| Snowflake Score | |
|---|---|
| Valuation | 0/6 |
| Future Growth | 2/6 |
| Past Performance | 0/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
FROG Stock Overview
JFrog Ltd. provides DevOps platform in the United States.
JFrog Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$24.92 |
| 52 Week High | US$42.33 |
| 52 Week Low | US$16.36 |
| Beta | 0 |
| 1 Month Change | 12.96% |
| 3 Month Change | 40.79% |
| 1 Year Change | -34.92% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -61.54% |
Recent News & Updates
JFrog: Rock Solid Growth Stock
JFrog has been a very reliable growth software and SaaS company, re-accelerating growth to around 40% over the last year. JFrog's leadership position in liquid software has been rewarded in the market through a sticky land-and-expand model, with over 130% net retention. JFrog maintains its long-term outlook for 30% growth, which makes its 8x P/S very reasonable. Investment Thesis JFrog (FROG) is the leader in the "liquid" model for updating software, which makes its sticky offering the backbone for many (if not most) of the world's largest enterprises. In addition, JFrog has been expanding into security and IoT. Overall, this is a rock-solid growth company at a reasonable valuation that operates near breakeven (but cash flow positive) as it prioritizes growth over near-term profits. Background JFrog is a DevSecOps software and SaaS company that intends to make software “liquid”, which is a more modern approach to updating software. Through acquisitions, the company has also improved its security offering. With just around a $250M run rate, JFrog still has ample runway for growth, which is further evidenced by its over 130% net retention rate. JFrog is also used by 85% of the Fortune 500. Its more nascent cloud offering has also been growing substantially faster than the overall business, which is why I initially wrote that the company reminded me of MongoDB (MDB). Q2 Results For about the last four quarters, JFrog has been able to grow at nearly 40%, and Q2 was no different, with revenue of $68M up 39% YoY. Investors may remember that growth dipped to the low 30s during COVID-19, so the company has successfully executed on its plan to reaccelerate growth. The official long-term guidance is for 30% over time. In addition, Q2 revenue was also up a healthy 8% QoQ. In Q2, JFrog revenues exceeded the midpoint of our guidance by more than 3% for the second straight quarter. And we are excited to report that our strategic sales team, again, broke all-time records with multi-year hybrid, full platform deals signed with some of the world's leading enterprises. (…) Our customers tell us that JFrog is a mission-critical piece in how they [pull] software from public hubs build, manage, secure and distribute it to production. JFrog Artifactory serves their software organization as the single system of record and we continue to see that JFrog is an infrastructure backbone and remains a cornerstone of our customer software delivery processes scale. Net retention came in at 132%. Further, 94% of revenue came from multi-product subscriptions. As mentioned, cloud has been a growth driver, and grew 68% in Q2 to 28% of revenue, up from 24% a year ago. Notably, the growth was also an acceleration from the 63% growth in Q1. Customers with over 100k in ARR (annual recurring revenue) grew 56%. JFrog now also has 17 customers with $1M ARR, up from 12 last year. JFrog Guidance Q3 guidance calls for 5% sequential growth, which would decelerate the revenue growth to 32%. However, JFrog expects a strong(er) Q4 with $77M revenue, finishing the year with 35% revenue growth. Regarding the current macro environment, which JFrog has factored into its guidance, JFrog said it is experiencing elongated sales cycles and Asia Pacific growth below expectations. JFrog did maintain its long-term target for 30% growth, unlike for example Palantir (PLTR), a company valued at over 10x P/S. Valuation JFrog is currently valued at 8x P/S its 2022 exit run rate. For a company growing at 30-40%, although it is not cheap, this does seem a compelling valuation, as the company has guided to continue to grow at 30% for the foreseeable future. That means that in 2-3 years, the valuation may be reduced to just 4x P/S, which would only be justified if the growth rate would materially slow down. However, there is no evidence there would be a material slowdown on the horizon given the elevated cloud growth rate and the historical ~130% net retention rate, proving JFrog has a successful track record of land and expand.
JFrog GAAP EPS of -$0.24 misses by $0.05, revenue of $67.81M beats by $2.29M
JFrog press release (NASDAQ:FROG): Q2 GAAP EPS of -$0.24 misses by $0.05. Revenue of $67.81M (+39.2% Y/Y) beats by $2.29M. Q3 Guidance: Revenue between $70.5 million and $71.5 million vs. consensus of $70.96 million; Non-GAAP operating income between ($0.5) million and $0.5 million; and Non-GAAP net income per diluted share between ($0.01) and $0.01 vs. consensus of $0.01 FY 2022 Guidance: Revenue between $278.5 million to $280.5 million vs. consensus of $277.13M; Non-GAAP operating income between ($1.0) million and $1.0 million; and Non-GAAP net income per diluted share between ($0.01) and $0.01.
Are Investors Undervaluing JFrog Ltd. (NASDAQ:FROG) By 49%?
Today we will run through one way of estimating the intrinsic value of JFrog Ltd. ( NASDAQ:FROG ) by taking the...
Shareholder Returns
| FROG | US Software | US Market | |
|---|---|---|---|
| 7D | 1.0% | 0.7% | 3.2% |
| 1Y | -34.9% | -15.5% | -10.2% |
Return vs Industry: FROG underperformed the US Software industry which returned -15.5% over the past year.
Return vs Market: FROG underperformed the US Market which returned -10.2% over the past year.
