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JFrog raised its full-year outlook Thursday after third-quarter revenue grew 31%, with cloud sales and spending by large enterprise customers driving growth at the software supply-chain company.
Revenue reached $179.2 million for the quarter ended September 30, while adjusted earnings were 32 cents a share, the company’s November 5 results announcement shows. GAAP earnings were 5 cents a share.
Shares jumped more than 20% in after-hours trading following the results. The move was an after-hours snapshot, following the regular trading session.
Cloud business accounts for most revenue
Cloud revenue increased 60% from a year earlier to $101.5 million, representing 57% of total revenue compared with 46% a year earlier. The number of customers with annual recurring revenue above $1 million rose to 112 from 71, an increase of 58%.
Trailing four-quarter net dollar retention reached 124%, up from 118%. The measure reflects how spending by an existing group of customers changes over time, including expansions and reductions.
JFrog’s platform helps companies manage, secure and distribute software components and AI assets. For businesses buying those tools, the results show rising spending on the infrastructure used to control software delivery as developers and AI systems produce more code.
“AI agents are writing code faster than any developer can review it. Every output becomes an artifact that must be stored, secured, and governed,” CEO and co-founder Shlomi Ben Haim said in the company’s release.
Full-year outlook rises
JFrog now expects full-year revenue of $680 million to $682 million and adjusted earnings of $1.14 to $1.16 a share, the company’s release distributed by Business Wire shows. The previous forecasts were $648 million to $652 million in revenue and adjusted earnings of 96 cents to $1 a share.
For the fourth quarter, JFrog forecasts revenue of $183 million to $185 million and adjusted earnings of 28 cents to 30 cents a share.
The company generated $69.3 million in operating cash flow and $66.5 million in free cash flow during the third quarter. Cash, cash equivalents and investments totaled $880.9 million at September 30.
JBizNews Desk | Israel Business & Technology
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