JFrog Reports $122.4 Million Revenue in Q1 2025, Net Loss of $18.5 Million

JFrog Ltd. reported a revenue of $122.4 million for the first quarter of 2025, marking a 22% increase from $100.3 million in the same period of 2024. The growth was driven primarily by a rise in subscription revenue, which includes both self-managed and Software as a Service (SaaS) offerings. Subscription revenue alone reached $122.4 million, up from $100.3 million year-over-year. However, the company also reported a net loss of $18.5 million for the quarter, compared to a loss of $8.8 million in the prior year, reflecting increased operating expenses and investments in growth initiatives.

The company's operating expenses rose significantly, totaling $115.2 million for the quarter, up from $96.3 million in the previous year. This increase was largely attributed to higher costs in research and development, sales and marketing, and general administrative expenses. Notably, research and development expenses increased by 21% to $43.3 million, while sales and marketing expenses also rose by 21% to $52.8 million. The increase in expenses is part of JFrog's strategy to enhance its product offerings and expand its market presence.

JFrog's customer base continues to grow, with 1,051 customers generating annual recurring revenue (ARR) of $100,000 or more, an increase from 1,018 customers at the end of 2024. The company also reported 54 customers with ARR of at least $1 million, up from 52 in the previous quarter. The net dollar retention rate, which measures revenue growth from existing customers, was 116% for the quarter, slightly down from 118% a year earlier. This indicates a stable customer engagement and expansion within its existing client base.

In terms of geographic performance, the United States accounted for 60% of total revenue, with $72.9 million generated from that region. The company continues to focus on international expansion, leveraging its cloud-based platform to reach customers globally. As of March 31, 2025, JFrog had cash and cash equivalents of $44.4 million and short-term investments of $519.2 million, providing a solid liquidity position to support ongoing operations and strategic initiatives.

Looking ahead, JFrog remains committed to enhancing its technology leadership and expanding its customer base. The company plans to invest further in product development and marketing to capture new market opportunities. Despite the challenges posed by geopolitical tensions in the region, JFrog has implemented a comprehensive business continuity plan to ensure operational stability and maintain service delivery to its customers.