FROG - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the JFrog's Fourth Quarter Fiscal 2021 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded. like Investor the Relations. now JoAnn over I'd with Horne instructions] to conference hand to [Operator Please ahead. go

JoAnn Horne

Thank you, and Haim; Shlomi Norma. market today joining CFO. financial us will Good JFrog's which and closed afternoon, and we results, CEO Beginning JFrog's Jacob thank via review be press Shulman, fourth the announced JFrog's Ben quarter were full release. XXXX as year following you call for Co-Founder, and

management safe Before some harbour me remarks, the review share let statement.

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

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

year section today. on XX-Q XX, Relations all the December issued on our XX, earlier on please actual the with with press XX-K XXXX, which that November material SEC filed XX, September could the For the Form XXXX, ended are Investor important February our our the ended XXXX, other filed the earnings our of website release to of factors and a discussion for available refer XXXX, Form results, risks of and XX, with along for quarter SEC affect

will we in XXXX, time information may the and made SEC. available year reports the Form that December XX, our be with for XX-Q Additional file from and time to other filings ended

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

Shlomi Haim

you, and urges leaps Thank and you greetings fiscal welcome you to the interfere, to our back all Every am to the to XXXX quarter observe from earnings JoAnn call. faith their world day, all ended perspectives. for to XXXX on digitalize strong their best grateful has our community, JFrog our and to in every a the walk and innovate taken bring from of excited look company swamp. the fourth to I'm us note. pose, and us and customers I determination inspires

today. strategies strong delivered happy I'm I'm culture key of XX% and previous year, and multiple platform in compared we expanding our that period reflecting continuous continued demand growth metrics share to QX, an quarter. million, all same over another QX reported to the was food and the to Our in revenue technology, year-over-year market. growth the of trend $XX.X to a that that across JFrog's bare for to quarter report continue business upwards, in XX% last pleased you with

with by grew and for of usage customers a key reported year-over-year the are QX quarters previous report platform XXXX to also accelerating with that growth. to over approximately single across better frogs. report XX% dedication, solutions growth. driven plus as our work complete belongs the by hybrid year. spirit compared XX% allowing serve I'm quarter. happy our revenue communities, customer's and to every need multi-cloud drivers. with to quarter. unique product unified of hard represents JFrog, ongoing our new This enterprise Team testament the Growth DevOps Our that our to with increased XX% as compelling developers, retention This a subscription. us market year-over-year, in and cloud strategy reflects year-over-year and our as these I'm adopted dollar hundreds our full net our in pleased results we security quarter closed customers distribution in $XXX,XXX the you to binary from the which and This software in platform the predicted XXX% success XX% and solution JFrog a year security was exceeding previous accelerated climbed to trading your net in customers reflecting XXX% This in industries, and year, increased reflects of reported revenue management, of ARR of to commitments X,XXX

often were also DevOps a lifecycle meet efficient, and moment bring from binary your the The innovative more the isn’t secure, it some a secure, this binaries, software of this, software to illustrate build, binary in edge, more developer's quickly coined application, almost is major demands share XXXX. to we and the only and shook by secure organization at that third community, deployment development business. need Getting the into or market for confirmed Now, mission word achieved be a with software all lock changes business The late the binary. news ability [ph] requires the pandemic. ability compiled, code distribute requires ever the top the the market. by but make affected environment our reality CI/CD party industry to to critical management only This more To the and enough digital form managing to software called source every for I software item code management to can solutions frustrating was the chain look This full to software found, in companies and first, the were within organization discovery, machine forced rush of additional they delivery world is to In This fixed and across where Complimentary mobile its software medical everything many render and packages. customers to to environments. to deploy and to identify that quickly replaced. days the and entire release, of had software would the risk. impacted to more updates is to driven demands and than patient who vulnerability health mind of drop vehicle, millions the supply all before. like until identify devices zero software faster, a to able address developers highlights. you the JFrog

the finding the they bank's dependencies it with global a organization happened of it patched automatically x-ray XXX being able identify developers them place in source what across and all hosted across over that a of weeks exposure risk. manually for down achievable found across from one globally, distribution still binaries automates minutes used application. and integrated to vulnerable setting bank JFrog have Altogether, release activities delivered trenches to by software J able And additional version DevOps, every protected and with where all themselves binaries was against used vulnerable binaries finally, protect environments, the are reported in JFrog the approach pipeline. of this recover proof the is their this and database that lock rapidly binary development allowing including XX,XXX security and unified this easily not Fortune alongside organizations, JFrog their with and example, of developers instead every look in could Using the with to validated J further to hunting was banks vulnerable again the XX today. keeping in fix production. This automatically these company, replaced This and for from the single under many platform hours. Artifactory trying business carried the For policies the rebuild, identification look only taken serving applying the replace for JFrog to it speed automatically was ensured as the of J in J themselves be Artifactory matter without infected for in binary were look

