Software development tools maker JFrog (NASDAQ:FROG) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
JFrog beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $109.1 million, up 23% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ billings estimates and accelerating growth in large customers. It added 38 enterprise customers paying more than $100,000 annually to reach a total of 966.
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 17.5% year on year to $114.3 million, slowing from the 27.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 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 four times over the last two years.
Looking at JFrog’s peers in the software development segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cloudflare delivered year-on-year revenue growth of 26.9%, beating analysts’ expectations by 1.8%, and F5 reported revenues up 10.7%, topping estimates by 7.2%. Cloudflare traded up 17.7% following the results while F5 was also up 11.4%.
Read our full analysis of Cloudflare’s results here and F5’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 9.3% on average over the last month. JFrog is up 12.7% during the same time and is heading into earnings with an average analyst price target of $36.98 (compared to the current share price of $35.99).
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