JFrog (FROG) AI Stock Analysis

• Market Cap: $3.61B
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 22.47%
• EPS Growth: -5.48%
• Country: US
• Employees: 1,600
• Sector: Technology
• Sector Strength: 43
• Industry: Software - Application
• EPS (TTM): -0.63
• Shares Outstanding: 112,878,050
• 10 Day Avg. Volume: 550,866
• 30 Day Avg. Volume: 1,036,292
• 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: $44.13
• Price Target Upside: 37.91% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

JFrog's overall stock score reflects a mix of strong revenue growth and a solid financial foundation, offset by current profitability challenges and bearish technical indicators. The positive guidance from the earnings call and strategic focus on high-growth segments like cloud and security provide a promising outlook. However, the stock's negative P/E ratio and current market momentum caution against short-term optimism.

Positive Factors

Earnings

JFrog delivered a solid quarter, closing with 19% year-over-year revenue growth, driven by 37% year-over-year cloud growth and increasing security traction.

Partnerships

The deepening partnership with AWS suggests further upside potential for JFrog as cloud migrations continue to be a core driver.

Product Adoption

JFrog is considered mission critical, which should drive strong adoption of its products over the medium-term.

Negative Factors

Conservative Guidance

JFrog's guidance philosophy has become more conservative, potentially affecting analyst expectations and market perceptions.

Customer Metrics

Bears may focus on the $1.3 million database contribution in the fourth quarter or total customer count as potential concerns.

Valuation

Attractive valuations at ~7x EV/CY26E Sales & 25x EV/FCF may not appeal to all investors, potentially limiting stock price appreciation.

JFrog Business Overview & Revenue Model

Company Description

JFrog Ltd. (NASDAQ: FROG) is a leading software company specializing in DevOps solutions that enable organizations to automate and manage their software development and release processes. The company is renowned for its end-to-end platform that facilitates continuous integration and continuous delivery (CI/CD) of software. JFrog's core products include the JFrog Artifactory, a universal artifact repository manager, JFrog Pipelines for automation of CI/CD processes, and JFrog Xray for security and compliance. These tools are designed to enhance the speed, efficiency, and security of software releases across various industries.

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: Negative
• Last Price: 32.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FROG, the sentiment is Negative. The current price of 32 is below the 20-day moving average (MA) of 34.11, below the 50-day MA of 35.46, and below the 200-day MA of 32.28, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 35.59 is Neutral, neither overbought nor oversold. The STOCH value of 10.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FROG.

JFrog Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ZS	73 Outperform	$32.41B	―	-1.21%	―	27.77%	89.39%
CRWD	73 Outperform	$90.86B	721.64	-0.69%	―	29.39%	-119.62%
FROG	70 Outperform	$3.61B	―	-9.53%	―	22.47%	-5.48%
OKTA	69 Neutral	$18.75B	1,842.83	0.46%	―	15.33%	―
DDOG	66 Neutral	$35.94B	204.19	7.75%	―	26.12%	274.50%
TEAM	59 Neutral	$57.11B	―	-32.59%	―	23.19%	11.01%
Sector *	58 Neutral	$21.01B	10.46	-16.27%	2.47%	4.45%	-23.80%

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.