Earnings To Watch: JFrog (FROG) Reports Q2 Results Tomorrow

Radek Strnad /
2022/08/02 4:17 am EDT

Software development tools maker JFrog (NASDAQ:FROG) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter JFrog reported revenues of $63.6 million, up 41.2% year on year, beating analyst revenue expectations by 4.16%. It was a decent quarter for the company, with an exceptional revenue growth but decelerating growth in large customers. The company added 62 enterprise customers paying more than $100,000 annually to a total of 599.

Is JFrog buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting JFrog's revenue to grow 34.6% year on year to $65.5 million, in line with the 33.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.03 per share.

JFrog Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.21%.

Looking at JFrog's peers in the software development segment, only F5 Networks has so far reported results, delivering top-line growth of 3.52% year on year, and beating analyst estimates by 0.99%. The stock traded up 10.8% on the results. Read our full analysis of F5 Networks's earnings results here.

The whole tech sector has been facing a sell-off since late last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 3.08% over the last month. JFrog is down 1.74% during the same time, and is heading into the earnings with analyst price target of $27.1, compared to share price of $22.51.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.