FROG JFrog Ltd

• Total Fiscal 2024 Revenues of $428.5 million; up 22% Year-over-Year
• Cloud Revenues up 41% in 2024; driven by migrations and large customer wins
• Security core products equaled 3% of total revenue in 2024; approximately 12% of ending RPO
• Customers with ARR greater than $1 million equaled 52, up 41% Year-over-Year

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, 2024.

“The landscapes of DevOps, DevSecOps, and MLOps are evolving rapidly, with customer demand for comprehensive, end-to-end solutions that unify and secure the software supply chain, while enabling responsible GenAI adoption. These transformative shifts contributed to our success throughout 2024,” said Shlomi Ben Haim, CEO and Co-founder of JFrog. “In 2024, JFrog achieved strong cloud expansion, accelerated Platform adoption, and growth in security, all while delivering high Operating Cash Flow and Free Cash Flow performance. We have solidified our position as the single system of record for all types of software packages and AI models, and we remain committed to amplifying this momentum in 2025.”

Fourth Quarter 2024 Financial Highlights

• Revenue for the fourth quarter of 2024 was $116.1 million, up 19% year-over-year.
• GAAP Gross Profit was $87.6 million; GAAP Gross Margin was 75.4%.
• Non-GAAP Gross Profit was $96.5 million; Non-GAAP Gross Margin was 83.2%.
• GAAP Operating Loss was ($25.4) million; GAAP Operating Margin was (21.9%).
• Non-GAAP Operating Income was $20.9 million; Non-GAAP Operating Margin was 18.0%.
• GAAP Net Loss Per Share was ($0.21); Non-GAAP Diluted Earnings Per Share was $0.19.
• Operating Cash Flow was $49.1 million; Free Cash Flow of $48.5 million.
• Cash, Cash Equivalents and Investments were $522.0 million as of December 31, 2024.
• Remaining performance obligations were $403.1 million as of December 31, 2024.

Fiscal 2024 Financial Highlights

• Revenue for fiscal 2024 was $428.5 million, up 22% year-over-year.
• Security core comprised 5% of ending ARR and approximately 12% of ending RPO.
• GAAP Gross Profit was $330.2 million; GAAP Gross Margin was 77.1%.
• Non-GAAP Gross Profit was $359.1 million; Non-GAAP Gross Margin was 83.8%.
• GAAP Operating Loss was ($91.1) million; GAAP Operating Margin was (21.3%).
• Non-GAAP Operating Income was $63.3 million; Non-GAAP Operating Margin was 14.8%.
• GAAP Net Loss Per Share was ($0.63); Non-GAAP Diluted Earnings Per Share was $0.65.
• Operating Cash Flow was $110.9 million; Free Cash Flow of $107.8 million.
• Approximately 7,300 unique customers versus 7,400 in the prior year.

Recent Business & Product Highlights

• Cloud revenue equaled $49.4 million during the fourth quarter of 2024, an increase of 37% year-over-year. Cloud revenue represented 43% of total revenue, compared to 37% in the year-ago period.
• Net Dollar Retention rate for the trailing four quarters was 116%.
• Customers with greater than $100K ARR increased to 1,018, compared with 886 in the year-ago period.
• Customers with greater than $1 million ARR increased to 52, up from 37 in the year-ago period.
• Customers adopting the end-to-end JFrog Platform Enterprise+ subscription represented 54% of total revenue during the fourth quarter of 2024 versus 49% in the year-ago period.
• Announced Strategic Collaboration Agreement with Amazon Web Services to jointly streamline JFrog customer cloud migrations.
• Announced JFrog Security Research’s discovery of thousands of publicly-exposed secrets and proactive community protection against exposure.

