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JFrog (FROG - Free Report) reported third-quarter 2020 adjusted earnings of 5 cents per share that comfortably beat the Zacks Consensus Estimate of a breakeven and jumped 66.7% year over year.
Revenues surged 39.7% year over year to $38.9 million and surpassed the Zacks Consensus Estimate by 2.4%.
Markedly, the third quarter is JFrog’s first earnings call as a public company. The DevOps solution provider began trading on Nasdaq from Sep 16.
Shares of JFrog fell 3.6% following the third-quarter earnings announcement.
Subscription-self managed & SaaS (91.8% of revenues) revenues soared 42.5% from the year-ago quarter to $35.7 million.
License-self managed (8.2% of revenues) revenues increased 14.3% year over year to $3.2 million.
JFrog ended the third quarter with 313 customers, having annual recurring revenues (“ARR”) of more than $100,000 including 9 customers having ARR of more than $1 million.
Moreover, net dollar retention for the trailing four quarters was 136%.
Further, during the reported quarter, JFrog introduced a free cloud tier for the developer community in order to expand its footprint.
Operating Details
Adjusted gross margin expanded 30 bps on a year-over-year basis to 82.7%.
Operating expenses rose 31.9% year over year to $27 million due to higher research & development (R&D), sales & marketing (S&M), and general & administrative (G&A) expenses which increased 38.5%, 31.7% and 21.5%, respectively.
However, as percentage of revenues, operating expenses declined 410 bps. R&D, S&M and G&A as percentage of revenues declined 20 bps, 210 bps and 180 bps, respectively.
Higher revenues and stringent cost control helped in driving operating margin, which expanded 440 bps on a year-over-year basis to 13.2%.
Balance Sheet & Cash Flow
As of Sep 30, 2020, cash, cash equivalents & investments were $578 million.
Cash flow from operations surged 116.2% year over year to $10.8 million. Moreover, free cash flow jumped 106.3% to $9.7 million.
Guidance
For the fourth quarter of 2020, JFrog expects revenues between $40.9 million and $41.9 million. Non-GAAP operating income is expected between $1.2 million and $2.2 million. Moreover, earnings are anticipated between break even and 2 cents per share.
For 2020, JFrog expects revenues between $149 million and $150 million. Non-GAAP operating income is expected between $12 million and $13 million. Moreover, earnings are expected between 11 cents and 13 cents per share.
Covetrus and CMC Materials are set to report quarterly earnings on Nov 10 and 11, respectively. Box is scheduled to report the same on Dec 1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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JFrog's (FROG) Q3 Earnings & Revenues Beat Estimates
JFrog (FROG - Free Report) reported third-quarter 2020 adjusted earnings of 5 cents per share that comfortably beat the Zacks Consensus Estimate of a breakeven and jumped 66.7% year over year.
Revenues surged 39.7% year over year to $38.9 million and surpassed the Zacks Consensus Estimate by 2.4%.
Markedly, the third quarter is JFrog’s first earnings call as a public company. The DevOps solution provider began trading on Nasdaq from Sep 16.
Shares of JFrog fell 3.6% following the third-quarter earnings announcement.
JFrog Ltd. Price, Consensus and EPS Surprise
JFrog Ltd. price-consensus-eps-surprise-chart | JFrog Ltd. Quote
Top-Line Details
Subscription-self managed & SaaS (91.8% of revenues) revenues soared 42.5% from the year-ago quarter to $35.7 million.
License-self managed (8.2% of revenues) revenues increased 14.3% year over year to $3.2 million.
JFrog ended the third quarter with 313 customers, having annual recurring revenues (“ARR”) of more than $100,000 including 9 customers having ARR of more than $1 million.
Moreover, net dollar retention for the trailing four quarters was 136%.
Further, during the reported quarter, JFrog introduced a free cloud tier for the developer community in order to expand its footprint.
Operating Details
Adjusted gross margin expanded 30 bps on a year-over-year basis to 82.7%.
Operating expenses rose 31.9% year over year to $27 million due to higher research & development (R&D), sales & marketing (S&M), and general & administrative (G&A) expenses which increased 38.5%, 31.7% and 21.5%, respectively.
However, as percentage of revenues, operating expenses declined 410 bps. R&D, S&M and G&A as percentage of revenues declined 20 bps, 210 bps and 180 bps, respectively.
Higher revenues and stringent cost control helped in driving operating margin, which expanded 440 bps on a year-over-year basis to 13.2%.
Balance Sheet & Cash Flow
As of Sep 30, 2020, cash, cash equivalents & investments were $578 million.
Cash flow from operations surged 116.2% year over year to $10.8 million. Moreover, free cash flow jumped 106.3% to $9.7 million.
Guidance
For the fourth quarter of 2020, JFrog expects revenues between $40.9 million and $41.9 million. Non-GAAP operating income is expected between $1.2 million and $2.2 million. Moreover, earnings are anticipated between break even and 2 cents per share.
For 2020, JFrog expects revenues between $149 million and $150 million. Non-GAAP operating income is expected between $12 million and $13 million. Moreover, earnings are expected between 11 cents and 13 cents per share.
Zacks Rank & Stocks to Consider
Currently, JFrog has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector are Box (BOX - Free Report) , CMC Materials and Covetrus . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Covetrus and CMC Materials are set to report quarterly earnings on Nov 10 and 11, respectively. Box is scheduled to report the same on Dec 1.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>