JFrog Ltd. (FROG) Q1 Earnings and Revenues Surpass Estimates

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]