(“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog DevOps Platform, today announced financial results for its third quarter, ended September 30, 2022.
“Our third quarter results exceeded the high-end of guidance across all metrics, as cloud revenues grew 60%, driven with our cloud marketplace partners and higher levels of customer usage,” said Shlomi Ben Haim, JFrog Co-founder and CEO. “We are reimagining the way DevOps and Security play together. As part of our strategy, we launched JFrog’s Advanced Security, a ground shaking DevSecOps product that is now part of our platform, and provides our users a binary-focused approach to software supply chain security.”
Third Quarter Financial Highlights
- Revenue for the third quarter of 2022 equaled $72.0 million, an increase of 34% year-over-year.
- GAAP Gross Profit was $56.1 million; GAAP Gross Margin was 77.9%.
- Non-GAAP Gross Profit was $60.6 million; Non-GAAP Gross Margin was 84.2%.
- GAAP Operating Loss was ($23.4) million; GAAP Operating Margin was negative (32.6%).
- Non-GAAP Operating Profit was $1.2 million; Non-GAAP Operating Margin was 1.7%.
- GAAP Net Loss Per Share was ($0.24); Non-GAAP Earnings Per Share was $0.02.
- Operating Cash Flow was $5.1 million, with Free Cash Flow of $3.8 million.
- Cash, Cash Equivalents and Investments were $434.0 million as of September 30, 2022.
- Remaining performance obligations were $189.8 million as of September 30, 2022
Recent Business & Product Highlights
- Cloud revenue equaled $21.0 million during the third quarter of 2022, an increase of 60% over the year ago period. Cloud revenue represented 29% of total revenue, compared to 24% in the year ago period.
- Net Dollar Retention rate for the trailing four quarters was 130%.
- $100K ARR customers increased 49% year-over-year to 696 customers, compared with 466 in the year ago period.
- $1 million ARR customers increased 29% year-over-year to 18 customers, up from 14 customers as of September 30, 2021.
- Customers adopting the complete JFrog Platform represented 39% of total revenue versus 34% in the year ago period.
- Launched the general availability of JFrog Advanced Security, the world’s first binary-focused, DevSecOps solution, providing holistic security coverage from any source to any destination.
- Completed the first large JFrog Connect deal with an international defense electronics company to manage one of Western Europe’s technologically-advanced armed forces’ DevOps flow to enable over-the-air software updates.
- Partnered with one of the world’s top 3 largest automotive manufacturers closing a multi-million dollar deal leveraging the full JFrog Platform.
Fourth Quarter and Fiscal Year 2022 Outlook
- Fourth Quarter 2022 Outlook:
- Revenue between $76.5 million and $77.5 million
- Non-GAAP operating income between $1.0 million and $2.0 million
- Non-GAAP net income per diluted share between $0.01 and $0.02, assuming approximately 106 million weighted average diluted shares outstanding
- Fiscal Year 2022 Outlook:
- Revenue between $280.0 million to $281.0 million
- Non-GAAP operating income between $1.0 million and $2.0 million
- Non-GAAP net income per diluted share between $0.01 and $0.02 assuming approximately 106 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.