NASDAQ$FROG

Jfrog Ltd · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$84.2M

Previous: $67.8M+24.1%
EPS (adj)

$0.11

Previous: -$0.02+650.0%
GAAP Gross Margin

78.1%

Previous: 77.5%+0.8%
Non-GAAP Gross Margin

83.6%

Previous: 83.7%-0.1%
GAAP Operating Margin

-22.5%

Previous: -33.0%+31.8%
Non-GAAP Operating Margin

9.7%

Previous: -3.0%+423.3%
Operating Cash Flow

$16.7M

No prior period
Capital Expenditures

-$773K

Previous: -$2.13M+63.7%
Free Cash Flow

-$16.2M

Previous: -$25.9M+37.3%
Net Income

-$15.5M

Previous: -$23.8M+34.9%
Operating Income

-$18.9M

Previous: -$22.4M+15.6%
Gross Profit

$65.7M

Previous: $52.6M+25.0%
Cash & Equivalents

$46.7M

Previous: $430M-89.1%
Total Assets

$895M

Previous: $858M+4.4%
Stock-Based Comp

$21.3M

Previous: $15.1M+41.4%

Revenue & EPS history

JFrog · Revenue · Quarterly

$84.2M

Q2 2023+24.1%vs Q2 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

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.

Tailwinds

  • 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

Headwinds

  • 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

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.3%

Avg return

Earnings day

-1.8%

Avg return

5 days after

-3.5%

Avg return

30 days after

39%

9 / 23 earnings

Positive

+33.3%

Q4 2023

Best reaction

-27.7%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+23.9%-7.9%+21.4%
Q4 2025-3.0%-10.7%-22.9%
Q3 2025+27.0%+30.5%+37.1%
Q1 2025+1.2%-9.1%+7.9%
Q4 2024+5.5%+5.6%-11.0%
Q3 2024-2.0%-3.6%-1.5%
Q2 2024-27.7%-24.2%-19.9%
Q1 2024-19.0%-18.3%-20.3%
Q4 2023+33.3%+25.4%+18.0%
Q3 2023+16.8%+22.1%+25.8%
Q2 2023-1.0%-1.2%+0.3%
Q1 2023+12.0%+17.7%+31.4%
Q4 2022-4.0%-3.9%-24.3%
Q3 2022-8.3%-16.7%-8.7%
Q2 2022+7.4%+9.0%-13.7%
Q1 2022-9.1%-9.5%-8.6%
Q4 2021-7.9%-2.5%-15.0%
Q3 2021+12.7%+11.6%-17.6%
Q2 2020-16.0%-16.1%-17.8%
Q2 2021-7.6%-12.9%-12.4%
Q1 2021-17.4%-15.4%+1.5%
Q4 2020-0.2%+5.0%-24.3%
Q3 2020-9.5%-16.2%-5.1%
Q1 2020
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q3 2018

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