with availability to those be it the power the This the hours will by for and the business deliver flow to for in our happen of security will entire last chains. or look centric binary manage millions approach automated spent supply global development every to MPM, from This look binary and The saved complete potential fortifying episode, to organization. binary in developers lost During binary distribution impactful happened reinforces of JFrog pipeline for repository countless Python reality industry. again. through of security bridges, DevOps dollar software discovered downtime and JFrog's due customers control DevOps to not millions strategy the by the JF XXXX

demand growing platform. end-to-end result, seeing are a we our for As a

product many of and our DevSecOps vision, to support to In holistic communities. to some categories, core our such business distribution. commitment innovations QX roadmap both management, our security as solution many of enhancement This and on Now in deepening included and CICD, from platform, deliver software to year. XXXX, and the DevOps highlights fiscal liquid for integrated, our software our and artifact delivery automated the

to scalable fostered, self in across fulfil universal, Importantly, all always delivered product promises cloud continue of the hybrid to XXXX, deliver and solutions our environment.

we QX, recognition services see were of multi-cloud hybrid at fostered strategic which the companies demand DevOps with the business and result, be In This are we AWS for marketplace, forefront our a specifically, anywhere for continue available is the on to to customers cloud move for excited announcement Amazon AWS a that customers move as a partner the hybrid proud strong as many partners. with we and model As hybrid for self AWS well. of and makes EKS by Cloud to our a see subscriptions.

were of of in bodes became in worth illustration strategic cloud the the QX largest world services customer new is geolocation cloud recently providers investment our again and of offering and GPS new in growth, Our standardizing of JFrog, our a scale subscription a the alongside one scale there nor looking solution. needs, JFrog support to on company their found for teams the with They no DevOps meet development initiatives. ahead competitive their offering to partner growth able existing first to SaaS and their cloud their longer

luxury the headquartered DevOps America the data as in more with our partnering of JFrog company multi-SaaS platform choice, JFrog a demands Kubernetes for all With across manage service setup. Tom hybrid such delivers and headquartered all to upgrades scale remained a and like North forward of delivery to their Across in meets customers retail vertical production or successfully our which binaries their platform to or JFrog migrate key a subscriptions. to across cloud binaries in look provided full ensure they'll to AA We EMEA [ph], deployments. as enterprise geographies driver solution distribution, centers Tom, environments,

manual Examples software multiple on the of of scale developers and the friction be store delivering needs sunset recently distribution JFrog's We for subscription secure, as a world's our and to down on centric of successful. DevOps service. order offering to needs. that releases an to of and with seeing transparent complex process and shutting trend managed requires processes and service regulations binaries organizations, of and platform upgraded can continuing in as each built capable one we binary written order the and These thousands standalone and with our extensive institutions community a platform, of distribution decided avoid this such to per distribute consolidated to manage this legacy dozen enterprise across environments application all we automate, locations day service in largest illustrates longer thousands with customers the in-house provided releases One to pace and global are implemented a distribution at applications no entry, XXXX. rely their ago. financial distribution own compliance the to in decade capabilities platform binary a To and in by focus

with DevOps all of way Connect edge at connected address the JFrog of available As recently value This management offering JFrog future. binaries to to made the for Upswift. our of device look bridge of early devices. JFrog connected we our devices. forward acquisition Connect increase by greatly a natural aims driving increasing also will extension market of the bringing to We following world this IoT distribution, market exploding growth in the and the the