First Quarter and Fiscal Year 2025 Outlook

• First Quarter 2025 Outlook:
  • Revenue between $116.0 million and $118.0 million
  • Non-GAAP operating income between $16.5 million and $17.5 million
  • Non-GAAP net income per diluted share between $0.15 and $0.17, assuming approximately 118 million weighted average diluted shares outstanding

• Fiscal Year 2025 Outlook:
  • Revenue between $499.0 million to $503.0 million
  • Non-GAAP operating income between $73.0 million and $75.0 million
  • Non-GAAP net income per diluted share between $0.67 and $0.69, assuming approximately 120 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 2024 Financial Results Conference Call
• Date: Thursday, February 13, 2025
• Time: 2:00 p.m. PT (5:00 p.m. ET)

A live webcast of the conference call will be accessible from the investor relations website at https://investors.jfrog.com/events-and-presentations.

About JFrog

JFrog Ltd. (Nasdaq: FROG), is on a mission to create a world of software delivered without friction from developer to device. Driven by a “Liquid Software” vision, the JFrog Software Supply Chain Platform is a single system of record that powers organizations to build, manage, and distribute software quickly and securely, ensuring it is available, traceable, and tamper-proof. The integrated security features also help identify, protect, and remediate against threats and vulnerabilities. JFrog’s hybrid, universal, multi-cloud platform is available as both self-hosted and SaaS services across major cloud service providers. Millions of users and 7K+ customers worldwide, including a majority of the Fortune 100, depend on JFrog solutions to securely embrace digital transformation. Learn more at www.jfrog.com or follow us on X @JFrog.

Forward-Looking Statements:

This press release and the earnings call referencing this press release contain “forward-looking” statements, as that term is defined under the U.S. federal securities laws, including but not limited to statements regarding JFrog’s future financial performance, including our outlook for the first quarter and for the full year of 2025, expectations regarding the market and revenue potential for the JFrog Platform, including JFrog Artifactory, JFrog Xray, JFrog Curation, JFrog Advanced Security, JFrog ML and JFrog Runtime Security, and including the efficacy and benefit of integrating of any of the foregoing with other products and platform, our expectations regarding the mission-critical nature of the “JFrog Platform” to our customers’ infrastructure and its growth potential, the growth potential of our cloud business, including hybrid and multi-cloud, our expectations regarding potential for growth in and market opportunities within DevOps, DevSecOps, and MLOps, our ability to provide effective tools and solutions to detect and remediate security vulnerabilities, our expectations regarding our strategic integrations and collaborations, the ability of our strategic sales team to grow the business across top-tier accounts, our ability to expand usage of our platform in the government and commercial sectors, our ability to contribute data to global security standards bodies, our ability to innovate and meet market demands and the software supply chain needs of our customers and our expectations regarding the integration and adoption of MLOps technologies into our business, including our ability to successfully integrate into our business operations, and our ability to realize anticipated benefits and synergies from the acquisition of Qwak AI Ltd. These forward-looking statements are based on JFrog’s current assumptions, expectations and beliefs and are subject to substantial risks, uncertainties, assumptions and changes in circumstances that may cause JFrog’s actual results, performance or achievements to differ materially from those expressed or implied in any forward-looking statement.

There are a significant number of factors that could cause actual results to differ materially from statements made in this press release and our earnings call, including but not limited to: risks associated with managing our rapid growth; our history of losses; our limited operating history; our ability to retain and upgrade existing customers our ability to attract new customers; our ability to effectively develop and expand our sales and marketing capabilities; our ability to integrate and realize anticipated synergies from acquisitions of complementary businesses and our strategic collaborations; risk of a security breach incident or product vulnerability; risk of interruptions or performance problems associated with our products and platform capabilities; our ability to adapt and respond to rapidly changing technology or customer needs; our ability to compete in the markets in which we participate; our ability to successfully integrate technology from acquisitions into our offerings; our ability to provide continuity to our respective customers and realize innovation following our acquisitions; and general market, political, economic, and business conditions. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to, risks detailed in our filings with the Securities and Exchange Commission, including in our annual report on Form 10-K for the year ended December 31, 2024, our quarterly reports on Form 10-Q, and other filings and reports that we may file from time to time with the Securities and Exchange Commission. Forward-looking statements represent our beliefs and assumptions only as of the date of this press release. We disclaim any obligation to update forward-looking statements.

