Software/ platforms

JFrog announces Fourth Quarter and Fiscal 2023 Results

  • Total Fiscal 2023 Revenues of $349.9 million; up 25% Year-over-Year
  • Cloud Revenues up 59% in 4Q23; up 50% in Fiscal 2023
  • Customers with ARR Greater Than $1 million Reached 37 in 4Q23, up 95% Year-over-Year
  • Enterprise+ Subscription Revenues Grew 50% Year-over-Year in 2023

JFrog Ltd. (“JFrog”) (Nasdaq: FROG), the Liquid Software company and creators of the JFrog Software Supply Chain Platform, today announced financial results for its fourth quarter and fiscal year ended December 31, 2023.

“Our 2023 performance showcases JFrog’s solid execution across our strategic pillars; driving growth in the cloud, leveraging complete software supply chain capabilities, and enhancing our security offerings – all supported by our focused transition to enterprise sales while building an efficient business,” stated Shlomi Ben Haim, JFrog CEO and Co-founder. “The market demands a consolidated solution for DevOps and DevSecOps around binary management, and we are excited to see new opportunities for expansion in security in 2024, as well as potential tailwinds within MLOps and MLSecOps, which are supported natively by our platform.”

Fourth Quarter 2023 Financial Highlights

  • Revenue for the fourth quarter of 2023 equaled $97.3 million, up 27% year-over-year.
  • GAAP Gross Profit was $76.8 million; GAAP Gross Margin was 79.0%.
  • Non-GAAP Gross Profit was $82.3 million; Non-GAAP Gross Margin was 84.6%.
  • GAAP Operating Loss was ($15.4) million; GAAP Operating Margin was (15.8%).
  • Non-GAAP Operating Income was $16.2 million; Non-GAAP Operating Margin was 16.6%.
  • GAAP Net Loss Per Share was ($0.11); Non-GAAP Diluted Earnings Per Share was $0.19.
  • Operating Cash Flow was $32.6 million; Free Cash Flow of $32.0 million.
  • Cash, Cash Equivalents and Investments were $545.0 millionas of December 31, 2023.
  • Remaining performance obligations were $259.8 million as of December 31, 2023.

Fiscal 2023 Financial Highlights

  • Revenue for fiscal 2023 equaled $349.9 million, up 25% year-over-year.
  • GAAP Gross Profit was $272.8 million; GAAP Gross Margin was 78.0%.
  • Non-GAAP Gross Profit was $293.0 million; Non-GAAP Gross Margin was 83.7%.
  • GAAP Operating Loss was ($75.5) million; GAAP Operating Margin was (21.6%).
  • Non-GAAP Operating Income was $39.0 million; Non-GAAP Operating Margin was 11.1%.
  • GAAP Net Loss Per Share was ($0.59); Non-GAAP Diluted Earnings Per Share was $0.51.
  • Operating Cash Flow was $74.2 million; Free Cash Flow of $72.2 million.
  • Approximately 7,400 unique customers versus 7,200 in the prior year.

Recent Business & Product Highlights

  • Cloud revenue equaled $36.0 million during the fourth quarter of 2023, an increase of 59% year-over-year. Cloud revenue represented 37% of total revenue, compared to 30% in the year ago period.
  • Net Dollar Retention rate for the trailing four quarters was 119%.
  • Customers with greater than $100K ARR increased to 886 customers, compared with 736 in the year-ago period.
  • Customers with greater than $1 million ARR increased to 37 customers, up from 19 customers in the year-ago period.
  • Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented 49% of total revenue during the fourth quarter of 2023 versus 43% in the year-ago period.
  • Announced new integration capabilities with Amazon SageMaker in January 2024, to accelerate secure machine learning development.

First Quarter and Fiscal Year 2024 Outlook

  • First Quarter 2024 Outlook:
    • Revenue between $98.0 million and $99.0 million
    • Non-GAAP operating income between $12.5 millionand $13.5 million
    • Non-GAAP net income per diluted share between $0.13 and $0.15, assuming approximately 113 million weighted average diluted shares outstanding
  • Fiscal Year 2024 Outlook:
    • Revenue between $424.0 million to $428.0 million
    • Non-GAAP operating income between $56.0 million and $58.0 million
    • Non-GAAP net income per diluted share between $0.58 and $0.60, assuming approximately 116 million weighted average diluted shares outstanding

The section titled “Non-GAAP Financial Information” below describes our usage of non-GAAP financial measures. Reconciliations between historical GAAP and non-GAAP information are contained at the end of this press release following the accompanying financial data.

Conference Call Details

  • Event: JFrog’s Fourth Quarter and Fiscal 2023 Financial Results Conference Call
  • Date: Wednesday, February 14, 2024
  • Time: 2:00 p.m. PT (5:00 p.m. ET)

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