FROG - Earnings call transcript Q1 2021

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JoAnn Horne

Good afternoon and thank you for joining us as we review JFrog's First Quarter Financial Results, which were announced following the market close via press release earlier today.

Joining us will be JFrog's CEO and Co-Founder, Shlomi Ben Haim; and Jacob Shulman, JFrog's CFO.

During this call, we will make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our future financial performance, including our outlook for the second quarter and full year 2021. The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations.

You are cautioned not to place undue reliance on these forward-looking statements which reflect our views only as of today, not any other subsequent date. of that release not revision the forward-looking in mind revise ourselves to in future statements publicly or or results light keep we obligating are to these results. Please information new of any These and that statements differ from could risks to uncertainties expectations. results are a actual of to materially subject variety cause

on For could prospectus results, SEC actual to press our XXth, affect and with today. of Form February please Relations risks filed our earlier website other and is the material discussion and which our a important the that XX-K our available earnings factors XXXX Investor issued of refer release the in section

will from XX-Q and SEC. other information report filings made quarter time-to-time quarterly that XXXX, our on for may we with and Additional reports Form the file available ended be in the March XXst,

CEO, this a Ben the addition will non-GAAP in with conference this be used measures for discussed those release their refer of to directly of be Shlomi financial GAAP JFrog's which tables like GAAP to to substitute measures. isolation limited I'd of that, over call. financial Please website replay JFrog's A from, earnings Haim. available call measures These comparable in on for Relations to not be measures should are JFrog Additionally, financial measures, for measures. And or as to, the on performance, in Investor our as most a a reconciliation will call time. the turn non-GAAP considered Shlomi?

Shlomi Ben Haim

first quarter thanks us from and JFrog's for XXXX JoAnn. Greetings you, Thank call. joining the floor earnings for

quarter and for great their India. our making the the all thank best countries a proud work to of our families good first some and amazing wishes XXXX. moment friends, I recovery and a launching folks strong pad by for We're and like start, we are want still our as take being employees, and would health to for send I in to of Before pandemic, in ravaged this

one from for quarter happy our have it the was milestone the emerge This where of entered is world R&D a to offices marked pandemic I'm beginning located. team all us, the Israel see to majority us as we as year the opened since it of mode.

of We be year in DevOps first in-person will even Aviv. holding in one of the taking the events Tel place July

and We we again, customers continue forward to meeting bring value our partners more are as looking to to the community. face-to-face

first period XX% Now, to quarterly $XX.X of revenue I the quarter efficient contributed year-over-year, last XXXX our same $X.X JFrog's highly the want cash free to to to XX% business Cloud models over share climbed the revenues year. of and million. a increase pleased growth a our report with continue I'm results. flow million, grow

the the new over $XXX,XXX quarter, over on focused in pleased value team and a remained increased Now, goal few strong the QX business number than them. of on $XXX,XXX customer The to a land first the highlights. our million AR our unchanged counts, thing of XXX Jacob customers in with greater In our expense validate customers with our installed the customer see our additions previous for retention. customers demonstrate customers. the success year, our base I'm to QX. growth reality, models as pandemic we also and high be for the force to guided under In at

addition that retention focus on growth on in end. net to As customers that our continues the to very be new we customers XXXX with very we in started well reported performed high. past, a

continue to result, JFrog. of new QX, focused year. We'll logos net we're wins customers an this coming As a seeing fiscal new on stay to increasing acceleration for in

customers demand across prospects levels. at lent and subscription Additionally, for indicating high we continue to see maturity new DevOps customers level

end-to-end universal a new for same complete that platform and DevOps recently at a order came the For highest multi-product The level a package to our integrators the in They firm as largest one as consultancy solution. solution subscription on example, of also JFrog to will world adopted in the distribution. software standardize customer. include

build on the developer. edge to safely be the So, once secure deployed closer will and binaries

We customers CI/CD are that full just and software hybrid that more approaching and excited environment for DevOps setup. customers solution more build see us to and a This the are expand multi-site distribution security requiring the includes and beyond processes.

