JFrog (FROG) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: N/A
• Average Volume (3M): 759.50K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: 22.47%
• EPS Growth: -5.48%
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 44
• Industry: Software - Application
• EPS (TTM): -0.63
• Shares Outstanding: 114,561,450
• 10 Day Avg. Volume: 780,808
• 30 Day Avg. Volume: 759,496
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 8.95
• Price to Cash Flow (P/CF): 19.50
• P/FCF Ratio: 19.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $42.65
• Price Target Upside: 39.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

JFrog's overall score reflects strong revenue and cash flow growth, with a solid balance sheet providing stability. However, ongoing profitability challenges and a bearish technical outlook weigh on the stock. The company’s robust enterprise traction and cloud expansion are positive, but tempered by cautious future guidance and macroeconomic concerns, leading to a moderate overall score.

Positive Factors

Cloud Business Growth

JFrog's cloud business achieved a remarkable 41% year-over-year growth, adding $7 million in incremental revenue.

Market Position

Large deal activity is showing signs of picking up, with some of the largest deals in the company's history closed recently, indicating a strengthening position in the market.

Security Capabilities

Investments in security capabilities are helping JFrog secure larger and longer deals, with security core now representing a larger portion of revenue.

Negative Factors

Budgetary Environment

Management noted that despite navigating a tight budgetary environment and rigid procurement processes, FROG's strong execution led to many large multi-year commitments.

Conservative Guidance

JFrog's CY25 Revenue guide of 16%-17% year-over-year growth is conservative versus prior years given a 'Mid-Teens' NRR assumption.

Database Contribution

Bears may pick at the $1.3 Million Database contribution in 4QCY24 or Total Customer Count, but these are considered small items in the grand scheme.

JFrog Business Overview & Revenue Model

Company Description

JFrog Ltd. provides DevOps platform in the United States. The company's products include JFrog Artifactory, a package repository that allows teams and organizations to store, update, and manage their software packages at any scale; JFrog Pipelines, an integration/continuous delivery tool for automating and orchestrating the movement of software packages; JFrog Xray, which scan JFrog Artifactory; and JFrog Distribution that provides software package distribution with enterprise-grade performance. Its products include JFrog Artifactory Edge that utilizes and leverages metadata from JFrog Artifactory to facilitate the transfer of the incremental changes in software packages from their previous versions; JFrog Mission Control, a platform control panel that provides a view of moving pieces of an organization's software supply chain workflow; JFrog Insight, a DevOps intelligence tool; and JFrog Connect, a device management solution that allows companies to manage software updates and monitor performance across IoT device fleets from anywhere in the world. The company's products also comprise JFrog Pro, JFrog Pro Team, JFrog Pro X, JFrog Enterprise, JFrog Enterprise X, and JFrog Enterprise Plus products that offer ongoing updates, upgrades, and bug fixes, as well as cluster configuration, multi-site replication, and SLA support. It serves technology, financial services, retail, healthcare, and telecommunications organizations. JFrog Ltd. was incorporated in 2008 and is headquartered in Sunnyvale, California.

How the Company Makes Money

JFrog generates revenue primarily through subscription fees from its cloud-based and on-premises software solutions. Customers pay for access to JFrog's suite of DevOps tools, which are offered under various pricing tiers depending on the scale and specific needs of the client. The company also offers professional services, including training and consulting, which contribute to its earnings. Additionally, JFrog has established strategic partnerships with major cloud providers and technology companies, enhancing its market reach and customer base. These collaborations help drive sales and adoption of JFrog's products, further supporting its revenue streams.

JFrog Financial Statement Overview

Summary

JFrog shows strong revenue growth and a solid cash flow position, which are positive indicators for future prospects. However, the company needs to address its profitability issues, as evidenced by negative net and EBIT margins. A strong balance sheet with substantial equity and low debt provides a stable financial foundation, but improving operational efficiency and profitability remains critical for long-term success.

