JFrog Announces Third Quarter 2024 Results
JFrog (Nasdaq: FROG) announced its Q3 2024 financial results, reporting total revenues of $109.1 million, a 23% year-over-year increase. Cloud revenues rose by 38%, reaching $42.4 million. The company highlighted its expansion into ML Ops and Runtime Security. Key metrics included 46 customers with ARR over $1 million, a 53% increase, and a Net Dollar Retention rate of 117%. GAAP gross profit was $81.8 million with a 75% margin, while non-GAAP gross profit was $90.3 million with an 82.8% margin. However, the GAAP operating loss was $29.9 million. Non-GAAP operating income was $14.7 million. GAAP net loss per share was $0.21, whereas non-GAAP EPS was $0.15. Operating cash flow stood at $27.6 million. For Q4 2024, the company expects revenues between $113.5 million and $114.5 million, and non-GAAP net income per diluted share between $0.13 and $0.15.
JFrog (Nasdaq: FROG) ha annunciato i risultati finanziari per il terzo trimestre del 2024, riportando ricavi totali di 109,1 milioni di dollari, con un aumento del 23% rispetto all'anno precedente. I ricavi provenienti dal cloud sono aumentati del 38%, raggiungendo i 42,4 milioni di dollari. L'azienda ha sottolineato la sua espansione in ML Ops e Runtime Security. Tra i principali indicatori ci sono 46 clienti con un ARR superiore a 1 milione di dollari, con un incremento del 53%, e un tasso di retention delle entrate nette del 117%. L'utile lordo GAAP è stato di 81,8 milioni di dollari con un margine del 75%, mentre l'utile lordo non GAAP è stato di 90,3 milioni di dollari con un margine dell'82,8%. Tuttavia, la perdita operativa GAAP è stata di 29,9 milioni di dollari. L'utile operativo non GAAP è stato di 14,7 milioni di dollari. La perdita netta per azione GAAP è stata di 0,21 dollari, mentre l'EPS non GAAP è stato di 0,15 dollari. Il flusso di cassa operativo si è attestato a 27,6 milioni di dollari. Per il quarto trimestre del 2024, l'azienda prevede ricavi tra 113,5 milioni e 114,5 milioni di dollari, e un utile netto non GAAP per azione diluita tra 0,13 e 0,15 dollari.
JFrog (Nasdaq: FROG) anunció sus resultados financieros del tercer trimestre de 2024, reportando ingresos totales de 109,1 millones de dólares, un aumento del 23% en comparación con el año anterior. Los ingresos de la nube aumentaron un 38%, alcanzando los 42,4 millones de dólares. La compañía resaltó su expansión en ML Ops y Runtime Security. Las métricas clave incluyeron 46 clientes con ARR de más de 1 millón de dólares, un aumento del 53%, y una tasa de retención neta de dólares del 117%. La ganancia bruta GAAP fue de 81,8 millones de dólares con un margen del 75%, mientras que la ganancia bruta no GAAP fue de 90,3 millones de dólares con un margen del 82,8%. Sin embargo, la pérdida operativa GAAP fue de 29,9 millones de dólares. El ingreso operativo no GAAP fue de 14,7 millones de dólares. La pérdida neta por acción GAAP fue de 0,21 dólares, mientras que el EPS no GAAP fue de 0,15 dólares. El flujo de caja operativo se situó en 27,6 millones de dólares. Para el cuarto trimestre de 2024, la empresa espera ingresos entre 113,5 millones y 114,5 millones de dólares, y un ingreso neto no GAAP por acción diluida entre 0,13 y 0,15 dólares.
