Summary
JFrog closed fiscal 2024 with fourth quarter revenue of $116.1 million, up 19% from the prior-year quarter. Fiscal 2024 revenue was $428.5 million, up 22% year over year. The company reported GAAP gross profit of $87.6 million for the quarter, up 14.0%, and $330.2 million for the full year, up 21.0%. GAAP gross margin was 75.4% in the quarter, down 3.6 percentage points from the prior-year quarter, and 77.1% for fiscal 2024, down 0.9 percentage points. The margin decline reflects a shift in revenue mix, as SaaS subscriptions carry higher hosting costs. Cloud revenue represented 43% of total revenue in the quarter, compared with 37% in the year-ago period. Remaining performance obligations were $403.1 million at December 31, 2024, up 55.2% year over year. Deferred revenue was $274.2 million, up 28.1%.
Profitability remains the main tension. GAAP operating loss was $25.4 million in the quarter, and the loss widened from the prior-year quarter. GAAP operating margin was (21.9)%, down 6.1 percentage points. GAAP net loss was $23.2 million, and the loss widened from the prior-year quarter. For fiscal 2024, GAAP operating loss was $91.1 million, and the loss widened from the prior year. GAAP operating margin was (21.3)%, up 0.3 percentage points. GAAP net loss was $69.2 million, and the loss widened from the prior year. Diluted GAAP EPS was -$0.63 for fiscal 2024, and the loss widened from the prior year. On a non-GAAP basis, operating income was $20.9 million in the quarter and $63.3 million for fiscal 2024. Non-GAAP operating margin was 18.0% in the quarter and 14.8% for the full year. Non-GAAP diluted EPS was $0.19 in the quarter and $0.65 for fiscal 2024.
Cash generation was a bright spot. Operating cash flow was $49.1 million in the quarter, up 50.7% year over year. Fiscal 2024 operating cash flow was $110.9 million, up 49.6%. Free cash flow, a non-GAAP measure, was $48.5 million in the quarter and $107.8 million for fiscal 2024. The company ended the year with 1,018 customers that had ARR of $100,000 or more, compared with 886 a year earlier. Customers with ARR of at least $1.0 million rose to 52 from 37. Net dollar retention for the trailing four quarters was 116%. Enterprise+ subscriptions represented 54% of total revenue in the quarter, compared with 49% in the year-ago period. Security core products represented 5% of ending ARR and approximately 12% of ending RPO. Total unique customers were approximately 7,300, down from 7,400 in the prior year. JFrog also announced a strategic collaboration agreement with Amazon Web Services.
Guidance points to continued growth. For the first quarter of 2025, JFrog expects revenue between $116.0 million and $118.0 million, non-GAAP operating income between $16.5 million and $17.5 million, and non-GAAP net income per diluted share between $0.15 and $0.17, assuming approximately 118 million weighted average diluted shares outstanding. For the full fiscal year 2025, the company expects revenue between $499.0 million and $503.0 million, non-GAAP operating income between $73.0 million and $75.0 million, and non-GAAP net income per diluted share between $0.67 and $0.69, assuming approximately 120 million weighted average diluted shares outstanding. The company does not provide GAAP guidance.
Risks remain familiar for a high-growth software company. JFrog has a history of losses. Management cites risks tied to rapid growth, retaining and upgrading existing customers, attracting new customers, expanding sales and marketing, integrating acquisitions, security breaches or product vulnerabilities, service interruptions, competition, and general market, political, economic, and business conditions. The MD&A also discusses the Middle East conflict and notes that operations have not been materially interrupted. The company's 10 largest customers represented approximately 8% of total revenue for fiscal 2024, and 40% of revenue came from outside the United States.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $116.1M | $109.1M | +6.4% | $97.3M | +19.3% |
| Gross profit | $87.6M | $81.8M | +7.1% | $76.8M | +14.0% |
| Gross margin | 75.4% | 75.0% | +0.5 pp | 79.0% | -3.6 pp |
| Research & development | $44.9M | $43.0M | +4.5% | $32.8M | +37.0% |
| Sales & marketing | $50.0M | $51.0M | -1.9% | $40.9M | +22.1% |
| General & administrative | $18.1M | $17.7M | +2.0% | $18.5M | -2.2% |
| Total operating expenses | $113.0M | $111.7M | +1.2% | $92.2M | +22.5% |
| Operating income (loss) | -$25.4M | -$29.9M | +15.1% | -$15.4M | -65.3% |
| Operating margin | -21.9% | -27.4% | +5.6 pp | -15.8% | -6.1 pp |
| Net income (loss) | -$23.2M | -$22.9M | -1.1% | -$11.2M | -106.5% |
| Net margin | -20.0% | -21.0% | +1.1 pp | -11.6% | -8.4 pp |
| Diluted EPS | -$0.21 | -$0.21 | ±$0.00 | -$0.11 | -$0.10 |
| Customers | 886 | 886 | ±0.0% | 736 | +20.4% |
| Net retention rate | 116.0% | 117.0% | -1.0 pp | 119.0% | -3.0 pp |
Risks
A material part of research and development and more than half of employees and consultants are located in Israel, and the filing states that certain employees and consultants have been called for military service and additional employees may be called, which could disrupt operations. MD&A notes a three-pillar business continuity plan and no major interruption as of the filing date, but the conflict may escalate.