sales ongoing our increased I'm in co-enterprise through also driven cloud QX, cloud for year-over-year Google deal in transformation with indicating across with business robust options new industry. Microsoft, in providers growth migration major the digital size. driving Specifically, partnership volume and QX and marketplaces pleased and our offerings Cloud report to growth initiatives and cloud AWS, for was sales,

cloud We also for government infrastructure announced stage highly to in regulated governmental availability Microsoft future and AWS set the on growth sectors. GovCloud, JFrog and solutions

the as we China the another As quarter, in as and specifically also financial largest in target exchange sales the APAC company. welcomed growth state-owned highlight, our market, and emphasis on China a added and a noted insurance expansion. past Mainland This stock past for the large customer, we and area

in market. to expanding these continuing to investments China support look marketing, staff bear fruit. We recently and in dedicated forward our footprint sales, also We announced to that

Turning quickly the funnel. sales to

every and growth We tier and in continue both self-managed. offering, to our cloud platform, quarter the demand with joining see our the thousands for trial users in of free

we the adoption new also global onboarding number to growth. and understand drivers the continue We this solutions customers' It's important conversion; our experience rate. see of conversion in invest and customers' improve to of behind to process growing the

key enterprise addition and which of package software In distribution. served security packages the see across driving of the the control world, Artifactory, software our environments, DevOps as to DevOps customers two also point we themes

mantra software keeping security, on secure the for is JFrog. First, lifecycle the entire

vulnerable platform, business. software components, issues impact, the discovered glitches, uniquely across business prevent discovered while the identify completely JFrog to their customers scope their flow With CI/CD the of can automate and fixing

vulnerabilities us them may Some the years of like where tell even take solid lay. identify a our customers or could wind attack months to

security R&D, and few product, using We're of process more While this take our made have across that can a reality. a JFrog, proud this teams seconds only.

In against XXX supply fortify on security standardize the attacks. solutions financial Fortune to one fact, organization chain JFrog of and recently Xray

specifically, distribution we getting of pain major the packages, a mile next to the on point solves our production last all DevOps for is distributed Second, customers. and wave that of believe

in global of February, validated distribution software highest our part customers subscription number migration As our event we to for is driver level. the one

to delivering and Our customers uniquely secure are tell edge. software us enabling the we the edge at movement the packages scale, software packages fast of to

sync one supplies, to and packages to each in restaurants X,XXX to with is example, restaurant food to updates JFrog with full of the order managed food being restaurants, fast by technology. is each made largest food software, A For requiring the in software final directly between the build made, by America the JFrog. restaurant manage powered is vision chains deliver and delivery liquid inventory over utilizing preparation a of

JFrog. utilizing the software over-the-air As respected of only to of manufacturers based possible automotive companies presented on identified of distributed worlds by displacing the companies and of move is update. and hybrid and powered fast software None we QX, flow the our another factors, competitors saw The software The is binaries liquid. primary downtime. continuous becoming to team vehicle with being software with JFrog In incremental deliver technologies zero software is liquid this how JFrog secure, Germany's world most in what distribution then secured next-generation our operate solution. aggregated in for and is these Artifactory, without call will updates the on auto they packages, reliable is without assets as more as one the example, customer that built or universal pipeline software DevSecOps

advantage our away solution technology moved is banks complete supported that largest took types number focused of of Canada's our security technologies from They of and to one our and a our only example, high distribution subset security on For focus. competitor alongside scanning platform. of

approach. getting and vision develop are our like to Now, specific we our products. changes are and technology, These the in security. customers' the QX, our scalability, we operate enhancements enterprise and software is built of binary or included transformation to two security, the unique management in the that set innovations in capabilities our mind, JFrog, edge fingertips new in years, processes, at any product from we developers' distribution, a with product past how I in Enhancements significant software would mind of without end turn In most and how digital investments to were and single core blocker At released supporting goal developer that integration. market. the ecosystem

manage As organization their projects, This other everything alone and quota to of units for from developer we efficiently can and nuts a and thousands resources by highlight and release of capabilities, lead bolts regarding enterprise organizations. feature business more. and save operate allowing to team the DevOps, storage JFrog hours scalability permissions administrators

the integrate for and peer-to-peer distribution to For software distribution, developers, the from feature enhance we allowing our for beginning. them plan sharing technology

able scheme Programming to licenses, with Survey. management community include thousands enhanced growing was be not look to will language and platform transfer, the Loved forward ID distribution security RAS programming just nodes RAS integration developers. through to of JFrog standard Stack the ID cargo them. also scaling and management. are both into building further and binary our customers but we new the And also data rated secrets [ph] support management proud a in such We Overflow technologies, for the on-prem. with monetize Vault perspective, adding recent the cloud with as in [Indiscernible] capabilities this the the deliver From we to for to Language welcome Most asked capabilities features, these of for more and the With we edge management HashiCorp hundreds and repository C++ more

