Software development tools maker JFrog (NASDAQ:FROG)
will be reporting results tomorrow after the bell. Here’s what investors should know.
JFrog beat analysts’ revenue expectations by 4.7% last quarter, reporting revenues of $97.26 million, up 27.1% year on year. It was a solid quarter for the company, with an impressive beat of analysts’ billings estimates and an improvement in its gross margin. It added 38 enterprise customers paying more than $100,000 annually to reach a total of 886.
Is JFrog a buy or sell going into earnings? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts are expecting JFrog’s revenue to grow 23.6% year on year to $98.62 million, slowing from the 25.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.
Looking at JFrog’s peers in the software development segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Datadog (NASDAQ:) delivered year-on-year revenue growth of 26.9%, beating analysts’ expectations by 3.3%, and Cloudflare (NYSE:) reported revenues up 30.5%, topping estimates by 1.4%. Cloudflare traded down 16.4% following the results.
Read the full analysis of Datadog’s and Cloudflare’s results on StockStory.
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Inflation fears have put pressure on growth stocks, and while some of the software development stocks have fared somewhat better, they have not been spared, with share prices down 2.6% on average over the last month. JFrog is down 3.7% during the same time and is heading into earnings with an average analyst price target of $49.4 (compared to the current share price of $40.55).
