JFrog Q4 2024 Earnings Report
Key Takeaways
JFrog's revenue grew 19% year-over-year to $116,100,000 in Q4 2024, driven by a 37% YoY increase in cloud revenue. The company achieved a non-GAAP operating margin of 18.0% and generated strong free cash flow of $48,484,000. Despite a GAAP net loss of $23,198,000, JFrog's platform adoption and security investments continued to drive momentum.
Revenue grew 19% YoY to $116,100,000, driven by cloud and security adoption.
Cloud revenue increased 37% YoY, now representing 43% of total revenue.
Non-GAAP EPS was $0.19, with a GAAP net loss of $23,198,000.
Strong free cash flow of $48,484,000 and cash balance of $522,000,000.
JFrog Revenue
JFrog EPS
JFrog Revenue by Segment
Forward Guidance
JFrog expects continued revenue growth in 2025, with cloud and security products driving adoption.
Positive Outlook
- Q1 2025 revenue guidance: $116,000,000 - $118,000,000.
- FY 2025 revenue expected to be $499,000,000 - $503,000,000.
- Cloud revenue growth expected to continue driving total revenue.
- Non-GAAP operating income projected to reach $73,000,000 - $75,000,000 in FY 2025.
- Strategic partnership with AWS expected to accelerate cloud adoption.
Challenges Ahead
- GAAP net losses may continue due to high R&D and sales investments.
- Operating margins under pressure despite improving non-GAAP profitability.
- Potential macroeconomic headwinds affecting enterprise IT spending.
- Security products still a small portion of total revenue (3% in Q4 2024).
- Net customer growth slightly down, with total unique customers decreasing from 7,400 to 7,300.
Revenue & Expenses
Visualization of income flow from segment revenue to net income