Income Statement

JFrog has demonstrated consistent revenue growth, with a significant increase from $349.89M in 2023 to $428.49M in 2024, representing a growth rate of approximately 22.44%. However, the company has struggled with profitability, as indicated by negative net and EBIT margins. In 2024, the gross profit margin was strong at 77.06%, but the net profit margin was negative at -16.16%, and the EBIT margin was also negative at -21.25%.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 68.45% in 2024, indicating a strong capital base. However, the debt-to-equity ratio is low at 0.02, which suggests conservative leverage, but the negative net income impacts ROE, which is -8.95%. JFrog's balance sheet reflects stability with substantial cash reserves, but improvement in profitability is needed.

Cash Flow

JFrog's cash flow performance is commendable, with a significant increase in free cash flow from $72.17M in 2023 to $107.78M in 2024, marking a growth rate of 49.34%. The company's operating cash flow to net income ratio is robust at -1.60, reflecting efficient cash flow generation despite net losses. The free cash flow to net income ratio is also strong at -1.56.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
428.49M	349.89M	280.04M	206.68M	150.83M
	Gross Profit
330.19M	272.84M	217.75M	164.86M	122.38M
	EBIT
-91.10M	-75.55M	-89.84M	-68.37M	-14.19M
	EBITDA
-91.10M	-60.24M	-75.19M	-59.62M	-10.53M
	Net Income Common Stockholders
-69.24M	-61.26M	-90.18M	-64.20M	-9.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
522.01M	545.01M	443.20M	421.13M	598.06M
	Total Assets
1.13B	972.56M	871.22M	852.53M	689.23M
	Total Debt
13.98M	22.23M	23.96M	27.31M	0.00
	Net Debt
-35.89M	-62.54M	-21.63M	-40.98M	-164.46M
	Total Liabilities
356.38M	293.43M	246.45M	213.95M	135.34M
	Stockholders Equity
773.53M	679.12M	624.77M	638.58M	553.89M
Cash Flow		Free Cash Flow
107.78M	72.17M	16.80M	23.07M	25.94M
	Operating Cash Flow
110.92M	74.16M	21.43M	27.90M	29.46M
	Investing Cash Flow
-165.36M	-53.48M	-53.34M	-125.55M	-311.80M
	Financing Cash Flow
21.23M	18.37M	11.03M	1.44M	406.13M

JFrog Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FROG, the sentiment is Neutral. The current price of 30.61 is below the 20-day moving average (MA) of 31.19, below the 50-day MA of 34.08, and below the 200-day MA of 31.95, indicating a neutral trend. The MACD of -0.73 indicates Negative momentum. The RSI at 50.17 is Neutral, neither overbought nor oversold. The STOCH value of 58.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FROG.

JFrog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALRM	70 Outperform	$2.51B	22.13	17.54%	―	6.59%	53.89%
FROG	67 Neutral	$3.51B	―	-9.53%	―	22.47%	-5.48%
FRSH	64 Neutral	$3.64B	―	-8.63%	―	20.79%	32.50%
ASAN	61 Neutral	$3.34B	―	-92.26%	―	10.94%	4.54%
Sector *	58 Neutral	$9.99B	10.12	-6.46%	3.10%	7.47%	-11.60%
BRZE	57 Neutral	$3.04B	―	-22.57%	―	25.78%	23.04%
GBTG	55 Neutral	$3.15B	―	-12.22%	―	5.81%	17.19%

JFrog Corporate Events

JFrog Announces Board Changes and New Chair Appointment

On March 20, 2025, JFrog Ltd. announced that Jessica Neal resigned from its board of directors and as Chair of the Compensation Committee, effective May 30, 2025, and March 20, 2025, respectively. Her resignation was not due to any disagreement with the company but to avoid a potential conflict. Elisa Steele has been appointed as the new Chair of the Compensation Committee. The board will reduce its size from ten to nine members effective May 30, 2024.