JFrog (FROG) Q1 Earnings: What To Expect

Kayode Omotosho /
2022/05/06 7:01 am EDT

Software development tools maker JFrog (NASDAQ:FROG) will be announcing earnings results next Monday after market close. Here's what to look for.

Last quarter JFrog reported revenues of $59.2 million, up 38.7% year on year, beating analyst revenue expectations by 2.06%. It was a solid quarter for the company, with accelerating growth in large customers and an exceptional revenue growth. The company added 71 enterprise customers paying more than $100,000 annually to a total of 537.

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 35.6% year on year to $61.1 million, in line with the 37.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.0 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 1.89%.

Looking at JFrog's peers in the software development segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Cloudflare delivered top-line growth of 53.6% year on year, beating analyst estimates by 3.16% and Twilio reported revenues up 48.3% year on year, exceeding estimates by 1.33%. Cloudflare traded flat on the results, and Twilio was up 1.63%. Read our full analysis of Cloudflare's results here and Twilio's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022 and software stocks have been swept alongside with it, with share price down on average 17% over the last month. JFrog is down 14.4% during the same time, and is heading into the earnings with analyst price target of $39.6, compared to share price of $21.5.

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.