On August 7, 2024, JFrog Ltd (FROG, Financial) released its 8-K filing detailing its financial results for the second quarter ended June 30, 2024. JFrog Ltd provides an end-to-end, hybrid, universal DevOps Platform that powers and controls the software supply chain, enabling organizations to continuously and securely deliver software updates across any system. Its product portfolio includes JFrog Artifactory, JFrog Pipelines, JFrog Xray, JFrog Distribution, JFrog Artifactory Edge, JFrog Mission Control, and JFrog Insight.
Q2 2024 Financial Highlights
JFrog Ltd reported total revenues of $103.0 million for Q2 2024, reflecting a 22% year-over-year increase. This figure aligns closely with the analyst estimate of $103.58 million. The company's cloud revenues surged by 42% year-over-year, reaching $39.3 million and representing 38% of total revenue, up from 33% in the same period last year.
Profitability Metrics
GAAP Gross Profit for the quarter was $81.2 million, with a GAAP Gross Margin of 78.8%. On a non-GAAP basis, Gross Profit was $86.9 million, and the Gross Margin was 84.4%. The company reported a GAAP Operating Loss of $19.1 million, translating to a GAAP Operating Margin of -18.6%. However, on a non-GAAP basis, JFrog Ltd achieved an Operating Income of $13.6 million, with a Non-GAAP Operating Margin of 13.2%.
Net Income and EPS
JFrog Ltd reported a GAAP Net Loss Per Share of $0.13, which was worse than the analyst estimate of -$0.11. On a non-GAAP basis, the company reported Diluted Earnings Per Share of $0.15.
Cash Flow and Balance Sheet
Operating Cash Flow for Q2 2024 was $16.7 million, with Free Cash Flow amounting to $16.0 million. As of June 30, 2024, JFrog Ltd had Cash, Cash Equivalents, and Investments totaling $591.3 million. Remaining performance obligations stood at $272.0 million.
Key Metrics and Business Highlights
JFrog Ltd's Net Dollar Retention rate for the trailing four quarters was 118%. The number of customers with Annual Recurring Revenue (ARR) greater than $100K increased to 928, compared to 813 in the year-ago period. Customers with ARR greater than $1 million rose to 42, up from 24 in the same period last year. Enterprise+ Subscription Revenues reached $51 million, up 35% year-over-year, representing 50% of total revenue for the quarter.
Recent Developments
JFrog Ltd announced a partnership with GitHub to offer a unified best-of-breed platform experience. Additionally, the company acquired Qwak AI, expanding its platform to include MLOps capabilities. This acquisition positions JFrog Ltd as the first to support DevOps, Security, and MLOps in a single platform.
“We are on a mission to revolutionize the software industry with a unified platform that encompasses EveryOps and streamlines the software supply chain flow,” said Shlomi Ben Haim, Co-founder and CEO of JFrog. “With the innovative power of our QWAK AI acquisition, JFrog proudly stands as the first to support DevOps, Security, and MLOps in a single platform. We are committed to provide a solution that fosters seamless collaboration among machines, developers, and data scientists,” Ben Haim added.
Outlook
For the third quarter of 2024, JFrog Ltd expects revenue between $105 million and $106 million, with non-GAAP operating income between $10 million and $11 million. Non-GAAP net income per diluted share is projected to be between $0.09 and $0.11, assuming approximately 115 million weighted average diluted shares outstanding.
For the full fiscal year 2024, the company anticipates revenue between $422 million and $424 million, with non-GAAP operating income between $52 million and $54 million. Non-GAAP net income per diluted share is expected to be between $0.54 and $0.56, assuming approximately 116 million weighted average diluted shares outstanding.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from JFrog Ltd for further details.
