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Dec 31, 2023

JFrog Q4 2023 Earnings Report

JFrog's Q4 2023 earnings showcased strong performance with significant cloud revenue growth and increased customer adoption of the Enterprise+ subscription.

Key Takeaways

JFrog reported a 27% year-over-year increase in revenue for Q4 2023, reaching $97.3 million. Cloud revenue grew by 59% year-over-year, representing 37% of total revenue. The company saw a 95% increase in customers with ARR greater than $1 million, reaching 37.

Total revenue for Q4 2023 was $97.3 million, a 27% increase year-over-year.

Cloud revenue increased by 59% year-over-year and represented 37% of total revenue.

Customers with ARR greater than $1 million reached 37, up 95% year-over-year.

Non-GAAP diluted earnings per share was $0.19.

Total Revenue
$97.3M
Previous year: $76.5M
+27.1%
EPS
$0.19
Previous year: $0.04
+375.0%
Gross Margin
79%
Previous year: 77.4%
+2.1%
Non-GAAP Gross Margin
84.6%
Previous year: 83.7%
+1.1%
Operating Margin
-15.8%
Previous year: -32.5%
-51.4%
Gross Profit
$76.8M
Previous year: $59.3M
+29.7%
Cash and Equivalents
$84.8M
Previous year: $45.6M
+85.9%
Free Cash Flow
$32M
Previous year: $6.4M
+400.0%
Total Assets
$973M
Previous year: $871M
+11.6%

JFrog

JFrog

Forward Guidance

JFrog anticipates revenue between $98.0 million and $99.0 million, non-GAAP operating income between $12.5 million and $13.5 million, and non-GAAP net income per diluted share between $0.13 and $0.15 for the first quarter of 2024. For the full fiscal year 2024, the company expects revenue between $424.0 million and $428.0 million, non-GAAP operating income between $56.0 million and $58.0 million, and non-GAAP net income per diluted share between $0.58 and $0.60.

Positive Outlook

  • Revenue between $98.0 million and $99.0 million for Q1 2024.
  • Non-GAAP operating income between $12.5 million and $13.5 million for Q1 2024.
  • Non-GAAP net income per diluted share between $0.13 and $0.15 for Q1 2024.
  • Revenue between $424.0 million to $428.0 million for fiscal year 2024.
  • Non-GAAP operating income between $56.0 million and $58.0 million for fiscal year 2024.

Challenges Ahead

  • Uncertainty regarding reconciling items such as share-based compensation.
  • Potential variability of reconciling items that may be incurred in the future.
  • Impact of share-based compensation may be significant.
  • General market conditions.
  • Economic business conditions.