JFrog (FROG, Financial) has announced a significant collaboration with Nvidia by integrating its core DevSecOps tools with Nvidia's EnterpriseAIFactory validated design. In this partnership, JFrog will act as the main software artifact repository and deliver a secure model registry for Nvidia's innovative AI architecture.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for JFrog Ltd (FROG, Financial) is $43.98 with a high estimate of $50.00 and a low estimate of $33.71. The average target implies an upside of 2.03% from the current price of $43.11. More detailed estimate data can be found on the JFrog Ltd (FROG) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, JFrog Ltd's (FROG, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for JFrog Ltd (FROG, Financial) in one year is $41.10, suggesting a downside of 4.66% from the current price of $43.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the JFrog Ltd (FROG) Summary page.
FROG Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- JFrog Ltd (FROG, Financial) reported a strong Q1 2025 with total revenue of $122.4 million, up 22% year over year.
- Cloud revenue grew significantly by 42% year over year, reaching $52.6 million and representing 43% of total revenues.
- The company saw a 35% increase in customers spending over $1 million annually, indicating strong enterprise adoption.
- JFrog Ltd (FROG) launched JFrog ML, unifying DevOps and MLOps, and partnered with Hugging Face to secure open-source ML models.
- The company maintained a high gross retention rate of 97%, showcasing strong customer loyalty and satisfaction.
Negative Points
- JFrog Ltd (FROG) faces longer sales cycles and delayed decisions due to macroeconomic uncertainties.
- Despite strong Q1 performance, the company remains cautious and did not carry forward the full benefit of overperformance into the full year guidance.
- The company is operating in a rigid purchasing environment, which may impact future growth and customer commitments.
- Gross margin decreased slightly to 82.5% from 85.1% in the previous year, primarily due to the increased mix of cloud revenues.
- JFrog Ltd (FROG) is cautious about the sustainability of the recent cloud consumption overages, which may not be a sustained trend.