Price Volatility
| FROG volatility | |
|---|---|
| FROG Average Weekly Movement | 8.1% |
| Software Industry Average Movement | 10.2% |
| Market Average Movement | 7.7% |
| 10% most volatile stocks in US Market | 16.9% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: FROG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: FROG's weekly volatility (8%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2008 | 1,000 | Shlomi Haim | https://www.jfrog.com |
JFrog Ltd. provides DevOps platform in the United States. The company’s products include JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages at any scale; JFrog Pipelines, an integration/continuous delivery tool for automating and orchestrating the movement of software packages; JFrog Xray, which scan JFrog Artifactory; and JFrog Distribution that provides software package distribution with enterprise-grade performance. Its products include JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization’s software supply chain workflow; JFrog Insight, a DevOps intelligence tool; and JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance across IoT device fleets from anywhere in the world.
JFrog Fundamentals Summary
| FROG fundamental statistics | |
|---|---|
| Market Cap | US$2.47b |
| Earnings (TTM) | -US$86.64m |
| Revenue (TTM) | US$244.44m |
10.1x
P/S Ratio-28.6x
P/E RatioIs FROG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| FROG income statement (TTM) | |
|---|---|
| Revenue | US$244.44m |
| Cost of Revenue | US$53.40m |
| Gross Profit | US$191.04m |
| Other Expenses | US$277.68m |
| Earnings | -US$86.64m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.87 |
| Gross Margin | 78.15% |
| Net Profit Margin | -35.44% |
| Debt/Equity Ratio | 0% |
How did FROG perform over the long term?
See historical performance and comparisonValuation
Is FROG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation Score 0/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FROG?
Other financial metrics that can be useful for relative valuation.
| What is FROG's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$2.47b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 8.5x |
| Enterprise Value/EBITDA | -35.5x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does FROG's PS Ratio compare to its peers?
| FROG PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 5x | ||
PING Ping Identity Holding | 7.9x | 17.5% | US$2.4b |
CVLT Commvault Systems | 3.4x | 5.7% | US$2.7b |
PRGS Progress Software | 3.7x | 4.7% | US$2.2b |
NABL N-able | 5.1x | 11.9% | US$1.8b |
FROG JFrog | 10.1x | 23.5% | US$2.5b |
Price-To-Sales vs Peers: FROG is expensive based on its Price-To-Sales Ratio (10.1x) compared to the peer average (5x).
Price to Earnings Ratio vs Industry
How does FROG's PE Ratio compare vs other companies in the US Software Industry?
Price-To-Sales vs Industry: FROG is expensive based on its Price-To-Sales Ratio (10.1x) compared to the US Software industry average (5.6x)
Price to Sales Ratio vs Fair Ratio
What is FROG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 10.1x |
| Fair PS Ratio | 8.9x |
Price-To-Sales vs Fair Ratio: FROG is expensive based on its Price-To-Sales Ratio (10.1x) compared to the estimated Fair Price-To-Sales Ratio (8.9x).
Share Price vs Fair Value
What is the Fair Price of FROG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FROG ($24.92) is trading above our estimate of fair value ($22.33)
Significantly Below Fair Value: FROG is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
Discover undervalued companies
Future Growth
How is JFrog forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
Future Growth Score
2/6Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
23.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FROG is forecast to remain unprofitable over the next 3 years.
Earnings vs Market: FROG is forecast to remain unprofitable over the next 3 years.
High Growth Earnings: FROG is forecast to remain unprofitable over the next 3 years.
Revenue vs Market: FROG's revenue (23.5% per year) is forecast to grow faster than the US market (7.9% per year).
High Growth Revenue: FROG's revenue (23.5% per year) is forecast to grow faster than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FROG's Return on Equity is forecast to be low in 3 years time (3.2%).
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Past Performance
How has JFrog performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-70.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FROG is currently unprofitable.
Growing Profit Margin: FROG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FROG is unprofitable, and losses have increased over the past 5 years at a rate of 70.9% per year.
Accelerating Growth: Unable to compare FROG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FROG is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.7%).
Return on Equity
High ROE: FROG has a negative Return on Equity (-13.85%), as it is currently unprofitable.
Discover strong past performing companies
Financial Health
How is JFrog's financial position?
Financial Health Score
6/6Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway
Financial Position Analysis
Short Term Liabilities: FROG's short term assets ($510.2M) exceed its short term liabilities ($193.7M).
Long Term Liabilities: FROG's short term assets ($510.2M) exceed its long term liabilities ($38.5M).
Debt to Equity History and Analysis
Debt Level: FROG is debt free.
Reducing Debt: FROG has not had any debt for past 5 years.
Balance Sheet
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable FROG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: FROG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 23.8% per year.
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Dividend
What is JFrog current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FROG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FROG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FROG's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FROG's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as FROG has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
3.9yrs
Average management tenure
CEO
Shlomi Haim (52 yo)
14.33yrs
Tenure
US$3,361,202
Compensation
Mr. Shlomi Ben Haim serves as Co-Founder and Chief Executive Officer at JFrog Inc since April 2008. Prior to this, he served as the Chief Executive Officer of AlphaCSP that was acquired by the biggest IT g...
CEO Compensation Analysis
Compensation vs Market: Shlomi's total compensation ($USD3.36M) is below average for companies of similar size in the US market ($USD6.53M).
Compensation vs Earnings: Shlomi's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: FROG's management team is considered experienced (3.9 years average tenure).
Board Members
Experienced Board: FROG's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FROG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.
Top Shareholders
Company Information
JFrog Ltd.'s employee growth, exchange listings and data sources
Key Information
- Name: JFrog Ltd.
- Ticker: FROG
- Exchange: NasdaqGS
- Founded: 2008
- Industry: Systems Software
- Sector: Software
- Implied Market Cap: US$2.475b
- Shares outstanding: 99.31m
- Website: https://www.jfrog.com
Number of Employees
Location
- JFrog Ltd.
- 270 East Caribbean Drive
- Sunnyvale
- California
- 94089
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/14 00:00 |
| End of Day Share Price | 2022/08/12 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.