February 10, 2022

JFrog Ltd. (“JFrog”) (NASDAQ: FROG), the Liquid Software company and creators of the DevOps Platform, today announced financial results for its fourth quarter and fiscal year ended December 31, 2021.

“JFrog successfully marked its first complete fiscal year as a public company, exceeding our revenue commitments in every single quarter of 2021,” said Shlomi Ben Haim, JFrog’s co-founder and CEO. “Q4 was another strong quarter with 39% revenue growth year-over-year and increased expansion by our customers, which reflects both our deepening value and our continued, strong focus on a binary-centric solution as the only way to allow a fast and secure DevOps flow.”

Fourth Quarter Financial Highlights

  • Revenue for the fourth quarter of 2021 was $59.2 million, an increase of 39% over $42.7 million in the fourth quarter of 2020.
  • GAAP Gross Profit was $46.4 million; GAAP Gross Margin was 78.3%.
  • Non-GAAP Gross Profit was $50.2 million; Non-GAAP Gross Margin was 84.8%.
  • GAAP Operating Loss was $22.6 million; GAAP Operating Margin was -38.2%.
  • Non-GAAP Operating Income was $49,000; Non-GAAP Operating Margin was 0.1%.
  • GAAP Net Loss Per Diluted Share was $0.23; Non-GAAP Net Loss Per Diluted Share was $0.01.
  • Operating Cash Flow was $17.7 million, with Free Cash Flow of $16.6 million.
  • Cash, Cash Equivalents and Investments were $421.1 million as of December 31, 2021.

Fiscal Year 2021 Financial Highlights

  • Revenue for fiscal year 2021 was $206.7 million, an increase of 37% from $150.8 million for fiscal year 2020.
  • GAAP Gross Profit was $164.9 million; GAAP Gross Margin was 79.8%.
  • Non-GAAP Gross Profit was $173.9 million; Non-GAAP Gross Margin was 84.1%.
  • GAAP Operating Loss was $68.4 million; GAAP Operating Margin was -33.1%.
  • Non-GAAP Operating Income was $4.2 million; Non-GAAP Operating Margin was 2.0%.
  • GAAP Net Loss Per Diluted Share was $0.68; Non-GAAP Net Income Per Diluted Share was $0.03.

Fourth Quarter & Recent Business Highlights

  • Accelerated growth of customers with ARR of $100K or more, increasing 53% to 537 customers as of December 31, 2021 versus 352 customers as of December 31, 2020.
  • Customers with ARR of $1 million or more increased by 50% to 15 customers, up from 10 customers at the end of 2020.
  • Cloud revenue in Q4 was $14.8 million, an increase of 52% over the same period last year. Cloud revenue represented 25% of total revenue, up from 23% in the same period last year.
  • Net Dollar Retention rate for the trailing four quarters was 130%.
  • As of December 31, 2021, JFrog had approximately 6,650 paying customers, an increase of 10% from 6,050 in the year ago period.
  • Customers using the complete JFrog Platform (Enterprise+ subscription) represented 35% of revenue in the fourth quarter of 2021, versus 26% in the same period last year.
  • Announced the availability of a new Slack integration for JFrog Artifactory and JFrog Xray.
  • Provided a prompt turnaround with security remediation tools to address the Log4j vulnerability, including open source and commercial solutions in support of our customers and community.
  • Made an early offering of JFrog Connect available, to bridge DevOps with the world of IoT and connected devices.
  • Announced JFrog’s inaugural Investor Day event, taking place virtually on February 15, 2022 at 12:30pm ET