We device. billions not ability of any and update supply devices serve with are which protect, we to build, any NextGen to automate and software innovating, extending maturing of our but billions manage, the believe platform, from will developers, source chain just

during in order with also backed our to up sales font, building strategic On with team marketing field focus the support, go solution market architects, touch the high we to on accounts. year, key expand business and our

continue as their and QX, the large product During we JFrog expanding fruits more adoption. see disinvestment to are we who more welcome of enterprises

patterns toolset we In market. look over fact, the consolidation grew believe the organization. strategic providers our, managed relationships technologies We $X XX% continuing team on one the to these needs. order develop that year-over-year in the to across usage solutions to continues to million telecommunication of enterprise the into DevOps, practices team and sales largest to this to strategic by meet continue of customer's will world's standardize This forward this reduce more to adhoc our extending is best JFrog over the and bring We expended drive and as innovative expand. customer

of As as to warm JFrog's final Rajavel. enterprise extend than serves Citrix security. of Board, brings currently CIO before a into XX in the member and the wanted years I to newest and Meerah we welcome the software of a more financials, note, cyber Meerah dive experience

fiscal stage forward more XXXX I to our to continues numbers for proud would and With financial to to and call the joining our board QX Jacob look the over to that, have turn guidance JFrog and Jacob, is outlook CFO, year are at as We like to look XXXX. share our Shulman, deeply her yours. her grow.

Jacob Shulman

Thank everyone. afternoon, you Shlomi and good

financial pleased QX of back of in would brief of year, XXXX. and and the overview year very our are made quarter acceleration with commitment provide fiscal We I the results for quarter year to the our we have the fourth with year strong ended business. XXXX QX start and a outlook second with this a in line show across the will of that year the half full

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

December up Self-managed up XX, quarter to of also results, growth year-over-year. XX% This rate revenues months turn XXXX called million or let's revenues financial our is Now to a to we often were total see Cloud $XX.X million where $XX.X for strongest revenues fourth continue business and $XX.X three environment. total the XX%. OnPrem XX% better up ended our XX% again grew revenues. million faster in

to XX% revenues revenues full for revenues Cloud year-over-year. million XX% trailing or retention fiscal was dollar were the For $XXX XXX%. year compared of quarters revenues total were XX% XX%. total the XXXX. were $XXX.X up Net up Self-managed the XX% million for year, four up to $XX.X million in

remain X,XXX the a foreseeable We approximately four retention around increase dollar the customers, customers XXXX. the XXX% net of quarters approximately end the XX year future. with ended to X,XXX over trailing expect We at for for

by revenue while product adopted our of XXX noted negligible solution solutions, customers change. a customers as this other vast distribution majority customers we of like lost represented As will users impact. a These the we Shlomi, the [indiscernible] of result and approximately

year. the historic Our nineties levels high gross the at for retention remained in rate

from quarter September the grew XXX a XX%. XX, ARR customers of number customers $XXX,XXX As On we XXX customers end, year-over-year ARR of of XXXX. we've of XXX,XXX basis, with over over had the up as

number XX% ARR of of quarter XX is number revenue In customers XXXX. platform, in from from large the XX, million by over full and This greater to of on-prem. In over both addition, and increase XX% adoption up increase year we the driven in in from the year. customers grew of customers our previous QX, XX% $X cloud of the plus total primarily came QX enterprise in up

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

XXXX. million fiscal the XXXX, margin representing XX.X% was For to in fiscal profit gross compared $XXX.X of XX.X% gross the

gross the the of in our we XX% XX% We our to ago margin result the the year cost of as R&D a expense see revenue was $XX.X quarter compared improve continue year to steps early for period. or revenue million took expense of structure. sales to in

the We were G&A XX% or to $XX.X continue invest XX% compared and operating for in XX% of quarter to income the ago our $XX,XXX year solutions significantly product integrating operating to was operating quarter Upswift Non-GAAP revenue ago an QX of and in or ago the of enhancing basis the for the year along million technologies Vdoo the million compared compared in or point was of into XX% with expenses year Sales margin period. X.X% margin revenue XX operating revenue $X.X of expense marketing for revenue period. in to or income million $X.X platform. period.

As discussed, and would integrating impact we profitability. our Upswift Vdoo

X% was full million share million was year on the X.X% Non-GAAP year, or in $XXX,XXX XXXX. loss operating for outstanding. million on share diluted shares compared average margin average net non-GAAP in $X.X based to or the operating on income diluted margin Non-GAAP or $X.XX approximately quarter negative For approximately income $X.X $XX per weighted XXX.X based $X.XX shares per the weighted million outstanding. million full diluted was $XX operating net

sheet Turning $XX.X Cash $XXX in up year cash and account, to and cash million. into million $XX.X was flow, operations free million CapEx the investments was the from we taking the last with $XXX from quarter. After quarter. cash in term ended balance short million

full was year, cash free the million. For $XX.X

one-time to be year acquisition. million Normalized $XX.X free payment by cash with Vdoo or quarter this, related last for million. flow for agreement associated discussed Upswift would impacted cash the holdback of was and As QX $XX

the cadence discuss model in XXXX. financial of the Let's briefly

see We a expect top on revenue to year year throughout XXXX. linear growth over line basis

we compensation beginning with alignment see increases Additionally, market QX, employee high labor benchmarks. merit and in due to in will expenses

