Sunnyvale, Calif., August 2, 2023 — JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced financial results for its second quarter ended June 30, 2023.
“The growth in our second-quarter revenue – alongside robust operating performance – demonstrates solid execution aligned with our plans. The continuous adoption of our DevOps and Security solutions as crucial enterprise infrastructure has been a driving force behind these results,” stated Shlomi Ben Haim, JFrog CEO and Co-founder. “With the recent launch of JFrog Curation, natively integrated with JFrog Artifactory, Xray and Advanced Security, we have significantly enhanced our DevSecOps capabilities and are enthusiastic about further expansion of JFrog’s presence in the security market.”
Second Quarter 2023 Financial Highlights
- Revenue for the second quarter of 2023 equaled $84.2 million, up 24% year-over-year.
- GAAP Gross Profit was $65.7 million; GAAP Gross Margin was 78.1%.
- Non-GAAP Gross Profit was $70.4 million; Non-GAAP Gross Margin was 83.6%.
- GAAP Operating Loss was ($18.9) million; GAAP Operating Margin was (22.5%).
- Non-GAAP Operating Income was $8.2 million; Non-GAAP Operating Margin was 9.7%.
- GAAP Net Loss Per Share was ($0.15); Non-GAAP Earnings Per Share was $0.11.
- Operating Cash Flow was $16.7 million; Free Cash Flow of $16.2 million.
- Cash, Cash Equivalents and Investments were $469.8 million as of June 30, 2023.
- Remaining performance obligations were $213.6 million as of June 30, 2023.
Recent Business & Product Highlights
- Cloud revenue equaled $27.6 million during the second quarter of 2023, an increase of 44% year-over-year. Cloud revenue represented 33% of total revenue, compared to 28% in the year ago period.
- Net Dollar Retention rate for the trailing four quarters was 120%.
- $100K ARR customers increased to 813 customers, compared with 647 in the year ago period.
- $1 million ARR customers increased to 24 customers, up from 17 customers in the year ago period.
- Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented 45% of total revenue versus 36% in the year-ago period.
- Announced General Availability of JFrog Curation to prevent unwanted or malicious packages from entering an organization, protecting the software supply chain.
- Delivered JFrog-commissioned study from Forrester Consulting, showcasing 393% ROI on JFrog Platform investments over 36 months.
Third Quarter and Fiscal Year 2023 Outlook
Third Quarter 2023 Outlook:
- Revenue between $87.0 million and $88.0 million
- Non-GAAP operating income between $6.0 million and $7.0 million
- Non-GAAP net income per diluted share between $0.08 and $0.09, assuming approximately 110 million weighted average diluted shares outstanding
Fiscal Year 2023 Outlook:
- Revenue between $343.5 million to $345.5 million
- Non-GAAP operating income between $24.0 million and $25.0 million
- Non-GAAP net income per diluted share between $0.31 and $0.33, 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.