JFrog hits $5 billion market cap for the first time since 2021 on back of promising 2024 outlook
JFrog hits $5 billion market cap for the first time since 2021 on back of promising 2024 outlook
The software company registered revenues of $350 million in 2023, growing at a rate of 28%. It is forecasting a 22% growth rate this year
JFrog reached a market cap of over $5 billion for the first time since June 2021 on Thursday. The shares of the software company soared by over 28% on the back of strong results for the fourth quarter of 2023 and a promising outlook for 2024.
JFrog, which has developed the JFrog Software Supply Chain Platform, a single system of record that helps organizations to build, manage, and distribute software quickly and securely, grew at a rate of 25% last year, and the forecast for 2024 shows that it expects to maintain a similar growth rate this year.
The 2023 revenues amounted to $350 million, and this year they are expected, according to the company, to be about $426 million, which means an increase of about 22%.
The company registered revenue of $97.3 million in the fourth quarter of last year, a 27% jump year-over-year. In the current quarter, it is expected to report revenues of $98.5 million, above the previous forecast, which was actually achieved already in the fourth quarter of 2023.
The company revealed several parameters that signal the strength of its business, including a net dollar retention rate of 119%, which means that existing customers continue to expand the use of JFrog’s solutions. Also, the number of customers who pay over $100,000 a year increased to 886 from 736 a year ago, and the number of customers who pay more than a million dollars a year doubled to 37 organizations.
JFrog also showed an improvement in profitability, although it still registered a GAAP operating loss of $15.4 million. The gross profit rate increased from 77.4% of revenues to 79% in the fourth quarter.
Its non-GAAP operating income was $16.2 million, while its operating cash flow was $32.6 million. As of the end of last year, JFrog has $545 million in cash and cash equivalents.
