JFrog Announces Second Quarter 2024 Results
JFrog (NASDAQ: FROG) announced strong financial results for Q2 2024, with total revenue reaching $103.0 million, up 22% year-over-year. Cloud revenue grew 42% to $39.3 million, representing 38% of total revenue. The company reported a GAAP Operating Loss of $19.1 million but a Non-GAAP Operating Income of $13.6 million.
Key highlights include:
- Customers with ARR > $1 million increased 75% YoY to 42
- Enterprise+ subscription revenues up 35% YoY to $51 million
- Net Dollar Retention rate of 118%
- Acquisition of Qwak AI to expand into MLOps
- Partnership with GitHub for unified platform experience
JFrog provided a positive outlook for Q3 and FY 2024, projecting continued revenue growth and profitability on a non-GAAP basis.
JFrog (NASDAQ: FROG) ha annunciato risultati finanziari solidi per il Q2 2024, con ricavi totali che hanno raggiunto 103,0 milioni di dollari, in aumento del 22% rispetto all'anno precedente. I ricavi dal cloud sono cresciuti del 42%, raggiungendo 39,3 milioni di dollari, rappresentando il 38% dei ricavi totali. L'azienda ha riportato una perdita operativa GAAP di 19,1 milioni di dollari, ma un utile operativo non GAAP di 13,6 milioni di dollari.
Tra i principali punti salienti:
- Il numero di clienti con ARR > 1 milione di dollari è aumentato del 75% rispetto all'anno precedente, raggiungendo 42
- I ricavi da abbonamenti Enterprise+ sono aumentati del 35% rispetto all'anno precedente, arrivando a 51 milioni di dollari
- Il tasso di retention netta dei dollari è del 118%
- Acquisizione di Qwak AI per espandersi nel campo degli MLOps
- Collaborazione con GitHub per un'esperienza di piattaforma unificata
JFrog ha fornito un'analisi ottimistica per il Q3 e l'anno fiscale 2024, prevedendo una continua crescita dei ricavi e redditività su base non GAAP.
JFrog (NASDAQ: FROG) anunció resultados financieros sólidos para el Q2 2024, con ingresos totales que alcanzaron 103,0 millones de dólares, un aumento del 22% en comparación con el año anterior. Los ingresos por la nube crecieron un 42% a 39,3 millones de dólares, representando el 38% de los ingresos totales. La compañía reportó una pérdida operativa GAAP de 19,1 millones de dólares, pero un ingreso operativo no GAAP de 13,6 millones de dólares.
Los aspectos clave incluyen:
- Los clientes con ARR > 1 millón de dólares aumentaron un 75% interanual, alcanzando 42
- Los ingresos por suscripciones Enterprise+ aumentaron un 35% interanual a 51 millones de dólares
- Tasa de retención neta de dólares del 118%
- Adquisición de Qwak AI para expandirse en MLOps
- Colaboración con GitHub para una experiencia de plataforma unificada
JFrog proporcionó una perspectiva positiva para el Q3 y el año fiscal 2024, proyectando un crecimiento continuo de ingresos y rentabilidad en base no GAAP.
JFrog (NASDAQ: FROG)는 2024년 2분기 강력한 재무 결과를 발표했으며, 총 수익이 1억 3백만 달러에 도달하였고, 전년 대비 22% 증가했습니다. 클라우드 수익은 42% 성장하여 3930만 달러에 도달하였으며, 이는 총 수익의 38%를 차지합니다. 회사는 GAAP 기준 운영 손실 1910만 달러를 보고했으나 비 GAAP 기준 운영 수익 1360만 달러를 기록했습니다.
주요 하이라이트는 다음과 같습니다:
- ARR > 100만 달러의 고객 수가 전년 대비 75% 증가하여 42명이 되었습니다.
- Enterprise+ 구독 수익이 전년 대비 35% 증가하여 5100만 달러에 달했습니다.
- 순 달러 유지율은 118%입니다.
- MLOps으로 확장하기 위한 Qwak AI 인수
- 통합 플랫폼 경험을 위한 GitHub와의 파트너십
JFrog는 2024년 3분기 및 회계연도에 대한 긍정적인 전망을 제시하며, 계속해서 수익 성장과 비 GAAP 기준 수익성을 전망했습니다.
