JFrog(FROG)2024-05-10 00:38Financial Data and Key Metrics Changes - Total revenues for Q1 2024 were 36.9 million, growing 47% year-over-year, exceeding guidance [20][9] - Gross profit was 14.1 million, reflecting a 14% operating margin, an improvement from 3.4% in the prior year [7] - Net dollar retention rate was 118%, consistent with guidance for high-teens retention in 2024 [6][23] - Earnings per share were 0.06 in the prior year [129] Business Line Data and Key Metrics Changes - Self-managed revenues on-premises were 1 million increased to 40, up from 21 a year ago, reflecting a 90% growth [1] - The number of customers with ARR greater than 579.6 million in cash and short-term investments, up from $545 million at the end of 2023 [22] - The JFrog Security Research team is noted for its significant contributions to the industry, providing early insights into vulnerabilities [94] Q&A Session Summary Question: What is the current spending environment and customer willingness to invest? - Management indicated that customers are cautious and focused on budget stabilization, with larger project discussions expected to ramp up in the second half of 2024 [13][38] Question: How is the cloud business performing in terms of efficiency and optimization? - The cloud business is growing faster than on-premises, with customers increasingly focusing on optimization efforts [27][32] Question: What are the trends in MLOps and customer conversations regarding JFrog's offerings? - Customers are looking for comprehensive solutions for MLOps, with JFrog Artifactory being considered as a model registry [30][138] Question: Can you elaborate on the digestion phase observed in Q1? - The digestion phase was anticipated, with customers reassessing budgets and project priorities, leading to a more cautious spending environment [40][60] Question: How is the competitive landscape evolving in the security sector? - The competitive landscape is changing, with a trend towards consolidation around best-of-breed platforms, but the need for comprehensive security solutions remains consistent [79]