JFrog Reports $428.5 Million Revenue for Fiscal Year 2024, Despite Increased Net Loss

JFrog Ltd. reported a total revenue of $428.5 million for the fiscal year ending December 31, 2024, marking a 22% increase from $349.9 million in 2023. The company's subscription revenue, which includes both self-managed and SaaS offerings, accounted for the majority of this growth, with self-managed subscriptions generating $260.5 million and SaaS subscriptions contributing $167.9 million. Despite the revenue increase, JFrog continued to operate at a loss, reporting a net loss of $69.2 million, up from a loss of $61.3 million in the previous year. The increase in losses was attributed to higher operating expenses, particularly in research and development, sales and marketing, and share-based compensation.

In terms of customer growth, JFrog's customer base expanded to approximately 7,300 organizations, including 82% of Fortune 100 companies. The number of customers with annual recurring revenue (ARR) of $100,000 or more rose to 1,018, up from 886 in 2023. Additionally, the company saw an increase in high-value customers, with 52 customers achieving ARR of at least $1 million, compared to 37 in the prior year. JFrog's net dollar retention rate was reported at 116%, indicating strong customer engagement and expansion within existing accounts.

Strategically, JFrog made significant advancements in its product offerings, including the acquisition of Qwak AI Ltd. for $177.5 million, which is expected to enhance its machine learning model management capabilities. The company also launched several new features across its platform, focusing on DevOps, DevSecOps, and MLOps functionalities. These developments are part of JFrog's strategy to position itself as a comprehensive solution for software supply chain management.

Operationally, JFrog's employee headcount increased to approximately 1,600, reflecting its growth and expansion efforts. The company continues to invest in its technology and infrastructure to support its expanding customer base and product offerings. As of December 31, 2024, JFrog had cash, cash equivalents, and short-term investments totaling $522 million, which it believes will be sufficient to meet its operational needs for the next 12 months.

Looking ahead, JFrog anticipates continued growth driven by its commitment to enhancing its platform and expanding its customer base. The company aims to leverage its existing relationships and explore new markets while navigating the challenges posed by the current geopolitical climate, particularly the ongoing conflict in the Middle East. JFrog's management remains focused on maintaining operational continuity and delivering value to its customers amidst these uncertainties.