As operation for a half QX, we result, point from back the the a guidance will $XX.X $X.X expect negative positive a income in earnings $X.X of share loss low to year, the of of $XX.X second profitability XXX to standpoint million quarter million a non-GAAP and recover revenue to will the and be of with million between Turning of share count shares. non-GAAP of $X.XX, approximately assuming per to $X.XX operating million results million a

the to operating results $XXX establishing income revenue loss For per to a $X.XX Non-GAAP between XXXX, $X million million assuming $XXX we're share $X XXX the year guidance negative million shares. non-GAAP approximately share count of positive $X.XX million. of of of earnings full of million of and to

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

Shlomi Haim

and great while into growth and Thank healthy you, is fiscal have its met efficient business. a the exceeding beyond. right portfolio build product that delivery XXXX revenue foundation marked further Jacob. continuing in goals JFrog company, of as complete quarter year XXXX. performance to a public in first strategy build every upon We JFrog commitment successfully to we XXXX single an as fourth for and quarter leap providing we evidence our

label year, During XXXX, size the last This employee the the also bar. doubled fast asset for nearly the and saw to ever pandemic through is customers the company allow strong more throughout we a to transformation. of positioned XXXX. culture the headcounts reflective shareholders in results secure identifying delivering We the market. as recently cuts to is We that and than we of and uncompromising developers, and digital year. terms built strong growth challenging we In in greater employee believe companies, binaries more JFrog crossed primary have companies forward well reality, under the look drive of before, X,XXX software

JFrog XX, details our depth thank we Day. look now as Next week February questions. for all share forward about take and And business. more we We JFrog's are hold to first technology you with on you. to we'll attendance your your virtually hosting like happy to may Investors I'd the you in

Operator

first question come ahead. Cikos and Our instructions] go [Operator Needham with Mike will Please from Co.

Mike Cikos

here. I Thanks for the appreciate taking questions guys. it. Hi

know The XQ parse impact of an as for guidance as of was should that kind that you Could it then about 'XX? that impact year guys what what fiscal thinking the first out help maybe relates that mentioned wanted we about, the acquisition. you be impact acquisition tune the fine I from look to Upswift had us us question I to ask and profitability Upswift guys at we provided you

Jacob Shulman

Hi Mike, Jacob. this Yes. is

and acquired a Upswift, more a integrated Both As are acquisition. currently you was know, been large actually and Upswift nice had that material of with company two technologies we them, companies progress impact QX Vdoo Vdoo very than and required making in that.

material had was was Overall Upswift because your much did is Vdoo bigger around any division team. It profitability. just security specifically is impact team. portion question, So that impact on not very our XXX with our bigger It small of today Vdoo. it's people. have a acquisition a Significant the from coming

Mike Cikos

guys for I the if upside quarter? help patients delivered, you wanted add Thank better us Understood. the this that other coming guys you into that versus helped about you And the upside quarter QX What, that about and to can I'm the question think outperformance? you for deliver your went is that. thinking revenue then

Jacob Shulman

is and we large in the capabilities K proper acceleration that drivers better than capabilities customers, of XX% year. for And of approximate year over substantial specifically $XXX,XXX, enhanced to also number the for gives with of platform indicated platform is We're that right is primary a you that the grew the of pleased And kind adoption of growth drivers platform. customers the over customers were point adopted that expected seen new the XXX that platform. security behind absolutely What Shlomi we've adoption the Yes. about and of different adoption very platform. were distribution talked

Mike Cikos

Great. colleagues. over turn it to I'll my Thank it. you. Appreciate

Operator

you. Thank

Auty come question with ahead. will JPMorgan. Our Sterling Please next go from

Unidentified Analyst

of included Thank enterprise you in is question. that price? Sterling. taking the Doug now adoption you of Can on this for for x-ray in terms my it's seeing talk about the Hey, you're what

Shlomi Haim

is thanks the or Basically solution question. security demand for request our a the requirement from very if lately, may and security XXXX, supply in that fits and the supply have part It's strong around I chain natively top X-ray on all is pieces party. most your the say cloud we of seen or on binary, three lending Shlomi. and third of is hosted especially of first are of in what third software offering and coming chain factory. Hi, subscriptions vulnerable offered binary customers. party from This Yes. customers. of X-ray software arti to the

we see customers a So are growing that number of obviously adopting x-ray.