JFrog (Nasdaq: FROG)는 2024년 3분기 재무 결과를 발표하며 총 수익이 1억 9백만 달러에 달하고, 이는 전년 대비 23% 증가했다고 보고했습니다. 클라우드 수익은 38% 증가하여 4천2백만 달러에 도달했습니다. 이 회사는 ML Ops 및 Runtime Security로의 확장을 강조했습니다. 주요 지표로는 1백만 달러 이상의 ARR을 가진 46명의 고객이 있으며, 이는 53% 증가한 수치입니다. 또한 순 달러 유지율은 117%에 달했습니다. GAAP 총 이익은 8천1백80만 달러로 75%의 마진을 보였고, 비 GAAP 총 이익은 9천30만 달러로 82.8%의 마진을 기록했습니다. 그러나 GAAP 운영 손실은 2천9백90만 달러에 달했습니다. 비 GAAP 운영 소득은 1천4백70만 달러였습니다. GAAP 주당 순손실은 0.21달러이며, 비 GAAP EPS는 0.15달러였습니다. 운영 현금 흐름은 2천7백60만 달러였습니다. 2024년 4분기에는 회사가 1억 1천3백50만에서 1억 1천4백50만 달러 사이의 수익과 비 GAAP 희석 주당 순이익을 0.13달러에서 0.15달러 사이로 예상하고 있습니다.
JFrog (Nasdaq: FROG) a annoncé ses résultats financiers pour le troisième trimestre 2024, rapportant des revenus totaux de 109,1 millions de dollars, soit une augmentation de 23 % par rapport à l'année précédente. Les revenus du cloud ont augmenté de 38 %, atteignant 42,4 millions de dollars. L'entreprise a souligné son expansion dans ML Ops et Runtime Security. Les indicateurs clés comprenaient 46 clients avec un ARR supérieur à 1 million de dollars, une augmentation de 53 %, et un taux de rétention des dollars nets de 117 %. Le bénéfice brut GAAP était de 81,8 millions de dollars avec une marge de 75 %, tandis que le bénéfice brut non GAAP était de 90,3 millions de dollars avec une marge de 82,8 %. Cependant, la perte opérationnelle GAAP était de 29,9 millions de dollars. Le revenu opérationnel non GAAP était de 14,7 millions de dollars. La perte nette par action GAAP était de 0,21 dollar, tandis que l'EPS non GAAP était de 0,15 dollar. Le flux de trésorerie opérationnel s'élevait à 27,6 millions de dollars. Pour le quatrième trimestre 2024, l'entreprise s'attend à des revenus compris entre 113,5 millions et 114,5 millions de dollars, et un revenu net non GAAP par action diluée compris entre 0,13 et 0,15 dollar.
JFrog (Nasdaq: FROG) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und berichtet von Gesamtumsätzen von 109,1 Millionen Dollar, was einem Anstieg von 23% im Vergleich zum Vorjahr entspricht. Die Cloud-Umsätze stiegen um 38% auf 42,4 Millionen Dollar. Das Unternehmen betonte seine Expansion in ML Ops und Runtime Security. Wichtige Kennzahlen umfassten 46 Kunden mit einem ARR von über 1 Million Dollar, was einem Anstieg von 53% entspricht, und eine Net-Dollarnutzer-Retention-Rate von 117%. Der GAAP-Bruttogewinn betrug 81,8 Millionen Dollar mit einer Marge von 75%, während der nicht GAAP-Bruttogewinn 90,3 Millionen Dollar mit einer Marge von 82,8% erreichte. Der GAAP-Betriebsverlust betrug jedoch 29,9 Millionen Dollar. Das nicht GAAP-Betriebsergebnis belief sich auf 14,7 Millionen Dollar. Der GAAP-Nettoverlust pro Aktie betrug 0,21 Dollar, während das nicht GAAP EPS 0,15 Dollar betrug. Der operative Cashflow betrug 27,6 Millionen Dollar. Für das vierte Quartal 2024 erwartet das Unternehmen Umsätze zwischen 113,5 Millionen und 114,5 Millionen Dollar und einen nicht GAAP Nettoertrag pro verwässerter Aktie zwischen 0,13 und 0,15 Dollar.
- Revenue increased by 23% year-over-year to $109.1 million.
- Cloud revenues grew by 38% year-over-year to $42.4 million.
- Customers with ARR over $1 million increased by 53% to 46.
