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Software development tools maker JFrog (NASDAQ:FROG) reported Q1 CY2025 results exceeding the market’s revenue expectations , with sales up 22% year on year to $122.4 million. Guidance for next quarter’s revenue was better than expected at $122.5 million at the midpoint, 1.2% above analysts’ estimates. Its non-GAAP profit of $0.20 per share was 21.5% above analysts’ consensus estimates.
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JFrog (FROG) Q1 CY2025 Highlights:
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Revenue: $122.4 million vs analyst estimates of $117.3 million (22% year-on-year growth, 4.4% beat)
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Adjusted EPS: $0.20 vs analyst estimates of $0.16 (21.5% beat)
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Adjusted Operating Income: $21.35 million vs analyst estimates of $17.08 million (17.4% margin, 25% beat)
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The company slightly lifted its revenue guidance for the full year to $502.5 million at the midpoint from $501 million
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Adjusted EPS guidance for the full year is $0.69 at the midpoint, beating analyst estimates by 2.1%
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Operating Margin: -18.8%, down from -16.6% in the same quarter last year
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Free Cash Flow Margin: 23%, down from 41.8% in the previous quarter
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Customers: 1,051 customers paying more than $100,000 annually
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Net Revenue Retention Rate: 116%, in line with the previous quarter
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Market Capitalization: $3.96 billion
“The JFrog Platform has become the software system of record for organizations, transforming how software is created and delivered by unifying DevOps, DevSecOps, and AI/MLOps in one platform,” said Shlomi Ben Haim, CEO and Co-founder of JFrog.
Company Overview
Named after the founders' affinity for frogs, JFrog (NASDAQ:FROG) provides a software-as-a-service platform that makes developing and releasing software easier and faster, especially for large teams.
Sales Growth
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last three years, JFrog grew its sales at a solid 26% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
This quarter, JFrog reported robust year-on-year revenue growth of 22%, and its $122.4 million of revenue topped Wall Street estimates by 4.4%. Company management is currently guiding for a 18.9% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 15.2% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is commendable and indicates the market is forecasting success for its products and services.