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Sep 30, 2020

JFrog Q3 2020 Earnings Report

JFrog's Q3 2020 results demonstrated growth and strong momentum.

Key Takeaways

JFrog reported a 40% increase in revenue for the third quarter of 2020, reaching $38.9 million. The company's free cash flow was a record $9.7 million. They ended the quarter with 313 customers with ARR greater than $100,000; 9 customers with ARR above $1 million.

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.

GAAP Gross Margin was 81.3%.

Non-GAAP Operating Income was $5.1 million; non-GAAP operating margin was 13%.

Operating Cash Flow was $10.8 million, with Free Cash Flow of $9.7 million.

Total Revenue
$38.9M
Previous year: $27.8M
+39.7%
EPS
$0.05
Previous year: -$0.0388
-229.0%
Gross Margin
81.3%
Non-GAAP Gross Margin
82.7%
Operating Margin
-14%
Gross Profit
$31.6M
Previous year: $22.5M
+40.6%
Cash and Equivalents
$324M
Free Cash Flow
$9.7M
Total Assets
$654M

JFrog

JFrog

Forward Guidance

JFrog is providing the following guidance for the fourth quarter and full year 2020:

Positive Outlook

  • Fourth Quarter 2020 Outlook: Revenue between $40.9 million and $41.9 million.
  • Fourth Quarter 2020 Outlook: Non-GAAP operating income between $1.2 million and $2.2 million.
  • Fourth Quarter 2020 Outlook: 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.
  • Full Year 2020 Outlook: Non-GAAP operating income between $12.0 million and $13.0 million.

Challenges Ahead

  • Full Year 2020 Outlook: Non-GAAP net income per share between $0.11 and $0.13 assuming approximately 101 million weighted average diluted shares outstanding.