JFrog Shares Jump About 36% in Friday Trading After Quarterly Results

JFrog shares climbed about 36% during Friday trading, taking the software company's market value to about $12.4 billion. The intraday rally followed its third-quarter results, released on November 5. The share move was reported while trading was still under way, rather than as a closing result. For the quarter ended September 30, JFrog reported revenue of $179.2 million, up 31% from a year earlier. Cloud revenue increased 60% to $101.5 million and accounted for 57% of total sales, compared with 46% a year earlier. The company describes its platform as helping customers manage, secure and distribute software artifacts, binaries and AI assets. Co-founder and chief executive Shlomi Ben Haim said: "Speed without trust can’t scale." JFrog counted 112 customers with annual recurring revenue above $1 million, compared with 71 a year earlier. Its trailing four-quarter net dollar retention rate rose to 124% from 118%. The company reported a $1.8 million operating loss under generally accepted accounting principles, alongside adjusted operating income of $40.7 million. Free cash flow for the quarter was $66.5 million. In its outlook, JFrog put fourth-quarter revenue at $183 million to $185 million and full-year revenue at $680 million to $682 million. Those ranges are company guidance for future revenue, separate from the completed quarter's results and Friday's observed share-price gain.