What happened

Shares of JFrog (FROG 0.42%), a software management company, tumbled today after the company reported its first-quarter earnings yesterday. 

As of 2:34 p.m. EDT on Friday, the tech stock was down by 14.9%.  

So what 

JFrog reported diluted adjusted earnings per share of $0.02 in the quarter, ahead of analysts' consensus earnings estimate of $0.01. The tech company's quarterly revenue of $45.1 million also outpaced Wall Street's estimate of $44.8 million for the quarter. 

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Image source: Getty Images.

"Our strong first quarter results are setting a solid tone for the year, with 37% revenue growth, 130% net dollar retention rate for the trailing four quarters, and increasing net new customer additions," CEO Shlomi Ben Haim said in a press release.

The company grew its cloud revenue by 62% in the quarter, to $10.3 million. And it increased its percentage of revenue that comes from Frog's Enterprise+ service to 26% of total sales, up from 16% in the year-ago quarter.

But despite the strong quarter and the fact that the company's sales and earnings beat Wall Street's estimates, JFrog's stock plunged today. Investors may have been unhappy with the company's outlook for the second quarter.

Now what 

Management expects second-quarter revenue to be in the range of $47.6 million to $48.6 million, with adjusted earnings estimated to be between zero to $0.01 per share. Investors were likely unimpressed with this outlook. With today's share price drop, JFrog's stock has fallen 43% year to date.