JFrog (NASDAQ: FROG) a annoncé des résultats financiers solides pour le T2 2024, avec un chiffre d'affaires total atteignant 103,0 millions de dollars, en hausse de 22% par rapport à l'année précédente. Les revenus Cloud ont augmenté de 42% pour atteindre 39,3 millions de dollars, représentant 38% du chiffre d'affaires total. La société a rapporté une perte opérationnelle GAAP de 19,1 millions de dollars, mais un revenu opérationnel non GAAP de 13,6 millions de dollars.
Les faits saillants incluent :
- Le nombre de clients ayant un ARR > 1 million de dollars a augmenté de 75% d'une année sur l'autre, atteignant 42
- Les revenus d'abonnement Enterprise+ ont augmenté de 35% par rapport à l'année précédente pour atteindre 51 millions de dollars
- Taux de rétention nette des dollars de 118%
- Acquisition de Qwak AI pour s'étendre dans le domaine des MLOps
- Partenariat avec GitHub pour une expérience de plateforme unifiée
JFrog a fourni une perspective positive pour le T3 et l'exercice 2024, prévoyant une croissance continue des revenus et de la rentabilité sur une base non GAAP.
JFrog (NASDAQ: FROG) kündigte starke finanzielle Ergebnisse für das 2. Quartal 2024 an, mit Gesamterlösen von 103,0 Millionen USD, ein Anstieg von 22% im Jahresvergleich. Die Einnahmen aus der Cloud stiegen um 42% auf 39,3 Millionen USD und machten 38% der Gesamteinnahmen aus. Das Unternehmen meldete einen GAAP-basierten Betriebsverlust von 19,1 Millionen USD, jedoch einen Non-GAAP-basierten Betriebsgewinn von 13,6 Millionen USD.
Wesentliche Höhepunkte sind:
- Die Anzahl der Kunden mit ARR > 1 Million USD stieg im Jahresvergleich um 75% auf 42
- Die Einnahmen aus Enterprise+-Abonnements stiegen um 35% im Jahresvergleich auf 51 Millionen USD
- Die Netto-Dollar-Retentionsrate beträgt 118%
- Akquisition von Qwak AI zur Expansion in MLOps
- Partnerschaft mit GitHub für eine einheitliche Plattformerfahrung
JFrog gab einen positiven Ausblick auf das 3. Quartal und das Geschäftsjahr 2024 und prognostizierte ein weiteres Wachstum der Einnahmen und Rentabilität auf Non-GAAP-Basis.
- Total revenue increased 22% YoY to $103.0 million
- Cloud revenue grew 42% YoY to $39.3 million
- Customers with ARR > $1 million increased 75% YoY to 42
- Enterprise+ subscription revenues up 35% YoY to $51 million
- Net Dollar Retention rate of 118%
- Non-GAAP Operating Income of $13.6 million
- Positive Q3 and FY 2024 outlook with projected revenue growth
- GAAP Operating Loss of $19.1 million
- GAAP Net Loss Per Share of $0.13
Insights
JFrog's Q2 2024 results demonstrate robust growth and expanding market presence. Total revenue of
The increase in high-value customers, with those having
JFrog's acquisition of Qwak AI and integration of MLOps into their platform is a strategic move to capitalize on the growing AI/ML market. This positions JFrog as a pioneer in offering a unified platform for DevOps, Security and MLOps, potentially creating a competitive advantage in the software development toolchain space.
The partnership with GitHub, offering unified platform experience, enhances JFrog's ecosystem integration and could drive further adoption among developers. The focus on Enterprise+ subscriptions, now representing
JFrog's performance reflects broader trends in the software industry, particularly the accelerating shift to cloud and the increasing importance of robust software supply chain management. The
The company's focus on large enterprises, evidenced by the
-
Total Revenues of
$103.0 million 22% Year-over-Year -
Cloud Revenues up
42% Year-over-Year -
Customers with ARR Greater than
$1 million 75% Year-over-Year -
Enterprise+ Subscription Revenues Equaled
$51 million 35% Year-over-Year - Partnership with GitHub offering a unified best of breed Platform experience
- Acquired Qwak AI; Expanding the JFrog Platform to include MLOps
"We are on a mission to revolutionize the software industry with a unified platform that encompasses EveryOps and streamlines the software supply chain flow," said Shlomi Ben Haim, Co-founder and CEO of JFrog. "With the innovative power of our Qwak AI acquisition, JFrog proudly stands as the first to support DevOps, Security, and MLOps in a single platform. We are committed to providing a solution that fosters seamless collaboration among machines, developers, and data scientists," Ben Haim added.
