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JFrog Ltd. (FROG) reported $103.04 million in revenue for the quarter ended June 2024, representing a yearover-year increase of 22.4%. EPS of $0.15 for the same period compares to $0.11 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $103.53 million, representing a surprise of -0.47%. The company delivered an EPS surprise of +7.14%, with the consensus EPS estimate being $0.14. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-39492 JFrog Ltd. (Exact name of Registrant as specified in its charter) Israel 98-0680649 (State or other jurisdiction of incorporation or organization) (I.R.S. E ...

JFrog Ltd. (NASDAQ:FROG) Q2 2024 Earnings Conference Call August 7, 2024 5:00 PM ET Company Participants Jeffrey Schreiner - Vice President, Investor Relations Shlomi Ben Haim - Chief Executive Officer and Co-Founder Ed Grabscheid - Chief Financial Officer Conference Call Participants Pinjalim Bora - JPMorgan Ryan MacWilliams - Barclays Sanjit Singh - Morgan Stanley Koji Ikeda – Bank of America Kingsley Crane - Canaccord Genuity Michael Cikos - Needham Brad Reback - Stifel Andrew Sherman - TD Cowen Miller J ...

JFrog Ltd. (FROG) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 7.14%. A quarter ago, it was expected that this company would post earnings of $0.14 per share when it actually produced earnings of $0.16, delivering a surprise of 14.29%. Over the last four quarters, the company has s ...

Exhibit 99.1 JFrog Announces Second Quarter 2024 Results • Total Revenues of $103.0 million; up 22% Year-over-Year • Cloud Revenues up 42% Year-over-Year • Customers with ARR Greater Than $1 million equaled 42, up 75% Year-over-Year • Enterprise+ Subscription Revenues Equaled $51 million; up 35% Year-over-Year • Partnership with Github of ering a unified best-of-breed Platform experience • Acquired Qwak AI; Expanding the JFrog Platform to include MLOps Sunnyvale, Calif., August 7, 2024 – JFrog Ltd. ("JFrog" ...

Revenue 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].

Investors appear to be overreacting today.Shares of software delivery company JFrog (FROG -17.21%) plunged on Friday after the company reported financial results for the first quarter of 2024. As of 11:30 a.m. ET, JFrog stock was down 18%.Does this warrant such a big drop?Explaining a stock move isn't always straightforward. As best as I can figure, investors are punishing JFrog stock today because management didn't raise its guidance by as much as they had hoped. To be clear, the company's financial result ...

Key PointsJFrog plummeted 12% after solid results and is setting up for the next leap higher. Growth is solid but slowing and aligns with forecasts, providing no catalyst for rallying today. Analysts trim targets but maintain a Moderate Buy rating and see a 20% upside at consensus. 5 stocks we like better than JFrogJFrog NASDAQ: FROG is a small DevOps platform shaking up an industry projected to grow at a 20% CAGR for the next five years. Its Enterprise+ package provides an end-to-end software supply chain ...

Financial Data and Key Metrics Changes - Total revenues for Q1 2024 were $100.3 million, representing a 26% year-over-year increase [20] - Cloud revenue reached $36.9 million, growing 47% year-over-year, exceeding guidance [20][9] - Gross profit was $85.3 million, with a gross margin of 85.1%, up from 82.9% in the previous year [21] - Operating profit for Q1 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 $0.16, compared to $0.06 in the prior year [129] Business Line Data and Key Metrics Changes - Self-managed revenues on-premises were $63.4 million, up 16% year-over-year [6] - Revenue contribution from Enterprise Plus subscriptions grew 39% year-over-year, accounting for 49% of total revenue [128] Market Data and Key Metrics Changes - Customers with Annual Recurring Revenue (ARR) greater than $1 million increased to 40, up from 21 a year ago, reflecting a 90% growth [1] - The number of customers with ARR greater than $100,000 grew to 911, a 16% increase year-over-year [145] Company Strategy and Development Direction - The company is focused on integrating DevOps, DevSecOps, MLOps, and MLSecOps into a unified platform to meet market demands [122][150] - There is an emphasis on expanding the partner network and channel strategy to enhance market reach [148] - The company anticipates continued growth in cloud migration projects and customer usage throughout 2024 [3][17] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are currently in a digestion phase after significant consumption in Q4 2023, with expectations for project spending to increase in the latter half of 2024 [29][40] - The company remains optimistic about the growth potential in the MLOps and GenAI markets, although it does not expect immediate impacts on 2024 guidance [86][150] Other Important Information - The company ended Q1 2024 with $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]