On November 1, 2023, JFrog Ltd (FROG, Financial) released its financial results for the third quarter ending September 30, 2023. The company reported total revenues of $88.6 million, a 23% increase year-over-year. The rise in revenue was primarily driven by a 46% increase in cloud revenues, which was attributed to higher customer usage.
Financial Performance
JFrog Ltd (FROG, Financial) reported a GAAP Gross Profit of $68.9 million, with a Gross Margin of 77.7%. The Non-GAAP Gross Profit stood at $74.1 million, with a Gross Margin of 83.7%. The GAAP Operating Loss was ($18.1) million, with an Operating Margin of (20.4%). However, the Non-GAAP Operating Income was $11.9 million, with an Operating Margin of 13.4%.
The company's GAAP Net Loss Per Share was ($0.13), while the Non-GAAP Diluted Earnings Per Share was $0.15. The Operating Cash Flow was reported at $26.0 million, with a Free Cash Flow of $25.4 million. As of September 30, 2023, the company had Cash, Cash Equivalents, and Investments worth $502.2 million.
Customer Growth and Business Highlights
JFrog Ltd (FROG, Financial) reported significant growth in its customer base. The number of customers with an ARR over $1 million increased to 30, marking a 67% increase year-over-year. The company also unveiled new security capabilities in the JFrog Software Supply Chain Platform, including AI and ML Model Security, Static Application Security Testing (SAST), and an Open Source Software (OSS) Catalog.
Outlook for Q4 and Fiscal Year 2023
For the fourth quarter of 2023, JFrog Ltd (FROG, Financial) expects revenue between $92.5 million and $93.5 million and a Non-GAAP operating income between $10.0 million and $11.0 million. For the full fiscal year 2023, the company expects revenue between $345.1 million to $346.1 million and a Non-GAAP operating income between $32.8 million and $33.8 million.
JFrog Ltd (FROG, Financial) continues to show strong performance in its financial results, with significant growth in revenue and customer base. The company's focus on enhancing its product offerings and expanding its customer base is expected to drive further growth in the coming quarters.
Explore the complete 8-K earnings release (here) from JFrog Ltd for further details.