The company expanded into AI/MLOps with the Qwak acquisition and faces evolving AI regulation, including the EU AI Act that entered into force on August 1, 2024 and can impose fines up to €35 million or 7% of global income. Competitors may also incorporate AI into their products more quickly or successfully.
The market is highly fragmented and the company competes with Microsoft GitHub, GitLab, Cloudsmith, Sonatype, public cloud providers such as AWS, Microsoft Azure, and Google Cloud, and security point solutions. Some competitors have greater financial, technical, and other resources, and industry consolidation could heighten competition.
Net loss widened to $69.2 million for FY2024 year to date from $61.3 million for prior_year_ytd, and operating loss widened to $91.1 million from $75.5 million, despite revenue up 22.5% year to date. The company has incurred annual losses since inception and may not achieve profitability on a consistent basis.
The length of the sales cycle can be unpredictable, particularly for sales to large customers, and large individual sales have in some cases occurred in quarters subsequent to those anticipated or not at all. Macroeconomic uncertainty has led to enhanced budget scrutiny and longer sales cycles for certain products.
Adverse macroeconomic conditions, including inflation, slower growth or recession, bank failures or instability, tighter credit, higher interest rates, and currency fluctuations, could reduce information technology spending and demand. The filing states the company has experienced longer sales cycles and enhanced budget scrutiny and expects these challenges to continue.
Competition for skilled personnel in DevOps, DevSecOps, and MLOps is intense, especially in Israel where most research and development positions are located and in the San Francisco Bay Area. Headcount increased from approximately 1,400 at December 31, 2023 to approximately 1,600 at December 31, 2024, increasing integration and retention demands.
Gross margin was 77.1% for FY2024 year to date versus 78.0% for prior_year_ytd, down 0.9 pp, and was 75.4% for FY2024 Q4 versus 79.0% for prior_year_quarter, down 3.6 pp. MD&A attributes the decrease to a revenue mix shift toward SaaS subscriptions, which incur higher hosting costs.
Total revenue grew 22.5% for FY2024 year to date versus prior_year_ytd, and the filing states growth was 22% for the year ended December 31, 2024 compared with 25% for the year ended December 31, 2023. The company expects its revenue growth rate to decline in future periods due to greater market penetration, increased competition, and market maturation.
The company acquired Qwak in July 2024 for $156.7 million net of cash acquired and may pursue additional acquisitions. Integration may require significant management attention, disrupt ongoing business, dilute shareholders, and adversely affect results of operations.
Net dollar retention rate was 116% as of December 31, 2024 compared with 119% as of December 31, 2023. Customers have no contractual obligation to renew, and if they do not renew or renew on less favorable terms, revenue may grow more slowly than expected or decline.
A limited-functionality version of JFrog Artifactory is licensed under the AGPL, which allows commercial licensees to use it for free and could let competitors provide it for free or develop competing software, reducing demand and putting pricing pressure on subscriptions.
SaaS KPIs
All quarters →Free Cash Flow
Non-GAAP Operating Margin
Cloud Revenue
Remaining Performance Obligations
Cloud Revenue % of Total Revenue
Customers with >$100K ARR
Customers with >$1M ARR
Total Customers
Summary, forecast, risks and KPIs are extracted from JFrog Ltd's SEC filings for Q4 FY2024 (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.