About Non-GAAP Financial Measures:

JFrog discloses the following non-GAAP financial measures in this release and the earnings call referencing this press release: non-GAAP operating income (loss), non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share, non-GAAP net income (loss) per basic share, and free cash flow. JFrog uses each of these non-GAAP financial measures internally to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, and to evaluate JFrog’s financial performance. JFrog believes they are useful to investors, as a supplement to GAAP measures, in evaluating its operational performance, as further discussed below. JFrog’s non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in its industry, as other companies in its industry may calculate non-GAAP financial results differently, particularly related to non-recurring and unusual items. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP and may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on JFrog’s reported financial results.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future such as share-based compensation, the effect of which may be significant.

JFrog defines non-GAAP gross profit, non-GAAP operating expenses (research and development, sales and marketing, general and administrative), non-GAAP gross margin, non-GAAP operating margin, non-GAAP operating income (loss) and non-GAAP net income (loss) as the respective GAAP balances, adjusted for, as applicable: (1) share-based compensation expense; (2) the amortization of acquired intangibles; (3) acquisition-related costs; and (4) income tax effects. JFrog defines free cash flow as Net cash provided by (used in) operating activities, minus capital expenditures. Investors are encouraged to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing JFrog’s operating performance due to the following factors:

Share-based compensation. JFrog utilizes share-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of its shareholders and at long-term retention, rather than to address operational performance for any particular period. As a result, share-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.

Amortization of acquired intangibles. JFrog views amortization of acquired intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of acquired intangibles is an expense that is not typically affected by operations during any particular period.

Acquisition-related costs. Acquisition-related costs include expenses related to acquisitions of other companies. JFrog views acquisition-related costs as expenses that are not necessarily reflective of operational performance during a period.

Income tax effects. JFrog’s non-GAAP financial results are adjusted for income tax effects related to these non-GAAP adjustments and changes in our assessment regarding the realizability of our deferred tax assets, if any. Excluding income tax effects of non-GAAP adjustments provides a more accurate view of JFrog’s operating results.

Non-GAAP weighted average share count. Diluted GAAP and non-GAAP weighted-average shares are the same, except in periods that there is a GAAP loss and a non-GAAP income. The non-GAAP weighted-average shares used to compute the non-GAAP net income per share - diluted are adjusted to reflect dilution equal to the dilutive impact had there been GAAP income.

Additionally, JFrog’s management believes that the non-GAAP financial measure, free cash flow, is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations.

Operating Metrics

JFrog’s number of customers with annual recurring revenue (“ARR”) of $100,000 or more is based on the ARR of each customer, as of the last month of the quarter. JFrog’s number of customers with ARR of $1 million or more is based on the ARR of each customer, as of the last month of the quarter. JFrog defines ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers, so long as JFrog generates revenue from these customers. JFrog annualizes its monthly subscriptions by taking the revenue it would contractually expect to receive from such customers in a given month and multiplying it by 12.

JFrog’s net dollar retention rate compares its ARR from the same set of customers across comparable periods. JFrog calculates net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). JFrog then calculates the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. JFrog then divides total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. JFrog’s net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters.

 

JFROG LTD.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data; unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

 

Subscription—self-managed and SaaS

 

$

109,606

 

 

$

92,052

 

 

$

406,903

 

 

$

330,193

 

License—self-managed

 

 

6,472

 

 

 

5,208

 

 

 

21,585

 

 

 

19,693

 

Total subscription revenue

 

 

116,078

 

 

 

97,260

 

 

 

428,488

 

 

 

349,886

 

Cost of revenue:

 

 

 

 

 

 

 

 

Subscription—self-managed and SaaS(1)(2)(3)

 

 

28,395

 

 

 

20,278

 

 

 

97,758

 

 

 

76,244

 

License—self-managed(3)

 

 

117

 

 

 

145

 

 

 

542

 

 

 

799

 

Total cost of revenue—subscription

 

 

28,512

 

 

 

20,423

 

 

 

98,300

 

 

 

77,043

 

Gross profit

 

 

87,566

 

 

 

76,837

 

 

 

330,188

 

 

 

272,843

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development(1)(2)

 

 

44,919

 

 

 

32,796

 

 

 