Second Quarter 2024 Financial Highlights
-
Revenue for the second quarter of 2024 equaled
$103.0 million 22% year-over-year. -
GAAP Gross Profit was
$81.2 million 78.8% . -
Non-GAAP Gross Profit was
$86.9 million 84.4% . -
GAAP Operating Loss was
( ; GAAP Operating Margin was ($19.1) million 18.6% ). -
Non-GAAP Operating Income was
$13.6 million 13.2% . -
GAAP Net Loss Per Share was (
$0.13 $0.15 -
Operating Cash Flow was
$16.7 million $16.0 million -
Cash, Cash Equivalents and Investments were
$591.3 million -
Remaining performance obligations were
$272.0 million
Recent Business & Product Highlights
-
Cloud revenue equaled
$39.3 million 42% year-over-year. Cloud revenue represented38% of total revenue, compared to33% in the year-ago period. -
Net Dollar Retention rate for the trailing four quarters was
118% . -
Customers with greater than
$100 K -
Customers with greater than
$1 million -
Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented
50% of total revenue during the second quarter of 2024 versus45% in the year-ago period. - Announced Microsoft GitHub and JFrog Platform integrations bringing seamless navigation between source code and binaries.
- Announced the acquisition of Qwak MLOps platform and intent to integrate into the JFrog Platform.
Third Quarter and Fiscal Year 2024 Outlook
-
Third Quarter 2024 Outlook:
-
Revenue between
$105 million $106 million -
Non-GAAP operating income between
$10 million $11 million -
Non-GAAP net income per diluted share between
$0.09 $0.11
-
Revenue between
-
Fiscal Year 2024 Outlook:
-
Revenue between
$422 million $424 million -
Non-GAAP operating income between
$52 million $54 million -
Non-GAAP net income per diluted share between
$0.54 $0.56
-
Revenue between
The section titled "Non-GAAP Financial Information" below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.
Conference Call Details
- Event: JFrog’s Second Quarter 2024 Financial Results Conference Call
- Date: Wednesday, August 7, 2024
- Time: 2:00 p.m. PT (5:00 p.m. ET)
A live webcast of the conference call will be accessible from the investor relations website at https://investors.jfrog.com/events-and-presentations.
About JFrog
JFrog Ltd. (Nasdaq: FROG), is on a mission to create a world of software delivered without friction from developer to device. Driven by a “Liquid Software” vision, the JFrog Software Supply Chain Platform is a single system of record that powers organizations to build, manage, and distribute software quickly and securely, ensuring it is available, traceable, and tamper-proof. The integrated security features also help identify, protect, and remediate against threats and vulnerabilities. JFrog’s hybrid, universal, multi-cloud platform is available as both self-hosted and SaaS services across major cloud service providers. Millions of users and 7K+ customers worldwide, including a majority of the Fortune 100, depend on JFrog solutions to securely embrace digital transformation. Learn more at www.jfrog.com or follow us on X @JFrog.
Forward-Looking Statements:
This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the
There are a significant number of factors that could cause actual results to differ materially from statements made in this press release and our earnings call, including but not limited to: risks associated with managing our rapid growth; our history of losses; our limited operating history; our ability to retain and upgrade existing customers our ability to attract new customers; our ability to effectively develop and expand our sales and marketing capabilities; our ability to integrate and realize anticipated synergies from acquisitions of complementary businesses; risk of a security breach incident or product vulnerability; risk of interruptions or performance problems associated with our products and platform capabilities; our ability to adapt and respond to rapidly changing technology or customer needs; our ability to compete in the markets in which we participate; our ability to successfully integrate technology from acquisitions into our offerings; our ability to provide continuity to our respective customers and realize innovation following our acquisitions; and general market, political, economic, and business conditions. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the Securities and Exchange Commission, including in our annual report on Form 10-K for the year ended December 31, 2023, our quarterly report on Form 10-Q for the quarter ended March 31, 2024, and other filings and reports that we may file from time to time with the Securities and Exchange Commission. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.