This added AWS support processes JFrog C++ continuous their will external management automotive, verticals. We in and security other for networking expanding and and also tools, allow to IoT, saving improvements well pipeline, into allocate integrate our standardize security enhance our data effort. can private companies support expanded partners provide customers to further and DevOps the packages metrics to Xray, and of as ability flexibility with and the valuable health quality manage time platform via more the resources about Insights. Users and our JFrog now pipeline the as efficiently. to monitor JFrog and for

We are software the that developers of industry. also rainmaker know

So, types, Technologies. tools, JFrog main we interact Developers our delivery developers enhanced our these with but also across developers, technology access added only line new monitoring users, to those way tools is need pipelines. management which not and the command

to integrations the partner's JIRA, including and our across and expanded we delivery process. more PagerDuty, collaboration Atlassian Datadog, improve So, traceability

an the market We customers happiness. both community are key these to about solution driving is and updates how excited bring that enhanced

Finally, subscriptions. match high a on JFrog Xst providing. a the change April Subscriptions to quick note value undergone have to our effective is JFrog platform

Enterprise Specifically, repository we always are product a security ensuring solution, customers our Xray mandatory as in included secure.

call for on-prem traditional A in the to community a DevOps Pro prices and showcases. the subscription JFrog financials, customers. to align at one addition, to and build This our forward dive to your welcoming annual our sub. tutorials, some Pro item across turn changes community X subscriptions changes showcase I'd and CFO partners user and Shulman, deeply June the forward companies. event and broad where In swampUP roadmap There late industry unveil early to top technologies updated With zones. on to use no our we is to different looking and we last financials. QX. guidance. event provided JFrog is swampUP three-day you the from with Jacob annual venue more over before and like into into to These Enterprise+ sessions, and were world's of ecosystem already we're DevOps of greatly the we look of QX will the training, cases to time value community conference look May stories in that, I

Jacob Shulman

will the our a Thank you, Shlomi good our and QX first results full provides I year XXXX. of for quarter overview everyone. and provide of brief financial and afternoon, outlook

non-GAAP available all furnished stated. please remarks X-K found the measures referenced otherwise Form A GAAP and comparable as earnings the SEC. which release, an reconciliation is exhibit a in As a my to to on reminder, numbers our in today's note can unless be to on that basis website

retention XX% year the sales to revenue. turn was for It revenues trend in ended to our XXst, the good XX% XXX%. let's Self-managed Total $XX.X faster, million, often was were on-prem XX% million financial work So, were for called in up the revenues to revenues significantly XXXX revenues March growth total four last XX%. $XX.X a to year. again remote with revenues XX% also compared or driving three QX trailing grew dollar faster months again $XX.X Cloud million, of total of results. year-over-year. up of our the start Net up quarters

to with up as XXXX. customers customers from of we Of customers XXX ARR had XXX greater growth, As $X had ARR million. of over quarter than this $XXX,XXX, of end, December XXst, XX

gain the healthy majority growth We see growth moving landing Pro in continue saw the Pro to XX% again full XXXX. with additions customers, plan. from customer customer with up We the of JFrog pack came X in solid revenue at subscriptions levels. the total to or new platform XX% subscription Enterprise+ in a In the Enterprise+ of to QX access from up QX,

bookings, with do customers out I booking renew number In that to if tier opportunity we did subscription a move rate to renewed offered saw we multi-year change, higher very a QX. not the report While point we they agreement. in line current of to want with pricing customers at the a strong and

in margin a statement year income XX.X% XX.X% in detail. Now, the Gross period. to ago more gross review representing was let's profit the compared in quarter million, $XX.X of the

we significant expense improve million business, impact gross compared have investments to of or positively period. particularly the recent year efficiency revenue XX% in $XX.X Over the quarter XX% ago cloud the margins. R&D of the in made the revenue operations, which quarters, was of for to

compared including Shlomi discussed. peer-to-peer period. as term in We significantly monetization and longer the was to $XX.X our have of believe million continued in XX% both marketing capabilities that introduction opportunities JFrog for to the expenses quarter the in feature distribution and We for revenue mature. project represent they of product enhancing offerings, ago or year revenue of invest XX% Sales the enhanced

from or compared the XX% quarter the we improvements $X.X operating income million in expense operating ago free to compared or million Non-GAAP margin $X.X during for the X.X% prior revenue the year offering as for million the As stabilized of period. revenue period. in the made year benefited or expected, G&A the infrastructure ago was quarter operating X.X% margin in QX $X.X was quarters. XX% on spent of community

balance and profitability. with We growing the the and investments continue opportunity in business to JFrog of leveraging front

share mid-single-digit operating the average target near shares Non-GAAP or to diluted future. $X.X continue to on XXX.X was net approximately based the million the diluted weighted We income in low margin million per in outstanding. quarter $X.XX