160,864

 

 

 

134,584

 

Sales and marketing(1)(2)(3)

 

 

49,978

 

 

 

40,922

 

 

 

190,401

 

 

 

150,675

 

General and administrative(1)(2)

 

 

18,084

 

 

 

18,497

 

 

 

70,021

 

 

 

63,132

 

Total operating expenses

 

 

112,981

 

 

 

92,215

 

 

 

421,286

 

 

 

348,391

 

Operating loss

 

 

(25,415

)

 

 

(15,378

)

 

 

(91,098

)

 

 

(75,548

)

Interest and other income, net

 

 

5,588

 

 

 

6,411

 

 

 

25,278

 

 

 

21,032

 

Loss before income taxes

 

 

(19,827

)

 

 

(8,967

)

 

 

(65,820

)

 

 

(54,516

)

Income tax expense

 

 

3,371

 

 

 

2,266

 

 

 

3,416

 

 

 

6,740

 

Net loss

 

$

(23,198

)

 

$

(11,233

)

 

$

(69,236

)

 

$

(61,256

)

Net loss per share, basic and diluted

 

$

(0.21

)

 

$

(0.11

)

 

$

(0.63

)

 

$

(0.59

)

Weighted-average shares used in computing net loss per share, basic and diluted

 

 

111,985

 

 

 

105,310

 

 

 

109,691

 

 

 

103,318

 

 

 

 

 

 

 

 

 

 

(1) Includes share-based compensation expense as follows:

 

 

 

 

 

 

 

 

Cost of revenue: subscription—self-managed and SaaS

 

$

4,352

 

 

$

2,919

 

 

$

14,555

 

 

$

9,784

 

Research and development

 

 

14,739

 

 

 

9,123

 

 

 

48,192

 

 

 

32,689

 

Sales and marketing

 

 

13,844

 

 

 

8,877

 

 

 

47,603

 

 

 

30,338

 

General and administrative

 

 

5,834

 

 

 

7,332

 

 

 

20,756

 

 

 

22,360

 

Total share-based compensation expense

 

$

38,769

 

 

$

28,251

 

 

$

131,106

 

 

$

95,171

 

 

 

 

 

 

 

 

 

 

(2) Includes acquisition-related costs as follows:

 

 

 

 

 

 

 

 

Cost of revenue: subscription–self-managed and SaaS

 

$

—

 

 

$

4

 

 

$

9

 

 

$

20

 

Research and development

 

 

1,177

 

 

 

370

 

 

 

3,782

 

 

 

7,301

 

Sales and marketing

 

 

477

 

 

 

36

 

 

 

1,087

 

 

 

125

 

General and administrative

 

 

24

 

 

 

3

 

 

 

880

 

 

 

161

 

Total acquisition-related costs

 

$

1,678

 

 

$

413

 

 

$

5,758

 

 

$

7,607

 

 

 

 

 

 

 

 

 

 

(3) Includes amortization of acquired intangibles as follows:

 

 

 

 

 

 

 

 

Cost of revenue: subscription–self-managed and SaaS

 

$

4,497

 

 

$

2,386

 

 

$

13,762

 

 

$

9,546

 

Cost of revenue: license—self-managed

 

 

117

 

 

 

145

 

 

 

542

 

 

 

799

 

Sales and marketing

 

 

1,299

 

 

 

358

 

 

 

3,274

 

 

 

1,431

 

Total amortization of acquired intangible assets

 

$

5,913

 

 

$

2,889

 

 

$

17,578

 

 

$

11,776

 

 

JFROG LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands; unaudited)

 

 

 

December 31, 2024

 

December 31, 2023

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

49,869

 

 

$

84,765

 

Short-term investments

 

 

472,138

 

 

 

460,245

 

Accounts receivable, net

 

 

90,712

 

 

 

76,437

 

Deferred contract acquisition costs

 

 

16,465

 

 

 

11,378

 

Prepaid expenses and other current assets

 

 

20,043

 

 

 

12,976

 

Total current assets

 

 

649,227

 

 

 

645,801

 

Property and equipment, net

 

 

5,668

 

