JFrog(US:FROG)2025-11-06 21:14Financial 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]