Cash million with balance we the into short-term CapEx, cash the sheet ended free flow the flow, cash and quarter. investments. flow cash million After $X.X and $X.X operation to consideration in $XXX Turning taking in from quarter was million. was

lease this lease new sheet. accounting, The liabilities recognizing cash impact related implemented assets on on our to have we material quarter, flow. rights use balance not of a operations and the statements did During of guidance the or implementation

$X.XX million. As for guidance, the shares. non-GAAP for the of of QX, expect we expect revenue XX%. $X.XX of $XX.X of million operating of of approximately million to a count With a XXX growth midpoint share EPS At and approximately $XX.X $X.X assuming we to million to million non-GAAP guidance, income zero

increase non-GAAP of million fully At in the the revenue and increasing We XX%. For guidance million the midpoint, X% $XXX end between we're of to outlook. approximately is full shares. approximately year, and with expect narrowing now revenue low our $X million growth and operating million $XXX $X income diluted

turn some remarks back take your Now, we for closing call let the Shlomi before questions. me

Shlomi Ben Haim

XXXX hybrid Thank our will sharing DevOps platform gotten our meantime. to to end-to-end a questions. swampUP great industry you, has QX as be of innovate lead start to now for welcoming the universal in position, call, in And JFrog's you setting developments goalpost quarterly off as will the DevOps forward I bring to some the continues for to look well next other exciting match. some in the we Conference taking companies Jacob. JFrog.

Operator

Thank you.

our Auty question-and-answer Sterling the is And [Operator question will session. We JPMorgan. from first now begin Instructions] from

Your line open. is

Sterling Auty

or slowed you're it's in less back you starting a for quarter? just focus additions? logo additions guys. quarter bit of Can are a hundred, maybe so, adding and on sense Hi down, maybe XXX bounce little of more adding I new logo kind a us has you're I that terms than think where new the Can the So, magnitude? you pre-pandemic, the in a last generally think give thanks. you Yes, couple

Shlomi Ben Haim

Hi, it. question great you thank for and first

stated the in on the going JFrog funnel. top we is in of script, As the the focusing

free year, full users. for of in of the We results of and now world QX end launched our in an the platform. to start to see offering prospects previous back the to the remember users you enable the this all being we optimization If our access the tier to available

a see and obviously, we new new growth So, new users, prospect, and logos -- it's to in translated this being QX. in

offering, see to get our we see the the and demand aligned the and more goal, to in amount price materially we and We In starting is trend were which addition logos we the pleased declining. our very year. with that new translated to also in see in that always is very methodologies self-hosted trial again free of hybrid saw on it and Therefore, this much we QX. solution a not net of is being QX

Sterling Auty

great. Okay, And then one follow-up.

you had they're price number investors there material a not guidance, significant the but more think on -- that seem of full impact contemplating mentioned your increases, either increases this I to price mentioned, outlook? it in I think wondering identified revenue you'd year they're quarter's did but that have the or why be

Shlomi Ben Haim

Enterprise that because the and were supply The only the XX% the increases, our focus subscription. only revenue. price mainly on for by the -- Well, fact increases on-prem QX revenues applies subscriptions not to will mainly impacted [Indiscernible]. price Basically, of on of it the

is the when So, it not that you revenue think about impact material material way. that

that not our also and very the using values our of and another kind that fact, in price much customers impacting as friction cloud the aligned and on is created It revenue. into we that increases the the between It subscription the different the JFrog are with any the majority are still performed you default second related injected to remove the The have thing Pro move we was subscription lending version. not, users, to of one on from is operate. -- subscription

impact our around of total revenues. to it we So, expect XX% have on an

Sterling Auty

you. it. Got Thank

Operator

Our next question is from Jack Andrews from Needham.

is line Your open.

