Is JFrog Leapfrogging?

The company hopped, skipped, and jumped over consensus expectations in its first quarter reporting after IPO.

Hey Global Investor, here’s what you need to know before the US markets open.

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Is JFrog Leapfrogging?

The company hopped, skipped, and jumped over consensus expectations in its first quarter reporting after IPO.

Background: Founded in Israel and headquartered in Sunnyvale, CA, JFrog makes it easier for software companies to provide customers with the most current version of their programs. There’s actually a name for this: Continuous Software Release Management (CSRM).

JFrog calls this artifact management platform “Liquid Software,” which helps companies automate software updates and speed up deployment of new apps. This platform is open-source and self-managed. What differentiates JFrog from its competitors is the fact that its DevOps platform is compatible with Google Cloud, Microsoft Azure, and AWS at the same time.

JFrog now has over 5K customers and a community of 3+M developers worldwide. The company went public in September 2020 and raised $509M.

What Happened?: JFrog reported its first quarter as a publicly listed company and beat Wall Street consensus.

Key Numbers:

  • EPS: 5 cents vs. an expected break-even quarter (0 cents)
  • Revenue: $38.9M vs. $37.9M expected, up 40% Y-o-Y.

For the December-ending quarter, JFrog expects profits of 1 cent a share and revenue of $41.4M, compared to analyst expectations for the company to break even again in Q4 with revenue of $40.5M.

The company expects $149M-$150M in revenue and EPS of 11 to 13 cents for the full year. The guidance is ahead of analyst expectations of $147.5M in revenue and EPS of 7 cents.

Market Reaction: JFrog had a strong debut in the market, closing at $64.79 on the first day, and has continued to gain ground. On Wednesday, it closed at $71.86, up 0.07%.

Company Snapshot 📈

FROG $71.86 +0.05 (+0.07%)

Analyst Rating (10 Ratings) BUY 40%  HOLD 50%  SELL 10%

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Later Today 🕒

  • 6.00 PM IST: Initial jobless claims (regular state program, SA)
  • 6.00 PM IST: Continuing jobless claims (regular state program, SA)
  • Before Market Open: Bristol-Myers Squibb Co Earnings (BMY)
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  • After Market Close: Luminex Corp Earnings (LMNX)

Fun Fact of The Day 🌞

Water makes different pouring sounds depending on its temperature.

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