Shares of software development tools maker JFrog (NASDAQ:FROG)
jumped 10.2% in the afternoon session after the company reported a "beat and raise quarter." First quarter 2025 results included convincing beats on revenue and operating income. Sales rose 22%, led by cloud revenue, which grew 42%. Big clients continued to spend more, with $1 million+ customers up 35% from last year. In addition, full-year sales, adjusted operating income, and EPS guidance topped analysts' expectations and were slightly lifted from the previous outlook.
Overall, this was an impressive quarter.
Software development tools maker JFrog (NASDAQ:FROG) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 22% year on year to $122.4 million. Guidance for next quarter’s revenue was better than expected at $122.5 million at the midpoint, 1.2% above analysts’ estimates. Its non-GAAP profit of $0.20 per share was 21.5% above analysts’ consensus estimates.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the software development industry, including PagerDuty (NYSE:PD) and its peers.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the software development industry, including JFrog (NASDAQ:FROG) and its peers.
Growth is oxygen.
But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) or newer investors who lived through the 2020 to 2022 COVID cycle.
Earnings news has catalyzed frenzied activity in these stocks, and irrespective of the directional moves, sentiment toward them has remained uniformly upbeat.
Shares of software development tools maker JFrog (NASDAQ:FROG)
jumped 15.3% in the pre-market session after the company reported strong fourth-quarter 2024 results, which revealed an acceleration in its new large contract wins, enabling it to exceed Wall Street's revenue and operating profit estimates, the latter by a very convincing amount. Cloud revenue importantly exceeded expectations. Adoption of its cloud business remained strong, now accounting for 43% of total revenue, up from 37% a year ago.
While revenue guidance for the full year was in line with Wall Street's estimates, full-year operating income guidance was ahead, showing better profitability. Again, Cloud revenue growth was guided ahead, allowing the market to look past the in line full-year total revenue guidance. Zooming out, we think this was a very solid quarter featuring some areas of strength for the stock.
Software development tools maker JFrog (NASDAQ:FROG) reported Q4 CY2024 results beating Wall Street’s revenue expectations, with sales up 19.4% year on year to $116.1 million. The company expects next quarter’s revenue to be around $117 million, close to analysts’ estimates. Its non-GAAP profit of $0.19 per share was 36.7% above analysts’ consensus estimates.
From commerce to culture, software is digitizing every aspect of our lives. The undeniable tailwinds fueling the industry have also led to strong returns for SaaS stocks lately
as they’ve gained 36.7% over the past six months, outpacing the S&P 500’s 11.3% rise.
Over the past six months, JFrog’s shares (currently trading at $32.56) have posted a disappointing 14% loss, well below the S&P 500’s 8.1% gain. This might have investors contemplating their next move.
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the software development industry, including Bandwidth (NASDAQ:BAND) and its peers.
