JFrog Ltd.

Good day, and thank you for standing by. Welcome to the JFrog's fourth quarter fiscal 2021 financial results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to Joanne Horne with Investor Relations. Please go ahead.

Thank you, Norma. Good afternoon, and thank you for joining us as we review JFrog's fourth quarter and full year 2021 financial results, which were announced following market close today via a press release. Leading the call today will be JFrog's CEO and co-founder, Shalemi Ben-Haim, and Jacob Shulman, JFrog's CFO. Before management shares their remarks, let me review the safe harbor statement. During this call, we may make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our future financial performance, including our outlook for the first quarter and full year of 2022. The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. Your caution not to place undue reliance on these forward-looking statements, which reflect our views only as of today and not as of any subsequent date. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of material risks and other important factors that could affect our actual results, Please refer to our Form 10-K for the year ended December 31st, 2020, filed with the SEC on February 12th, 2021, and our Form 10-Q for the quarter ended September 30th, 2021, filed with the SEC on November 5th, 2021, all of which are available on the investor relations section of our website, along with the earnings per list release issued earlier today. Additional information will be made available in our Form 10-K for the year ended December 31st, 2021, and other filings and reports that we may file from time to time with the SEC. Additionally, non-GAAP financial measures will be discussed on this conference call. These non-GAAP financial measures, which are used as measures of Jay's performance, should be considered in addition to, not as a substitute for, or in isolation from, GAAP measures. Please refer to the tables in our earnings release for reconciliation of those measures to their most directly comparable GAAP financial measures. A replay of this call will be available on the JFrog Investor Relations website for a limited time. With that, I'd like to turn the call over to JFrog CEO, Shlomi Benhaim. Shlomi?

