DevOps company JFrog Ltd. delivered solid second-quarter financial results today, beating Wall Streets expectations, but its stock fell slightly in after-hours trading when it offered guidance for the next quarter that was only in line with analysts targets.<\/p>\n
The company reported a net loss of $23.7 million for the period, amounting to a loss before certain costs such as stock compensation of two cents per share. Revenue came to $67.8 million, up 39% from a year earlier. Wall Street had been targeting a loss of three cents per share on sales of $65.5 million.<\/p>\n
JFrog is a provider of software developer tools, best known for its open-source binary repository manager Artifactory. The offering is somewhat similar to GitHub, which is used by developers to store their code. But it caters to a different part of the development lifecycle, storing the binary files that are created when engineers compile code into a functioning program.<\/p>\n
The JFrog Platform also includes JFrog Pipelines, a continuous integration and continuous delivery platform. Its used to create automated software workflows that transform raw code into binaries before deploying them automatically.<\/p>\n
JFrog co-founder and Chief Executive Shlomi Ben Haim (pictured) said revenue from the companys cloud offerings accelerated on a sequential basis, showing the importance of hybrid and multicloud DevOps among big enterprises.<\/p>\n
We believe that our success in the second quarter provides further validation that the JFrog platform is the backbone of their software supply chain, Ben Haim said. We remain laser-focused on making our Liquid Software vision a reality.<\/p>\n
JFrog said its cloud revenue grew by 68% from a year ago, to $19.2 million, representing 28% of its total sales. That suggests its cloud offerings are growing in importance, because cloud accounted for just 24% of sales one year earlier.<\/p>\n
The company showed plenty of other positive growth metrics too. Its net dollar retention rate, which is a measure of its ability to retain customers and the revenue they provide, ended the quarter at 132%. Meanwhile, customers that deliver at least $100,000 in annual revenue grew to 647, up from 415 one year earlier. Of those, 36% have adopted the complete JFrog Platform, as opposed to just 32% a year ago.<\/p>\n
For the third quarter, JFrog said its anticipating earnings of between a penny loss and a penny profit, and revenue of $70.5 million to $71.5 million. Thats more or less in line with Wall Streets forecast of a penny profit on sales of $70.9 million.<\/p>\n
JFrogs stock slipped just over 1% on the report, having made gains of more than 5% in the regular trading session.<\/p>\n
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