JFrog Ltd. (NASDAQ: FROG) ripped higher today after posting a decisive third‑quarter beat and lifting its full‑year outlook. As of roughly 16:05 UTC, shares traded near $58.90, up ~24.6% intraday after touching an intraday high of $62.92; premarket gains topped 20% as the report hit the tape. 1
Key takeaways
- Q3 revenue:$136.9M, up 26% YoY (consensus ~$128M). Non‑GAAP EPS:$0.22 (vs. ~$0.16 expected). 2
- Cloud momentum:$63.4M in cloud revenue, up 50% YoY, now 46% of total. Net Dollar Retention:118%. 2
- Customer mix:71 customers with >$1M ARR (up from 46 YoY); 1,121 customers with >$100K ARR. 2
- Cash/FCF:$651M cash & investments; $28.8M free cash flow; RPO:$508M. 2
- Guidance raised: FY2025 revenue $523–$525M and non‑GAAP EPS $0.78–$0.80; Q4 revenue $136.5–$138.5M and EPS $0.18–$0.20. 2
- Stock reaction: On pace for its best level since Feb. 2021; up ~61% YTD heading into today’s move. 3
What’s driving the surge
JFrog’s outperformance was broad‑based, with strength in its software supply chain platform and accelerating cloud adoption. Management highlighted new governance and AI offerings—AppTrust and AI Catalog—as catalysts helping large customers standardize on the platform. 2
On the numbers, JFrog delivered total revenue of $136.9M and non‑GAAP EPS of $0.22, clearing Street estimates and prompting the company to lift full‑year guidance across revenue and earnings. Multiple outlets noted the beat versus consensus and the magnitude of the cloud growth. 3
Analyst reaction: wall of price‑target hikes
Positive revisions rolled in quickly following the print:
- TD Cowen: PT to $75 (Buy), citing a “blow‑out” Q3 and sustained cloud momentum. 4
- Morgan Stanley: PT to $70 (Overweight), calling the report “impressive” with cloud strength. 5
- KeyBanc: PT to $71 (Overweight) after “biggest beat in company history.” 6
- Truist: PT to $70 (Buy). 7
- Piper Sandler: PT to $60 (Neutral). 8
The upbeat tone aligns with market coverage that flagged JFrog among today’s biggest movers. 1
The story in the results (Q3 FY2025)
- Mix shift to cloud: Cloud revenue reached $63.4M (+50% YoY) and accounted for 46% of total revenue (up from 39% a year ago), underscoring the shift to SaaS and multi‑cloud deployments. 2
- Operating leverage (non‑GAAP):18.7% operating margin; continued progress toward sustained profitability on a non‑GAAP basis. 2
- Enterprise expansion:71 customers above $1M ARR (+54% YoY) and 118% trailing four‑quarter NDR signal healthy land‑and‑expand dynamics. 2
- Product updates: Launches of AppTrust (governance) and AI Catalog (secure AI model delivery) broaden JFrog’s role across DevOps, DevSecOps and MLOps. 2
Outlook: What management guided for
- Q4 FY2025: Revenue $136.5–$138.5M, non‑GAAP EPS $0.18–$0.20 (about 125M diluted shares). 2
- FY2025: Revenue $523–$525M (raised from prior range), non‑GAAP EPS $0.78–$0.80 (~122M diluted shares). 2
Financial media highlighted that the new ranges top prior forecasts and help explain today’s outsized move. 3
Stock snapshot (today)
- Price: ~$58.90, +24.6% intraday (high $62.92, low $53.90).
- Market cap: ~$5.0B.
Data as of ~16:05 UTC.
Context: Barron’s notes the post‑earnings surge puts the stock on track for its highest level since February 2021 and caps a ~61% year‑to‑date climb before today’s rally. 3
Why it matters for investors
- Cloud mix & durability: With cloud now ~46% of revenue and accelerating, JFrog’s margin profile and net expansion should benefit from higher‑value, usage‑driven subscription tiers. 2
- Platform breadth: Security, governance and AI modules (AppTrust, AI Catalog) deepen wallet share and differentiate the platform in enterprise accounts. 2
- Visibility: A larger RPO ($508M) and rising count of million‑dollar customers improve revenue visibility heading into 2026. 2
What to watch next
- Q4 execution vs. raised bar — whether cloud growth and Enterprise+ adoption sustain at current pace. 2
- Price‑target momentum — additional revisions from the sell side after today’s wave (Morgan Stanley, KeyBanc, TD Cowen, Truist, Piper). 5
- Product traction — early customer adoption of AppTrust and AI Catalog and any cross‑sell uplift. 2
Sources & further reading (today)
- Company press release and investor materials with full Q3 details and guidance. 2
- Coverage of today’s move and premarket leadership. 3
- Earnings beat/surprise context. 9
- Price‑target updates. 4
Note: This article is for informational purposes only and is not investment advice.