About Non-GAAP Financial Measures:
JFrog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, and free cash flow. JFrog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate JFrog’s financial performance. JFrog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. JFrog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on JFrog’s reported financial results.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future such as share-based compensation, the effect of which may be significant.
JFrog defines non-GAAP gross profit, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss) and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) share-based compensation expense; (2) the amortization of acquired intangibles; (3) acquisition-related costs; and (4) income tax effects. JFrog defines free cash flow as Net cash provided by (used in) operating activities, minus capital expenditures. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.
Management believes these non-GAAP financial measures are useful to investors and others in assessing JFrog’s operating performance due to the following factors:
Share-based compensation. JFrog utilizes share-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its shareholders and at long-term retention, rather than to address operational performance for any particular period. As a result, share-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
Amortization of acquired intangibles. JFrog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.
Acquisition-related costs. Acquisition-related costs include expenses related to acquisitions of other companies. JFrog views acquisition-related costs as expenses that are not necessarily reflective of operational performance during a period.
Income tax effects. JFrog’s non-GAAP financial results are adjusted for income tax effects related to these non-GAAP adjustments and changes in our assessment regarding the realizability of our deferred tax assets, if any. Excluding income tax effects of non-GAAP adjustments provides a more accurate view of JFrog’s operating results.
Non-GAAP weighted average share count. Diluted GAAP and non-GAAP weighted-average shares are the same, except in periods that there is a GAAP loss and a non-GAAP income. The non-GAAP weighted-average shares used to compute the non-GAAP net income per share - diluted are adjusted to reflect dilution equal to the dilutive impact had there been GAAP income.
Additionally, JFrog’s management believes that the non-GAAP financial measure, free cash flow, is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations.
Operating Metrics
JFrog’s number of customers with annual recurring revenue (“ARR”) of
JFrog’s net dollar retention rate compares its ARR from the same set of customers across comparable periods. JFrog calculates net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). JFrog then calculates the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. JFrog then divides total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. JFrog’s net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters.
JFROG LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data; unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Subscription—self-managed and SaaS |
|
$ |
98,404 |
|
|
$ |
79,467 |
|
|
$ |
193,810 |
|
|
$ |
154,010 |
|
License—self-managed |
|
|
4,639 |
|
|
|
4,703 |
|
|
|
