JFrog Ltd. Q3 FY2025 earnings call

• Cloud growth: Driven by increased usage across multiple package types (PyPI, Docker containers, NPM, etc.) and strong adoption of JFrog Advanced Security and Curation. Cloud revenue grew 50% YOY to $63.4 million, representing 46% of total revenues.
• Security wins: Large customers secured, including deals with the U.K. Customs and Revenue Agency, a U.S. federal agency, and a top energy corporation. JFrog's security solutions like Curation and Advanced Security are key, with customer feedback highlighting effective protection against software supply chain attacks.
• AI and ML developments: Gaining traction as a model registry provider. Introduced JFrog ML, AppTrust (a DevGovOps solution), agentic remediation capabilities, and JFrog Fly (the world's first agentic repository) to reimagine software supply chain management in the AI era.

JFrog's total revenue in Q3 2025 was $136.9 million, up 26% year-over-year. Cloud revenue for Q3 was $63.4 million, representing 50% year-over-year growth and 46% of total revenues. On-prem revenue was $73.5 million, up 10% year-over-year. Enterprise Plus subscriptions contributed 56% of total revenues, up from 50% in the prior year. Net dollar retention for the 4 trailing quarters was 118%, demonstrating sustained growth among the customer base.

• Full year 2025 revenue expected: $523 million to $525 million, representing ~22.3% year-over-year growth at the midpoint.
• Q4 2025 revenue guidance: $136.5 million to $138.5 million. Non-GAAP operating profit anticipated: $21 million to $22 million. Non-GAAP diluted earnings per share: $0.18 to $0.20.
• Full year 2025 non-GAAP operating income: $87.3 million to $88.3 million. Non-GAAP diluted earnings per share: $0.78 to $0.80.
• Cloud growth estimate: 2025 baseline cloud growth in the range of 40% to 42%. Net dollar retention for 2025 raised to above 116%.

• Software supply chain attacks: Increasingly sophisticated attacks targeting build pipelines, AI/ML supply chains, and software binaries pose risks.
• Macroeconomic and geopolitical volatility: Uncertainties in the global economy and geopolitical landscape can impact business performance.
• Timing of large customer deployments: Uncertainty regarding the timing of certain large customer deployments derisks the outlook.

Q: Could you unpack the strong cloud growth and whether it was one-time or a confluence of factors?

A: Ed Grabscheid stated there was nothing one-time; it was a convergence of strong usage across multiple package types, geos, verticals, and strong security driving cloud growth.

Q: What's different in go-to-market execution for cloud that's bearing out strong growth?

A: Shlomi Haim mentioned working with customers with over usage to convert them to higher commitments, combined with security driving cloud growth.

Q: How relevant is JFrog Fly to new customers or buying centers?

A: Shlomi Haim said Fly is about enabling both agents and developers in software supply chain management, not just targeting new customers but ensuring the platform supports future agent-developer collaboration.

Q: How is the guide for Q4 measured with prudence?

A: Ed Grabscheid noted the guide excludes usage over minimum commitments and derisks large deals due to uncertain timing, while being cautious about cloud migration and consumption expectations.