Software development tools maker JFrog (NASDAQ:FROG) will be announcing earnings results tomorrow after market close. Here's what to look for.
JFrog beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $100.3 million, up 25.7% year on year. It was a slower quarter for the company, with a miss of analysts' billings estimates and decelerating growth in large customers. It added 25 enterprise customers paying more than $100,000 annually to reach a total of 911.
Is JFrog a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting JFrog's revenue to grow 23.1% year on year to $103.6 million, slowing from the 24.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. JFrog has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2% on average.
Looking at JFrog's peers in the software development segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bandwidth delivered year-on-year revenue growth of 19%, meeting analysts' expectations, and Cloudflare reported revenues up 30%, topping estimates by 1.6%. Bandwidth traded down 33.3% following the results while Cloudflare was up 6.9%.
Read our full analysis of Bandwidth's results here and Cloudflare's results here.
Inflation fears have put pressure on growth stocks, and while some of the software development stocks have fared somewhat better, they have not been spared, with share prices down 6% on average over the last month. JFrog is down 6.6% during the same time and is heading into earnings with an average analyst price target of $46.7 (compared to the current share price of $33.73).
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