What Happened: Shares of software development tools maker JFrog (NASDAQ:FROG) jumped 29.8% in the morning session after the company reported first-quarter results, which exceeded Wall Street's expectations for key topline metrics, including revenue, billings, and remaining performance obligations (RPO - leading revenue indicator). Profitability ratios also came in strong as gross margin and adjusted operating income came in ahead of expectations, leading to a strong EPS beat. Looking ahead, the company provided solid guidance, with revenue and non-GAAP operating income outlook for the next quarter and full year exceeding Wall Street's estimates. Overall, this was an impressive quarter for the company with no negatives.
Is now the time to buy JFrog? Find out by reading the original article on StockStory.
What is the market telling us: JFrog's shares are very volatile and over the last year have had 11 moves greater than 5%. But moves this big are very rare even for JFrog and that is indicating to us that this news had a significant impact on the market's perception of the business.
The biggest move we wrote about over the last year was 4 months ago, when the stock gained 8.8% on the news that the company reported third quarter results that beat analysts' revenue, billings, adjusted EBITDA and EPS estimates. JFrog attributed this impressive performance to the sustained strength of its cloud business and the expansion of its customer base as the adoption of its supply chain platform accelerates. Notably, JFrog secured numerous new large contracts during the quarter, and free cash flow demonstrated significant improvement. Looking ahead, the revenue guidance for the next quarter and full year came in in-line with consensus expectations.
Overall, we and the market agreed that this was a great quarter, showing that the company is performing better than previously expected.
JFrog is up 41.3% since the beginning of the year. Investors who bought $1,000 worth of JFrog's shares at the IPO in September 2020 would now be looking at an investment worth $731.13.
