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Jun 30, 2023

JFrog Q2 2023 Earnings Report

JFrog reported solid execution aligned with its plans, driven by the continuous adoption of DevOps and Security solutions.

Key Takeaways

JFrog's second-quarter revenue grew by 24% year-over-year, reaching $84.2 million. The company launched JFrog Curation to enhance its DevSecOps capabilities. Cloud revenue increased by 44% year-over-year, representing 33% of total revenue.

Total revenue reached $84.2 million, a 24% increase year-over-year.

Cloud revenue grew by 44% year-over-year, driven by higher customer usage.

JFrog Curation security tool was launched to prevent malicious packages from entering software supply chains.

A Forrester study found nearly 400% ROI with the JFrog Platform.

Total Revenue
$84.2M
Previous year: $67.8M
+24.1%
EPS
$0.11
Previous year: -$0.02
-650.0%
Gross Margin
78.1%
Previous year: 77.5%
+0.8%
Non-GAAP Gross Margin
83.6%
Previous year: 83.7%
-0.1%
Operating Margin
-22.5%
Previous year: -33%
-31.8%
Gross Profit
$65.7M
Previous year: $52.6M
+24.9%
Cash and Equivalents
$46.7M
Previous year: $430M
-89.1%
Free Cash Flow
$16.2M
Previous year: $3M
+440.0%
Total Assets
$895M
Previous year: $858M
+4.4%

JFrog

JFrog

Forward Guidance

JFrog anticipates revenue between $87.0 million and $88.0 million and Non-GAAP operating income between $6.0 million and $7.0 million for Q3 2023. For fiscal year 2023, the company projects revenue between $343.5 million to $345.5 million and Non-GAAP operating income between $24.0 million and $25.0 million.

Positive 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
  • Revenue between $343.5 million to $345.5 million
  • Non-GAAP operating income between $24.0 million and $25.0 million

Challenges Ahead

  • Uncertainty regarding share-based compensation
  • Uncertainty regarding the effect of reconciling items
  • Uncertainty regarding the potential variability of reconciling items
  • Uncertainty regarding the amortization of acquired intangibles
  • Uncertainty regarding acquisition-related costs