JFrog(US:FROG)2025-11-07 21:11Revenue and Growth - Revenue for the three months ended September 30, 2025, was $136.9 million, representing a 26% growth compared to $109.1 million for the same period in 2024[94] - SaaS subscriptions contributed 46% of total revenue for the three months ended September 30, 2025, up from 39% in the same period of 2024[91] - Enterprise Plus subscriptions accounted for approximately 56% of total revenue for the three months ended September 30, 2025, compared to about 50% in the same period of 2024[92] - Total subscription revenue for the three months ended September 30, 2025, was $136,907,000, representing a 26% increase from $109,056,000 in the same period of 2024[121] - Subscription revenue from self-managed and SaaS increased by $25,405,000, or 25%, from $103,487,000 in Q3 2024 to $128,892,000 in Q3 2025[121] - Total subscription revenue for the nine months ended September 30, 2025, was $386,534,000, an increase of $74,124,000 or 24% compared to $312,410,000 in 2024[134] Customer Metrics - The net dollar retention rate was 118% as of September 30, 2025, compared to 117% in the same period of 2024[100] - As of September 30, 2025, there were 1,121 customers with an ARR of $100,000 or more, up from 1,018 customers as of December 31, 2024[101] Financial Performance - The company had a net loss of $16.4 million for the three months ended September 30, 2025, compared to a net loss of $22.9 million in the same period of 2024[94] - Net loss for the three months ended September 30, 2025, was $16,431,000, compared to a net loss of $22,945,000 in the same period of 2024[121] - Free cash flow for the nine months ended September 30, 2025, was $92.4 million, an increase from $59.3 million in 2024[106] Expenses and Investments - Operating expenses totaled $127,597,000 for Q3 2025, an increase of 14% from $111,685,000 in Q3 2024[123] - Research and development expenses rose to $51,167,000, a 19% increase from $42,996,000 in Q3 2024, primarily due to increased headcount[125] - Sales and marketing expenses increased by 10% to $55,969,000 in Q3 2025, compared to $50,956,000 in Q3 2024[126] - Research and development expenses rose to $141,926,000 for the nine months ended September 30, 2025, an increase of $25,981,000 or 22% from $115,945,000 in 2024[137] - Sales and marketing expenses increased to $164,212,000 for the nine months ended September 30, 2025, reflecting a rise of $23,789,000 or 17% compared to $140,423,000 in 2024[138] - General and administrative expenses increased to $59,644,000 for the nine months ended September 30, 2025, up by $7,707,000 or 15% from $51,937,000 in 2024[140] - Total share-based compensation expense increased to $115,714,000 for the nine months ended September 30, 2025, a rise of $23,377,000 or 25% compared to $92,337,000 in 2024[141] Cash Flow and Liquidity - Net cash provided by operating activities was $95,034,000 for the nine months ended September 30, 2025, compared to $61,806,000 in 2024, reflecting an increase of $33,228,000[148] - As of September 30, 2025, the company had cash, cash equivalents, and short-term investments totaling $651.1 million, indicating strong liquidity[146] - Net cash used in investing activities was $96,757,000 for the nine months ended September 30, 2025, primarily due to net purchases of short-term investments[151] - Net cash provided by financing activities for the nine months ended September 30, 2024, was $16.8 million, primarily from share options and employee share purchases[154] Operational Strategies - The company plans to increase investment in sales and marketing to support growth and attract new customers[114] - The company aims to enhance its software supply chain platform by developing new products and expanding existing functionalities[97] - The company has activated a comprehensive business continuity plan to ensure operations remain consistent amid geopolitical tensions[96] Risk Management - The company has established a hedging program to mitigate foreign currency exchange risks, particularly related to expenses denominated in NIS[162] - A hypothetical 10% change in foreign currency exchange rates would not have materially impacted the company's results for the three and nine months ended September 30, 2025[162] - A hypothetical 1% increase in interest rates would not have materially affected the fair value of cash and cash equivalents as of September 30, 2025[165] - The company does not believe inflation has materially affected its financial condition, but rising costs could impact operations if not offset by price increases[166] - The company maintains that it has sufficient liquidity from operations to fulfill its contractual commitments[157] Contractual Obligations - As of September 30, 2025, total non-cancellable contractual obligations amounted to $85.3 million, with operating lease obligations of $11.98 million and purchase obligations of $73.35 million[155] - An additional commitment of $110.0 million for an operating lease will commence in 2026 with a 10-year term[155] - In October 2025, the company entered into a lease agreement extending occupancy for 5.4 years, totaling $8.1 million[156] - As of September 30, 2025, cash and cash equivalents were $78.4 million, and short-term investments were $572.7 million[165]