Speaking of much look world for saying about generated that are a the DevOps J demand specifically, we obviously year, greater type end market. need security, and but that demand of was, what at by and the of the of they’ve echoed everything it the the DevSecOps

more see platform. of you So our adoption

You have very ahead. technology adoption and promising video a see of also integration the more x-ray of roadmap x-ray and

Operator

Thank you.

Crane Our next with Please Berenberg. from question will go Kingsley come ahead.

Kingsley Crane

wondering I'm LogXj. Hi, on

much did other open on how platform So helping customers up products? this broader with conversation a

Shlomi Haim

product Kingley J specifically? Another log four regarding platform

Kingsley Crane

partner LogXj trusted products. with maybe be them can and kind help you if into they'll you yeah, Well, expand other

Shlomi Haim

Yeah.

going for step a a chain was see take tool sole the pandemic moment let's and community. of supported So software as back kind how by this the

to have you establish of the binary. First is core of by policy obviously protect platform. of database your the using Point place in A, you Artifactory, to DevOps. all, have the a of to security minutes Then it. matter happened type this vulnerable repository all and of to And identify top our of on product Artifactory

you get environment of to now comes build where developer in JFrog your place. LogXj. is and ask to have x-ray environment distribution against to in this no try you again, use and a new and deployment piece this will all development vulnerable where the is and patch the So of

amplified episode size of of not by centric a great together platform, driver So with DevOps binary the obviously the was overall platform to JFrog story the LogXj the emphasize only approach. different the playing tell the but

Kingsley Crane

me That's you. Thank helpful. really it That's Okay. for now.

Operator

you. Thank

Please Our ahead. Singh next come from Morgan question will go Sandeep Stanley. with

Sandeep Singh

question and was Thank on so too. the much congrats guidance you healthy very taking the strong for the and QX

see to on accounts. So, glad both

in get sort deliberate progressed the metrics the of the you Shlomi, happy that we sort is focus existing there XXXX, about in you had now that on see growth free And disclosed things could to to incentives that customer talk through the that conversion? customer focusing that sort on double we're was I the drive of you wondering took customers know are was of and guys into durable -- of commentary digits. starting to grow, would helpful? was you of growth. going using any One seems I the if a into see base again. and base I on Any year. the it how to like pay really back How XXXX be sort

Shlomi Haim

customers, Yeah. pace add the delivered customers thankful metrics and Hey, remove we the had we new grow that remove script and XXXX and in friction we as rate XXXX in onboarding new Sandeep bin of that perform from users expected. Obviously to mentioned committed and logos in a Jacob by we all even as are new XXX portfolio excited higher also in more in the new and although lost and very growth still for about the We logos, were we and question. that XXXX to the using JFrog platform. our

supply happen trend very this our will fruit, we And what that happen grow pleased So will were in products of even of is further investments happening fit the it this adopting to x-rays moving speak pain to software the in full speak the show the rather adoption to move in with users added that the is that needs. the manage we The a market. market with everyone the The This JFrog the security very binary XXXX. strategic higher perfect very, for again. investment our about in again, I aligned in also cloud XXXX, that bear active booming tier forward a Everyone, market. are chain, team see it And securing and it. technology appealing start of JFrog see any is from enhancements would remember the be to lending Vdoo solution is very on of pack the solution also Artifactory terms appealing enforcements to The very market. it. with also taking free you to than well other to much

of regarding DevOps to distribution Connect, new all open solution although of So And to also of using may There practices. additional any devices. that necessarily JFrog the way JFrog currently year. market. to beginning very users the optimistic I'm say, is customers is will early next I is introduces kind the very for growth environment field the when DevOps the that it's in other a going this new secured no This the very not a unique solution if also any from

I'm line, pleased positive very bottom the very and future. regarding So I'm

Jacob Shulman

I may in year. that's that customers cloud Sandeep, was three and now on cloud portion about big If that the of add Actually continues, now continues new on just customers our tier is on customers launched distribution new of XX% to and that of late majority joining to that last a of grow. cloud join