- Non-GAAP operating income was $14.7 million.
- Net Dollar Retention rate was 117%.
- GAAP operating loss was $29.9 million.
- GAAP net loss per share was $0.21.
-
Total Revenues of
; up$109.1 million 23% Year-over-Year -
Cloud Revenues up
38% Year-over-Year; driven by cloud migrations and security -
Customers with ARR Greater than
equaled 46, up$1 million 53% Year-over-Year - Announced expansion of the JFrog Platform with MLOps and Runtime Security
"Our third quarter results reflect strong execution in a tight budgetary environment, with some of the largest enterprise wins in JFrog's history," said Shlomi Ben Haim, Co-founder and CEO of JFrog. “The continued expansion of the JFrog Platform - with Artifactory at its core as the single source of truth for DevOps, DevSecOps, and MLOps - laid the foundation for future success, while remaining aligned with our DNA of driving efficient growth,” Ben Haim added.
Third Quarter 2024 Financial Highlights
-
Revenue for the third quarter of 2024 was
, up$109.1 million 23% year-over-year. -
GAAP Gross Profit was
; GAAP Gross Margin was$81.8 million 75.0% . -
Non-GAAP Gross Profit was
; Non-GAAP Gross Margin was$90.3 million 82.8% . -
GAAP Operating Loss was
( ; GAAP Operating Margin was ($29.9) million 27.4% ). -
Non-GAAP Operating Income was
; Non-GAAP Operating Margin was$14.7 million 13.5% . -
GAAP Net Loss Per Share was (
); Non-GAAP Diluted Earnings Per Share was$0.21 .$0.15 -
Operating Cash Flow was
; Free Cash Flow of$27.6 million .$26.7 million -
Cash, Cash Equivalents and Investments were
as of September 30, 2024.$467.8 million -
Remaining performance obligations were
as of September 30, 2024.$346.1 million
Recent Business & Product Highlights
-
Cloud revenue equaled
during the third quarter of 2024, an increase of$42.4 million 38% year-over-year. Cloud revenue represented39% of total revenue, compared to35% in the year-ago period. -
Net Dollar Retention rate for the trailing four quarters was
117% . -
Customers with greater than
ARR increased to 966, compared with 848 in the year-ago period.$100 K -
Customers with greater than
ARR increased to 46, up from 30 in the year-ago period.$1 million -
Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented
50% of total revenue during the third quarter of 2024 versus46% in the year-ago period. - Announced JFrog Runtime Security, driving traceability from code to production and back.
- Announced GitHub and JFrog Platform integrations at 10th annual swampUP user conference, delivering seamless DevSecOps and AI experiences across code and binaries.
- Announced collaboration with NVIDIA to deliver secure machine learning (ML) models and large language models (LLMs) with transparency, traceability, and trust.
- Announced JFrog ML to bridge Data Science and DevSecOps processes for machine learning, based on JFrog’s own technologies and its recently-acquired Qwak AI MLOps technologies.
