Shares of JFrog (FROG 3.76%) are up 29.1% as of 1:30 p.m. ET Thursday after the supply chain software platform provider announced stronger-than-expected quarterly results and impressive forward guidance.
JFrog's strategic pillars are yielding fruit
For its fourth quarter of 2023, JFrog's revenue grew 27% year over year to $97.3 million, translating to non-GAAP (adjusted) earnings of $0.19 per share. Analysts, on average, were only expecting earnings of $0.19 per share on revenue closer to $92.9 million.
JFrog co-founder and CEO Shlomi Ben Haim credited the company's outperformance to "solid execution" across each of its strategic pillars -- driving growth in the cloud, leveraging its complete software supply chain capabilities, and enhancing JFrog's security offerings -- as it transitions to an enterprise sales model.
Cloud revenue, in particular, soared 59% year over year during the quarter, representing 37% of JFrog's total top line (up from 30% in the same year-ago period).
What's next for JFrog shareholders?
Looking ahead the full year of 2024, JFrog issued guidance for revenue to arrive between $424 million and $428 million, which should translate to full-year adjusted earnings per share of between $0.58 and $0.60. Here again, both ranges were comfortably above analysts' consensus estimates calling for 2024 earnings of $0.52 per share on revenue closer to $422 million.
In the end, this was a straightforward quarterly beat followed by better-than-expected guidance for the coming year. And shares of JFrog are understandably rallying in response today.
