JFrog Ltd.

Ladies and gentlemen, thank you for joining us, and welcome to JFrog's first quarter 2022 earnings conference call. I'll hand the conference over today to Joanne Horn of JFrog Investor Relations Team. Joanne, please go ahead.

Good afternoon, and thank you for joining us as we review JFrog's first quarter financial results, which will be announced following market close today via press release. Leading the call today will be JFrog's CEO and co-founder, Shalmi Benhaim, and Jacob Shulman, JFrog's CFO. Before we get started, 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 second 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. You are cautioned 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 obligated 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, 2021, followed with the SEC on February 11th, 2022, which is available on the Investor Relations section of our website, and the earnings press release issued earlier today. Additional information will be made available in our Form 10-Q for the quarter ended March 31, 2022, 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 JFROG'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. And with that, I'd like to turn the call over to JFROG's CEO, Shalmi Benhaim. Shalmi?

Thank you, Joanne, and greetings from the Swamp. Before we begin today's conference call, I want to say that our thoughts and well wishes continue to be with the millions of victims due to the humanitarian crisis in Ukraine. We hope and pray for more peaceful days ahead. Welcome again everyone to JFrog's first quarter earnings goal. 2022 got off a strong start for JFrog with the highest revenue growth in the past six quarters. These results are a clear reflection of several key strategies we implemented, joined with our cloud-first security focus, end-to-end platform approach, and impressive self-execution. As we will share today, Q1's numbers across all key metrics show how product-led mindset, market demand, and strategic investments are all aligned with our goals, leading to a sustainable, fast-growing company consistently generating positive free cash flow. Our first quarter revenue was $63.7 million, reflecting 41% growth year over year, compared to 39% reported in the previous quarter. This growth exceeded the midpoint of our guidance by 4%. Our cloud revenue in the first quarter grew by 63% year over year, compared to 52% reported in the previous quarter, driven primarily by increased usage of our security capabilities and growing adoption of our platform subscription through our cloud marketplace channels. As a result of this demand, the number of customers with ARR over $100,000 also grew significantly to 599 compared to 537 in the previous quarter. And our trailing four-quarter net dollar retention expanded to 131% compared to 130% in the previous quarter. During the first quarter, we saw a trend of more companies moving forward, adopting one-stop solution, going from binary storage then to security, distribution capabilities, all provided in our integrated platform. This end-to-end adoption is driving higher consumption by our customers. Now allow me to elaborate more about the following strategies and changes we applied that drove the company's growth in this quarter. First, investment in our cloud, hybrid, and multi-cloud offerings. JFrog's strategy of enabling a hybrid environment is being validated daily by our customers who are considering or already moving between cloud and on-prem with their DevOps and security tools. Second to security, our security solution is setting a new standard in the market. Modern organizations already understand that security scanning isn't enough and need a holistic solution to secure their software supply chain. Third, Our end-to-end platform approach delivers full binary lifecycle control, allowing companies to build faster, secure easily, and distribute in a fully automated flow. Our investment in a unified enterprise-grade platform is key to the growth we see. Fourth, our 360 funnel management and investment. Not only is JFrog bottom-up, but also selling top-down. Sales are not only direct and through our inside and strategic sales teams, but now we will also be expanded through partners and channels. Today, I will share with you how these focus areas are fulfilling our goal strategy. In Q1... we continue to see that binaries, or software packages, are at the crossroads of the modern software supply chain. As our customers well know, binaries are brought into the organization from third-party hubs, and binaries are what you build, secure, automate, and deploy. There is no way to manage and automate your software all the way to runtime without managing your binaries. Increasingly, As our customers demonstrated, the runtime of choice is trending towards cloud. I'm pleased to announce that during the first quarter, we recorded the largest ever single company cloud contract in JFrog's history. A manufacturer of semiconductor and industrial software is undergoing a massive digital transformation and promoting a strategic transition to the cloud. They started with JFrog Artifactory, grew into adoption of the entire JFrog platform, and are now completing their end-to-end cloud standardization across all business units. While this deal is an amazing achievement, it also validates our long-held strategy to provide customers with hybrid and multi-cloud solutions that will serve them across deployment environments as they migrate to the cloud. As another example, within this quarter of a full platform subscription in the cloud, one of the largest American-based manufacturers of automotive software saw a need to standardize its DevOps processes and incorporate security. After already utilizing J4G Artifactory as a single source of proof for DevOps, the customers reached out to us to normalize software distribution across its global team. In partnership with our strategic sales team, the manufacturing customer moved to JFork Platform Enterprise Plus subscription in the cloud, which led to a net new ARR of $500,000. Moving to security, we were all reminded in Q1 that the global software supply chain is under constant attack. As we mentioned in our Investor Day in February, there was undoubtedly a new Lock4J incident coming around the corner. Regrettably, a new critical vulnerability, Spring Shell, came just weeks after Lock4J affected the entire industry. This only made it more apparent that we need a new approach to SecOps that couples automatic identification and rapid remediation across an entire company. The combined power of J-Fog Artifactory and X-Ray continues to protect customers from these types of incidents, turning what could be days and weeks of finding, fixing, replacing, and testing down to just a few hours. We see net new and existing customers upsell pipeline being generated for JFOG solutions based on both industry leading tools and our outstanding and trained security research team. This dedicated team is already demonstrating industry