No leap of faith, solid growth can drive JFrog shares even higher

Jacob Wolinsky ValueWalk

Key points

JFrog is a development and operations (DevOps) platform providing software tools for companies to build, test, integrate and deliver software solutions.
JFrog is a widely used enterprise DevOps platform that enables clients to manage their software binaries and artifacts in a “liquid” environment.
Notable clients include Google, Amazon, Cisco, Facebook and Oracle.
JFrog beat and raised estimates for full-year 2023 top and bottom lines.
FROG shares are up 20% year-to-date (YTD) and have a 2.13% short interest.
5 stocks we like better than JFrog

DevOps platform provider JFrog Ltd. (NASDAQ:FROG) stock has seen a resurgence as it nears the upper weekly rectangle trendline resistance. The stock has been in the trading range for over a year.

The “Liquid Software” company provides essential and mission-critical tools to enterprise technology companies to help manage software artifacts and binaries across DevOps and DevSecOps software supply chain processes.

Like liquid, its continuous delivery environment ensures that software is updated and released constantly and securely. Despite the challenging macroeconomic climate, the company continues to see growing demand for solutions.

JFrog has most Fortune 100 companies as clients. Some of its high-profile clients include Alphabet Inc. (NASDAQ:GOOGL), Amazon.com Inc. (NASDAQ:AMZN), Cisco Systems Inc. (NASDAQ:CSCO), Oracle Co. (NASDAQ:ORCL) and Meta Platforms Inc. (NASDAQ:META).

Software artifacts and binaries

The company provides software and tools for storing, delivering and managing software binaries and artifacts through its hybrid, multi-cloud platform. Artifactory is its universal artifacts repository. Software artifacts include source code, test results and documentation.

Binaries are configuration files, executable files and libraries. Software artifacts and binaries are traceable and improve collaboration between developers, improving the quality of the software. These two components are crucial to the software development processes as they store crucial information that enables developers to test and run the software. JFrog Xray scans artifacts for vulnerabilities.

JFrog DevOps tools

JFrog Pipelines is a continuous integration and continuous delivery platform enabling the secure delivery of artifacts and binaries. JFrog empowers client companies to manage their software delivery pipelines, a crucial feature that companies like Google, Amazon Web Services, and Oracle utilize.

Cisco and Facebook use the JFrog platform to improve their software’s security. The liquid environment helps clients become more agile and responsive to changes while helping to contain costs through the building, testing and deployment automation.

Beat and raise

May 3, 2023, JFrog released its fiscal first-quarter 2023 results for the quarter ending March 2023. The Company reported an earnings-per-share (EPS) profit of $0.06, excluding non-recurring items, versus consensus analyst estimates of $0.03, a $0.03 beat. Revenues rose 25.3% year-over-year (YoY) to $79.82 million, beating analyst estimates of $78.4 million.

CEO insights

JFrog CEO Shomi Ben Haim commented, “The market continues to validate the JFrog Software Supply Chain Platform as a mission-critical piece of companies’ infrastructure, reflecting the reality that software packages and binaries are the primary assets companies manage and secure across DevOps and DevSecOps.” The growing demand can generate significant cash flow margins and solid growth over the next five years.

Raised guidance

JFrog raised its fiscal Q2 2023 guidance EPS of $0.05 to $0.06 versus $0.03 consensus analyst estimates on revenues of $82.5 million to $83.5 million versus $82.77 million consensus analyst estimates. JFrog raised its full-year 2023 EPS guidance of $0.19 to $0.21 versus $0.18 consensus estimates. It sees full-year 2023 revenues of $341.5 million to $345.5 million versus $342 million consensus analyst estimates.

JFrog analyst ratings and price targets are at MarketBeat.

Author

Jacob Wolinsky

ValueWalk

Jacob Wolinsky is the founder of ValueWalk, a popular investment site. Prior to founding ValueWalk, Jacob worked as an equity analyst for value research firm and as a freelance writer. He lives in Passaic New Jersey with his wife and four children.

EUR/USD looks apathetic around 1.1770

EUR/USD comes under renewed pressure on Tuesday, deflating below the 1.1800 support and reversing two consecutive days of gains. The pair’s decline follows the persistent move higher in the US Dollar, as trade uncertainty dominates the sentiment ahead of President Trump’s SOTU speech.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.