NASDAQ$FROG

Jfrog Ltd · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

JFrog exceeded guidance with solid performance, driven by enterprise adoption of its hybrid Software Supply Chain Platform and comprehensive security solutions.

JFrog reported a strong Q3 2023, exceeding the high end of its guidance. Total revenue reached $88.6 million, a 23% increase year-over-year, with cloud revenue growing by 46%. The company saw an increase in customers with ARR over $1 million, reaching 30, up 67% year-over-year.

  • Total revenue was $88.6 million, up 23% year-over-year.
  • Cloud revenue increased by 46% year-over-year, representing 35% of total revenue.
  • Customers with ARR over $1 million grew to 30, a 67% increase year-over-year.
  • Net Dollar Retention rate for the trailing four quarters was 119%.

Headline financials

Total Revenue

$88.6M

Previous: $72M+23.1%
EPS (adj)

$0.15

Previous: $0.02+650.0%
GAAP Gross Margin

77.7%

Previous: 77.9%-0.3%
Non-GAAP Gross Margin

83.7%

Previous: 84.2%-0.6%
GAAP Operating Margin

-20.4%

Previous: -32.6%+37.4%
Non-GAAP Operating Margin

13.4%

Previous: 1.7%+688.2%
Operating Cash Flow

$26M

Previous: $5.1M+409.8%
Capital Expenditures

-$1.36M

Previous: -$3.44M+60.3%
Free Cash Flow

-$15.1M

Previous: -$27M+44.0%
Net Income

-$13.7M

Previous: -$23.6M+41.6%
Operating Income

-$18.1M

Previous: -$23.4M+23.0%
Gross Profit

$68.9M

Previous: $56.1M+22.8%
Cash & Equivalents

$61M

Previous: $54M+13.0%
Total Assets

$920M

Previous: $853M+7.9%
R&D Expense

$32.1M

No prior period
Stock-Based Comp

$25.7M

Previous: $19.2M+33.7%

Revenue & EPS history

JFrog · Revenue · Quarterly

$88.6M

Q3 2023+23.1%vs Q3 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

JFrog anticipates revenue between $92.5 million and $93.5 million and non-GAAP operating income between $10.0 million and $11.0 million for Q4 2023. The company projects revenue between $345.1 million to $346.1 million and non-GAAP operating income between $32.8 million and $33.8 million for the full fiscal year 2023.

Tailwinds

  • Revenue between $92.5 million and $93.5 million
  • Non-GAAP operating income between $10.0 million and $11.0 million
  • Non-GAAP net income per diluted share between $0.12 and $0.13, assuming approximately 111 million weighted average diluted shares outstanding
  • Revenue between $345.1 million to $346.1 million
  • Non-GAAP operating income between $32.8 million and $33.8 million

Headwinds

  • Non-GAAP net income per diluted share between $0.44 and $0.45, assuming approximately 109 million weighted average diluted shares outstanding
  • Risks associated with managing rapid growth
  • History of losses
  • Limited operating history
  • Ability to retain and upgrade existing customers

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 Q3 2023

Historical avgQ3 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro