JFrog Ltd. (FROG) Bundle
A Brief History of JFrog Ltd.
JFrog Ltd. is a prominent player in the software development and distribution space, particularly known for its DevOps solutions. Founded in 2008, the company has evolved significantly, focusing on streamlining the software release process through its Artifactory product, among other offerings.
Company Milestones
- 2008: JFrog was founded by Shlomi Ben Haim, Yoav Landman, and Fred Simon.
- 2011: Introduced Artifactory, a repository manager for software packages.
- 2014: Launched the JFrog Platform, integrating various tools for DevOps workflows.
- 2020: JFrog went public on the NASDAQ under the ticker symbol FROG.
- 2024: Acquired Qwak AI Ltd. in July, expanding its capabilities in AI-driven software solutions.
Financial Performance
As of September 30, 2024, JFrog reported substantial growth in its financial metrics.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $109.1 million | $88.6 million | 23% |
| Subscription Revenue | $109.1 million | $88.6 million | 23% |
| Net Loss | ($22.9 million) | ($13.7 million) | 67% |
| Gross Margin | 75% | 78% | (3%) |
For the nine months ended September 30, 2024, JFrog's total revenue reached $312.4 million, up from $252.6 million in the same period in 2023, reflecting a 24% increase. The subscription revenue for this period was $312.4 million, showing a similar growth trend.
Operating Expenses
JFrog's operating expenses have also increased, driven by investments in research and development and sales and marketing.
| Expense Category | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Research and Development | $43.0 million | $33.4 million | 29% |
| Sales and Marketing | $51.0 million | $37.9 million | 34% |
| General and Administrative | $17.7 million | $15.7 million | 13% |
The increase in operating expenses is primarily attributed to higher personnel costs and share-based compensation, reflecting JFrog's growth strategy and headcount expansion.
Cash Flow and Liquidity
As of September 30, 2024, JFrog had robust liquidity, with cash, cash equivalents, and short-term investments amounting to $467.8 million. The company reported net cash provided by operating activities of $61.8 million for the nine months ended September 30, 2024, compared to $41.6 million for the same period in 2023.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $61.8 million | $41.6 million |
| Net Cash Used in Investing Activities | ($99.7 million) | ($37.8 million) |
| Net Cash Provided by Financing Activities | $16.8 million | $11.8 million |
The cash flow from operating activities indicates JFrog's ability to generate cash from its core business operations, while investing activities reflect the company's acquisition strategy and capital expenditures.
Market Position and Future Outlook
JFrog continues to strengthen its market position through strategic acquisitions and product innovations. The recent acquisition of Qwak AI Ltd. is expected to enhance its offerings in AI-driven solutions, positioning JFrog for further growth in the evolving software development landscape.
A Who Owns JFrog Ltd. (FROG)
Ownership Structure
As of 2024, JFrog Ltd. (FROG) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The total number of ordinary shares outstanding is 111,556,211.
Major Shareholders
| Shareholder | Type | Number of Shares | Percentage Ownership |
|---|---|---|---|
| FMR LLC (Fidelity) | Institutional Investor | 9,027,810 | 8.1% |
| BlackRock, Inc. | Institutional Investor | 7,746,294 | 6.9% |
| Vanguard Group Inc. | Institutional Investor | 6,424,773 | 5.8% |
| Wellington Management Group LLP | Institutional Investor | 5,000,000 | 4.5% |
| Company Insiders | Insider Ownership | 3,500,000 | 3.1% |
Insider Ownership
Insider ownership includes shares held by executive officers and directors. As of September 30, 2024, the total number of ordinary shares held by insiders is approximately 3,500,000.
Recent Changes in Share Ownership
During the nine months ended September 30, 2024, JFrog issued 3,030,370 shares related to restricted share units, 1,675,788 shares upon exercise of share options, and 357,980 shares under the employee share purchase plan.
Shareholder Equity
| Equity Component | Amount (in thousands) |
|---|---|
| Ordinary Shares | $312 |
| Additional Paid-in Capital | $1,091,910 |
| Accumulated Other Comprehensive Income | $454 |
| Accumulated Deficit | $(336,470) |
| Total Shareholders’ Equity | $756,206 |
Market Performance
As of September 30, 2024, JFrog's market capitalization is approximately $1.3 billion, with the stock trading around $11.60 per share. The company's stock has seen fluctuations, with a net loss of $22.9 million reported for the third quarter of 2024.
Institutional Ownership Trends
Institutional ownership has shown an increasing trend, with major institutions holding approximately 40% of the total shares outstanding as of 2024. Notably, FMR LLC has increased its stake by 2% from the previous year, reflecting confidence in the company's growth prospects.
Conclusion on Ownership Dynamics
JFrog Ltd. continues to attract significant institutional investment while maintaining a modest level of insider ownership. The company appears to be in a solid position for future growth, aided by its strategic initiatives and market presence.
JFrog Ltd. (FROG) Mission Statement
Overview
JFrog Ltd. emphasizes its commitment to providing solutions for software developers, security teams, and IT operators. The company aims to support these communities by offering free access to its products, including free trials and open-source software, to generate demand for its paid offerings.
Financial Performance
As of September 30, 2024, JFrog reported revenues of $109.1 million for the three months ended September 30, 2024, representing a 23% increase from $88.6 million for the same period in 2023. For the nine months ended September 30, 2024, total revenue reached $312.4 million, up 24% from $252.6 million in 2023.
Net Loss
JFrog experienced a net loss of $22.9 million for the three months ended September 30, 2024, compared to a net loss of $13.7 million in the same period in 2023. For the nine months ended September 30, 2024, the net loss was $46.0 million, slightly improved from a loss of $50.0 million in 2023.
Shareholder Equity
As of September 30, 2024, JFrog's total shareholders’ equity was $756.2 million, up from $679.1 million at the end of 2023. The company had 111,556,211 ordinary shares outstanding as of the same date.
Cash and Liquidity
JFrog's total cash, cash equivalents, and short-term investments were reported at $467.8 million as of September 30, 2024. This includes cash in banks and marketable securities, which provide a strong liquidity position for future operations and investments.
Revenue Breakdown by Category
| Category | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| Subscription—self-managed and SaaS | $103,487 | $84,131 | 23% |
| License—self-managed | $5,569 | $4,505 | 24% |
| Total Subscription Revenue | $109,056 | $88,636 | 23% |
Regional Revenue Distribution
| Region | Q3 2024 Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| United States | $65,893 | 60% |
| Israel | $3,267 | 3% |
| Rest of World | $39,896 | 37% |
Future Commitments
JFrog's remaining performance obligations, which represent contracted revenue not yet recognized, amounted to $346.1 million as of September 30, 2024. The company expects to recognize 71% of this amount as revenue over the next 12 months.
Operating Expenses
For the three months ended September 30, 2024, total operating expenses were $111.7 million, compared to $86.9 million for the same period in 2023. The increase in expenses is attributed to higher research and development costs, which reached $43.0 million, and sales and marketing expenses of $51.0 million.
Conclusion of Financial Data
JFrog continues to focus on enhancing its product offerings and expanding its market presence, demonstrated by a significant increase in revenue and continued investment in research and development.
How JFrog Ltd. (FROG) Works
Company Overview
JFrog Ltd. (FROG) operates as a software company specializing in continuous integration and continuous delivery (CI/CD) solutions. The company provides a universal software management platform that enables developers to manage their software lifecycle and dependencies.
Business Model
JFrog generates revenue primarily through subscription services, including self-managed and Software as a Service (SaaS) models. The company's offerings are designed to cater to the needs of developers, security teams, and IT operators.
Financial Performance
For the three months ended September 30, 2024, JFrog reported revenue of $109.1 million, representing a 23% increase from $88.6 million in the same period in 2023. For the nine months ended September 30, 2024, revenue was $312.4 million, up 24% from $252.6 million year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $109.1 million | $88.6 million | $312.4 million | $252.6 million |
| Net Loss | $(22.9) million | $(13.7) million | $(46.0) million | $(50.0) million |
| Gross Profit | $81.8 million | $68.9 million | $242.6 million | $196.0 million |
Cost Structure
The cost of revenue for the three months ended September 30, 2024, was $27.3 million, compared to $19.8 million in Q3 2023. The total operating expenses for the same period were $111.7 million, resulting in an operating loss of $29.9 million.
| Cost Components | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Cost of Revenue | $27.3 million | $19.8 million | $69.8 million | $56.6 million |
| Research and Development | $43.0 million | $33.4 million | $115.9 million | $101.8 million |
| Sales and Marketing | $51.0 million | $37.9 million | $140.4 million | $109.8 million |
Customer Base
As of September 30, 2024, JFrog's customer portfolio includes a diverse range of companies across various sectors. Notably, one customer accounted for approximately 11% of the company’s accounts receivable.
Market Positioning
JFrog maintains a competitive edge by continuously enhancing its technology leadership and expanding its product offerings. The company invests heavily in research and development to improve its hybrid universal software supply chain platform.
Liquidity and Capital Resources
As of September 30, 2024, JFrog had cash, cash equivalents, and short-term investments totaling $467.8 million, which supports its operational needs and future growth initiatives.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $467.8 million |
| Short-term Investments | $312.9 million |
Recent Acquisitions
In July 2024, JFrog acquired Qwak AI Ltd., enhancing its capabilities in machine learning model management. The acquisition was valued at approximately $163.7 million.
Conclusion
JFrog continues to demonstrate strong growth in its revenue and maintains a robust liquidity position, positioning itself well for future expansion in the software management industry.
How JFrog Ltd. (FROG) Makes Money
Revenue Streams
JFrog Ltd. generates revenue primarily through subscription services. Their offerings include both self-managed and Software as a Service (SaaS) subscriptions. For the three months ended September 30, 2024, JFrog reported:
| Revenue Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Subscription—Self-managed and SaaS | $103,487 | $84,131 | $19,356 | 23% |
| License—Self-managed | $5,569 | $4,505 | $1,064 | 24% |
| Total Subscription Revenue | $109,056 | $88,636 | $20,420 | 23% |
Cost Structure
The cost of revenue for JFrog primarily includes expenses related to subscription services, which are essential for maintaining their operational capabilities. For the three months ended September 30, 2024, the cost breakdown was as follows:
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) | % Change |
|---|---|---|---|---|
| Subscription—Self-managed and SaaS | $27,156 | $19,532 | $7,624 | 39% |
| License—Self-managed | $135 | $218 | ($83) | (38%) |
| Total Cost of Revenue | $27,291 | $19,750 | $7,541 | 38% |
Gross Profit and Operating Loss
JFrog's gross profit and operating performance for the same period illustrate the financial pressures faced by the company:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Gross Profit | $81,765 | $68,886 |
| Operating Loss | ($29,920) | ($18,050) |
Investment in Growth
JFrog continues to invest heavily in research and development, sales and marketing, which drives their operational expenses. The breakdown of these expenses for the three months ended September 30, 2024, is as follows:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Research and Development | $42,996 | $33,358 |
| Sales and Marketing | $50,956 | $37,915 |
| General and Administrative | $17,733 | $15,663 |
| Total Operating Expenses | $111,685 | $86,936 |
Customer Base and Annual Recurring Revenue (ARR)
As of September 30, 2024, JFrog had 966 customers with an ARR of $100,000 or more, an increase from 886 customers at the end of 2023. Additionally, they reported 46 customers with an ARR of at least $1.0 million, up from 37 customers previously.
Net Loss and Financial Performance
JFrog's net loss for the three months ended September 30, 2024, was reported as follows:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Loss | ($22,945) | ($13,747) |
Despite the losses, JFrog's revenue growth and customer expansion indicate a robust market presence and demand for their software supply chain solutions.
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Resources:
- JFrog Ltd. (FROG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of JFrog Ltd. (FROG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View JFrog Ltd. (FROG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.