | $6,500 | | Purchase obligations | $48,382 | $13,688 | $34,694 | | **Total** | **$61,026** | **$19,832** | **$41,194** | [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces foreign currency exchange risk, primarily USD/NIS, mitigated by hedging, and interest rate risk on investments, with inflation not a material factor * The primary market risk is foreign currency exchange, as Israeli operating costs are in NIS while revenues are primarily in USD[133](index=133&type=chunk) * JFrog uses a hedging program to reduce exchange rate volatility, with a hypothetical **10%** change not materially impacting results[134](index=134&type=chunk) * Interest rate risk on **$563.5 million** in cash and investments is not material, as a hypothetical **1%** rate increase would not significantly impact fair value[137](index=137&type=chunk)[138](index=138&type=chunk)[121](index=121&type=chunk) [Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting * The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[141](index=141&type=chunk) * No material changes to internal control over financial reporting occurred during the quarter[142](index=142&type=chunk) Part II [Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is not aware of any current legal proceedings that would materially adversely affect its business or financial results * The company is not aware of any current legal proceedings that would have a material adverse effect on its business[59](index=59&type=chunk)[145](index=145&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant business risks, including growth management, intense competition, foreign operations in Israel, cybersecurity, and intellectual property * Inability to effectively manage significant growth and scale systems could adversely affect financial results[148](index=148&type=chunk) * Significant competition comes from DevOps companies, large cloud providers, and security point solution providers[162](index=162&type=chunk)[168](index=168&type=chunk) * Operations in Israel, where a material part of R&D is located, are susceptible to disruptions from ongoing regional conflict[293](index=293&type=chunk)[294](index=294&type=chunk)[296](index=296&type=chunk) * Security breaches could lead to customer loss, liability, and reputational damage, heightened by geopolitical tensions and sophisticated cyberattacks[241](index=241&type=chunk)[244](index=244&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period covered by this report * None[318](index=318&type=chunk) [Default Upon Senior Securities](index=65&type=section&id=Item%203.%20Default%20Upon%20Senior%20Securities) This item is not applicable to the company * Not applicable[319](index=319&type=chunk) [Mine Safety Disclosures](index=65&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company * Not applicable[320](index=320&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) CEO Shlomi Ben Haim adopted a Rule 10b5-1 trading plan on March 3, 2025, for the potential sale of up to **822,565** ordinary shares * On March 3, 2025, CEO Shlomi Ben Haim adopted a Rule 10b5-1 trading arrangement for the sale of up to **822,565** ordinary shares[322](index=322&type=chunk) [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including SOX certifications from the CEO and CFO, and Inline XBRL documents * The report includes required certifications from the CEO and CFO under SOX Sections 302 and 906, along with interactive data files (XBRL)[327](index=327&type=chunk)

Core Insights - JFrog Ltd. held its Q1 2025 earnings conference call on May 8, 2025, to discuss financial results and future outlook [1][2][3] Company Overview - The call was led by CEO and Co-Founder Shlomi Ben Haim and CFO Ed Grabscheid, with Jeffrey Schreiner serving as the VP of Investor Relations [3] Financial Performance - The financial results for Q1 2025 were announced after market close on the same day, indicating a structured approach to investor communication [2][3] Forward-Looking Statements - The company provided forward-looking statements regarding its future financial performance and outlook for Q2 and the full year of 2025, emphasizing the importance of not placing undue reliance on these projections [4]