Jack Andrews

Thanks for Xray my Shlomi, about for taking afternoon. talk a I you wondering if just Good questions. could was moment.

example Or it Xray's referenced Are need time this? broader solar with aware you might how tack. with You value very customers market strong evangelizing the to the a compelling spend capabilities? impacted your of around really in the be proposition do wind

Shlomi Ben Haim

securing is regarding that JFrog on And see why great are to natively technology. This question vision. you the this Xray a build moment else securing perfectly and customers is Xray just is Xray. the What very solutions asset security now that in Basically, everything repository. sitting comes created the CI/CD looking software That’s you fits is a the more we on and it. be can their it. focusing into embedded your is why natively software you manage and and that more for from with start we deploy our Artifactory unique to moment is Xray demand packages. Xray as to this is your growing pipeline

secure of vulnerable some only organization, with flow into not repository, First your data, any major the bring the inside but provide the you full with Artifactory protection pushed. to you also that you and ability allowing is dependencies, CI/CD the outside software create break if solution all, the software that you being looking from the to it's organization the scanning

what the more cover call The side vendors of the markets are that start faces. the of on second and is to more while other a left we Xray software, focusing in we see lot lifecycle, that, thing

that Enterprise reported, portfolio this more we about. subscriptions subscription the Enterprise escalates the on the Xray, that And and binary switching see model to create moment more software solution way cube. pipeline, full the from from environment, in the that with the in is in provide more built demand, the being security our the are and you to deployment our and include is as changes perfectly you software, the done we also wall flow, distribute vision include sits and full the all to we've Xray, As Xray it and

Jack Andrews

us, follow-on nice these market is nature That's what you a us going Can update like opportunities be days? much sounds you that. in of after could consider an a displacement of Greenfield This how may actually the win, gave detail versus your you displacement example around question. update these just that you you

Shlomi Ben Haim

access is of market much mean. the ready the How cotton opportunities You for specifically? with

Jack Andrews

artifactoring just broader Well, broader I guess just the platform? and

Shlomi Ben Haim

of obvious it you product a part the of binaries database everywhere management software saying important us look Yeah. delivery lot that Well, the distribution, to What When about are just, is the of see the to and, packages. to and market, and now because do other super right JFrog shifting the it's to and automation CI/CD all fast add very look in top most even It DevOps, continuous of and around used flagship of software binary and security factory primary important. roadmap automation, his sense you IoT. focusing flow. JFrog, on the it packages, the of DevOps, over hear also take the full makes the are of a at the vendors became of on IoT those think organization's to be

focus our what created moment aligned solution it's our product are the with build day much from we this one, we company. It's the very main customer other there. on see And how align we market. displacing the And we the much portfolio. without improve also on with since in with that and also very vendors is So also binaries

Jack Andrews

it. for Got my taking Thanks questions.

Shlomi Ben Haim

Sure.

Operator

question from from Your Stifel. Reback is Brad next

Your line is open.

Brad Reback

the you had you the Great, a minute thanks increase? impact take the much. review from commentary very billings could price just and around Jacob,

Jacob Shulman

Sure. Absolutely.

prior want booking the have portion quarter of who subscriptions So the certain businesses customers by to renew to their a related bookings by of and record to bookings high prices upgrading we these to change. some level in terms

entered renewals customers. by we early multi-year why related of That's agreements. And saw also XX% approximately bookings them the these some of into to

Brad Reback

quarters this quarters as as growth And about that, think of maybe of and two to four? maybe for going headwind rate, billings a next to should couple forward, expect I'm we a and be even just three, we the to follow-up assuming somewhat

Jacob Shulman

future bookings revenue. -- that revenue believe that growth bookings opportunities, present quarter mean does it our not and in don't for input but we definitely necessarily headwinds, billing Again,

Brad Reback

very Thank you much. Great.

Operator

Ader next Our question is William from from Blair. Jason

Your line open. is

Jason Ader

afternoon, Good guys. you. Thank Yeah.

