STOCK TITAN

JFrog Announces Third Quarter 2024 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

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 OpsRuntime 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.

Positive
  • 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%.
Negative
  • GAAP operating loss was $29.9 million.
  • GAAP net loss per share was $0.21.
  • Total Revenues of $109.1 million; up 23% Year-over-Year
  • Cloud Revenues up 38% Year-over-Year; driven by cloud migrations and security
  • Customers with ARR Greater than $1 million equaled 46, up 53% Year-over-Year
  • Announced expansion of the JFrog Platform with MLOps and Runtime Security

SUNNYVALE, Calif.--(BUSINESS WIRE)-- JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced financial results for its third quarter ended September 30, 2024.

"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 $109.1 million, up 23% year-over-year.
  • GAAP Gross Profit was $81.8 million; GAAP Gross Margin was 75.0%.
  • Non-GAAP Gross Profit was $90.3 million; Non-GAAP Gross Margin was 82.8%.
  • GAAP Operating Loss was ($29.9) million; GAAP Operating Margin was (27.4%).
  • Non-GAAP Operating Income was $14.7 million; Non-GAAP Operating Margin was 13.5%.
  • GAAP Net Loss Per Share was ($0.21); Non-GAAP Diluted Earnings Per Share was $0.15.
  • Operating Cash Flow was $27.6 million; Free Cash Flow of $26.7 million.
  • Cash, Cash Equivalents and Investments were $467.8 million as of September 30, 2024.
  • Remaining performance obligations were $346.1 million as of September 30, 2024.

Recent Business & Product Highlights

  • Cloud revenue equaled $42.4 million during the third quarter of 2024, an increase of 38% year-over-year. Cloud revenue represented 39% of total revenue, compared to 35% in the year-ago period.
  • Net Dollar Retention rate for the trailing four quarters was 117%.
  • Customers with greater than $100K ARR increased to 966, compared with 848 in the year-ago period.
  • Customers with greater than $1 million ARR increased to 46, up from 30 in the year-ago period.
  • Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented 50% of total revenue during the third quarter of 2024 versus 46% 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 $113.5 million and $114.5 million
    • Non-GAAP operating income between $14.0 million and $15.0 million
    • Non-GAAP net income per diluted share between $0.13 and $0.15, assuming approximately 117 million weighted average diluted shares outstanding
  • Fiscal Year 2024 Outlook:
    • Revenue between $425.9 million to $ 426.9 million
    • Non-GAAP operating income between $56.4 million and $57.4 million
    • Non-GAAP net income per diluted share between $0.59 and $0.61, assuming approximately 116 million weighted average diluted shares outstanding

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 U.S. federal securities laws, including but not limited to statements regarding JFrog’s future financial performance, including our outlook for the fourth quarter and for the full year of 2024, expectations regarding the market and revenue potential for the JFrog Platform, including JFrog Artifactory, JFrog Xray, JFrog Curation, JFrog Advanced Security, JFrog ML and JFrog Runtime Security, and including the efficacy and benefit of integrating of any of the foregoing with other products and platform, our expectations regarding the mission-critical nature of the “JFrog Platform” to our customers’ infrastructure and its growth potential, the growth potential of our cloud business, including hybrid and multi-cloud, our expectations regarding potential for growth in binary management within MLOps/MLSecOps, our ability to provide effective tools and solutions to detect and remediate security vulnerabilities, our expectations regarding our strategic integrations and collaborations, the ability of our strategic sales team to grow the business across top-tier accounts, our ability to expand usage of our platform in the government and commercial sectors, our ability to contribute data to global security standards bodies, our ability to innovate and meet market demands and the software supply chain needs of our customers and our expectations regarding the integration of Qwak AI’s business into ours, including our ability to successfully integrate into our business operations, including our software supply chain-focused platform, and realize anticipated benefits and synergies from the acquisition. These forward-looking statements are based on JFrog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause JFrog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

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 $100,000 or more is based on the ARR of each customer, as of the last month of the quarter. JFrog’s number of customers with ARR of $1 million or more is based on the ARR of each customer, as of the last month of the quarter. JFrog defines ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers, so long as JFrog generates revenue from these customers. JFrog annualizes its monthly subscriptions by taking the revenue it would contractually expect to receive from such customers in a given month and multiplying it by 12.

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

 

 

Investor Contact:

Jeff Schreiner

jeffs@jfrog.com

Source: JFrog Ltd.

FAQ

What were JFrog's total revenues for Q3 2024?

JFrog reported total revenues of $109.1 million for Q3 2024, reflecting a 23% year-over-year increase.

How much did JFrog's cloud revenues increase in Q3 2024?

JFrog's cloud revenues increased by 38% year-over-year, reaching $42.4 million in Q3 2024.

What was JFrog's GAAP net loss per share in Q3 2024?

JFrog's GAAP net loss per share was $0.21 in Q3 2024.

What is JFrog's outlook for Q4 2024 revenues?

For Q4 2024, JFrog expects revenues between $113.5 million and $114.5 million.

What is JFrog's expected non-GAAP net income per diluted share for Q4 2024?

JFrog expects non-GAAP net income per diluted share between $0.13 and $0.15 for Q4 2024.

JFrog Ltd. Ordinary Shares

NASDAQ:FROG

FROG Rankings

FROG Latest News

FROG Stock Data

3.39B
90.01M
14.94%
77.2%
3.07%
Software - Application
Services-prepackaged Software
Link
United States of America
SUNNYVALE