Core Insights - JFrog Ltd. reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, marking a 25% earnings surprise [1] - The company achieved revenues of $122.41 million for the quarter, surpassing the Zacks Consensus Estimate by 4.45% and showing a year-over-year increase from $100.31 million [2] - JFrog has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Performance - The earnings surprise of 25% for the recent quarter follows a previous surprise of 35.71% when the company reported $0.19 per share against an expectation of $0.14 [1] - The current consensus EPS estimate for the upcoming quarter is $0.16, with projected revenues of $120.85 million, and for the current fiscal year, the estimate is $0.68 on revenues of $500.25 million [7] Stock Performance - JFrog shares have increased approximately 17.5% since the beginning of the year, contrasting with a decline of 4.3% in the S&P 500 [3] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6] Industry Context - The Internet - Software industry, to which JFrog belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $122.4 million, representing a 22% year-over-year increase [8][18]. - Operating margin improved to 17.4%, up from 14% in Q1 2024 [22]. - Cloud revenue reached $52.6 million, a 42% increase year-over-year, accounting for 43% of total revenue compared to 37% in the prior year [18][19]. - Gross profit was $101 million, with a gross margin of 82.5%, down from 85.1% year-over-year [21]. - Free cash flow for Q1 was $28.1 million, reflecting a 23% margin compared to 17% in the previous year [23]. Business Line Data and Key Metrics Changes - Self-managed or on-premises revenues were $69.8 million, up 10% year-over-year [19]. - Revenue contribution from Enterprise Plus subscriptions grew to 50% of total revenues, up from 49% in the prior year, with a 37% year-over-year growth in this segment [19][20]. Market Data and Key Metrics Changes - The number of customers spending over $1 million annually increased to 54, a 35% growth year-over-year [9]. - Customers spending more than $100,000 annually grew to 1,051, a 15% increase year-over-year [9]. Company Strategy and Development Direction - The company is focusing on capturing momentum in cloud, DevOps, security, and MLOps markets [10][11]. - JFrog aims to unify DevOps, DevSecOps, and MLOps in a single solution, enhancing its position in the market [11][27]. - The partnership with Hugging Face aims to secure open-source machine learning models, indicating a strategic focus on AI and security [12][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding macroeconomic uncertainties affecting sales cycles and customer commitments [10][24]. - The outlook for Q2 and the full year 2025 reflects a conservative approach due to market volatility, with expected revenue growth of 19% year-over-year for Q2 [24][25]. - The company anticipates a full-year cloud growth rate of 31% to 33% [25]. Other Important Information - The company reported a net dollar retention rate of 116% and a gross retention rate of 97% [21]. - JFrog's cash and short-term investments totaled $563.5 million at the end of Q1 2025, up from $522 million at the end of 2024 [23]. Q&A Session Summary Question: Clarification on cloud consumption above commitment - Management confirmed that the increased consumption was broad-based across various customers and industries, not limited to a narrow set [33]. Question: Details on a significant deal with an AI technology leader - The deal involves using JFrog as the system of record for all models, with potential future expansions into security and ML models [35][36]. Question: Guidance construction and macro impact - The company remains cautious due to market uncertainty and has derisked its guidance by excluding large deals [40][41]. Question: Customer behavior regarding cloud commitments - Customers exceeding their commitments may continue to use services but are in a rigid purchasing environment, making future commitments uncertain [52]. Question: RPO growth and deal concentration - RPO growth was broad-based, not concentrated in a few large deals, indicating strong demand across multiple customers [56]. Question: Security sales cycles and renewals - Sales cycles for security remain consistent, with renewals aligned with projections and some upselling occurring [102].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $122.4 million, representing a 22% year-over-year increase [6][18] - Operating margin improved to 17.4%, up from 14% in Q1 2024 [21] - Cloud revenue reached $52.6 million, a 42% increase year-over-year, accounting for 43% of total revenue compared to 37% in the prior year [18][19] - Gross profit was $101 million, with a gross margin of 82.5%, down from 85.1% in the previous year [20] - Cash flow from operations was $28.8 million, leading to a free cash flow of $28.1 million, or a 23% margin, compared to 17% in the year-ago period [22] Business Line Data and Key Metrics Changes - Self-managed or on-premises revenues were $69.8 million, up 10% year-over-year [19] - Revenue contribution from Enterprise Plus subscriptions grew to 50% of total revenues, up from 49% in the prior year, with a 37% year-over-year growth [19] Market Data and Key Metrics Changes - The number of customers spending over $1 million annually increased to 54, a 35% growth year-over-year [7] - Customers spending more than $100,000 annually grew to 1,051, a 15% increase year-over-year [7] Company Strategy and Development Direction - JFrog is focusing on capturing momentum in cloud, DevOps, security, and MLOps areas [9] - The company is strategically investing in multi-cloud and hybrid solutions, aiming to migrate self-hosted customers to JFrog SaaS offerings [9] - JFrog aims to unify DevOps, DevSecOps, and MLOps in a single platform, enhancing its position in the market [10] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding macroeconomic uncertainties affecting sales cycles and customer commitments [9][23] - The company anticipates a full-year 2025 cloud growth rate of 31% to 33%, excluding any contributions from usage above minimum commitments [24] - Management remains optimistic about the opportunities ahead, despite the challenging market environment [17] Other Important Information - JFrog announced a partnership with Hugging Face to secure open-source machine learning models, highlighting its commitment to security in the AI space [12] - The company released its annual software supply chain state of the union report, emphasizing the importance of security tools in managing vulnerabilities [12] Q&A Session Summary Question: Clarification on cloud consumption above commitment - Management confirmed that the consumption above commitment was broad-based across various customers and industries, with no significant changes in sales cycles noted [31][34] Question: Details on a significant deal with an AI technology leader - The deal involves JFrog's platform as the system of record for models, with potential future expansions into security and ML models [35][36] Question: Guidance construction and macro impact - Management indicated that guidance was conservative due to market uncertainty, with a focus on derisking large deals [40][41] Question: Customer behavior regarding on-prem expansion - No significant changes in customer behavior were observed, with many waiting to migrate to cloud solutions [44] Question: Emphasis on ML opportunity - Management highlighted the integration of ML capabilities into the JFrog platform, noting early customer interest but acknowledging it is too soon to assess its impact on the pipeline [48][107] Question: RPO growth and deal concentration - RPO growth was broad-based, not concentrated in a few large deals, indicating strong demand across multiple customers [55][56] Question: Security sales cycles and renewals - Sales cycles for security remain consistent, with positive reception to renewals and upselling opportunities [100][101]

