JFrog (NASDAQ:FROG) Beats Expectations in Strong Q3, Stock Jumps 22.7%

Software proviso concatenation level JFrog (NASDAQ:FROG) reported gross up of Wall Streets expectations successful Q3 CY2025, with income up 25.5% twelvemonth connected twelvemonth to $136.9 million. On apical of that, adjacent quarter’s gross guidance ($137.5 cardinal astatine the midpoint) was amazingly bully and 4.8% supra what analysts were expecting. Its non-GAAP nett of $0.22 per stock was 34.4% supra analysts’ statement estimates.

Is present the clip to bargain JFrog? Find retired successful our afloat probe report.

• Revenue: $136.9 cardinal vs expert estimates of $128.4 cardinal (25.5% year-on-year growth, 6.6% beat)

• Adjusted EPS: $0.22 vs expert estimates of $0.16 (34.4% beat)

• Adjusted Operating Income: $25.61 cardinal vs expert estimates of $17.81 cardinal (18.7% margin, 43.8% beat)

• Revenue Guidance for Q4 CY2025 is $137.5 cardinal astatine the midpoint, supra expert estimates of $131.2 million

• Management raised its full-year Adjusted EPS guidance to $0.79 astatine the midpoint, a 14.5% increase

• Operating Margin: -15.8%, up from -27.4% successful the aforesaid 4th past year

• Free Cash Flow Margin: 21%, down from 27.9% successful the erstwhile quarter

• Customers: 1,121 customers paying much than $100,000 annually

• Net Revenue Retention Rate: 118%, successful enactment with the erstwhile quarter

• Billings: $163.8 cardinal astatine 4th end, up 24.1% twelvemonth connected year

• Market Capitalization: $5.38 billion

“JFrog has go the strategy of grounds for however modern bundle is built, secured, and deployed; the instauration of endeavor bundle proviso chains successful the epoch of AI,” said Shlomi Ben Haim, CEO and Co-founder of JFrog.

Named aft the amphibian that continuously evolves from ovum to tadpole to adult, JFrog (NASDAQ:FROG) provides a level that helps organizations securely create, store, manage, and administer bundle packages crossed immoderate system.

A company’s semipermanent show is an indicator of its wide quality. Any concern tin enactment up a bully 4th oregon two, but the champion consistently turn implicit the agelong haul. Over the past 5 years, JFrog grew its income astatine an awesome 29.3% compounded yearly maturation rate. Its maturation bushed the mean bundle institution and shows its offerings resonate with customers, a adjuvant starting constituent for our analysis.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong software, a half-decade humanities presumption whitethorn miss caller innovations oregon disruptive manufacture trends. JFrog’s annualized gross maturation of 23.6% implicit the past 2 years is beneath its five-year trend, but we inactive deliberation the results suggest steadfast demand.

This quarter, JFrog reported robust year-on-year gross maturation of 25.5%, and its $136.9 cardinal of gross topped Wall Street estimates by 6.6%. Company absorption is presently guiding for a 18.5% year-on-year summation successful income adjacent quarter.