Summary
JFrog's FY2022 Q1 revenue rose 41.3% to $63.7 million from $45.1 million in the prior-year quarter. Gross profit increased 35.9% to $49.8 million, but gross margin slipped to 78.2% from 81.3%. The company reported an operating loss of $19.1 million, wider than the $10.6 million loss in the prior-year quarter. Net loss was $19.7 million, also wider than the $7.9 million loss a year earlier. Diluted EPS was -$0.20. Operating margin was -30.0%, down from -23.5%. Non-GAAP gross profit was $53.8 million and non-GAAP gross margin was 84.4%. Non-GAAP operating income was $0.5 million and non-GAAP operating margin was 0.9%. Non-GAAP net income per diluted share was $0.00.
Operating cash flow was $5.0 million, down from $8.8 million in the prior-year quarter. Capital expenditures were $1.1 million, up slightly from $1.1 million. Free cash flow, a non-GAAP measure, was $3.9 million. Deferred revenue was $152.4 million, up 26.0% from $121.0 million. Remaining performance obligations were $172.1 million, up 33.2% from $129.2 million.
Cloud revenue grew 63% year over year and represented 26% of total revenue, compared with 23% in the prior-year period. Net Dollar Retention for the trailing four quarters was 131%, compared with 130% as of March 31, 2021. Customers with ARR greater than $100,000 grew 52% to 599 from 395, and the count rose from 537 as of December 31, 2021. Customers with ARR of at least $1 million grew 60% to 16 from 10, and the count rose from 15 as of December 31, 2021. Customers adopting the complete JFrog Platform represented 35% of total revenue versus 29% a year earlier. Revenue from subscriptions that provide access to multiple products represented approximately 93% of total revenue, compared to approximately 91% in the prior-year period. JFrog announced contextual analysis security capabilities, added Dart and Pub repository support in Artifactory, and partnered with AWS for Games.
Management guided second quarter 2022 non-GAAP operating loss to $2.5 million to $3.5 million and non-GAAP net loss per share to $0.03 to $0.04, assuming about 99 million weighted average shares outstanding. For the full fiscal year 2022, guidance calls for non-GAAP operating income of negative $1.0 million to positive $1.0 million and non-GAAP net income per share of negative $0.01 to positive $0.01, assuming about 107 million weighted average diluted shares outstanding. The company lists risks including managing rapid growth, its history of losses, limited operating history, retaining and upgrading existing customers, attracting new customers, expanding sales and marketing, integrating acquisitions, security breaches or product vulnerabilities, interruptions or performance problems, adapting to changing technology or customer needs, competition, general market, political, economic, and business conditions, and the COVID-19 pandemic. Gross margin pressure came from higher amortization expense tied to the Vdoo acquisition, while operating expenses rose on headcount and share-based compensation.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $63.7M | $59.2M | +7.5% | $45.1M | +41.3% |
| Gross profit | $49.8M | $46.4M | +7.5% | $36.7M | +35.9% |
| Gross margin | 78.2% | 78.3% | -0.0 pp | 81.3% | -3.1 pp |
| Research & development | $27.1M | $25.9M | +4.5% | $13.8M | +95.9% |
| Sales & marketing | $29.2M | $30.9M | -5.4% | $19.8M | +47.6% |
| General & administrative | $12.7M | $12.2M | +4.1% | $13.7M | -7.2% |
| Total operating expenses | $69.0M | $69.0M | -0.0% | $47.3M | +45.9% |
| Operating income (loss) | -$19.1M | -$22.6M | +15.4% | -$10.6M | -80.4% |
| Operating margin | -30.1% | -38.2% | +8.1 pp | -23.5% | -6.5 pp |
| Net income (loss) | -$19.7M | -$22.7M | +13.2% | -$7.9M | -149.6% |
| Net margin | -30.9% | -38.3% | +7.4 pp | -17.5% | -13.4 pp |
| Net retention rate | 131.0% | 130.0% | +1.0 pp | 130.0% | +1.0 pp |
Risks
Unfavorable global economic conditions, including Russia's military action against Ukraine, rising inflation and interest rates, and financial market fluctuations, could reduce customer IT spending and delay or reduce purchases of JFrog's platform. The filing notes products may be perceived as discretionary, so revenue could be disproportionately affected by IT spending delays or reductions.
COVID-19 has slowed growth and increased the average length of sales cycles for onboarding new customers, caused delays in new projects, and led some customers to request payment extensions. The company expects these effects to continue and says they could materially adversely impact results in future periods.
A breach or supply chain attack, such as the SolarWinds Orion, Accellion FTA, Microsoft Exchange, Kaseya VSA, or Log4j incidents, could cause customers to perceive JFrog's platform as less secure and lead to liabilities. Remote work and the Russia-Ukraine conflict heighten risks from nation-state actors and supply chain attacks.
Stringent and changing privacy, data protection, and data security laws, including CCPA, CPRA, GDPR, China's DSL and PIPL, and new Standard Contractual Clauses after Schrems II, increase compliance costs and may require changes to data practices. The filing also cites 2022 Austrian and French decisions on Google Analytics and tracking tools as increasing uncertainty.
JFrog's primary R&D operations are in Israel, it had customers in over 90 countries and employees in nine countries as of March 31, 2022, exposing it to geopolitical instability, sanctions, Brexit, labor and tax rules, and currency risks. The filing specifically cites Russia's military action against Ukraine and associated regional instability.
Operating loss widened to $19.1 million in Q1 FY2022 from $10.6 million in Q1 FY2021, and net loss widened to $19.7 million from $7.9 million, while operating cash flow decreased to $5.0 million from $8.8 million. MD&A states it expects research and development, sales and marketing, and general and administrative expenses to increase.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Cloud Revenue
Non-GAAP Gross Margin
Customers with ARR > $100K
Customers with ARR > $1M
Cloud Revenue % of Total Revenue
Summary, forecast, risks and KPIs are extracted from JFrog Ltd's SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.