Software development tools maker JFrog (NASDAQ:FROG) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
JFrog met analysts’ revenue expectations last quarter, reporting revenues of $103 million, up 22.4% year on year. It was a slower quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating growth in large customers. It added 17 enterprise customers paying more than $100,000 annually to reach a total of 928.
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 19.1% year on year to $105.6 million, slowing from the 23.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.11 per share.
The majority of analysts covering the company have 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 twice over the last two years.
Looking at JFrog’s peers in the software development segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Bandwidth delivered year-on-year revenue growth of 27.5%, beating analysts’ expectations by 6.5%, and Twilio reported revenues up 9.7%, topping estimates by 3.7%. Bandwidth’s stock price was unchanged after the results, while Twilio was up 14.3%.
Read our full analysis of Bandwidth’s results here and Twilio’s results here.
There has been positive sentiment among investors in the software development segment, with share prices up 7% on average over the last month. JFrog is up 13.1% during the same time and is heading into earnings with an average analyst price target of $34.26 (compared to the current share price of $31.00).
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