JFrog (FROG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $122.4 million, up 22% year over year, with cloud revenue growing 42% to $52.6 million, now 43% of total revenue, and strong enterprise-plus subscription growth.

• Customers with ARR over $1 million rose to 54, up 35% year over year; those over $100,000 ARR increased to 1,051.

• Enterprise-plus subscriptions contributed 55% of total revenue, up from 49% a year ago, with 37% year-over-year growth.

• The platform now unifies DevOps, DevSecOps, and MLOps, with new ML capabilities and security features for AI models, including the launch of JFrog ML and partnerships with Hugging Face and GitHub.

• Net loss widened to $18.5 million from $8.8 million in Q1 2024, primarily due to increased operating expenses and share-based compensation.

Financial highlights

• Gross profit was $101 million (non-GAAP, 82.5% margin); GAAP gross profit $92.2 million (75.3% margin), with margin decline due to higher cloud/SaaS mix.

• Non-GAAP operating income was $21.4 million (17.4% margin); GAAP operating loss was $23.0 million (-18.8% margin).

• Free cash flow was $28.1 million (23% margin), up from $16.6 million a year ago.

• Cash, cash equivalents, and short-term investments totaled $563.5 million at quarter end.

• Remaining performance obligations (RPO) reached $424.2 million, up 62% year over year.

Outlook and guidance

• Q2 2025 revenue expected between $121.5 million and $123.5 million; non-GAAP operating income $17.0–$18.0 million.

• Full-year 2025 revenue guidance is $500 million–$505 million; non-GAAP operating income $74–$77 million; EPS $0.68–$0.70.

• Baseline cloud growth for 2025 guided at 31%–33%, excluding overage usage above commitments.

• Guidance remains cautious due to macroeconomic uncertainty, with largest deals excluded from forecasts.

• Liquidity is considered sufficient for at least the next 12 months and long-term needs.