“Our fourth quarter revenue results were in line with the guidance range we provided, and we met our commitments on profitability, despite macroeconomic headwinds increasing near the end of the year,” said Shlomi Ben Haim, JFrog Co-founder and CEO. “We are excited to see the continued expansion in the adoption of the JFrog Software Supply Chain Platform, as customers continue to favor a single, universal platform to manage their DevOps and DevSecOps processes. The release of JFrog Advanced Security saw rapid adoption by both new and existing customers looking to incorporate the comprehensive set of capabilities and consolidate current security point solutions. As we enter 2023, we expect our investments in binary management, security and cloud – all in one platform – to bear fruit and fuel our growth.”
Fourth Quarter Financial Highlights
Revenue equaled $76.5 million, an increase of 29% year-over-year.
GAAP Gross Profit was $59.3 million; GAAP Gross Margin was 77.4%.
Non-GAAP Gross Profit was $64.0 million; Non-GAAP Gross Margin was 83.7%.
GAAP Operating Loss was ($24.9) million; GAAP Operating Margin was (32.5%).
Non-GAAP Operating Profit was $1.6 million; Non-GAAP Operating Margin was 2.1%.
GAAP Net Loss Per Share was ($0.23); Non-GAAP Earnings Per Share was $0.04.
Operating Cash Flow was $7.3 million, with Free Cash Flow of $6.4 million.
Cash, Cash Equivalents, and Investments were $443.2 million as of December 31, 2022.
Remaining performance obligations were $204.7 million as of December 31, 2022.
Fiscal Year 2022 Financial Highlights
Revenue equaled $280.0 million, an increase of 35% year-over-year.
GAAP Gross Profit was $217.8 million; GAAP Gross Margin was 77.8%.
Non-GAAP Gross Profit was $235.2 million; Non-GAAP Gross Margin was 84.0%.
GAAP Operating Loss was ($89.8) million; GAAP Operating Margin was (32.1%).
Non-GAAP Operating Profit was $1.3 million; Non-GAAP Operating Margin was 0.5%.
GAAP Net Loss Per Share was ($0.91); Non-GAAP Earnings Per Share was $0.04.
Operating Cash Flow was $21.4 million, with Free Cash Flow of $17.1 million.
7,200 customers, compared to 6,650 in the year ago period: growth of 8% year-over-year.
Q4 Recent Business & Product Highlights
Software Supply Chain Platform adoption
Customers adopting the complete JFrog Platform represented 43% of total revenue compared to 35% in the year ago period.
$100K ARR customers increased 37% year-over-year to 736 customers, compared to 537 in the year ago period.
JFrog Advanced Security release – recorded multiple design wins for JFrog Advanced Security. Best-of-breed security approach combined with an integrated, hybrid platform addresses market needs.
Customer expansion
Net Dollar Retention rate for the trailing four quarters was 128%.
$1 million ARR customers increased 27% year-over-year to 19 customers, up from 15 customers as of December 31, 2021.
Cloud & multi-cloud
Revenue equaled $22.6 million during the fourth quarter of 2022, an increase of 53% over the year ago period, and $80 million for fiscal 2022, up 60% year-over-year.
Cloud revenue represented 30% of total fourth quarter revenue, compared to 25% in the year ago period.
First Quarter and Fiscal Year 2023 Outlook
First Quarter 2023 Outlook:
Revenue between $78 million and $79 million.
Non-GAAP operating income between $1.5 million and $2.5 million.
Non-GAAP net income per diluted share between $0.03 and $0.05, assuming approximately 107 million weighted average diluted shares outstanding.
Fiscal Year 2023 Outlook:
Revenue between $340 million to $344 million.
Non-GAAP operating income between $17 million and $19 million.
Non-GAAP net income per diluted share between $0.18 and $0.20 assuming approximately 110 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.