First you front for and, of in And the folks. for then you able people are question seeing in to you're from any that half lingering being office Shlomi, business not the certain there assuming impact in is benefits not any in your second being from reopening? is in COVID get guidance, especially the

Shlomi Ben Haim

Unfortunately, reality QX one team QX in to here. the of team, India, the act pandemic we what our will, Israel, struggling will we we and just with behave team change, under world that see more business of that Started will - country We no reminding have still sending of is the India differently, our guidance, back start in the post JFrog and in quarters believe of R&D see QX, is the that a the majority kind script hope there and now pandemic. we already by our the QX the and Remember, up. us from that customers. is On the to the back see the bottom our We best that that team with swamp. more wishes is will company the product still pandemic. is still two to also but

something start accordingly. will that aside the question, different to will we to business is take be our believe of moment start to the the push that plan to But your the again kind in half. still also seats year will roadmap again, And better will to be developers half become there believe no their will that back organization. their So and demand we are community change and guidance a conferences, we the bubble more second aligning see will the priorities will I and more to more of and important, -- in

Jason Ader

next, Okay. you Jacob, to the you. you for hit And retention quarters? that rate Jacob, then where as reported, net don’t I XXX% see six four a going do Thank know up follow over

Jacob Shulman

Yeah.

seen the levels, reduction will First dollar this rate net that of we've the obviously, net past stabilize retention. over all, a around Jason, we quarter, retention in see

Now stabilization around we these see levels.

ago, midpoint net dollar of Our annual guidance, year-over-year implies XX% suggests XXX%. that the retention and

target longer So term. to continue we in the XXX%

Jason Ader

even you Right. -- this is then term level have any longer year? do you guide right towards? want that And the beyond us I Do trajectory that you to mean,

Jacob Shulman

a lot product in opportunities of we Obviously, new create launch we features the see opportunities some create and future. adoptions the in to enhance with from new that past them,

net believe dollar remain we do grow So level. and may this even from will that

Jason Ader

Thanks.

Operator

is Our Kidron next question from from Ittai Oppenheimer.

line is Your open.

Ittai Kidron

Thanks. into Hey, guidance you the I was quarter somewhat guys, itself. disappointing for first to the of I on guidance wanted especially dig raise year. the the year, the didn't

see reason? growth your Do profit your a more growth? you? deliver and you performance And dollars want why what and kind for feel drive seem like invest with the not more? an drive I the more of a you size, business Shlomi, you on are into of your not in think a perhaps to still more of you'd and companies growth, hiring, So, your Do that were You ask profitable that to with to Most you're there from to enough? can not happy opportunity not invest investing say deliver you ahead parts clearly perspective did right go quarter, respect weren't wise? have you opportunity massive

Shlomi Ben Haim

Yes, Ittai, hi.

think I these questions. are that two great

portfolio numbers we pleased about growth committed the managed The We and potential to with with very the first into were much the and one is happen the the numbers. with predicted what very alongside were expected our technology the and we and growth aligned Obviously, deliver market. we the reality that the And we the saw that comes we COVID-XX. we are changes market. under that still we in

hand. efficiency will of look JFrog the JFrog like also and conflict how status goes XXXX and goals see quo the a know We I don't view I we And here. see have hand the in

are we all you've very dimensions. money What never that being millions investment, team, Now, to seen investing we done community, We one are before deploy market you has. certain developer we spend of plans; advocate in more we the never, out public all more our dollars amazing although a the Actually, regarding until reaching and spending. by lot harvest is conferences marketing. that we we plan But building no is with the the of else that sales in what fruits. in invest then never more, future our bear sure to in money and of -- sake We remoted, went had aligned today, the the maybe and lot the make and our right we with for thing marketing. with will spending much invest the very a also potential work mantra aligned do and of not we just into our

see we R&D, grown And the pleased of community products, folks very is in growing. this results. the past you have into innovation them -- no that team one forms. other innovation to the in that we are the much market to in hundreds fast year, different enjoy how can from and so of team the significantly material quarter products, see six in And released Like different On customers. vendor the was offered JFrog different join to all how new our the

strict not $X costs. never never we saw spending And also budget. I because $X the spending have I a JFrog’s the a So, without saw JFrog

So company. we will on the go building

business And growth projected. to the as have be we be more the what business needed, We keep investment. when will of the do go with profitable, in will a needed to needed will order on profitable, it will company as when

Ittai Kidron

clearly, even sales your have it about they how your follow-up. How maybe productivity Jacob, And close it a to base, big Or that there? some underperform? are of you corners your it organization you tracking expectations? are are very is across right and But Can perform now? maybe is there together? is relative talk the generally, as

Jacob Shulman

marketing organization and is sales growing the Well, Yes. significantly.

you a and customers team top we are from goes previous strategic our that remember there. the the after also calls, As developing expand footprint

Our form for and in thinking channels not what And I'm in marketing increase also Asia And invest invest a see demand more also in channels, the growing growing in in globally. saying cloud. is we order on DevOps, team shapes not support the but APAC, we about fast. of Japan the the team Pacific lot. when India and location in that. one partnerships, more and it's in solution, two, growing, in actually China, integration, We self-hosted we now or only it's is In to in just a and different

its -- it's look also with should marketing is So to expansion up, strategic a globally, ought team. hybrid, at bottom you and you be down JFrog and top the when its sales

I think, investment again, and very much aligned with our our plan plan.

