JFrog(US:FROG)2024-05-10 20:10Revenue and Growth - Revenue for the three months ended March 31, 2024, was $100.3 million, representing a 26% increase from $79.8 million in the same period of 2023[85]. - SaaS subscriptions contributed 37% of total revenue for Q1 2024, up from 31% in Q1 2023[82]. - Enterprise Plus subscriptions accounted for approximately 49% of total revenue in Q1 2024, compared to 44% in Q1 2023[83]. - Total subscription revenue for Q1 2024 was $100.3 million, a 26% increase from $79.8 million in Q1 2023, driven by $16.9 million growth from existing customers[112]. Customer Metrics - The net dollar retention rate was 118% for Q1 2024, down from 124% in Q1 2023, with expectations to stabilize around current levels[91]. - As of March 31, 2024, the number of customers with an ARR of $100,000 or more increased to 911, up from 886 at the end of 2023[92]. Financial Performance - Free cash flow for Q1 2024 was $16.6 million, a significant improvement from a negative $1.4 million in Q1 2023[96]. - Gross profit for Q1 2024 was $79.7 million, representing a gross margin of 79%, up from 77% in Q1 2023[113]. - Operating loss decreased to $16.6 million in Q1 2024 from $23.2 million in Q1 2023, indicating improved operational efficiency[112]. - Net loss for Q1 2024 was $8.8 million, a significant improvement compared to a net loss of $20.8 million in Q1 2023[112]. Cash Flow and Liquidity - As of March 31, 2024, the company had cash, cash equivalents, and short-term investments totaling $579.6 million, ensuring liquidity for upcoming operational needs[125]. - Net cash provided by operating activities was $17.5 million in Q1 2024, a turnaround from a cash outflow of $1.1 million in Q1 2023[127]. - Net cash used in investing activities for Q1 2024 was $46.9 million, primarily from net purchases of short-term investments of $46.1 million[131]. - Net cash provided by financing activities for Q1 2024 was $16.6 million, including proceeds from share options of $6.8 million and employee share purchases of $4.5 million[132]. - As of March 31, 2024, cash and cash equivalents were $71.4 million, and short-term investments totaled $508.2 million[142]. Expenses and Investments - Operating expenses are expected to increase as the company invests in sales and marketing, research and development, and general administrative functions[104][105]. - Research and development expenses increased by 3% to $35.8 million in Q1 2024, primarily due to a $2.5 million rise in share-based compensation[117]. - Sales and marketing expenses rose by 23% to $43.6 million in Q1 2024, attributed to increased headcount and higher share-based compensation[118]. - General and administrative expenses increased by 19% to $16.9 million in Q1 2024, driven by higher personnel-related costs and legal expenses[119]. Risk Management and Accounting - The company has activated a comprehensive business continuity plan to ensure operations remain consistent amid regional conflicts[87]. - A hypothetical 10% change in foreign currency exchange rates would not have materially impacted the results of operations for Q1 2024[139]. - The company has established a hedging program to mitigate foreign exchange risks, primarily using short-term foreign currency contracts[139]. - There were no significant changes to critical accounting policies and estimates during Q1 2024[136]. - The company does not believe inflation has materially affected its financial condition or results of operations[143]. - A hypothetical 1% increase in interest rates would not have had a material impact on the fair value of cash and cash equivalents as of March 31, 2024[142]. Future Plans - The company plans to continue investing in research and development to enhance its software supply chain platform and maintain technology leadership[88]. - The company aims to expand its customer base through self-service and inbound sales models, leveraging free trials and open-source software[93].