JFrog eyes continued growth after posting 40% revenue increase in first quarter following Nasdaq IPO

Israeli DevOps technology company JFrog Ltd. announced on Wednesday its financial results for its third quarter of the year, and its first as a public company after completing its IPO on Nasdaq during September. JFrog reported better-than-expected results, displaying accelerated growth by posting revenue for the quarter of $38.9 million, up 40% from a year ago and a modest 7% increase from the previous quarter. JFrog recorded a handsome GAAP gross margin of 81.3%, but the high marketing costs, that exceeded a third of the revenue, resulted in a GAAP operating loss of $5.4 million, with the GAAP net loss per diluted share being 14 cents. Non-GAAP operating income was $5.1 million and the company registered a record free cash flow of $9.7 million in the quarter.

JFrog is continuing to grow and is predicting revenue in the region of $40.9 to $41.9 million in the fourth quarter of the year. The non-GAAP operating income is expected to be between $1.2 million and $2.2 million and should mean the company will break even for the quarter. Nevertheless, this will still represent a big drop from the third quarter results. For the full year, the company is expecting revenue between $149 million and $150 million, with non-GAAP operating income between $12 million and $13 million, and non-GAAP net income per share between $0.11 and $0.13.

Following the IPO in which the company raised $393 million, it reported in its results $578 million in cash, cash equivalents and investments as of September 30. JFrog is currently being traded at a valuation of $6.4 billion after almost reaching $7 billion during October.