“Our strong first quarter results are setting a solid tone for the year, with 37% revenue growth, 130% net dollar retention rate for the trailing four quarters, and increasing net new customer additions,” said Shlomi Ben Haim, CEO of JFrog. “In Q1, we took a significant leap forward in product innovation, releasing capabilities around modern DevOps scalability; enhanced security, software distribution and the developer ecosystem in response to increasing demand for a full, end-to-end DevOps platform. It’s our goal to make developers the transformers in the digital era, and we’re proud to partner with them and their organizations as they continuously deliver software rapidly and securely to the edge.”
First Quarter Financial Highlights
- Revenue for the first quarter of 2021 was $45.1 million, an increase of 37% from $32.8 million for the first quarter of 2020.
- GAAP Gross Profit was $36.7 million; GAAP Gross Margin was 81.3%.
- Non-GAAP Gross Profit was $37.6 million; Non-GAAP Gross Margin was 83.4%.
- GAAP Operating Loss was ($10.6 million); GAAP Operating Margin was (23.5%).
- Non-GAAP Operating Income was $1.9 million; Non-GAAP Operating Margin was 4.1%.
- GAAP Net Loss Per Diluted Share was ($0.09); Non-GAAP Net Income Per Diluted Share was $0.02.
- Operating Cash Flow was $8.8 million, with Free Cash Flow of $7.7 million.
- Cash, cash equivalents and investments were $605.7 million as of March 31, 2021.
First Quarter & Recent Business Highlights
- At quarter end, 395 customers had ARR greater than $100,000; 10 customers had ARR above $1 million.
- Net Dollar Retention rate for the trailing four quarters was 130%.
- Cloud revenue in Q4 grew by 62% to $10.3 million over the same period last year, representing 23% of total revenue, up from 19% a year ago.
- At quarter end, customers using the complete platform (Enterprise+ subscription) represented 29% of revenue in the first quarter of 2021 versus 16% in the first quarter of 2020.
- Increased footprint in APAC, including significant expansion of operations in China.
- Expanded third party tool integrations to deliver best-of-breed operations across DevOps pipelines, including integrations with Atlassian, Datadog, AWS GovCloud and Microsoft Government Cloud among others.
Second Quarter and Full Year 2021 Outlook
- Second Quarter 2021 Outlook:
- Revenue between $47.6 million and $48.6 million
- Non-GAAP operating income between $0.5 million and $1.5 million
- Non-GAAP net income per share between $0.00 and $0.01, assuming approximately 104 million weighted average diluted shares outstanding
- Full Year 2021 Outlook:
- Revenue between $198 million to $204 million
- Non-GAAP operating income between $5 million and $7 million
- Approximately 3% increase in weighted average diluted shares