Shares of DevOps platform provider JFrog Ltd. (FROG) rose about 7% during the extended trading session on Monday, after the company delivered a better-than-expected first-quarter performance on its top-line front.
Revenue jumped 41.2% year-over-year to $63.7 million, outperforming estimates by $2.55 million. This growth came on the back of a 63% jump in cloud revenues driven by the adoption of the JFrog platform and its security capabilities. Additionally, the number of customers with annual recurring revenue (ARR) of over $100,000 jumped 52% over the prior-year period to 599.
Management Weighs In
The Co-Founder and CEO of JFrog, Shlomi Ben Haim, commented, “We are excited to see the growing number of customers transitioning to the cloud, securing their software supply chain, and powering their DevOps pipelines with the JFrog Platform.”
He added, “Our consistent investment in an end-to-end DevOps platform, that includes advanced security and distribution capabilities, answers the market demand. Our focus on multi-cloud, hybrid, and self-hosted offerings continues to bear fruit.”
Additionally, the company has recently released the Dart programming language and pub repository support in the JFrog Artifactory to support the fast-growing developer community driven by Google. It has also partnered with Amazon Web Services (AWS) for games to propel cloud DevOps processes targeted at the gaming industry.
Looking ahead, for fiscal 2022, the company expects to garner revenue in the range of $276.5 million and $278.5 million.
What Did TipRanks Website Traffic Data Indicate?
Let us find out if the TipRanks Website traffic tool could have helped investors gauge this Q1 outperformance ahead of the results.
Data indicates total traffic to the JFrog website across devices jumped from 827,630 at the end of December 2021 to 1 million at the end of March. Further, on a quarterly basis, total website traffic jumped 13.6% as compared to the fourth quarter.
Needham analyst Mike Cikos has reiterated a Buy rating about the stock alongside a price target of $32. Overall, the Street is cautiously optimistic on JFrog based on four Buys and two Holds. At the time of writing, the average JFrog price target was $39.50, which implies a massive potential upside of 114.7%. That’s after a 41.3% slide in the share prices so far this year.
The company has delivered a resounding performance, including both client and cloud growth. Amid the present broader market sell-off, the triple-digit expected upside just might be the cherry on the cake for JFrog.
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