What Happened:
Shares of software development tools maker JFrog (NASDAQ:FROG) jumped 7.53% in the after-market session after the company reported first-quarter results that exceeded analysts' revenue, operating income, and earnings per share (EPS) expectations. Customer growth also accelerated, though net revenue retention rate declined. In addition, revenue guidance for the next quarter and full year were in line with Consensus estimates. Overall it was a strong quarter for the company.
What is the market telling us:
JFrog's shares are quite volatile and over the last year have had 34 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
JFrog is down 4.68% since the beginning of the year, and at $21.06 per share it is trading 23.6% below its 52-week high of $27.58 from February 2023. Investors who bought $1,000 worth of JFrog's shares at the IPO in September 2020 would now be looking at an investment worth $323.82.
Is now the time to buy JFrog? Access our full analysis of the earnings results here, it's free.