Fourth Quarter and Fiscal Year 2024 Outlook
-
Fourth Quarter 2024 Outlook:
-
Revenue between
and$113.5 million $114.5 million -
Non-GAAP operating income between
and$14.0 million $15.0 million -
Non-GAAP net income per diluted share between
and$0.13 , assuming approximately 117 million weighted average diluted shares outstanding$0.15
-
Revenue between
-
Fiscal Year 2024 Outlook:
-
Revenue between
to$425.9 million $ 426.9 million -
Non-GAAP operating income between
and$56.4 million $57.4 million -
Non-GAAP net income per diluted share between
and$0.59 , assuming approximately 116 million weighted average diluted shares outstanding$0.61
-
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 Third Quarter 2024 Financial Results Conference Call
- Date: Thursday, November 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 and our strategic collaborations; 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 and June 30, 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 September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
||||||||
Subscription—self-managed and SaaS |
|
$ |
103,487 |
|
|
$ |
84,131 |
|
|
$ |
297,297 |
|
|
$ |
238,141 |
|
License—self-managed |
|
|
5,569 |
|
|
|
4,505 |
|
|
|
15,113 |
|
|
|
14,485 |
|
Total subscription revenue |
|
|
109,056 |
|
|
|
88,636 |
|
|
|
312,410 |
|
|
|
252,626 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
||||||||
Subscription—self-managed and SaaS(1)(2)(3) |
|
|
27,156 |
|
|
|
19,532 |
|
|
|
69,363 |
|
|
|
55,966 |
|
License—self-managed(3) |
|
|
135 |
|
|
|
218 |
|
|
|
425 |
|
|
|
654 |
|
Total cost of revenue—subscription |
|
|
27,291 |
|
|
|
19,750 |
|
|
|
69,788 |
|
|
|
56,620 |
|
Gross profit |
|
|
81,765 |
|
|
|
68,886 |
|
|
|
242,622 |
|
|
|
196,006 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
Research and development(1)(2) |
|
|
42,996 |
|
|
|
33,358 |
|
|
|
115,945 |
|
|
|
101,788 |
|
Sales and marketing(1)(2)(3) |
|
|
50,956 |
|
|
|
37,915 |
|
|
|
140,423 |
|
|
|
109,753 |
|
General and administrative(1)(2) |
|
|
17,733 |
|
|
|
15,663 |
|
|
|
51,937 |
|
|
|
44,635 |
|
Total operating expenses |
|
|
111,685 |
|
|
|
86,936 |
|
|
|
308,305 |
|
|
|
256,176 |
|
Operating loss |
|
|
(29,920 |
) |
|
|
(18,050 |
) |
|
|
(65,683 |
) |
|
|
(60,170 |
) |
Interest and other income, net |
|
|
5,705 |
|
|
|
5,733 |
|
|
|
19,690 |
|
|
|
14,621 |
|
Loss before income taxes |
|
|
(24,215 |
) |
|
|
(12,317 |
) |
|
|
(45,993 |
) |
|
|
(45,549 |
) |
Income tax expense (benefit) |
|
|
(1,270 |
) |
|
|
1,430 |
|
|
|
45 |
|
|
|
4,474 |
|
Net loss |
|
$ |
(22,945 |
) |
|
$ |
(13,747 |
) |
|
$ |
(46,038 |
) |
|
$ |
(50,023 |
) |
Net loss per share, basic and diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.49 |
) |
Weighted-average shares used in computing net loss per share, basic and diluted |
|
|
110,772 |
|
|
|
104,135 |
|
|
|
108,921 |
|
|
|
102,646 |
|
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes share-based compensation expense as follows: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: subscription—self-managed and SaaS |
