JFrog Reports Strong Third-Quarter Results

JFrog, a leading software-development-tools company, has announced its impressive third-quarter results and optimistic outlook, despite the ongoing impact of the conflict in Israel, where more than half of its employees are based.

Third-Quarter Performance Exceeds Expectations

In the third quarter, JFrog (ticker: FROG) reported a revenue of $88.6 million, reflecting a substantial 23% increase compared to the previous year. This figure surpassed the company’s projected range of $87 million to $88 million, as well as the Street consensus forecast of $87.6 million according to FactSet. Additionally, JFrog achieved an adjusted profit of 15 cents per share, outperforming both its projected range of 8 cents to 9 cents and the Street consensus of 8 cents. It is important to note that according to generally accepted accounting principles, the company experienced a net loss of 13 cents per share.

Growth in Cloud Revenue and Customer Base

JFrog experienced significant growth in cloud revenue during the quarter, with a total of $30.6 million—an impressive 46% increase from the previous year. This accounted for 35% of JFrog’s overall revenue, a notable surge from 29% in the same period last year. Moreover, JFrog added six customers, each generating annualized revenue of over $1 million. This brings the total number of these high-value customers to 30, compared to 18 during the same period last year.

Promising Outlook for the Fourth Quarter

Looking ahead to the fourth quarter, JFrog anticipates a revenue range of $92.5 million to $93.5 million. The company also expects to achieve a non-GAAP profit ranging from 12 cents to 13 cents per share. These projections have surpassed the Street consensus estimates of revenue totaling $92.9 million and earnings of 8 cents per share.

In a challenging business environment, JFrog continues to demonstrate resilience and strong performance. With its focus on software-development tools and commitment to innovation, JFrog remains well-positioned for future growth and success.

JFrog Remains Focused on Software Delivery Amidst Challenging Times

CEO Shlomi Ben Haim of JFrog, the leading provider of software distribution tools, emphasized the importance of maintaining speed and security in software delivery despite the uncertainties of the current economic climate. Speaking from the company’s office in Tel Aviv, Ben Haim acknowledged the company’s preparedness for a potential recession.

Ben Haim mentioned that out of JFrog’s 1,400 employees, 800 are based in Israel. He assured that, apart from fewer than 100 employees who have been called up to active duty by the Israel Defense Forces, the team is safe and accounted for. Ben Haim himself returned to Israel two days following the start of the conflict on Oct. 7.

In light of recent events, JFrog activated its business continuity plan within two hours of the Hamas attack. Despite the challenges, the company has been striving to ensure minimal disruptions to its operations. Ben Haim expressed confidence in the company’s ability to deliver, emphasizing that they will not alter their financial guidance.

JFrog stock has seen modest growth of approximately 6% this year, underperforming the market. Since the commencement of the conflict over three weeks ago, the stock has declined by about 9%.