JFrog Ltd. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenue of $109.1 million for Q3 2024, marking a 23% increase from $88.6 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $312.4 million, a 24% rise from $252.6 million in the same period last year. Subscription revenue, which includes both self-managed and SaaS offerings, contributed $103.5 million in Q3 2024, up from $84.1 million in Q3 2023.

Despite the revenue growth, JFrog reported a net loss of $22.9 million for Q3 2024, compared to a net loss of $13.7 million in Q3 2023. For the nine-month period, the net loss narrowed to $46.0 million from $50.0 million in the previous year. The increase in operating expenses, which totaled $111.7 million for Q3 2024 compared to $86.9 million in Q3 2023, contributed to the losses. The rise in expenses was attributed to higher costs in research and development, sales and marketing, and share-based compensation.

The company’s total assets increased to $1.08 billion as of September 30, 2024, up from $972.6 million at the end of 2023. However, total current assets decreased to $593.4 million from $645.8 million during the same period. Total current liabilities rose to $292.2 million from $262.2 million, while total shareholders’ equity increased to $756.2 million from $679.1 million.

A notable strategic development was the acquisition of Qwak AI Ltd. on July 9, 2024, for approximately $177.5 million. This acquisition aims to enhance JFrog's machine learning capabilities. The deal included cash and stock components, with a significant portion of the purchase price allocated to goodwill, which increased to $371.4 million as of September 30, 2024.

Cash and cash equivalents stood at $62.2 million, down from $84.8 million at the end of 2023. The company reported net cash provided by operating activities of $61.8 million for the nine months ended September 30, 2024, an increase from $41.6 million in the prior year. However, net cash used in investing activities rose significantly to $99.7 million, primarily due to the Qwak acquisition.

JFrog's net dollar retention rate was reported at 117%, indicating stable customer engagement, although slightly down from 119% in the previous year. The company continues to focus on expanding its customer base and enhancing its product offerings to maintain its competitive edge in the software supply chain market.

About JFrog Ltd

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