Software-development-tools company JFrog has announced better-than-expected third-quarter results, demonstrating resilience even amid the challenges posed by the ongoing conflict in Israel. JFrog, which has more than half of its employees based in Israel, remains confident about its future prospects.
Impressive Financial Performance
JFrog reported third-quarter revenue of $88.6 million, representing a 23% increase from the same period last year. This exceeds the company’s guidance range of $87 million to $88 million and surpasses the Street consensus forecast of $87.6 million. Adjusted profits were 15 cents per share, outperforming both its projected range of 8 to 9 cents and the Street consensus of 8 cents. Under generally accepted accounting principles, JFrog experienced a loss of 13 cents per share.
Growth in Cloud Revenue
The company’s cloud revenue for the quarter amounted to $30.6 million, marking a substantial 46% year-on-year increase. This segment now accounts for 35% of JFrog’s total revenue, compared to 29% during the same period last year. Moreover, JFrog added six customers generating over $1 million in annualized revenue, bringing the total number to 30, a notable increase from 18 customers a year ago.
Positive Outlook for Q4
Looking ahead, JFrog expects fourth-quarter revenue in the range of $92.5 million to $93.5 million, accompanied by a non-GAAP profit of 12 to 13 cents per share. According to Street consensus estimates, analysts initially anticipated revenue of $92.9 million and earnings of 8 cents per share.
Despite the ongoing challenges stemming from the Israeli conflict, JFrog remains committed to delivering exceptional results and maintaining its position as a leader in software development tools.
JFrog: Ensuring Software Delivery Speed and Security Amidst Challenging Times
JFrog, a leading provider of software development tools, remains determined to prioritize the speed and security of software delivery, despite the challenges faced this year. The company’s CEO, Shlomi Ben Haim, emphasizes the importance of maintaining focus in an interview conducted at JFrog’s office in Tel Aviv.
With over 1,400 employees, JFrog boasts an impressive team, over half of which are based in Israel. Out of these employees, less than 100 have been called up for active duty by the Israel Defense Forces. Ben Haim himself made the decision to join his team in Israel as soon as the conflict with Hamas commenced on October 7. During the interview, he mentions that any air-raid sirens would require the conversation to be momentarily paused but assures that none were heard.
Business Continuity and Safe Operations
JFrog wasted no time activating its business continuity plan, ensuring minimal disruptions to its operations. Ben Haim attributes the company’s ability to continue running smoothly while keeping distractions at a minimum to this proactive approach. He reassures stakeholders that the entire JFrog staff is safe and accounted for, going on to mention that both of his daughters are serving in the IDF.
Maintaining a cautious but optimistic outlook, Ben Haim states that JFrog will remain steadfast amidst the ongoing situation. The company does not intend to alter its financial guidance and is confident in its ability to fulfill its commitments.
In terms of stock performance, JFrog has seen a modest increase of approximately 6% this year; however, it has experienced a decline of around 9% since the beginning of the current conflict between Hamas and Israel.