Q4 2024 Jfrog Ltd Earnings Call Transcript
Key Points
- JFrog Ltd (FROG) reported a total revenue of $428.5 million for 2024, marking a 22% year-over-year increase.
- Cloud revenue grew by 41% year-over-year, reaching $168 million, demonstrating strong cloud adoption.
- The company achieved a gross margin of 83.8% and a free cash flow of $107.8 million, with a free cash flow margin of 25%.
- JFrog's enterprise-focused strategy resulted in significant multiyear platform subscriptions and increased the number of customers with ARR over $100,000 to 1,018.
- The company's security solutions, including JFrog Advanced Security and JFrog Curation, were adopted by approximately 250 customers, contributing to 5% of ARR and 12% of RPO.
- Despite strong growth, JFrog Ltd (FROG) faces a conservative macroeconomic environment, with customers being cautious about cloud usage and commitments.
- The company experienced a decrease in customer count, focusing on higher-value enterprise customers and parting ways with smaller, low subscription customers.
- JFrog's net dollar retention rate is expected to stabilize in the mid-teens, indicating potential challenges in upselling and expanding within existing accounts.
- The guidance for 2025 reflects a conservative approach, with anticipated revenue growth of 17% year-over-year, which may indicate cautious expectations for future performance.
- JFrog's free cash flow margin guidance for 2025 is lower at 19%, compared to the 25% achieved in 2024, suggesting potential challenges in maintaining cash flow efficiency.
Ladies and gentlemen, thank you for joining us, and welcome to JFrog's fourth-quarter and fiscal 2024 financial results conference call. (Operator Instructions)
I will now hand the conference over to Jeffrey Schreiner, VP, Investor Relations. Jeffrey, please go ahead.
Thank you, Nicole. Good afternoon, and thank you for joining us as we review JFrog's fourth-quarter and fiscal 2024 financial results, which were announced following the market close today via a press release. Leading the call today will be JFrog's CEO and Co-Founder, Shlomi Ben-Haim; and Ned Grabscheid, JFrog's CFO.
During this call, we may make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our future financial performance, and including our outlook for Q1 and the full year of 2025.
The words anticipate, believe,
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