Thank you, Joanne, and greetings to all of you from the Swamp. I'm excited to welcome you to our fourth quarter and fiscal 2021 earnings call. Every end of the year urges us to pause, look back, and observe the leaps the company has taken from all perspectives. I'm grateful for our customers and community. Their faith in JFrog and their determination to innovate and digitalize the world inspires us to bring our best to work every day. 2021 ended on a strong note. Our multiple strategies across technology, business, and culture continue to bear fruit that I'm happy to share with you today. I'm pleased to report that we delivered another strong quarter and that in Q4, all of JFrog's key metrics continued to trend upwards, reflecting the continuous demand for our platform in an expanding market. Q4 revenue was $59.2 million, a growth of 39% over the same period last year, and compared to 38% the overall growth reported in the previous quarter. Our cloud revenue in Q4 grew by 52% year-over-year, an increase from 50% reported in the previous quarter. This reflects our ongoing strategy of accelerating our multi-cloud and hybrid growth. Growth in customers with over $100,000 in ARR accelerated to 53% year-over-year, reflecting a compelling market need for complete JFOG platform solution with our Enterprise Plus subscription. I'm also happy to report that our four trailing quarters net dollar retention climbed to 130% as predicted, compared to 129% reported in the previous quarter. This was driven by customers' increased usage of our product as a unified platform with binary management, security, and software distribution as key drivers. This year, hundreds of new customers adopted our solutions, and I'm pleased to report that we closed the year with approximately 6,650 customers across industries, which represents 10% year-over-year net growth. Team JFrog, these 2021 results are a testament to your hard work and dedication, allowing us to better serve developers, DevOps, and security communities, exceeding our revenue commitments in every single quarter of the year. This success belongs to you and reflects the unique spirit of the Frogs. Now, I would like to share with you some additional market and business highlights. In a world that demands faster, secure, more innovative software to the edge, the DevOps-driven software supply chain is more top of mind and mission critical than ever before. Getting software updates to your vehicle, mobile application, medical devices, and more requires the ability to build, release, secure, distribute, and deploy binaries, often also called software packages. Complementary solutions for CICD and source code management make development more efficient, but this isn't enough to bring software quickly to the market. The moment first or third party code is compiled, it changes to a binary form and requires full binary lifecycle management from the developer's machine to the deployment environment to meet the demands of the business. This transformation into a digital and secure reality can be only achieved by managing the binary. To illustrate this, we only need to look at the major news item that shook the software industry late in 2021, the log4j vulnerability, or as coined by the community, the software pandemic. This affected almost every organization in the world within days of its discovery, frustrating millions of developers who had to drop everything and rush to identify patient zero across all software environments. This forced many companies to bring their entire software delivery organization to a halt until the vulnerability was found, fixed, and replaced. J4 customers were able to quickly identify where they were impacted and address the risk. For example, one of the Fortune 100 banks with over 20,000 developers globally was able to identify where the infected lock4j binary was hosted in their business and what dependencies it carried across the global pipeline. This identification happened in a matter of minutes with JFrog Artifactory serving as the bank's single source of proof and the database of DevOps, allowing them to replace the vulnerable log4j binary with a patched version and applying it across the organization automatically instead of manually finding every place it was being used in every application. Using JFrog X-Ray alongside Artifactory, they were able to easily protect themselves from additional exposure, setting security policies that automatically ensured vulnerable log4j binaries could not be used again by developers, and keeping the repository from further risk. And finally, JFrog Distribution, rapidly delivered and validated release to fix the software in all environments, including production. Altogether, this bank automatically found, rebuilt, replaced, and protected themselves against the all-vulnerable log4j binaries in under 12 hours. This speed is only achievable with a unified, integrated JVOC platform that automates these activities across a company. Development organizations without this approach have taken weeks hunting these binaries down, and many are still in the trenches trying to recover today. During the Lock4J episode, the power of a binary-centric approach to DevOps saved J4 customers potential millions of dollars in lost business due to downtime or security breaches, and countless hours spent by millions of global developers fortifying their software supply chains. The Lock4J vulnerability will not be the last impactful binary discovered by our industry. This happened in 2021 with NPM, Python, and it will happen again. This reality reinforces JFrog's strategy to manage the entire DevOps flow from the binary repository to security and through distribution to deliver complete automated pipeline control for every development organization. As a result, we are seeing a growing demand for our end-to-end platform. Now, on to some product and business highlights from Q4 and the fiscal year. In support of our Liquid Software vision, our roadmap in 2021 brought many innovations and enhancements to our holistic platform, deepening our commitment to deliver integrated automated solutions to the DevOps and DevSecOps communities. This included delivery for many of our core product categories, such as artifact management, CICD, security, and software distribution. Importantly, all of the solutions delivered in 2021 continue to fulfill our promises to always deliver universal, scalable products across self-hosted, hybrid, and cloud environments. As a result, we continue to see strong demand for our hybrid and multi-cloud subscriptions. In Q4 specifically, we were proud to partner with AWS for the announcement of EKS Anywhere on the AWS marketplace, which makes Amazon cloud services available for self-hosted customers as well. This move by AWS is a recognition that many companies see a hybrid model as a strategic move for the business, and we are excited to be at the forefront of hybrid DevOps with our customers and cloud partners. Our strategic investment in our cloud offering both root again in Q4. And as an illustration of our cloud subscription growth, one of the largest providers of GPS and geolocation services in the world recently became a new customer of JFrog, standardizing their development team on JFrog's SaaS solution. They were looking for a DevOps partner to scale alongside their company growth and had found their existing competitive offering would no longer scale to meet their needs, nor able to support their cloud-first initiatives. With the J4 platform provided as a service in the cloud of their choice, they have managed to successfully migrate all of their binaries and scale across multi-site setup. We look forward to partnering with more J4 customers like TomTom, headquartered in EMEA, or FastAF, a luxury retail delivery company headquartered in North America, to ensure our DevOps solution meets enterprise demands across all vertical and hybrid deployments. Across geographies, JFrog distribution, which delivers binaries to production environments, such as data centers or Kubernetes, remained a key driver for upgrades to our full platform subscriptions. One of the world's largest financial institutions recently upgraded to JFrog's Enterprise Plus subscription in order to distribute binaries for thousands of applications written by thousands of developers delivering to dozens of global locations, each with their own regulations and compliance needs. Examples such as this illustrate a continuing trend we are seeing in organizations. The need to secure, automate, and manage software distribution at scale across all applications and multiple releases per day can no longer rely on manual processes built in-house and implemented a decade ago. These complex environments and the pace of releases requires a binary-centric and distribution-capable DevOps platform in order to be successful. To avoid friction, with the platform capabilities and to focus on one consolidated platform, we decided to sunset Bintre, our legacy distribution as a service offering that provided a standalone binary store and distribution service. We managed an extensive and transparent process with our community and customers of shutting down this service in 2021. As a natural extension of the increasing value of JFrog distribution, we also recently made JFrog Connect available following our acquisition of AppSwift. This early offering for connected device management aims to greatly increase our addressable market by bringing binaries all the way to devices. JFrog Connect will bridge the world of DevOps with the exploding market of IoT and connected devices. We look forward to driving this growth at the edge in the future. We are innovating, extending, and maturing our platform, which we believe will serve not just millions of developers, but billions of devices with the ability to build, manage, protect, update, and automate next-gen software supply chain from any source to any device. On the go-to-market front, during the year, we also focus on building our strategic sales team backed up with high-touch support, field marketing, and solution architects in order to expand business with our key accounts. During Q4, we continue to see the fruits of this investment as we welcome more and more large enterprises who are expanding their J-PROC product adoption. In fact, one of the world's largest telecommunication providers, managed by our strategic team, is continuing to standardize on JFrog in order to reduce the usage of ad hoc tool sets and to develop DevOps best practices across the organization. This over $1 million customer grew over 80% year over year and continues to expand. We believe that the expanded strategic sales team will continue to drive this consolidation pattern as we bring more solutions into the market. We look forward to extending our deep customers' relationships and innovative technologies to meet these enterprise needs. As a final note, before we dive into the financials, I wanted to extend a warm welcome to the newest member of JFOG's board, Mira Rajabel. Mira currently serves as the CIO of Citrix and brings more than 20 years of experience in enterprise software and cybersecurity. We are proud to have her joining our board and look forward to her guidance as J4 continues to grow. With that, I would like to turn the call over to our CFO, Jacob Schulman, to look more deeply at the 2021 Q4 and fiscal year financial numbers and share our outlook for 2022. Jacob, stage is yours.