What were the key takeaways from Jfrog's earnings call?

What were the key takeaways from Jfrog’s earnings call?

What is the revenue and EPS growth rate for Jfrog year over year?

What factors drove the changes in Jfrog's revenue and profit?

What is Jfrog's latest dividend and current dividend yield?

What does Jfrog do and what are its main business segments?

What is Jfrog's gross profit margin?

What guidance did Jfrog's management provide for the next earnings period?

- **Revenue Surge**: Q3 revenue $136.9M (+26% YoY), cloud revenue $63.4M (+50% YoY), 56% of revenue from Enterprise Plus subscriptions.
- **Enterprise Expansion**: 71 customers >$1M (54% YoY growth), 1,121 >$100k (16% YoY). 4Q NDR 118%, up from 116% full year target.
- **Security Momentum**: Signed $9M UK deal, $4M energy deal, and U.S. federal agency contract. JFrog Curation blocked recent NPM attacks.
- **AI Innovation**: Launched JFrog Fly (agentic delivery) and AI Catalog. Integrated with NVIDIA and Cursor, positioning as AI model registry leader.
- **Financial Strength**: Gross margin 83.9%, free cash flow $28.8M. Full year guidance $523-525M, cloud growth 40-42% (excluding usage).

**【CEO Summary Section】**
- **Revenue Growth**: Total revenue of $136.9 million, up 26% YoY, driven by 50% YoY growth in cloud revenue ($63.4 million). Enterprise Plus subscriptions now account for 56% of total revenue, up from 50% last year.
- **Enterprise Expansion**: Customers spending over $1 million grew 54% YoY to 71, while those spending over $100k increased 16% to 1,121. 4Q trailing net dollar retention (NDR) was 118%, reflecting strong adoption of security and cloud solutions.
- **Security Wins**: Signed multiyear deals with UK Customs & Revenue ($9M TCV), a U.S. federal agency, and a top energy corp ($>4M TCV), showcasing demand for JFrog Curation and Advanced Security.
- **AI & Product Innovation**: Launched JFrog Fly (agentic AI-driven delivery platform) and AI Catalog (model governance tool). Integrated with NVIDIA AI Enterprise and Cursor, positioning as the model registry of choice for AI workflows.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP gross margin 83.9%, up from 82.8% YoY. Operating profit $25.6M (18.7% margin), up from $14.7M (13.5%). Free cash flow $28.8M (21% margin).
- **Guidance Update**: Full year 2025 revenue expected $523-525M (+22.3% YoY). Cloud growth 40-42%, excluding usage over commitments. Non-GAAP EPS $0.78-0.80, reflecting cautious macro outlook.
- **Balance Sheet**: $651.1M cash, up 25% YoY. RPO $508M (+47% YoY), driven by multiyear contracts.

**【Q&A Key Highlights】**
- **Cloud Growth Drivers**: CEO attributes to security adoption (e.g., Curation) and strategic conversions of high-usage customers to annual contracts. CFO notes 40-42% cloud growth excludes usage over commitments.
- **AI Impact**: JFrog Fly enables developers to focus on code while AI agents handle artifact management. Customers using Hugging Face, PyPI, Docker for AI models see higher cloud consumption.
- **Security Adoption**: 54% YoY growth in >$1M customers driven by security sales. JFrog Curation blocked recent NPM and PyPI attacks, reinforcing trust in enterprise customers.
- **Guidance Prudence**: CFO cites macro uncertainty and large deal timing risks, excluding $5.7M Qwak AI holdback payments from Q3 results.

JFrog Ltd. (FROG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FROG

FROG fundamentals

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