Sandeep Singh

be view is you them the of sort for do -- started price case to it in advantage QX, back sizable the sort customer and was or up and this subscription server for renewal to those cohorts to minimize of customers That's base think new Any, of increases for I out when we off, the cohort should tiers helpful? customer on part there base would starting sort case if hear spring encouraging very the saw off sort expect dovetail come team's of of other last opportunity of spring? the bypass a behavior expect last flow to sort Do look to year, year, sort of pricing previous price through of impact we that a What there? will take we those increase. do to sort then question, what their some expect you the of in rolled of you upgrade they

Shlomi Haim

Yes, I'll question. take that

price know, to effect the actually you as in April new and our have all So X renewed prices. increase of since went customers majority portion, on then, actually, different

So retention as retention same we see growth continue previously. to levels levels,

question forward. our in understand was pricing customers move than bigger QX, specifically why that QX So QX. your and in we they our sent base Actually, customers of and new did on renewal to

move and the They that I really provide. the and values we forward. So understand think market it the accept customers

the this to everyone, only we this is changes don't self any QX. remind expect the offset So to relevant pattern in And in just solution.

a cloud the platform was changes, changes, to of this amount and just technology not year. by in during price not impacted growth the our also the So price was but huge added it

very Jacob climbed So, also very the dollar retention committed net low, is mentioned, the and is as churn high, retention up.

So we the results. with pleased are very

Sandeep Singh

Appreciate all the color. you, Thank guys.

Operator

Thank you.

next William go Please Blair. will Jason with come Our question Ader from ahead.

Unidentified Analyst

products Hey, little for play. double the click devices, to you this taking wanted on Can [ph] for connect this connected Thanks and question. a for Sebastian DevOps where market Jason. distribution is opportunity bit different define I is metrics maybe you of or help it from market type be a might us, this market sort could on how traditional any market a provide? metrics of, and little what DevOps and the

Jacob Shulman

you, Sebastian. Thank Yes.

only we What really our at ask for? and organization want excited was invest it the developer is your this very had the, to and is ago. for We but efforts end the JFrog are secure, years of linked, by you Like, to side opportunity software happen of start. in ask on any we what about established market edge. binary therefore, mind We from that missing the there mind connected solution, or when a be XX missing Kubernetes the data We the the your DevOps only path introducing We kind the bit that part. way We pioneered world. the already binary build years part at devices. this the end ago. that devices update is after all What the And what And was than CI/CD the, big. getting happen JFrog to more was in to the two connecting cloud? three after center, looked knew liquid years half the software to environment? started devices we the list ago, after our When the is distribution we happened a we happened had vision,

it will So the developer's developer's able from machine, the way to from the you the be keyboard, push to all devices.

millions We iPhone, hand to your of sure extended Now, since binary the And the day. device asset the it's and build Coffee to tens that the times, XX then be I'm a we Sebastian, the future of that real We developers just distribution. change XX We maker, of what building this And of we moves to we connect. billions from developer huge device, see now use, would in not that with of the updated. your devices is see millions to need demand, started to growth. that times any with the We suite follow, JFrog avenue and up transformation. only market a real is PDN. digital see but acquired digital

Unidentified Analyst

I market that go maybe about help follow if accelerate little lands, new customer lot ARR new a, a and helpful. are these the version. new you've acquisitions, the, you or demand very sort then ARR's logo could just higher could because That's are, are bit then up, that at adding a they Are lands? investments as platform you could it. a the of cloud lower talk you, And the the to Got customers of broader are landing actually customers made

Jacob Shulman

the a dollars in value self-hosted to over on thousand more you to adopt we a what have built combination terms and when we the the but to the base platform. more highest than already subscription you consumption, with both, of cloud what the call developer this the the both market, the, the on-prem in capabilities is dollars. of is is Obviously So cloud. go hundred also the of and the price the And by cloud, user platform freedom pay in thousand in you all is choice enterprise the of go the plus hundred cases of comes

more, on. get you you of to to philosophy multi-cloud the you use platform, have terms so that, On upgrade, you security, you you the obviously JFrog. we get of when distribution pay you simple top again, cloud, the forth capabilities more, you that solution, highly in upgrade in go that's and When the so with you and on market DR when we provide solution. and when So upgrade so get available

cloud fortune from something for that hear is thing for the it's also providing same This from you. global very cloud, but appealing. with we the hybrid very one is And you we one in X,XXX giving this happening, that have that is currently run whether hybrid by we we a And not that also a cloud can is it's on. So approximately all just all hear enterprise, customers. remember and XXX environment also tool, And or JFrog posted unique XXXX, environment. you need

if customers. some on landed And every We the doesn't but add lot, also on derived customers they started on and happen point cloud, So we fact together cases the that of few binaries might the number you, binary customers land on the customers is landing just new new a the a organization piece ASP, and products market that of focus that DevOps is the overall growing. the the your DevSecOPs the to opportunity the in and where with having to of seeing It market cloud might platform with evolving customers just go said I very evolution of that, given you on that on of land of platform. a majority platform. an value typically this try and lower the pre lot quarter adoption is, the in our and the is many resonate the, to have tier have also

slightly new a not increased did So change speed for not much change for, it on but average, average did much. on land,