9,544 |
|
|
|
9,980 |
|
Total subscription revenue |
|
|
103,043 |
|
|
|
84,170 |
|
|
|
203,354 |
|
|
|
163,990 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
||||||||
Subscription—self-managed and SaaS(1)(2)(3) |
|
|
21,748 |
|
|
|
18,231 |
|
|
|
42,207 |
|
|
|
36,434 |
|
License—self-managed(3) |
|
|
145 |
|
|
|
218 |
|
|
|
290 |
|
|
|
436 |
|
Total cost of revenue—subscription |
|
|
21,893 |
|
|
|
18,449 |
|
|
|
42,497 |
|
|
|
36,870 |
|
Gross profit |
|
|
81,150 |
|
|
|
65,721 |
|
|
|
160,857 |
|
|
|
127,120 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development(1)(2) |
|
|
37,117 |
|
|
|
33,544 |
|
|
|
72,949 |
|
|
|
68,430 |
|
Sales and marketing(1)(2)(3) |
|
|
45,896 |
|
|
|
36,352 |
|
|
|
89,467 |
|
|
|
71,838 |
|
General and administrative(1)(2) |
|
|
17,264 |
|
|
|
14,732 |
|
|
|
34,204 |
|
|
|
28,972 |
|
Total operating expenses |
|
|
100,277 |
|
|
|
84,628 |
|
|
|
196,620 |
|
|
|
169,240 |
|
Operating loss |
|
|
(19,127 |
) |
|
|
(18,907 |
) |
|
|
(35,763 |
) |
|
|
(42,120 |
) |
Interest and other income, net |
|
|
6,898 |
|
|
|
4,896 |
|
|
|
13,985 |
|
|
|
8,888 |
|
Loss before income taxes |
|
|
(12,229 |
) |
|
|
(14,011 |
) |
|
|
(21,778 |
) |
|
|
(33,232 |
) |
Income tax expense |
|
|
2,074 |
|
|
|
1,456 |
|
|
|
1,315 |
|
|
|
3,044 |
|
Net loss |
|
$ |
(14,303 |
) |
|
$ |
(15,467 |
) |
|
$ |
(23,093 |
) |
|
$ |
(36,276 |
) |
Net loss per share, basic and diluted |
|
$ |
(0.13 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.36 |
) |
Weighted-average shares used in computing net loss per share, basic and diluted |
|
|
108,945 |
|
|
|
102,513 |
|
|
|
107,985 |
|
|
|
101,890 |
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: subscription—self-managed and SaaS |
|
$ |
3,247 |
|
|
$ |
2,019 |
|
|
$ |
6,339 |
|
|
$ |
4,215 |
|
Research and development |
|
|
10,175 |
|
|
|
7,798 |
|
|
|
19,842 |
|
|
|
14,970 |
|
Sales and marketing |
|
|
10,440 |
|
|
|
6,740 |
|
|
|
20,253 |
|
|
|
13,213 |
|
General and administrative |
|
|
4,794 |
|
|
|
4,765 |
|
|
|
9,508 |
|
|
|
8,836 |
|
Total share-based compensation expense |
|
$ |
28,656 |
|
|
$ |
21,322 |
|
|
$ |
55,942 |
|
|
$ |
41,234 |
|
|
|
|
|
|
|
|
|
|
||||||||
(2) Includes acquisition-related costs as follows: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: subscription–self-managed and SaaS |
|
$ |
4 |
|
|
$ |
5 |
|
|
$ |
8 |
|
|
$ |
10 |
|
Research and development |
|
|
489 |
|
|
|
2,745 |
|
|
|
977 |
|
|
|
5,680 |
|
Sales and marketing |
|
|
32 |
|
|
|
— |
|
|
|
64 |
|
|
|
70 |
|
General and administrative |
|
|
674 |
|
|
|
64 |
|
|
|
676 |
|
|
|
140 |
|
Total acquisition-related costs |
|
$ |
1,199 |
|
|
$ |
2,814 |
|
|
$ |
1,725 |
|
|
$ |
5,900 |
|
|
|
|
|
|
|
|
|
|
||||||||
(3) Includes amortization of acquired intangibles as follows: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: subscription–self-managed and SaaS |
|
$ |
2,386 |
|
|
$ |
2,387 |
|
|
$ |
4,772 |
|
|
$ |
4,774 |
|
Cost of revenue: license—self-managed |
|
|
145 |
|
|
|
218 |
|
|
|
290 |
|
|
|
436 |
|
Sales and marketing |
|
|
358 |
|
|
|
358 |
|
|
|
716 |
|
|
|
716 |
|
Total amortization expense of acquired intangible assets |
|
$ |
2,889 |
|
|
$ |
2,963 |
|
|
$ |
5,778 |
|
|
$ |
5,926 |
|
JFROG LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands; unaudited) |
||||||||
|
|
June 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
218,303 |
|
|
$ |