|
$ |
3,864 |
|
|
$ |
2,650 |
|
|
$ |
10,203 |
|
|
$ |
6,865 |
|
Research and development |
|
|
13,611 |
|
|
|
8,596 |
|
|
|
33,453 |
|
|
|
23,566 |
|
Sales and marketing |
|
|
13,506 |
|
|
|
8,248 |
|
|
|
33,759 |
|
|
|
21,461 |
|
General and administrative |
|
|
5,414 |
|
|
|
6,192 |
|
|
|
14,922 |
|
|
|
15,028 |
|
Total share-based compensation expense |
|
$ |
36,395 |
|
|
$ |
25,686 |
|
|
$ |
92,337 |
|
|
$ |
66,920 |
|
|
|
|
|
|
|
|
|
|
||||||||
(2) Includes acquisition-related costs as follows: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: subscription–self-managed and SaaS |
|
$ |
1 |
|
|
$ |
6 |
|
|
$ |
9 |
|
|
$ |
16 |
|
Research and development |
|
|
1,628 |
|
|
|
1,251 |
|
|
|
2,605 |
|
|
|
6,931 |
|
Sales and marketing |
|
|
546 |
|
|
|
19 |
|
|
|
610 |
|
|
|
89 |
|
General and administrative |
|
|
180 |
|
|
|
18 |
|
|
|
856 |
|
|
|
158 |
|
Total acquisition-related costs |
|
$ |
2,355 |
|
|
$ |
1,294 |
|
|
$ |
4,080 |
|
|
$ |
7,194 |
|
|
|
|
|
|
|
|
|
|
||||||||
(3) Includes amortization of acquired intangibles as follows: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue: subscription–self-managed and SaaS |
|
$ |
4,493 |
|
|
$ |
2,386 |
|
|
$ |
9,265 |
|
|
$ |
7,160 |
|
Cost of revenue: license—self-managed |
|
|
135 |
|
|
|
218 |
|
|
|
425 |
|
|
|
654 |
|
Sales and marketing |
|
|
1,259 |
|
|
|
357 |
|
|
|
1,975 |
|
|
|
1,073 |
|
Total amortization expense of acquired intangible assets |
|
$ |
5,887 |
|
|
$ |
2,961 |
|
|
$ |
11,665 |
|
|
$ |
8,887 |
|
JFROG LTD. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands; unaudited) |
||||||||
|
|
|
|
|
||||
|
|
September 30, 2024 |
|
December 31, 2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
62,246 |
|
|
$ |
84,765 |
|
Short-term investments |
|
|
405,540 |
|
|
|
460,245 |
|
Accounts receivable, net |
|
|
92,892 |
|
|
|
76,437 |
|
Deferred contract acquisition costs |
|
|
14,929 |
|
|
|
11,378 |
|
Prepaid expenses and other current assets |
|
|
17,769 |
|
|
|
12,976 |
|
Total current assets |
|
|
593,376 |
|
|
|
645,801 |
|
Property and equipment, net |
|
|
6,051 |
|
|
|
6,663 |
|
Deferred contract acquisition costs, noncurrent |
|
|
22,631 |
|
|
|
18,032 |
|
Operating lease right-of-use assets |
|
|
16,268 |
|
|
|
22,427 |
|
Intangible assets, net |
|
|
66,739 |
|
|
|
25,768 |
|
Goodwill |
|
|
371,377 |
|
|
|
247,955 |
|
Other assets, noncurrent |
|
|
4,447 |
|
|
|
5,910 |
|
Total assets |
|
$ |
1,080,889 |
|
|
$ |
972,556 |
|
Liabilities and Shareholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
16,282 |
|
|
$ |
16,970 |
|
Accrued expenses and other current liabilities |
|
|
43,803 |
|
|
|
35,815 |
|
Operating lease liabilities |
|
|
8,150 |
|
|
|
8,272 |
|
Deferred revenue |
|
|
223,985 |
|
|
|
201,118 |
|
Total current liabilities |
|
|
292,220 |
|
|
|
262,175 |
|
Deferred revenue, noncurrent |
|
|
20,257 |
|
|
|
12,987 |
|
Operating lease liabilities, noncurrent |
|
|
7,693 |
|
|
|
13,954 |
|
Other liabilities, noncurrent |
|
|
4,513 |
|