Unidentified Analyst

Very Got helpful. Thank it. you.

Operator

you. Thank

Please Our Ikeda next from will ahead. go from come question Koji Bank of America.

Koji Ikeda

billings calls bouncing billings, the growth year billings you Wanted the a this XX%, look were mechanics comp, around quarter, in around Jacob, it top especially these our asked, I model, ask if have and according for on Shlomi questions billings to And, pricing to the of should at guess next over apologies all? been a here. period Hey, else as taking be, about lot with metric? of couple I do guess looking there year? with something heading But, growth a at at into thinking usage, is change. looking the and we we we you the be a but forward cloud should billings be should that suggest normalization Or for better

Jacob Shulman

for you time. time Koji, remind because see and to a growth to you from various very of, that billings good is that other Yes. revenue thank billing just not these this future we predictor dynamics dynamics two that of And few question.

this of we any every did Now year, you during significant duration features in, have don't arrived don't there. billings. also We contract. kind came see of significant QX billings strong any We very see changes our that time in toward one out QX, the but in where items pulling, skew duration,

normalized it's So of a kind score.

for is self-costed Going forward again, for solutions. on-prem, cloud primarily annual term

but contract changes in duration in multi-year see have duration. sometime don't average every deals, We now, we any right

very revenue that to this be So quarter billings should of predictor to remind normalized a billings is time time. we dynamics probably because from of not you, term again, growth good experience

Koji Ikeda

mean, I of percent it. was there thinking the net about got end the then overheard And cloud in for the, But the I to it, I think should acceleration that net prepared you over Got made Jacob, revenue here XXX% remarks, I think XXX revenue about just level. just retention usage, kind a fourth quarter, growth hundred potential future? up in actually retention cloud is a the talking hang in I around and I,

Jacob Shulman

Yes.

become in right XX%, revenues, portion XX%. per cloud we, as that's extend They, model, customers as, guidance, our be than around the now, bigger assume our of in we to cloud our more potential Our to continues XXX%. definitely

Koji Ikeda

guys. for Got All it, my Thanks got taking right. questions. Thanks it.

Operator

Thank you.

ahead. next come will Our Oppenheimer. question Kidron Ittai from from Go Please.

Ittai Kidron

to And see in a I questions in to anything make on still. last number. impressive you Hey that understand enterprise XX. wrong the Thanks. and and of to there's been XXX% first. We're I'm just adoption guys. the the of Very acceleration had quarters plus, Jacob, want nice enterprise I me couple I'm couple the I in going for growth cloud. now down business the under plus? don't of wondering there get just you've growing year-over-year. sure if

Jacob Shulman

present enterprise the the, We today, strong subscription, we enterprise The customers see of of to unique number revenue. actually don't to grew continue any plus QX. grow adoption any, plus in see trends. XX% very nicely any, adopting revenue continue No, the of

Ittai Kidron

know I out forward? of know but of And bit good. as But kind of I a of then out follow-up Israel companies somewhat, been kind seeing a you've think Very I you you have year, FX for hedging and Okay. headwind the little your from how have do. a far are guidance you elaborate lot about a that that in lot don't the I a think how FX going as Can headwinds. on about should been what bases optics calling

Jacob Shulman

hedge we rates that our of cannot you and right and absolutely in Ittai, the, less year half significant the shekel, have Israeli catch denominated a expenses, for Yes, operating We portion law its over variable past up. the do catch and forever complete. eventually in

the what about and, the we So the, impact as help and And we're in see XXXX. us, in we points on and it see. see X% is opposite will trend this changes going the, overall it but is now situation profitability, if right to

Ittai Kidron

luck Very guys. good. Good Thanks.

Jacob Shulman

Thank you.

