JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog DevOps Platform, today announced financial results for its second quarter, ended June 30, 2022.
“During the second quarter, we delivered and exceeded our commitments to the market. Revenue growth in our cloud business accelerated sequentially, showing that hybrid and multi-cloud DevOps is what enterprises are driving at scale. We believe that our success in the second quarter provides further validation that the JFrog Platform is the backbone of their software supply chain,” said Shlomi Ben Haim, JFrog Co-founder and CEO. “We remain laser-focused on making our Liquid Software vision a reality. We are investing in binary lifecycle solutions, uncompromised security across all DevOps stages, and delivering software updates to the distributed network of edge devices – all in one Platform.”
Second Quarter Financial Highlights
- Revenue for the second quarter of 2022 equaled $67.8 million, an increase of 39% compared to the year ago period.
- GAAP Gross Profit was $52.6 million; GAAP Gross Margin was 77.5%.
- Non-GAAP Gross Profit was $56.8 million; Non-GAAP Gross Margin was 83.7%.
- GAAP Operating Loss was ($22.4) million; GAAP Operating Margin was negative (33.0%).
- Non-GAAP Operating Loss was ($2.0) million; Non-GAAP Operating Margin was (3.0%).
- GAAP Net Loss Per Share was ($0.24); Non-GAAP Net Loss Per Share was ($0.02).
- Operating Cash Flow was $4.0 million, with Free Cash Flow of $3.0 million.
- Cash, Cash Equivalents and Investments were $430.2 million as of June 30, 2022.
Recent Business & Product Highlights
- Cloud revenue equaled $19.2 million during the second quarter of 2022, an increase of 68% over the year ago period. Cloud revenue represented 28% of total revenue, compared to 24% in the year ago period.
- Net Dollar Retention rate for the trailing four quarters was 132%.
- $100K ARR customers increased 56% year-over-year to 647 customers, compared with 415 in the year ago period.
- $1 million ARR customers increased 42% year-over-year to 17 customers, up from 12 customers as of June 30, 2021.
- Customers adopting the complete JFrog Platform represented 36% of total revenue versus 32% in the year ago period.
- Announced new advanced security innovations demonstrating the integration and collaboration following the acquisition of Vdoo and the first delivery of an additional security offering.
- Delivered JFrog Connect, a new solution designed to help developers update, manage, monitor and secure OTA software updates on devices.
- Announced new integrations for JFrog Artifactory and JFrog Xray with industry leaders ServiceNow’s Lightstep and Microsoft Teams to create a DevOps environment from developers to the runtime that delivers coexisting best-of-breed products that avoid vendor lock-in.
Third Quarter and Fiscal Year 2022 Outlook
- Third Quarter 2022 Outlook:
- Revenue between $70.5 million and $71.5 million
- Non-GAAP operating income between ($0.5) million and $0.5 million
- Non-GAAP net income per diluted share between ($0.01) and $0.01, assuming approximately 106 million weighted average diluted shares outstanding
- Fiscal Year 2022 Outlook:
- Revenue between $278.5 million to $280.5 million
- Non-GAAP operating income between ($1.0) million and $1.0 million
- Non-GAAP net income per diluted share between ($0.01) and $0.01 assuming approximately 107 million weighted average diluted shares outstanding