Software development tools maker JFrog (NASDAQ: FROG) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
JFrog beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $116.1 million, up 19.3% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a significant miss of analysts’ annual recurring revenue estimates. It added 52 enterprise customers paying more than $100,000 annually to reach a total of 1,018.
Is JFrog a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting JFrog’s revenue to grow 16.9% year on year to $117.3 million, slowing from the 25.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. JFrog has missed Wall Street’s revenue estimates three times over the last two years.
Looking at JFrog’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Datadog delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 2.8%, and F5 reported revenues up 7.3%, topping estimates by 1.7%. F5’s stock price was unchanged following the results.
Read our full analysis of Datadog’s results here and F5’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 17.2% on average over the last month. JFrog is up 24.4% during the same time and is heading into earnings with an average analyst price target of $43.56 (compared to the current share price of $34.82).
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