 

 

6,663

 

Deferred contract acquisition costs, noncurrent

 

 

25,029

 

 

 

18,032

 

Operating lease right-of-use assets

 

 

14,202

 

 

 

22,427

 

Intangible assets, net

 

 

60,826

 

 

 

25,768

 

Goodwill

 

 

371,512

 

 

 

247,955

 

Other assets, noncurrent

 

 

3,442

 

 

 

5,910

 

Total assets

 

$

1,129,906

 

 

$

972,556

 

Liabilities and Shareholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

10,649

 

 

$

16,970

 

Accrued expenses and other current liabilities

 

 

51,885

 

 

 

35,815

 

Operating lease liabilities

 

 

7,794

 

 

 

8,272

 

Deferred revenue

 

 

247,187

 

 

 

201,118

 

Total current liabilities

 

 

317,515

 

 

 

262,175

 

Deferred revenue, noncurrent

 

 

27,060

 

 

 

12,987

 

Operating lease liabilities, noncurrent

 

 

6,182

 

 

 

13,954

 

Other liabilities, noncurrent

 

 

5,623

 

 

 

4,317

 

Total liabilities

 

 

356,380

 

 

 

293,433

 

Shareholders’ equity:

 

 

 

 

Share capital

 

 

315

 

 

 

297

 

Additional paid-in capital

 

 

1,132,224

 

 

 

968,245

 

Accumulated other comprehensive income

 

 

655

 

 

 

1,013

 

Accumulated deficit

 

 

(359,668

)

 

 

(290,432

)

Total shareholders’ equity

 

 

773,526

 

 

 

679,123

 

Total liabilities and shareholders’ equity

 

$

1,129,906

 

 

$

972,556

 

 

JFROG LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands; unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(23,198

)

 

$

(11,233

)

 

$

(69,236

)

 

$

(61,256

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,855

 

 

 

3,791

 

 

 

21,460

 

 

 

15,303

 

Share-based compensation expense

 

 

38,769

 

 

 

28,251

 

 

 

131,106

 

 

 

95,171

 

Non-cash operating lease expense

 

 

2,066

 

 

 

2,163

 

 

 

8,389

 

 

 

8,457

 

Net amortization of premium or discount on investments

 

 

(1,432

)

 

 

(1,817

)

 

 

(6,566

)

 

 

(6,405

)

Losses (gains) on foreign exchange

 

 

282

 

 

 

448

 

 

 

642

 

 

 

(421

)

Changes in operating assets and liabilities, net of effects of acquisition:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

2,270

 

 

 

(15,446

)

 

 

(13,512

)

 

 

(14,109

)

Prepaid expenses and other assets

 

 

(898

)

 

 

1,632

 

 

 

(7,821

)

 

 

2,162

 

Deferred contract acquisition costs

 

 

(3,934

)

 

 

(3,038

)

 

 

(12,084

)

 

 

(7,807

)

Accounts payable

 

 

(5,648

)

 

 

1,824

 

 

 

(7,317

)

 

 

1,705

 

Accrued expenses and other liabilities

 

 

5,881

 

 

 

5,746

 

 

 

13,839

 

 

 

10,681

 

Operating lease liabilities

 

 

(1,900

)

 

 

(1,898

)

 

 

(8,107

)

 

 

(7,716

)

Deferred revenue

 

 

30,005

 

 

 

22,170

 

 

 

60,131

 

 

 

38,390

 

Net cash provided by operating activities

 

 

49,118

 

 

 

32,593

 

 

 

110,924

 

 

 

74,155

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of short-term investments

 

 

(134,045

)

 

 

(89,096

)

 

 

(513,591

)

 

 

(392,406

)

Maturities of short-term investments

 

 

69,025

 

 

 

74,065

 

 

 

409,914

 

 

 

336,883

 

Sales of short-term investments

 

 

—

 

 

 

—

 

 

 

98,178

 

 

 

4,029

 

Purchases of property and equipment

 

 

(634

)

 

 

(618

)

 

 

(3,143

)

 

 

(1,982

)

Acquisition of business, net of cash acquired

 