leading zero day vulnerability detection capabilities with more discoveries than other security companies in the domain. The security research team is also working closely with our product groups to integrate an in-depth analysis of vulnerability directly into the J-PROG X-ray database to protect customers more quickly. We were also excited to continue to extend the security capabilities in Q1, announcing contextual analysis features. JFrog X-Ray now allows customers to more precisely determine the relevance of security vulnerabilities by looking at not just the binary itself, but also the environment it lives in or how it's configured. The unique functionality powered by JFrog Artifactory and X-Ray assists already overstretched DevSec ops teams and allowing them to quickly address the most critical security gaps And disregard irrelevant ones. To illustrate the value of our security offering, one of Europe's leading automobile manufacturers has turned to the JFrog platform to secure its software supply chain as the manufacturers develop self-driving car technologies. They have heavy dependencies on third-party software, and the holistic security coverage JFrog delivers, combining out the factory X-ray and distribution, led to an approximately $400,000 deal in Q1. The integrated team and technologies of JFrog and Vidoo are already making an impact on the market, and we look forward to further expanding our security solution in 2022. Let's move next to our end-to-end platform approach. One of JFrog's key differentiators is a focus not just on building better software, but getting it intelligently to where it is running and consumed across customers' distributed environments. Allow me to elaborate on the pain that organizations have with distributing software. Take a small globally distributed company which is developing one application. This single application must run in 20 different locations in the world. Each of those locations require different versions of the software to address the various export controls and compliance regulations with each country. The organization has to manage this process across all 20 locations each time releasing a new software version. Now take a large enterprise and multiply that effort exponentially as it manages hundreds and thousands of applications. JFrog continues to onboard customers and grow with more and more organizations choosing to meet these challenges with JFrog distribution as part of the unified JFrog platform. For example, One of the world's most used collaboration and meeting tools with nearly 300 million daily users is driven by a large development team in China with exactly these challenges. This company faces complications around the Chinese firewall, widely varied deployment environment, and consumers around the globe, quickly recognizing that only JPEG distribution could meet its needs. This contract was a net new win for the entire J4 platform. Going even further, software delivery doesn't end at the data center or the cloud anymore. Increasingly, companies are becoming connected device companies. This is why our strategic acquisition of AppSwift, now J4 Connect, is a key part of our liquid software vision. J4 Connect aims to bring together the world of IoT devices and the world of DevOps to create a unified flow across entire organizations from developers to devices. In addition to having tens of customers already using J4 Connect, we are seeing additional demand for managing large plates of devices remotely, including over-the-air updates, monitoring, controlling, and more. At the heart of our platform is our core flagship product, JPEG Artifactory, where we continue to innovate and support the developer and DevOps community with our universal approach. We recently expanded our offering by releasing support in Artifactory for the Dart programming language, an emerging technology driven by Google. This is a top 20 most popular technology of 2021. And support for its public repository, Pub, was a key request from the community, which we were happy to deliver. We are committed to the developer community by continuing to support all software packages and welcome dark developers to JFrog Artifactory. Finally, regarding our 360 panel management and investments. Last year, we focused on building a top-down sales motion with our strategic sales team, who are already showing results on growing the business across our top-tier accounts. This year, we are doubling down on partners and indirect sales. During Q1, we partnered with AWS for the support of their game initiative, and we were chosen as a key DevOps partner. JFrog already supports some of the most respected and well-known gaming platforms across the globe, including companies like Ubisoft, who see the partnership between JFrog and AWS as strategic to their business. In their own words, and I quote, we rely on JFrog Artifactory to provide a quick and easy way for each team to access their build tools, while the AWS Cloud enables cross-team collaboration so we can create the best video games on the market, end quote. These types of partnerships are just the beginning of a broader set of possibilities that JFrog can tap into. With increasing emphasis on resellers, partners, and alliances relationship within the software development ecosystem, we see attractive growth opportunities for JFrog as the global DevOps and security market expands. Speaking of relationships, we were honored to hear about the impact of JFrog's platform from some of our most trusted customers during our recent events. Our customers, Fidelity, spoke about the transition to the cloud and how J-Frog supported their massive scale at approximately 16,000 developers migrating thousands of applications in a hybrid and multi-cloud strategy, all having to keep their products and services running. Fidelity showcased how J-Frog continues to be mission critical, not just for their development teams, but for the entire business. We were also very excited to see the use case of Vodcom supporting 23-plus business units, such as CA Technologies and Symantec, covering not only thousands of developers, but also extensive M&A activities and standardization, supporting about 6,800 deployments per day. They said, if you have ever looked at DevOps tools, It's like a periodic table of hundreds and hundreds of applications and integrations. Artifactory, X-Ray, and VDU, and a number of other JPEG pieces are a part of our standard sets. We are proud to have customers who put trust in us as they build out their DevOps and security journey. As we now turning to financials, I want to reiterate our commitment to building solid growth alongside an efficient business with positive free cash flow in 2022, as we have in the past and continue to operate this year and beyond. With that, I would like to turn the call over to our CFO, Jacob Schulman, who will provide an in-depth recap of our quarterly results and update you on our outlook for both the second quarter and full year 2022. Jacob?