JFrog Earnings: What To Look For From FROG

Anthony Lee /
2023/02/07 5:50 am EST
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Software development tools maker JFrog (NASDAQ:FROG) will be reporting results tomorrow after market hours. Here's what to expect.

Last quarter JFrog reported revenues of $71.9 million, up 34% year on year, beating analyst revenue expectations by 1.88%. It was a mixed quarter for the company, with strong top line growth but a decline in net revenue retention rate. The company added 49 enterprise customers paying more than $100,000 annually to a total of 696.

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 29.9% year on year to $76.9 million, slowing down from the 38.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 2.27%.

Looking at JFrog's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Dynatrace delivered top-line growth of 23.5% year on year, beating analyst estimates by 4.46% and F5 Networks reported revenues up 1.93% year on year, missing analyst estimates by 0.05%. Dynatrace traded up 2.75% on the results, F5 Networks was up 1.46%. Read our full analysis of Dynatrace's results here and F5 Networks's results here.

There has been positive sentiment among investors in the software development segment, with the stocks up on average 20.8% over the last month. JFrog is up 16.5% during the same time, and is heading into the earnings with analyst price target of $29.00, compared to share price of $25.48.

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