 

—

 

 

 

—

 

 

 

(156,714

)

 

 

—

 

Net cash used in investing activities

 

 

(65,654

)

 

 

(15,649

)

 

 

(165,356

)

 

 

(53,476

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from exercise of share options

 

 

1,548

 

 

 

4,552

 

 

 

10,352

 

 

 

9,985

 

Proceeds from employee share purchase plan

 

 

—

 

 

 

—

 

 

 

8,744

 

 

 

6,665

 

Proceeds from employee equity transactions, net of payments to tax authorities

 

 

2,859

 

 

 

2,053

 

 

 

2,135

 

 

 

1,721

 

Net cash provided by financing activities

 

 

4,407

 

 

 

6,605

 

 

 

21,231

 

 

 

18,371

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(249

)

 

 

232

 

 

 

(949

)

 

 

120

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

(12,378

)

 

 

23,781

 

 

 

(34,150

)

 

 

39,170

 

Cash, cash equivalents, and restricted cash—beginning of period

 

 

63,005

 

 

 

60,996

 

 

 

84,777

 

 

 

45,607

 

Cash, cash equivalents, and restricted cash—end of period

 

$

50,627

 

 

$

84,777

 

 

$

50,627

 

 

$

84,777

 

Reconciliation of cash, cash equivalents, and restricted cash within the Condensed Consolidated Balance Sheets to the amounts shown in the Condensed Consolidated Statements of Cash Flows above:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

49,869

 

 

$

84,765

 

 

$

49,869

 

 

$

84,765

 

Restricted cash included in prepaid expenses and other current assets

 

 

758

 

 

 

12

 

 

 

758

 

 

 

12

 

Total cash, cash equivalents, and restricted cash

 

$

50,627

 

 

$

84,777

 

 

$

50,627

 

 

$

84,777

 

 

JFROG LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

(in thousands except per share data; unaudited)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Reconciliation of gross profit and gross margin

 

 

 

 

 

 

 

 

GAAP gross profit

 

$

87,566

 

 

$

76,837

 

 

$

330,188

 

 

$

272,843

 

Plus: Share-based compensation expense

 

 

4,352

 

 

 

2,919

 

 

 

14,555

 

 

 

9,784

 

Plus: Acquisition-related costs

 

 

—

 

 

 

4

 

 

 

9

 

 

 

20

 

Plus: Amortization of acquired intangibles

 

 

4,614

 

 

 

2,531

 

 

 

14,304

 

 

 

10,345

 

Non-GAAP gross profit

 

$

96,532

 

 

$

82,291

 

 

$

359,056

 

 

$

292,992

 

GAAP gross margin

 

 

75.4

%

 

 

79.0

%

 

 

77.1

%

 

 

78.0

%

Non-GAAP gross margin

 

 

83.2

%

 

 

84.6

%

 

 

83.8

%

 

 

83.7

%

 

 

 

 

 

 

 

 

 

Reconciliation of operating expenses

 

 

 

 

 

 

 

 

GAAP research and development

 

$

44,919

 

 

$

32,796

 

 

$

160,864

 

 

$

134,584

 

Less: Share-based compensation expense

 

 

(14,739

)

 

 

(9,123

)

 

 

(48,192

)

 

 

(32,689

)

Less: Acquisition-related costs

 

 

(1,177

)

 

 

(370

)

 

 

(3,782

)

 

 

(7,301

)

Non-GAAP research and development

 

$

29,003

 

 

$

23,303

 

 

$

108,890

 

 

$

94,594

 

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

 

$

49,978

 

 

$

40,922

 

 

$

190,401

 

 

$

150,675

 

Less: Share-based compensation expense

 

 

(13,844

)

 

 

(8,877

)

 

 

(47,603

)

 

 

(30,338

)

Less: Acquisition-related costs

 

 

(477

)

 

 

(36

)

 

 

(1,087

)

 

 

(125

)

Less: Amortization of acquired intangibles

 

 

(1,299

)

 

 

(358

)

 

 

(3,274

)

 

 

(1,431

)

Non-GAAP sales and marketing

 