Operator

Thank you.

go next will Our with question ahead. please come Rob Sandler, from Piper Owens

Rob Owens

a an taking Thanks front, turned but you XXX organic the for year the addition? the, question, it Curious count mentioned realizing customer as Hi. customers? had guys. that Because once a during well. Is the year, just a Yeah. that that off acquisitions my itself. on Is the, there you disclosed XXX few was net

Jacob Shulman

Yes.

we we up question and acquired you was video revenue coming this the you and significant for suite the as amount there So no the for of also acquisition from the, reported material customers. when thank no three

JFrog the growth is So platform of is answer customers the on yes, this mostly. the organic JFrog in the

Rob Owens

you? as And LogXj, be Should how you look think about metric at post opportunity type again, given an accelerating for of growth that customer XXXX? you do the

Jacob Shulman

like with but with with not well will [indiscernible], emphasized of Yeah, about the hear the your repository And before vulnerable and like give you no such It sure market before MBM. environment, single LogXj. not to old impact that happened the recover what Python happened fast with software the near to I'm control we that binary in obviously customers need only outside go your what DevOps with solutions there what we security and distribution. with obviously of called starting old approach, or happy solution build across the solution, security the pipeline, operating, world. LogXj and solution centric a is in what more like organization. it'll security, public a And you more be see repository it deployment solution because that not but happened come and binary then come JFrog must package or a remediation another It you It's is provide bring that control source happen. just software that the understand we future. in test other over about to distribution, It that holistic so a for in the gives the

So well LogXj way is the but protected, not house, got developers one just were example. also hours to millions saved customers the of white It auto. by, around JFrog but all by will the using world recovered and

a I deduction under So significant we believe that of see would security from DevOps. different solution coming the subscription

Rob Owens

much the color. Thank you very Great. for

Jacob Shulman

you. Thank

Operator

more time we go Steve And come Capital question for Please Markets. ahead. KeyBanc have from with you. that will Enders one Thank do

Steve Enders

for, point. into questions me activity maybe software is just taking and I that leading increased where, thanks January seeing opportunities the mean, execute people gotten supply the holidays point spent is now in against? and follow-up JFrog There the around chain Thanks and, with it, last to Great. at if securing that increased of LogXj. here. showing of and all Right. other dealing to on pipeline for side go this for this I LogXj on have to this want

Jacob Shulman

research future yes. and it? be to will and company be the any And more I've amazing clearly. following other the from to out. the it company it the engineering market, posted, helps what Yes. JFrog no, the think the but pipeline security The is lock pipeline answer I is in team So best the yes, there in LogXj project, in that yes, than answer hope to more protect you We your the know manage will practices no

Steve Enders

past led kind good helpful. disclosed. XXXX how happened And looks XXXX like from, touch this, teams function you you That’s there's penetrated what what within the guess, the really today? how I Okay. growth in global been the would the 'XX, the, I good built in, just in on years. within a accounts the, strategic on customer focus couple attribute see within GXK do sales guess, is in have you to in GXK the from And traction the that the that of of up the want increased opportunity to of

Jacob Shulman

Yes.

years adopting transformation digital practices, in-house at one XXXX when built practices global look play are usually that So on-prem. are looking solution at obviously they they XX, security was and just They XX not the versus solution customers are at strategy looking at ago. versus they looking DevOps are that cloud solution, XX, old

transformation. sales of that different walk answer, the capabilities along have to is the team above partner different customers need, customers addressed and by they with side, our are help architects on persona adopting digital strategic lend can our they with the bringing as because All

XXXX customers deployment XXXX low go avenues different environment when I public, went we just will and twenties. if in global may in, that global and So we, was add different to our about to penetration

on in I XXXX. think it global was XX% and we today above XX% the integration

continue we So customers XXXX global of our continue a space. nice Yeah. adoption of the our at adoption products

Steve Enders

for Thanks questions. my Perfect. taking

Operator

remarks. to any for in like closing behind back turn to you for would question participating Thank today's answers. Mr.Shlomi and I the now call

Shlomi Haim

us. Well, performance. the ahead we joining very you everyone, excited our This of was about year thank for are and

for I you products year investor team And to like welcoming frog that see and for of this join be fog next day from to joining week. may on our would made first us the and with you, more today you thank all. Thank the to the thank second growing And to everyone. podcast customers adopting happy happen. again are more us amazing and now like our We We're you technology. company community team our the and I'd

Operator

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

disconnect. may You now

JFrog (FROG) 11 Feb 222021 Q4 Earnings call transcript