JFrog's Q4 Earnings: Analysts' Expectations and Peer Performance
JFrog (NASDAQ: FROG), a leading software development tools provider, is set to report its Q4 earnings after the closing bell today. Analysts anticipate the company's revenue to increase by 17.5% year-over-year to $114.3 million, a deceleration from the 27.1% growth recorded in Q4 2021. Adjusted earnings per share are estimated at $0.14.
Recent Earnings Performance
In Q3 2022, JFrog exceeded analysts' revenue projections by 3.1%, reporting $109.1 million in revenue, a 23% year-over-year increase. The company outperformed analysts' billings estimates and demonstrated impressive growth in large customers, adding 38 enterprise customers with annual spending exceeding $100,000, bringing the total to 966.
Analyst Consensus
Analysts have largely maintained their earnings estimates for JFrog in the past 30 days, indicating their belief in the company's ongoing momentum. However, it's worth noting that JFrog has missed Wall Street's revenue estimates four times in the last two years.
Peer Performance
Peers in the software development segment have already reported their Q4 results, providing insights into industry trends. Cloudflare reported a 26.9% year-over-year revenue increase, exceeding analysts' estimates by 1.8%. F5 reported a 10.7% revenue increase, surpassing expectations by 7.2%. Both companies experienced positive stock price movements following the announcements.
Investor Sentiment
The software development sector has seen positive investor sentiment, with average share prices rising by 9.3% over the past month. JFrog has gained 12.7% during the same period and enters its earnings report with an average analyst price target of $36.98, compared to its current share price of $35.99.