84,765 |
|
Short-term investments |
|
|
373,013 |
|
|
|
460,245 |
|
Accounts receivable, net |
|
|
82,041 |
|
|
|
76,437 |
|
Deferred contract acquisition costs |
|
|
12,662 |
|
|
|
11,378 |
|
Prepaid expenses and other current assets |
|
|
17,169 |
|
|
|
12,976 |
|
Total current assets |
|
|
703,188 |
|
|
|
645,801 |
|
Property and equipment, net |
|
|
6,529 |
|
|
|
6,663 |
|
Deferred contract acquisition costs, noncurrent |
|
|
18,316 |
|
|
|
18,032 |
|
Operating lease right-of-use assets |
|
|
18,372 |
|
|
|
22,427 |
|
Intangible assets, net |
|
|
19,990 |
|
|
|
25,768 |
|
Goodwill |
|
|
247,955 |
|
|
|
247,955 |
|
Other assets, noncurrent |
|
|
6,793 |
|
|
|
5,910 |
|
Total assets |
|
$ |
1,021,143 |
|
|
$ |
972,556 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
16,222 |
|
|
$ |
16,970 |
|
Accrued expenses and other current liabilities |
|
|
39,958 |
|
|
|
35,815 |
|
Operating lease liabilities |
|
|
8,109 |
|
|
|
8,272 |
|
Deferred revenue |
|
|
205,501 |
|
|
|
201,118 |
|
Total current liabilities |
|
|
269,790 |
|
|
|
262,175 |
|
Deferred revenue, noncurrent |
|
|
15,822 |
|
|
|
12,987 |
|
Operating lease liabilities, noncurrent |
|
|
9,651 |
|
|
|
13,954 |
|
Other liabilities, noncurrent |
|
|
4,447 |
|
|
|
4,317 |
|
Total liabilities |
|
|
299,710 |
|
|
|
293,433 |
|
Shareholders’ equity: |
|
|
|
|
||||
Share capital |
|
|
308 |
|
|
|
297 |
|
Additional paid-in capital |
|
|
1,036,377 |
|
|
|
968,245 |
|
Accumulated other comprehensive income (loss) |
|
|
(1,727 |
) |
|
|
1,013 |
|
Accumulated deficit |
|
|
(313,525 |
) |
|
|
(290,432 |
) |
Total shareholders’ equity |
|
|
721,433 |
|
|
|
679,123 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,021,143 |
|
|
$ |
972,556 |
|
JFROG LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands; unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(14,303 |
) |
|
$ |
(15,467 |
) |
|
$ |
(23,093 |
) |
|
$ |
(36,276 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
3,826 |
|
|
|
3,828 |
|
|
|
7,625 |
|
|
|
7,675 |
|
Share-based compensation expense |
|
|
28,656 |
|
|
|
21,322 |
|
|
|
55,942 |
|
|
|
41,234 |
|
Non-cash operating lease expense |
|
|
2,115 |
|
|
|
2,123 |
|
|
|
4,219 |
|
|
|
4,145 |
|
Net amortization of premium or discount on investments |
|
|
(1,738 |
) |
|
|
(1,582 |
) |
|
|
(3,746 |
) |
|
|
(2,870 |
) |
Losses (gains) on foreign exchange |
|
|
101 |
|
|
|
(224 |
) |
|
|
354 |
|
|
|
(591 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
|
(15,336 |
) |
|
|
617 |
|
|
|
(5,555 |
) |
|
|
(221 |
) |
Prepaid expenses and other assets |
|
|
(986 |
) |
|
|
1,153 |
|
|
|
(5,018 |
) |
|
|
(1,961 |
) |
Deferred contract acquisition costs |
|
|
(1,382 |
) |
|
|
(801 |
) |
|
|
(1,568 |
) |
|
|
(1,594 |
) |
Accounts payable |
|
|
1,579 |
|
|
|
(827 |
) |
|
|
(937 |
) |
|
|
(1,913 |
) |
Accrued expenses and other liabilities |
|
|
6,105 |
|
|
|
2,620 |
|
|
|
2,892 |
|
|
|
3,030 |
|
Operating lease liabilities |
|
|
(2,051 |
) |
|
|
(2,033 |
) |
|
|
(4,167 |
) |
|
|
(3,770 |
) |
Deferred revenue |
|
|
10,111 |
|
|
|
5,981 |
|
|
|
7,218 |
|
|
|
8,693 |
|
Net cash provided by operating activities |
|
|
16,697 |
|
|
|
16,710 |
|
|
|
34,166 |
|
|
|
15,581 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Purchases of short-term investments |
|
|
(91,240 |
) |
|
|
(81,356 |
) |
|
|
(255,943 |
) |
|
|
(204,572 |
) |
Maturities and sales of short-term investments |