|
|
4,317 |
|
Total liabilities |
|
|
324,683 |
|
|
|
293,433 |
|
Shareholders’ equity: |
|
|
|
|
||||
Share capital |
|
|
312 |
|
|
|
297 |
|
Additional paid-in capital |
|
|
1,091,910 |
|
|
|
968,245 |
|
Accumulated other comprehensive income |
|
|
454 |
|
|
|
1,013 |
|
Accumulated deficit |
|
|
(336,470 |
) |
|
|
(290,432 |
) |
Total shareholders’ equity |
|
|
756,206 |
|
|
|
679,123 |
|
Total liabilities and shareholders’ equity |
|
$ |
1,080,889 |
|
|
$ |
972,556 |
|
JFROG LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands; unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
||||||||
Net loss |
|
$ |
(22,945 |
) |
|
$ |
(13,747 |
) |
|
$ |
(46,038 |
) |
|
$ |
(50,023 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
6,980 |
|
|
|
3,837 |
|
|
|
14,605 |
|
|
|
11,512 |
|
Share-based compensation expense |
|
|
36,395 |
|
|
|
25,686 |
|
|
|
92,337 |
|
|
|
66,920 |
|
Non-cash operating lease expense |
|
|
2,104 |
|
|
|
2,149 |
|
|
|
6,323 |
|
|
|
6,294 |
|
Net amortization of premium or discount on investments |
|
|
(1,388 |
) |
|
|
(1,718 |
) |
|
|
(5,134 |
) |
|
|
(4,588 |
) |
Losses (gains) on foreign exchange |
|
|
6 |
|
|
|
(278 |
) |
|
|
360 |
|
|
|
(869 |
) |
Changes in operating assets and liabilities, net of effect of acquisition: |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
|
(10,227 |
) |
|
|
1,558 |
|
|
|
(15,782 |
) |
|
|
1,337 |
|
Prepaid expenses and other assets |
|
|
(1,905 |
) |
|
|
2,491 |
|
|
|
(6,923 |
) |
|
|
530 |
|
Deferred contract acquisition costs |
|
|
(6,582 |
) |
|
|
(3,175 |
) |
|
|
(8,150 |
) |
|
|
(4,769 |
) |
Accounts payable |
|
|
(732 |
) |
|
|
1,794 |
|
|
|
(1,669 |
) |
|
|
(119 |
) |
Accrued expenses and other liabilities |
|
|
5,066 |
|
|
|
1,905 |
|
|
|
7,958 |
|
|
|
4,935 |
|
Operating lease liabilities |
|
|
(2,040 |
) |
|
|
(2,048 |
) |
|
|
(6,207 |
) |
|
|
(5,818 |
) |
Deferred revenue |
|
|
22,908 |
|
|
|
7,527 |
|
|
|
30,126 |
|
|
|
16,220 |
|
Net cash provided by operating activities |
|
|
27,640 |
|
|
|
25,981 |
|
|
|
61,806 |
|
|
|
41,562 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
||||||||
Purchases of short-term investments |
|
|
(123,603 |
) |
|
|
(98,738 |
) |
|
|
(379,546 |
) |
|
|
(303,310 |
) |
Maturities and sales of short-term investments |
|
|
93,284 |
|
|
|
83,676 |
|
|
|
439,067 |
|
|
|
266,847 |
|
Purchases of property and equipment |
|
|
(936 |
) |
|
|
(591 |
) |
|
|
(2,509 |
) |
|
|
(1,364 |
) |
Acquisition of business, net of cash acquired |
|
|
(156,714 |
) |
|
|
— |
|
|
|
(156,714 |
) |
|
|
— |
|
Net cash provided by used in investing activities |
|
|
(187,969 |
) |
|
|
(15,653 |
) |
|
|
(99,702 |
) |
|
|
(37,827 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||||||||
Proceeds from exercise of share options |
|
|
1,097 |
|
|
|
2,066 |
|
|
|
8,804 |
|
|
|
5,433 |
|
Proceeds from employee share purchase plan |
|
|
4,250 |
|
|
|
3,166 |
|
|
|
8,744 |
|
|
|
6,665 |
|
Payments to tax authorities from employee equity transactions, net |
|
|
(445 |
) |
|
|
(1,149 |
) |
|
|