Ittai Kidron

Very good. guys. Good luck Thanks.

Jacob Shulman

Thank you.

Operator

next Sandler. is Owens Piper from Our question from Rob

open. is line Your

Ben Schmitt

Hi, is Rob. question. This my guys. taking for on Schmitt Thanks Ben for

adoption that these focus us more new start can just growth. logos mentioned started would to new trajectory of if for impacting you logos and when expected XQ to we and materially You them remind on kind expect the for in you revenue wonder

Jacob Shulman

I would question. Yes. have the

growing new to in row customers So our quarters a see noted team number adding JFrog. JFrog in several portfolio. as prepared in acceleration remarks, customers we've we we to Actually, new of seen coming

but customers, for from existing the of expansion growth us grow Just That's believe portion to from important we significant account. customer of remind future come that our overall expansion most of existing it's will the revenues a why obviously coming customers. that to very of

So it going many and them notion allow forward. years continue land to for expand will

Shlomi Ben Haim

from to we And that also number new very the basic increasing Artifactory most on-premise learn the it, focusing on subscription new But are net subscription just be mentioned, adding the the be with the as multi-cloud logos, remember of expansion will add of and Jacob [indiscernible] logos. to customers the our tier. will we level, model, will to first lowest the have and new and of

logos, aligned of a much more with very future new not new we customers. is more adding by the revenue number building and So are

Ben Schmitt

DevOps a needs Or unified -- it. that point their is biggest us behind better understand the it happened that? the What organizations? like of it And brings them you help and Enterprise+. distribution? that to what distribution to for on organization that brings Is enough is Can that to to Enterprise Got those where they're need to Thanks. that? the ready that side that impetus factors impetus up is organized get you one mentioned

Shlomi Ben Haim

also follow-up well, that's on a great previous Yes, question. your

revenue look last our Enterprise+ of represent If compared numbers, to the you year. XX% revenues the of XX% total at now

see see software triggers we we distribution. the the using of part platform the these see expansion, identifying are customers obviously, and grow, the So, the of full this benefits innovation, we

is The secure. efficient fast. years what to software, XX is organizations Software want ago, now be different? be They want to it ask they JFrog, ago, XX XX software. would you ago, years difference Now delivery main was there years They yourself, to want be deliver world budget. before want their the be And with cheap. to

you more edge, faster, Xray, of want Artifactory secure, scan it's you're with it whatever budget. bundle automatically more blazed that you don't and you obviously, you from and in of have by can If to faster. you're the confidence, be take as thing closer have, because you it the even happens developer, secure, the to you you have the third you get security automated, gate push lock if bake your move if you. to and then you ready even by more pipeline, you and kinds front Scan all Artifactory. release edge, then efficient pushed fast, whatever you to So your and is in And Xray

changing? of it a all company. your to software It Now happened resources customers. wanted everything. that push this to distribution the Because would by look at have with your by a push you to Why new JFrog few of update. and only our update, have software Artifactory, piece what pipeline community. want JFrog edge becomes built that ago, the lot And on enables if you to just is save distribution would version that the built can therefore, from you you to be And pipeline incremental be Xray, is building super-efficient, and is a you for years

understand built have be top you money automated would now on more you that something a network, on on CDN. just You technology, and not of faster, secure, your something maybe also can save fully headcount. And on but

of answer revenue. So the very as percentage from with and happy that starting we are harvest the as started see total I looks the the label, are put to our a future we to [ph] we predicted

Ben Schmitt

helpful. guys. really Thanks, That's

Operator

from is question next Our Peggy Yu from Morgan Stanley.

Your line is open.

Peggy Yu

on of do you pull to subscription of run? the and forward on it bit, behalf Peggy is how Enterprise little because of is another This saw the longer wanted affect expect to bookings much Sanjit. of how the coming in from I that increase Enterprise+ quarter price the uptick, touch increase Hi. pricing a

Jacob Shulman

Yes.

