Software development tools maker JFrog (NASDAQ:FROG) will be reporting results tomorrow after market close. Here's what to look for.
Last quarter JFrog reported revenues of $53.7 million, up 38.1% year on year, beating analyst revenue expectations by 2.24%. It was a solid quarter for the company, with accelerating growth in large customers and an exceptional revenue growth.
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 34.8% year on year to $57.5 million, slowing down from the 38.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.00 per share.
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 1.85%.
Looking at JFrog's peers in the software development segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. New Relic (NYSE:NEWR) delivered top-line growth of 22.3% year on year, beating analyst estimates by 1.56% and Dynatrace (NYSE:DT) reported revenues up 31.6% year on year, exceeding estimates by 2.67%. Dynatrace was down 21.8% due to weak guidance, New Relic dropped 23% yesterday in reaction to the results. Read our full analysis of New Relic's results here and Dynatrace's results here.
There has been a stampede out of high valuation technology stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.48% over the last month. JFrog is down 7.46% during the same time, and is heading into the earnings with analyst price target of $49.3, compared to share price of $26.53.
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.