– JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced financial results for its first quarter ended March 31, 2023.
“JFrog’s first quarter revenue and non-GAAP profitability exceeded our guidance range, driven by improved usage of our cloud services, solid execution by our direct enterprise sales team, and a growing co-sell motion with our partners amidst a challenging macro environment,” said Shlomi Ben Haim, JFrog CEO and Co-founder. “The market continues to validate the JFrog Software Supply Chain Platform as a mission-critical piece of companies’ infrastructure, reflecting the reality that software packages and binaries are the primary assets companies manage and secure across DevOps and DevSecOps. We’re excited about the continued growing demand for our solutions,
and anticipate material contribution from JFrog security products. This drives our belief that JFrog can sustain solid growth that generates significant free cash flow margins over the next five years.”
First Quarter 2023 Financial Highlights
● Revenue for the first quarter of 2023 equaled $79.8 million, up 25% year-over-year.
● GAAP Gross Profit was $61.4 million; GAAP Gross Margin was 76.9%.
● Non-GAAP Gross Profit was $66.2 million; Non-GAAP Gross Margin was 82.9%.
● GAAP Operating Loss was ($23.2) million; GAAP Operating Margin was (29.1%).
● Non-GAAP Operating Income was $2.7 million; Non-GAAP Operating Margin was 3.4%.
● GAAP Net Loss Per Share was ($0.21); Non-GAAP Earnings Per Share was $0.06.
● Operating Cash Flow was ($1.1) million; Free Cash Flow of ($1.4) million.
● Cash, Cash Equivalents and Investments were $447.2 million as of March 31, 2023.
● Remaining performance obligations were $210.6 million as of March 31, 2023.
Recent Business & Product Highlights
● Cloud revenue equaled $25.0 million during the first quarter of 2023, an increase of 49% year-over-year. Cloud revenue represented 31% of total revenue, compared to 26% in the year ago period.
● Net Dollar Retention rate for the trailing four quarters was 124%.
● $100K ARR customers increased to 785 customers, compared with 599 in the year ago period.
● $1 million ARR customers increased to 21 customers, up from 16 customers in the year ago period.
● Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented 44% of total revenue versus 35% in the year-ago period.
● Announced on-premises and hybrid availability of JFrog Advanced Security
● Held annual Leap customer symposium for top customers, sharing roadmaps &
innovation.
● Won “Most Comprehensive DevSecOps” solutions category in the 11th Annual Global InfoSec Awards from Cyber Defense Magazine.
● Appointed new CIO, Aran Azarzar, to executive staff.
Second Quarter and Fiscal Year 2023 Outlook
● Second Quarter 2023 Outlook:
○ Revenue between $82.5 million and $83.5 million
○ Non-GAAP operating income between $3.0 million and $4.0 million
○ Non-GAAP net income per diluted share between $0.05 and $0.06, assuming
approximately 108 million weighted average diluted shares outstanding
● Fiscal Year 2023 Outlook:
○ Revenue between $341.5 million to $345.5 million
○ Non-GAAP operating income between $19.0 million and $20.0 million
○ Non-GAAP net income per diluted share between $0.19 and $0.21 assuming
approximately 110 million weighted average diluted shares outstanding