So is the pricing for changed and did products of some Enterprise+ package. the not pricing change. enterprise What package

we So, Enterprise+ as tens we the added a price our to lot subscription, to free including of customers actually subscription. obviously customers Part I of utilized quarter see added of these different Enterprise+ value across And we subscription this Enterprise+ was by but of probably to largest our number subscription. as customers. Enterprise levels, who the adoption said, customers change of portfolio, transition

Peggy Yu

Got a it. it. parts the touch competitive the have Got talked any seen pipeline. lot little players that about other DevOps into of on That's then on environment bit. front? of to And incremental DevOps Have you expanding super A helpful. competitive wanted pressure

Shlomi Ben Haim

the Peggy, into every Every more vendors landscape DevOps the more DevOps well, is innovation, stepping are the Yeah, of expanded day. and and lifecycle. of we see claiming day, more market, being that part

secure we push most and in build really is, software DevOps fast you the it's what yourself and If can how way. about ask all

git building companies, software, code the providers. there git in is on git the source So of the no companies, difference the guys, different landscape

quite world continuous release that believe There level for this alongside I an the side, on the on and and world the the security and that premature that automated deployment the mature more flow. this the CD, CI/CD, security level. we side demand on and right developers is of more automation, solution we And pushing securing is innovation field is see into evolving market. less software. the On very is CI In the see

of is still room a there lot to So grow.

the universality JFrog focusing pleased matter, to they that bode to software market start focusing they to the are roadmap packages, solution, We on bode starts choice items, and on very developers world appreciate also talking with see the the smallest biggest of way, more on with more in freedom of just from the CIO demand companies the with vendors, system the not developers, the the and the and that organization. to or universal

Peggy Yu

Got very it. you much. Thank

Operator

question last Berenberg. from Crane And our is from Kingsley

open. is line Your

Kingsley Crane

of also that bucket of It's boots for Hi. see great have mortar Thank in have fit in you. partnership some on have ecosystem. Congrats they to with some the expand good and left time. overlap, pipeline. and product Atlassian side to yours They quarter. customer bent the They also a

So think look at if how you do whole the those between two about you product SDLC, relationship the suites?

Shlomi Ben Haim

company. amazing an is Atlassian

you in reported to course with We the artifactory sits and it. planning. think the them for code. and with you together. brings well use the an and manage and Atlassian keep repository are replace that we love the one. serving we use to on the They top actually git on as This partnership. Bamboo Bitbucket working Git enhanced Obviously, your or will your integration love Bitbucket that repository, today, our They this We JFrog source of developers when complimentary pipelines together market. is repository server investing together walking I aligned CI have with binary seeing solution We of day administration integration [Indiscernible] plays off them. call it from a have to And in also Xray the that new why And as platform.

Kingsley Crane

It's helpful. really

the hybrid towards company, with moving product specific out the lessons we've it's with cloud. products similar parts And more raising also pricing one cloud just of So seen been and suite. play dynamics

think should the pro to Pro guess applied I prices about recent raises, we how behind as for the So and on-prem? X strategy just

Shlomi Ben Haim

Well, in as will more you and future, know, that near the hybrid world demand solutions. the JFrog philosophy is more

When now, look and be even or them just our to on-prem just leaders hybrid multi-cloud, hybrid about demand you wants the speak top the years the If of multi on they customers, is What available our solution. hybrid planning Fortune them are one do none shop. our double and to vendors extend of of we XX clouds cloud. speak want the users. would to from with XXX also none And become world down solutions. we And more cloud to for have a to groups, going cloud we're

the marketing very and our sales on in So our alongside in that cloud, in or us and they our services, big on-prem, self-opted also investments, tomorrow, environment, And choose see are our whether solution. therefore, cloud both our into But much you our users of probably eyes to you roadmap will go open, understand the them. see we focused enterprises into and Cloud. Cloud the deployment can are will starting of growing company, have with we freedom that our the in

Kingsley Crane

much. Great. Great. Makes perfect so sense. Thanks

Operator

further time. questions at no this have We

to for the back Turning call Shlomi over remarks. closing

Shlomi Ben Haim

much. Guys, I day a thank post-pandemic next call. And today. we earnings May joining with the frog good to us for news would you like the May by you and be all. better have very then all Thank you by

Operator

and today's participating. ladies this you you gentlemen, Thank Thank conference. concludes for

You now disconnect. may

JFrog (FROG) 7 May 212021 Q1 Earnings call transcript