$

34,358

 

 

$

31,651

 

 

$

138,437

 

 

$

118,781

 

 

 

 

 

 

 

 

 

 

GAAP general and administrative

 

$

18,084

 

 

$

18,497

 

 

$

70,021

 

 

$

63,132

 

Less: Share-based compensation expense

 

 

(5,834

)

 

 

(7,332

)

 

 

(20,756

)

 

 

(22,360

)

Less: Acquisition-related costs

 

 

(24

)

 

 

(3

)

 

 

(880

)

 

 

(161

)

Non-GAAP general and administrative

 

$

12,226

 

 

$

11,162

 

 

$

48,385

 

 

$

40,611

 

 

 

 

 

 

 

 

 

 

Reconciliation of operating income (loss) and operating margin

 

 

 

 

 

 

 

 

GAAP operating loss

 

$

(25,415

)

 

$

(15,378

)

 

$

(91,098

)

 

$

(75,548

)

Plus: Share-based compensation expense

 

 

38,769

 

 

 

28,251

 

 

 

131,106

 

 

 

95,171

 

Plus: Acquisition-related costs

 

 

1,678

 

 

 

413

 

 

 

5,758

 

 

 

7,607

 

Plus: Amortization of acquired intangibles

 

 

5,913

 

 

 

2,889

 

 

 

17,578

 

 

 

11,776

 

Non-GAAP operating income

 

$

20,945

 

 

$

16,175

 

 

$

63,344

 

 

$

39,006

 

GAAP operating margin

 

 

(21.9

)%

 

 

(15.8

)%

 

 

(21.3

)%

 

 

(21.6

)%

Non-GAAP operating margin

 

 

18.0

%

 

 

16.6

%

 

 

14.8

%

 

 

11.1

%

 

 

 

 

 

 

 

 

 

Reconciliation of net income (loss)

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(23,198

)

 

$

(11,233

)

 

$

(69,236

)

 

$

(61,256

)

Plus: Share-based compensation expense

 

 

38,769

 

 

 

28,251

 

 

 

131,106

 

 

 

95,171

 

Plus: Acquisition-related costs

 

 

1,678

 

 

 

413

 

 

 

5,758

 

 

 

7,607

 

Plus: Amortization of acquired intangibles

 

 

5,913

 

 

 

2,889

 

 

 

17,578

 

 

 

11,776

 

Less: Income tax effects

 

 

(1,339

)

 

 

1,171

 

 

 

(10,534

)

 

 

2,829

 

Non-GAAP net income

 

$

21,823

 

 

$

21,491

 

 

$

74,672

 

 

$

56,127

 

Net income per share - basic

 

$

0.19

 

 

$

0.20

 

 

$

0.68

 

 

$

0.54

 

Net income per share - diluted

 

$

0.19

 

 

$

0.19

 

 

$

0.65

 

 

$

0.51

 

Shares used in non-GAAP net income per share calculations:

 

 

 

 

 

 

 

 

GAAP weighted-average shares used to compute net loss per share - basic and diluted

 

 

111,985

 

 

 

105,310

 

 

 

109,691

 

 

 

103,318

 

Add: Dilutive ordinary share equivalents

 

 

4,017

 

 

 

5,622

 

 

 

5,576

 

 

 

5,715

 

Non-GAAP weighted-average shares used to compute net income per share - diluted

 

 

116,002

 

 

 

110,932

 

 

 

115,267

 

 

 

109,033

 

 

JFROG LTD.

RECONCILIATION OF GAAP CASH FLOW FROM OPERATING ACTIVITIES TO FREE CASH FLOW

(in thousands; unaudited)

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net cash provided by operating activities

 

$

49,118

 

 

$

32,593

 

 

$

110,924

 

 

$

74,155

 

Less: purchases of property and equipment

 

 

(634

)

 

 

(618

)

 

 

(3,143

)

 

 

(1,982

)

Free cash flow

 

$

48,484

 

 

$

31,975

 

 

$

107,781

 

 

$

72,173

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250213608925/en/

Investor Contact: Jeff Schreiner jeffs@jfrog.com