JFrog Ltd. (NASDAQ: FROG), the liquid software Company, today announced financial results for its third quarter ended September 30, 2020.
“In our first quarter as a public Company, JFrog’s demonstrated growth, high retention and strong momentum reflected the mission-critical nature of JFrog products to our customers,” said Shlomi Ben Haim, CEO and Co-founder of JFrog. “Our customers continue to adopt cloud-based and hybrid solutions as they embrace digital transformation through modern, cloud-native technologies. As DevOps continues to change the software update landscape, we look forward to leading the market in the fourth quarter and beyond.”
Third Quarter Financial Highlights:
- Revenue for the third quarter of 2020 was $38.9 million, an increase of 40% from $27.8 million for the third quarter of 2019. Revenue for the first nine months of 2020 was $108.1 million, an increase of 46% from $74.0 million for the first nine months of 2019.
- GAAP Gross Profit was $31.6 million; GAAP Gross Margin was 81.3%.
- Non-GAAP Gross Profit was $32.2 million; non-GAAP Gross Margin was 82.7%.
- GAAP Operating Loss was $5.4 million; GAAP Operating Margin was (14%).
- Non-GAAP Operating Income was $5.1 million; non-GAAP operating margin was 13%.
- GAAP Net Loss per diluted share was $0.14; non-GAAP Net Income Per Diluted Share was $0.05.
- Operating Cash Flow was $10.8 million, with Free Cash Flow of $9.7 million.
- Cash, cash equivalents and investments were $578.0 million as of September 30, 2020.
Third Quarter & Recent Business Highlights
- Ended the quarter with 313 customers with ARR greater than $100,000; 9 customers with ARR above $1 million.
- Net Dollar Retention for the trailing four quarters was 136%.
- Named Micheline Nijmeh Chief Marketing Officer.
- Completed Initial Public Offering, with net proceeds of approximately $393 million.
- Launched a free cloud tier for the developer community, expanding global exposure of core JFrog Platform services.
Fourth Quarter and Full Year 2020 Outlook
Based on information as of today, November 4, 2020, JFrog is providing the following guidance for the fourth quarter and full year 2020:
- Fourth Quarter 2020 Outlook:
— Revenue between $40.9 million and $41.9 million.
— Non-GAAP operating income between $1.2 million and $2.2 million.
— Non-GAAP net income per share between $0.00 and $0.02, assuming approximately 104 million weighted average diluted shares outstanding.
- Full Year 2020 Outlook:
— Revenue between $149.0 million and $150.0 million.
— Non-GAAP operating income between $12.0 million and $13.0 million.
— Non-GAAP net income per share between $0.11 and $0.13, assuming approximately 101 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