JFrog(US:FROG)2023-05-03 16:00Revenue Performance - Revenue for the three months ended March 31, 2023, was $79.8 million, representing a 25% increase from $63.7 million in the same period of 2022[82]. - Total subscription revenue for the three months ended March 31, 2023, was $79,820,000, representing a 25% increase from $63,696,000 in the same period of 2022[108]. Customer Metrics - SaaS subscription revenue contributed 31% of total revenue for Q1 2023, up from 26% in Q1 2022[79]. - Revenue from Enterprise Plus subscriptions accounted for approximately 44% of total revenue in Q1 2023, compared to 35% in Q1 2022[80]. - The number of customers with an ARR of $100,000 or more increased to 785 as of March 31, 2023, from 736 as of December 31, 2022[88]. - The net dollar retention rate was 124% as of March 31, 2023, down from 131% in the same period of 2022[87]. Financial Performance - The company reported a net loss of $20.8 million for Q1 2023, compared to a net loss of $19.7 million in Q1 2022[82]. - Free cash flow for Q1 2023 was $(1.4) million, compared to $3.9 million in Q1 2022[93]. - Operating loss for the three months ended March 31, 2023, was $(23,213,000), compared to $(19,139,000) in the same period of 2022[108]. - Gross profit for the three months ended March 31, 2023, was $61,399,000, with a gross margin of 77%, slightly down from 78% in 2022[109][110]. Expenses - Research and development expenses increased by 29% to $34,886,000 for the three months ended March 31, 2023, primarily due to increased headcount and share-based compensation[111]. - Sales and marketing expenses rose by 22% to $35,486,000 for the three months ended March 31, 2023, driven by higher personnel-related costs and commissions[112]. - Share-based compensation expense increased by 41% to $19,912,000 for the three months ended March 31, 2023, reflecting grants to new and existing employees[114]. Cash Flow and Financing - As of March 31, 2023, the company had cash, cash equivalents, and short-term investments totaling $447,200,000, sufficient to meet operational needs for the next 12 months[118]. - Net cash used in operating activities for the three months ended March 31, 2023, was $(1,129,000), a decrease from $5,031,000 in the same period of 2022[120]. - The company may seek additional equity or debt financing in the future to support growth and expansion efforts[119]. - Net cash used in investing activities for Q1 2023 was $9.2 million, primarily from net purchases of short-term investments of $8.9 million[123]. - Net cash provided by financing activities for Q1 2023 was $5.0 million, mainly from employee share purchases of $3.5 million and share options exercise of $1.2 million[124]. Obligations and Investments - Total non-cancellable contractual obligations as of March 31, 2023, amounted to $82.2 million, with $28.7 million in operating lease obligations and $53.5 million in purchase obligations[126]. - Cash and cash equivalents as of March 31, 2023, were $40.3 million, with short-term investments totaling $406.8 million[134]. Strategic Initiatives - The company plans to continue investing in research and development to enhance its product offerings and maintain technology leadership[84]. - The company aims to expand its customer base through self-service and inbound sales models, leveraging freemium offerings and free trials[89]. - International expansion is viewed as a significant opportunity, with ongoing efforts to increase brand awareness in global markets[90]. Economic Factors - A hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the results of operations for Q1 2023[131]. - The company does not believe inflation has materially affected its business, but rising costs could harm financial condition and results[135].