SUNNYVALE, CA—Yoav Landman, Chief Technology Officer at JFrog Ltd (NASDAQ:FROG), recently sold 15,000 shares of the company's ordinary stock, according to a recent SEC filing. The shares were sold at an average price of $31.45, resulting in a total transaction value of approximately $471,750.
The sale was conducted under a Rule 10b5-1 trading plan, which Landman adopted on August 13, 2024. This type of plan allows company insiders to set up a predetermined schedule for selling stocks, helping to avoid any potential accusations of insider trading.
Following the sale, Landman retains ownership of 6,597,242 shares in the company. The transaction was executed in multiple trades with prices ranging from $31.07 to $31.69. The reported price reflects the weighted average sale price.
In other recent news, JFrog Ltd. reported a robust Q3 2024 performance, marked by a 23% increase in total revenues to $109.1 million. The company's cloud revenue saw a substantial 38% year-over-year surge, now making up 39% of total revenues. These recent developments also include the strategic acquisition of Qwak, aimed at enhancing JFrog's offerings.
The company's earnings call revealed a strong gross margin at 82.8% and an operating profit of $14.7 million. Diluted earnings per share remained consistent with the previous year at $0.15. JFrog also reported a significant increase in customers with annual recurring revenue over $100,000 and those exceeding $1 million in ARR.
Looking ahead, JFrog anticipates Q4 revenues to be between $113.5 million and $114.5 million, with full-year guidance set at $425.9 million to $426.9 million. Despite a cautious outlook for 2025, particularly around cloud migrations and security deals, the company expects solid contributions from security solutions to revenue in 2025.
InvestingPro Insights
As JFrog's CTO Yoav Landman executes a significant stock sale, it's worth examining the company's financial health and market position. According to InvestingPro data, JFrog boasts a market capitalization of $3.36 billion and has demonstrated strong revenue growth, with a 24.45% increase in the last twelve months as of Q3 2024. This growth aligns with the company's expanding presence in the DevOps and software delivery space.
InvestingPro Tips highlight that JFrog holds more cash than debt on its balance sheet, indicating a solid financial foundation. This strong liquidity position is further reinforced by the fact that the company's liquid assets exceed its short-term obligations. These factors may provide some context for Landman's decision to sell shares, as they suggest the company is on stable financial footing despite the sale.
Another InvestingPro Tip notes that JFrog has impressive gross profit margins, which is reflected in the data showing a gross profit margin of 77.98% for the last twelve months as of Q3 2024. This high margin could be indicative of JFrog's strong market position and the value of its software delivery platform.
It's worth noting that InvestingPro offers 9 additional tips for JFrog, providing investors with a more comprehensive analysis of the company's financial health and market prospects. These insights can be particularly valuable when interpreting insider transactions like Landman's recent sale.
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