May 9, 2022

JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog DevOps Platform, today announced financial results for its first quarter, ended March 31, 2022.

“JFrog demonstrated a solid start to 2022, as Q1 was yet another strong quarter. We’re excited to see the growing number of customers transitioning to the cloud, securing their software supply chain, and powering their DevOps pipelines with the JFrog Platform,” said Shlomi Ben Haim, JFrog Co-founder and CEO. “Our consistent investment in an end-to-end DevOps platform, that includes advanced security and distribution capabilities, answers the market demand. Our focus on multi-cloud, hybrid, and self-hosted offerings continues to bear fruit.”

First Quarter Financial Highlights

  • Revenue for the first quarter of 2022 equaled $63.7 million, an increase of 41% compared to the year ago period.
  • GAAP Gross Profit was $49.8 million; GAAP Gross Margin was 78.2%.
  • Non-GAAP Gross Profit was $53.8 million; Non-GAAP Gross Margin was 84.4%.
  • GAAP Operating Loss was ($19.1) million; GAAP Operating Margin was negative 30%.
  • Non-GAAP Operating Income was $0.5 million; Non-GAAP Operating Margin was 0.9%.
  • GAAP Net Loss Per Diluted Share was $0.20; Non-GAAP Net Income Per Diluted Share was $0.00.
  • Operating Cash Flow was $5.0 million, with Free Cash Flow of $3.9 million.
  • Cash, Cash Equivalents and Investments were $427.7 million as of March 31, 2022.

Recent Business & Product Highlights

  • Cloud revenue equaled $16.8 million during the first quarter of 2022, an increase of 63% over the year ago period. Cloud revenue represented 26% of total revenue, compared to 23% in the year ago period.
  • Net Dollar Retention rate for the trailing four quarters was 131%.
  • $100K ARR customers increased 52% year-over-year to 599 customers, compared with 395 in the year ago period.
  • $1 million ARR customers increased 60% year-over-year to 16 customers, up from 10 customers as of March 31, 2021.
  • Customers adopting the complete JFrog Platform represented 35% of total revenue versus 29% in the year ago period.
  • Announced unique contextual analysis security capabilities in the JFrog Platform to intelligently prioritize DevSecOps teams’ remediation activities.
  • Released Dart programming language and Pub repository support in JFrog Artifactory to support a fast-growing community of developers led by Google.
  • Partnered with AWS for Games to accelerate cloud DevOps processes for the rapidly-expanding gaming industry.

Second Quarter and Fiscal Year 2022 Outlook

  • Second Quarter 2022 Outlook: 
    • Revenue between $65.0 million and $66.0 million
    • Non-GAAP operating loss between ($2.5) million and ($3.5) million
    • Non-GAAP net loss per share between ($0.03) and ($0.04), assuming approximately 99 million weighted average shares outstanding
  • Fiscal Year 2022 Outlook:
    • Revenue between $276.5 million to $278.5 million
    • Non-GAAP operating income between ($1.0) million and $1.0 million
    • Non-GAAP net income per share between ($0.01) and $0.01 assuming approximately 107 million weighted average diluted shares outstanding