Full-year 2025: Revenue $507M–$510M (~18.7% YoY growth at midpoint); non-GAAP operating income $75M–$78M; non-GAAP diluted EPS $0.68–$0.70 (~121M shares) (CFO).
Cloud growth (full-year): Baseline 34%–36% (CFO).
Net dollar retention (full-year): Expected to remain in mid-teens (CFO).
Mgmt Quotes
"As the JFrog platform becomes the system of record for all software packages, I'm pleased to report another excellent quarter for the company." (CEO)
"JFrog has been hybrid from day 1, a unified software supply chain platform that runs in the cloud, on-prem or both. We are not reacting to this hybrid demand. We've been building for it." (CEO)
"Our strong performance during the quarter was a result of continued operational execution, driven by strength in our cloud revenues, accelerating adoption in security core products and ongoing demand for our enterprise-level subscriptions." (CFO)
"We continue to derisk our outlook by excluding our largest opportunities given the uncertainty regarding the timing of customer deployments." (CFO)
"This quarter demonstrated yet another powerful example of JFrog's strong execution and even more remarkable given the adversity we faced." (CEO)
Q&A Batch (6-10 of 12)
Q6 — Mark Charles Cash
Topic: Cloud overconsumption and budget changes; RPO/cRPO dynamics
Key points:
Usage increasing around JFrog infrastructure for AI models (more data consumption, storage consumption, containers).
When over-usage above customer commitment occurs, JFrog offers a better deal to secure an annual commitment; this preserves conservatism.
RPO and cRPO do not always correlate to revenue; revenue guidance is the better forward indicator.
3 largest deals occurred in H2 2024, so RPO may be impacted if large deals do not repeat, but guidance is already de-risked.
Mgmt stance: Neutral — consumption healthy but not at 2022 levels; RPO is not a leading revenue indicator.
Q7 — Zachary I Schneider
Topic: Hyperscaler partnerships for co-sell/marketplace; AI/ML usage tiers and pricing model changes
Key points:
Collaboration with AWS, GCP, Microsoft Azure accelerates mega deals through marketplaces; includes co-services, not just co-sell.
Contracts with hyperscalers are being optimized for gross margin responsibility.
AI/ML package usage (Hugging Face, PyPI) showed stabilization and sustained usage quarter-over-quarter; monetization is in infancy stage.
Mgmt stance: Neutral — partnerships are key, but AI monetization is still early; will capture value once mature.
Q8 — Jason Noah Ader
Topic: Impact of AI coding tools on DevOps and JFrog; security materiality
Key points:
AI code assistants (e.g., Cursor, Windsurf) are now part of every developer’s toolchain, generating more binaries, benefiting JFrog if hosted on its platform.
New threats arise (e.g., MCP server); JFrog’s holistic security approach (agnostic to tools) is increasingly relevant.
Security is a “material part of the business” for 2025; metrics on attach rates were provided at end of 2024, with an update planned at end of 2025.
Mgmt stance: Bullish — AI coding tools create new binaries and security needs, but too early to say it will completely change guidance for next years.
Q9 — Jonathan Blake Ruykhaver
Topic: MCP opportunity; securing AI agent behavior relative to repositories
Key points:
MCP is the new protocol enabling agents and machines to integrate with JFrog; critical for any product provider to interact with AI.
JFrog Research team unveiled a threat/vulnerability in MCP, shared publicly, which helps in AI security discussions.
MCP integration is not limited to specific companies (OpenAI, Anthropic) or enterprises; every agent-based AI will interact via MCP.
Mgmt stance: Bullish — MCP is essential for all agentic AI, and JFrog’s discovery improves credibility in AI security.
Q10 — Eamon Robert Coughlin
Topic: Q2 linearity and cloud growth drivers; self-managed portfolio drivers
Key points:
Three dynamics in Q2 cloud: security wins landing in cloud; customers using over-minimum commitments securing larger annual agreements; sustained usage quarter-over-quarter.
Cloud revenue guidance reflects confidence at 34%-36%.
Self-managed growth driven by: AI adoption needing hybrid solutions (identical cloud and on-prem); on-prem customers seeking security available both in cloud and self-hosted/private cloud.
Mgmt stance: Neutral — no comment on Q3; on-prem new trends emerging from AI and security demand.