|
|
227,160 |
|
|
|
68,845 |
|
|
|
345,783 |
|
|
|
183,171 |
|
Purchases of property and equipment |
|
|
(732 |
) |
|
|
(507 |
) |
|
|
(1,573 |
) |
|
|
(773 |
) |
Net cash provided by (used in) investing activities |
|
|
135,188 |
|
|
|
(13,018 |
) |
|
|
88,267 |
|
|
|
(22,174 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from exercise of share options |
|
|
861 |
|
|
|
2,211 |
|
|
|
7,707 |
|
|
|
3,367 |
|
Proceeds from employee share purchase plan |
|
|
— |
|
|
|
— |
|
|
|
4,494 |
|
|
|
3,499 |
|
Proceeds from employee equity transactions, net of payments to tax authorities |
|
|
(5,534 |
) |
|
|
520 |
|
|
|
(279 |
) |
|
|
817 |
|
Net cash provided by (used in) financing activities |
|
|
(4,673 |
) |
|
|
2,731 |
|
|
|
11,922 |
|
|
|
7,683 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(294 |
) |
|
|
(75 |
) |
|
|
(817 |
) |
|
|
9 |
|
Net increase in cash, cash equivalents, and restricted cash |
|
|
146,918 |
|
|
|
6,348 |
|
|
|
133,538 |
|
|
|
1,099 |
|
Cash, cash equivalents, and restricted cash—beginning of period |
|
|
71,397 |
|
|
|
40,358 |
|
|
|
84,777 |
|
|
|
45,607 |
|
Cash, cash equivalents, and restricted cash—end of period |
|
$ |
218,315 |
|
|
$ |
46,706 |
|
|
$ |
218,315 |
|
|
$ |
46,706 |
|
Reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows above: |
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
|
$ |
218,303 |
|
|
$ |
46,694 |
|
|
$ |
218,303 |
|
|
$ |
46,694 |
|
Restricted cash included in prepaid expenses and other current assets |
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
|
|
12 |
|
Total cash, cash equivalents, and restricted cash |
|
$ |
218,315 |
|
|
$ |
46,706 |
|
|
$ |
218,315 |
|
|
$ |
46,706 |
|
JFROG LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in thousands except per share data; unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Reconciliation of gross profit and gross margin |
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
|
$ |
81,150 |
|
|
$ |
65,721 |
|
|
$ |
160,857 |
|
|
$ |
127,120 |
|
Plus: Share-based compensation expense |
|
|
3,247 |
|
|
|
2,019 |
|
|
|
6,339 |
|
|
|
4,215 |
|
Plus: Acquisition-related costs |
|
|
4 |
|
|
|
5 |
|
|
|
8 |
|
|
|
10 |
|
Plus: Amortization of acquired intangibles |
|
|
2,531 |
|
|
|
2,605 |
|
|
|
5,062 |
|
|
|
5,210 |
|
Non-GAAP gross profit |
|
$ |
86,932 |
|
|
$ |
70,350 |
|
|
$ |
172,266 |
|
|
$ |
136,555 |
|
GAAP gross margin |
|
|
78.8 |
% |
|
|
78.1 |
% |
|
|
79.1 |
% |
|
|
77.5 |
% |
Non-GAAP gross margin |
|
|
84.4 |
% |
|
|
83.6 |
% |
|
|
84.7 |
% |
|
|
83.3 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of operating expenses |
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
|
$ |
37,117 |
|
|
$ |
33,544 |
|
|
$ |
72,949 |
|
|
$ |
68,430 |
|
Less: Share-based compensation expense |
|
|
(10,175 |
) |
|
|
(7,798 |
) |
|
|
(19,842 |
) |
|
|
(14,970 |
) |
Less: Acquisition-related costs |
|
|
(489 |
) |
|
|
(2,745 |
) |
|
|
(977 |
) |
|
|
(5,680 |
) |
Non-GAAP research and development |
|
$ |
26,453 |
|
|
$ |
23,001 |
|
|
$ |
52,130 |
|
|
$ |
47,780 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing |
|
$ |
45,896 |
|
|
$ |
36,352 |
|
|
$ |
89,467 |
|
|
$ |
71,838 |
|
Less: Share-based compensation expense |
|
|
(10,440 |
) |
|
|
(6,740 |
) |
|
|
(20,253 |
) |
|
|
(13,213 |
) |
Less: Acquisition-related costs |
|
|
(32 |
) |
|
|
— |
|
|
|
(64 |
) |
|
|
(70 |
) |