(724 |
) |
|
|
(332 |
) |
Net cash provided by financing activities |
|
|
4,902 |
|
|
|
4,083 |
|
|
|
16,824 |
|
|
|
11,766 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
117 |
|
|
|
(121 |
) |
|
|
(700 |
) |
|
|
(112 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
(155,310 |
) |
|
|
14,290 |
|
|
|
(21,772 |
) |
|
|
15,389 |
|
Cash, cash equivalents, and restricted cash—beginning of period |
|
|
218,315 |
|
|
|
46,706 |
|
|
|
84,777 |
|
|
|
45,607 |
|
Cash, cash equivalents, and restricted cash—end of period |
|
$ |
63,005 |
|
|
$ |
60,996 |
|
|
$ |
63,005 |
|
|
$ |
60,996 |
|
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 |
|
$ |
62,246 |
|
|
$ |
60,984 |
|
|
$ |
62,246 |
|
|
$ |
60,984 |
|
Restricted cash included in prepaid expenses and other current assets |
|
|
759 |
|
|
|
12 |
|
|
|
759 |
|
|
|
12 |
|
Total cash, cash equivalents, and restricted cash |
|
$ |
63,005 |
|
|
$ |
60,996 |
|
|
$ |
63,005 |
|
|
$ |
60,996 |
|
JFROG LTD. RECONCILIATION OF GAAP TO NON-GAAP RESULTS (in thousands except per share data; unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Reconciliation of gross profit and gross margin |
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
|
$ |
81,765 |
|
|
$ |
68,886 |
|
|
$ |
242,622 |
|
|
$ |
196,006 |
|
Plus: Share-based compensation expense |
|
|
3,864 |
|
|
|
2,650 |
|
|
|
10,203 |
|
|
|
6,865 |
|
Plus: Acquisition-related costs |
|
|
1 |
|
|
|
6 |
|
|
|
9 |
|
|
|
16 |
|
Plus: Amortization of acquired intangibles |
|
|
4,628 |
|
|
|
2,604 |
|
|
|
9,690 |
|
|
|
7,814 |
|
Non-GAAP gross profit |
|
$ |
90,258 |
|
|
$ |
74,146 |
|
|
$ |
262,524 |
|
|
$ |
210,701 |
|
GAAP gross margin |
|
|
75.0 |
% |
|
|
77.7 |
% |
|
|
77.7 |
% |
|
|
77.6 |
% |
Non-GAAP gross margin |
|
|
82.8 |
% |
|
|
83.7 |
% |
|
|
84.0 |
% |
|
|
83.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of operating expenses |
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
|
$ |
42,996 |
|
|
$ |
33,358 |
|
|
$ |
115,945 |
|
|
$ |
101,788 |
|
Less: Share-based compensation expense |
|
|
(13,611 |
) |
|
|
(8,596 |
) |
|
|
(33,453 |
) |
|
|
(23,566 |
) |
Less: Acquisition-related costs |
|
|
(1,628 |
) |
|
|
(1,251 |
) |
|
|
(2,605 |
) |
|
|
(6,931 |
) |
Non-GAAP research and development |
|
$ |
27,757 |
|
|
$ |
23,511 |
|
|
$ |
79,887 |
|
|
$ |
71,291 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing |
|
$ |
50,956 |
|
|
$ |
37,915 |
|
|
$ |
140,423 |
|
|
$ |
109,753 |
|
Less: Share-based compensation expense |
|
|
(13,506 |
) |
|
|
(8,248 |
) |
|
|
(33,759 |
) |
|
|
(21,461 |
) |
Less: Acquisition-related costs |
|
|
(546 |
) |
|
|
(19 |
) |
|
|
(610 |
) |
|
|
(89 |
) |
Less: Amortization of acquired intangibles |
|
|
(1,259 |
) |
|
|
(357 |
) |
|
|
(1,975 |
) |
|
|
(1,073 |
) |
Non-GAAP sales and marketing |
|
$ |
35,645 |
|
|
$ |
29,291 |
|
|
$ |
104,079 |
|
|
$ |
87,130 |
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative |
|
$ |
17,733 |
|
|
$ |
15,663 |
|
|
$ |
51,937 |
|
|
$ |
44,635 |
|
Less: Share-based compensation expense |