JFrog Overview - JFrog's Total Addressable Market (TAM) exceeds $40 billion[6] - The company has over 7,300 customers as of FY24[6] - JFrog's Last Twelve Months (LTM) Free Cash Flow for 1Q'25 is $119 million[6] - The LTM Net Dollar Retention Rate for 1Q'25 is 116%[6] - LTM Revenue for 1Q'25 reached $450 million, with a year-over-year growth of 22%[6] - JFrog employs over 1,600 individuals[6] - 82% of the Fortune 100 are JFrog customers[6] Financial Performance & Targets - FY'24 Revenue was $428.5 million[80] - The company projects FY'25 Revenue between $500 million and $505 million[80] - JFrog anticipates FY'27 Revenue to be in the range of $775 million to $825 million[80] - The company's long-term target for Free Cash Flow is between $200 million and $240 million by FY'27[80]

Exhibit 99.1 JFrog Announces First Quarter 2025 Results Sunnyvale, Calif., May 8, 2025 – JFrog Ltd. ("JFrog") (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced financial results for its first quarter ended March 31, 2025. "The JFrog Platform has become the software system of record for organizations, transforming how software is created and delivered by unifying DevOps, DevSecOps, and AI/MLOps in one platform," said Shlomi Ben Haim, CEO and ...

Core Insights - ThoughtSpot has appointed Micheline Nijmeh as Chief Marketing Officer, emphasizing its commitment to transforming business intelligence and empowering decision-makers with data [1][3] - Nijmeh brings extensive experience from leading companies like ZScaler, Salesforce, and JFrog, where she played a crucial role in brand evolution and post-IPO growth [2][3] - Under Nijmeh's leadership, ThoughtSpot aims to enhance its global marketing strategy, increase brand awareness, and drive market growth [3][4] Company Performance - ThoughtSpot reported a significant fiscal growth in Fiscal Year 2024, achieving 40% year-over-year SaaS growth and more than doubling its monthly active users [4] - The company has expanded its AI capabilities with the launch of Spotter, an agentic AI analyst, and Analyst Studio, which supports data teams in preparing data for AI and analytics [4] Leadership Changes - The company has strengthened its senior leadership team, including the appointments of Ketan Karkhanis as CEO, Brad Roberts as CFO, and others in key positions [5] Company Mission and Offerings - ThoughtSpot's mission is to create a fact-driven world by enabling users to explore data, ask questions, and uncover actionable insights quickly [6] - The platform features intuitive natural language search and offers a low-code solution for developers to integrate AI-powered analytics into their products [6] - Industry leaders such as NVIDIA, Hilton Worldwide, and Capital One utilize ThoughtSpot to enhance data-driven decision-making [6]

Group 1 - The stock market is currently fluctuating around all-time highs, leading to concerns about maintaining an overweight exposure in equities [1] - The portfolio is focused on "growth at a reasonable price" stocks, indicating a strategy that balances growth potential with valuation [1] - Gary Alexander has extensive experience in technology companies and startups, contributing to insights on industry trends [1] Group 2 - The article expresses a beneficial long position in the shares of FROG, indicating a positive outlook on this specific stock [2] - The author emphasizes that the article reflects personal opinions and is not influenced by compensation from any company mentioned [2]