Less: Amortization of acquired intangibles |
|
|
(358 |
) |
|
|
(358 |
) |
|
|
(716 |
) |
|
|
(716 |
) |
Non-GAAP sales and marketing |
|
$ |
35,066 |
|
|
$ |
29,254 |
|
|
$ |
68,434 |
|
|
$ |
57,839 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
|
$ |
17,264 |
|
|
$ |
14,732 |
|
|
$ |
34,204 |
|
|
$ |
28,972 |
|
Less: Share-based compensation expense |
|
|
(4,794 |
) |
|
|
(4,765 |
) |
|
|
(9,508 |
) |
|
|
(8,836 |
) |
Less: Acquisition-related costs |
|
|
(674 |
) |
|
|
(64 |
) |
|
|
(676 |
) |
|
|
(140 |
) |
Non-GAAP general and administrative |
|
$ |
11,796 |
|
|
$ |
9,903 |
|
|
$ |
24,020 |
|
|
$ |
19,996 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of operating income (loss) and operating margin |
|
|
|
|
|
|
|
|
||||||||
GAAP operating loss |
|
$ |
(19,127 |
) |
|
$ |
(18,907 |
) |
|
$ |
(35,763 |
) |
|
$ |
(42,120 |
) |
Plus: Share-based compensation expense |
|
|
28,656 |
|
|
|
21,322 |
|
|
|
55,942 |
|
|
|
41,234 |
|
Plus: Acquisition-related costs |
|
|
1,199 |
|
|
|
2,814 |
|
|
|
1,725 |
|
|
|
5,900 |
|
Plus: Amortization of acquired intangibles |
|
|
2,889 |
|
|
|
2,963 |
|
|
|
5,778 |
|
|
|
5,926 |
|
Non-GAAP operating income |
|
$ |
13,617 |
|
|
$ |
8,192 |
|
|
$ |
27,682 |
|
|
$ |
10,940 |
|
GAAP operating margin |
|
|
(18.6 |
)% |
|
|
(22.5 |
)% |
|
|
(17.6 |
)% |
|
|
(25.7 |
)% |
Non-GAAP operating margin |
|
|
13.2 |
% |
|
|
9.7 |
% |
|
|
13.6 |
% |
|
|
6.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) |
|
|
|
|
|
|
|
|
||||||||
GAAP net loss |
|
$ |
(14,303 |
) |
|
$ |
(15,467 |
) |
|
$ |
(23,093 |
) |
|
$ |
(36,276 |
) |
Plus: Share-based compensation expense |
|
|
28,656 |
|
|
|
21,322 |
|
|
|
55,942 |
|
|
|
41,234 |
|
Plus: Acquisition-related costs |
|
|
1,199 |
|
|
|
2,814 |
|
|
|
1,725 |
|
|
|
5,900 |
|
Plus: Amortization of acquired intangibles |
|
|
2,889 |
|
|
|
2,963 |
|
|
|
5,778 |
|
|
|
5,926 |
|
Less: Income tax effects |
|
|
(980 |
) |
|
|
460 |
|
|
|
(4,918 |
) |
|
|
1,238 |
|
Non-GAAP net income |
|
$ |
17,461 |
|
|
$ |
12,092 |
|
|
$ |
35,434 |
|
|
$ |
18,022 |
|
Net income per share - basic |
|
$ |
0.16 |
|
|
$ |
0.12 |
|
|
$ |
0.33 |
|
|
$ |
0.18 |
|
Net income per share - diluted |
|
$ |
0.15 |
|
|
$ |
0.11 |
|
|
$ |
0.31 |
|
|
$ |
0.17 |
|
Shares used in non-GAAP net income per share calculations: |
|
|
|
|
|
|
|
|
||||||||
GAAP weighted-average shares used to compute net loss per share - basic and diluted |
|
|
108,945 |
|
|
|
102,513 |
|
|
|
107,985 |
|
|
|
101,890 |
|
Add: Dilutive ordinary share equivalents |
|
|
6,249 |
|
|
|
5,580 |
|
|
|
6,915 |
|
|
|
5,589 |
|
Non-GAAP weighted-average shares used to compute net income per share - diluted |
|
|
115,194 |
|
|
|
108,093 |
|
|
|
114,900 |
|
|
|
107,479 |
|
JFROG LTD. RECONCILIATION OF GAAP CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW (in thousands; unaudited) |
||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net cash provided by operating activities |
|
$ |
16,697 |
|
|
$ |
16,710 |
|
|
$ |
34,166 |
|
|
$ |
15,581 |
|
Less: purchases of property and equipment |
|
|
(732 |
) |
|
|
(507 |
) |
|
|
(1,573 |
) |
|
|
(773 |
) |
Free cash flow |
|
$ |
15,965 |
|
|
$ |
16,203 |
|
|
$ |
32,593 |
|
|
$ |
14,808 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807606549/en/
Investor Contact:
Jeff Schreiner
jeffs@jfrog.com
Source: JFrog Ltd.
FAQ
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