|
|
(5,414 |
) |
|
|
(6,192 |
) |
|
|
(14,922 |
) |
|
|
(15,028 |
) |
Less: Acquisition-related costs |
|
|
(180 |
) |
|
|
(18 |
) |
|
|
(856 |
) |
|
|
(158 |
) |
Non-GAAP general and administrative |
|
$ |
12,139 |
|
|
$ |
9,453 |
|
|
$ |
36,159 |
|
|
$ |
29,449 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of operating income (loss) and operating margin |
|
|
|
|
|
|
|
|
||||||||
GAAP operating loss |
|
$ |
(29,920 |
) |
|
$ |
(18,050 |
) |
|
$ |
(65,683 |
) |
|
$ |
(60,170 |
) |
Plus: Share-based compensation expense |
|
|
36,395 |
|
|
|
25,686 |
|
|
|
92,337 |
|
|
|
66,920 |
|
Plus: Acquisition-related costs |
|
|
2,355 |
|
|
|
1,294 |
|
|
|
4,080 |
|
|
|
7,194 |
|
Plus: Amortization of acquired intangibles |
|
|
5,887 |
|
|
|
2,961 |
|
|
|
11,665 |
|
|
|
8,887 |
|
Non-GAAP operating income |
|
$ |
14,717 |
|
|
$ |
11,891 |
|
|
$ |
42,399 |
|
|
$ |
22,831 |
|
GAAP operating margin |
|
|
(27.4 |
)% |
|
|
(20.4 |
)% |
|
|
(21.0 |
)% |
|
|
(23.8 |
)% |
Non-GAAP operating margin |
|
|
13.5 |
% |
|
|
13.4 |
% |
|
|
13.6 |
% |
|
|
9.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) |
|
|
|
|
|
|
|
|
||||||||
GAAP net loss |
|
$ |
(22,945 |
) |
|
$ |
(13,747 |
) |
|
$ |
(46,038 |
) |
|
$ |
(50,023 |
) |
Plus: Share-based compensation expense |
|
|
36,395 |
|
|
|
25,686 |
|
|
|
92,337 |
|
|
|
66,920 |
|
Plus: Acquisition-related costs |
|
|
2,355 |
|
|
|
1,294 |
|
|
|
4,080 |
|
|
|
7,194 |
|
Plus: Amortization of acquired intangibles |
|
|
5,887 |
|
|
|
2,961 |
|
|
|
11,665 |
|
|
|
8,887 |
|
Less: Income tax effects |
|
|
(4,277 |
) |
|
|
420 |
|
|
|
(9,195 |
) |
|
|
1,658 |
|
Non-GAAP net income |
|
$ |
17,415 |
|
|
$ |
16,614 |
|
|
$ |
52,849 |
|
|
$ |
34,636 |
|
Net income per share - basic |
|
$ |
0.16 |
|
|
$ |
0.16 |
|
|
$ |
0.49 |
|
|
$ |
0.34 |
|
Net income per share - diluted |
|
$ |
0.15 |
|
|
$ |
0.15 |
|
|
$ |
0.46 |
|
|
$ |
0.32 |
|
Shares used in non-GAAP net income per share calculations: |
|
|
|
|
|
|
|
|
||||||||
GAAP weighted-average shares used to compute net loss per share - basic and diluted |
|
|
110,772 |
|
|
|
104,135 |
|
|
|
108,921 |
|
|
|
102,646 |
|
Add: Dilutive ordinary share equivalents |
|
|
4,486 |
|
|
|
6,056 |
|
|
|
6,099 |
|
|
|
5,747 |
|
Non-GAAP weighted-average shares used to compute net income per share - diluted |
|
|
115,258 |
|
|
|
110,191 |
|
|
|
115,020 |
|
|
|
108,393 |
|
JFROG LTD. RECONCILIATION OF GAAP CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW (in thousands; unaudited) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net cash provided by operating activities |
|
$ |
27,640 |
|
|
$ |
25,981 |
|
|
$ |
61,806 |
|
|
$ |
41,562 |
|
Less: purchases of property and equipment |
|
|
(936 |
) |
|
|
(591 |
) |
|
|
(2,509 |
) |
|
|
(1,364 |
) |
Free cash flow |
|
$ |
26,704 |
|
|
$ |
25,390 |
|
|
$ |
59,297 |
|
|
$ |
40,198 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107993316/en/
Investor Contact:
Jeff Schreiner
jeffs@jfrog.com
Source: JFrog Ltd.
FAQ
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