JFrog Ltd.

Thank you for standing by, and welcome to the JFROG Q2 Fiscal 2022 Financial Results Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question at that time, please press star 1-1 on your touchstone telephone. As a reminder, today's conference call is being recorded. I will now turn the conference over to your host, Mr. Jeff Schreiner, Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us as we review JFROG's second quarter financial results. which were announced following market close today via press release. Leading the call today will be JFrog's CEO and co-founder, Shlomi Ben-Haim, and Jacob Shulman, JFrog's CFO. 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 third 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 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 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, filed 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 June 30, 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 a measure 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. With that, I'd like to turn the call over to JFROG CEO, Shlomi Benhai. Shlomi?

Thank you, Jeff. Welcome, everyone, to our Q2 earnings call and greetings from the Swamp. I'm happy to report yet another strong quarter for JFrog as the adoption and demand momentum for our DevOps and security products continues. As we will share today, I'm pleased to see our strategic investment bear fruits. In Q2, JFrog revenues exceeded the midpoint of our guidance by more than 3% for the second straight quarter. And we are excited to report that our strategic sales team, again, broke all-time records with multi-year, hybrid, full-platform deals signed with some of the world's leading enterprises. Our second quarter revenue was $67.8 million, reflecting 39% growth year-over-year compared to 41% reported in the previous quarter. Our cloud revenue grew by 68% year-over-year compared to 63% reported in the previous quarter, demonstrating our cloud-first strategy and driven partly by continued growth in our cloud marketplace channels and customers' cloud migrations. As for larger company deals in the quarter, the number of customers with ARR over $100,000 grew to 647 compared to 599 in the previous quarter, increased 56% year-over-year, and our trailing four quarters net dollar retention grew to 132% compared to 131% reported in the previous quarter. Our customers tell us that JFog is a mission-critical piece in how they pull software from public hubs build, manage, secure, and distribute it to production. JFrog Artifactory serves the software organization as the single system of record, and we continue to see that JFrog is an infrastructure backbone and remains a cornerstone of our customer software delivery process at scale. Now, allow me to elaborate more about the teams that drove JFrog's success this quarter. the scaling up of the cloud, cloud migration, and cloud marketplace expansion. Second, the maturation and adoption of security solution in DevSecOps domain that covers the organization software supply chain. Third, the strong validation of the binary-centric platform. And fourth, our emerging success in DevOps for IoT and connected devices. Let's begin with the DevOps in the cloud. in q2 j4 twice broke internal records for the largest deals in the history of our cloud and hybrid solutions the enablers for these deals continue to be the growing demand for hybrid multi-cloud devops solution and the work of our teams to drive migrations while deepening the partnership with cloud marketplace vendors that enable simplified purchases and processes for example The now largest deal ever for J4Cloud came in Q2 via one of the world's largest travel and hospitality booking companies. In this strategic deal, the customer required a holistic DevOps and SecOps SaaS solution to expand their global binary distribution and reduce their infrastructure costs while simplifying the security policies of their software supply chain. JFOG Platform will support the customer's global scale, provide DevOps as a service to their thousands of developers, and protect their millions of customers. In addition, We see robust cloud growth among our platform users. For example, the second major deal this quarter came from one of the world's largest financial institutions that migrated part of its IT assets to JFOX Cloud, grew their adoption, and increased their annual spend by 67%. As these financial institutions transition towards a multi-cloud environment in the upcoming years, the hybrid deployment model will provide standardization across both cloud and self-managed solutions, allowing for integration and collaboration across development and release teams. As a long-standing customer, this company has grown from an initial deployment of Artifactory and expanded to security and distribution through the use of the JFrog platform. Now, to our security pillar. Our investment in security keeps bearing fruit as we see an accelerating trend of companies turning to JFrog, looking for a robust way to secure their software supply chain. In today's world, more and more hackers are targeting developers to gain access to an organization. Companies are realizing that securing binaries is critical, acknowledging that using point solutions without a holistic security approach continues to expose them to external vulnerabilities. For example, a large global technology hardware manufacturer turned to JFrog and Q2 to modernize its software supply chain security processes. In a competitive replacement, JFrog uniquely provides these new customers with highly available solutions, software distribution, and more. Understanding they also needed to scale security continuously with over 1,000 developers, they lacked a fully integrated solution to provide scanning and remediation path across their DevOps pipelines. Now, as a full-platform customer that enjoys the integrated power of Artifactory and X-Ray, this company will be able to more securely automate its software delivery all the way to production in the cloud and on-premises. The continued pattern of full-platform adoption also aligned with the market demand. In Q2, one of the world's largest integration and API platforms migrated from Sonotype Nexus to JFOX platform. As these customers attempted to scale with their existing setup, they required a cloud-based DevOps platform that offers an extensive variety of cloud-native support to speed up their internal development while protecting them against vulnerabilities. They chose JFrog's platform to support their need for a highly available, robust, universal software package, storage, and distribution mechanism to trust the releases all the way to the edge. Finally, onto the next-gen DevOps announcement we have made in the IoT and connected devices business. JFrog keeps innovating and addressing DevOps big challenges. We introduced the world with the first binary repository that became the single source of record in the industry. We expanded our solution by building a SecOps composition analysis tool that became the standard in how software supply chain is being protected. And now we are addressing the next pain for development team, which is updating software on the edge. Last May, At our user conference SwampUP, we announced and demonstrated J4 Connect, a product combining J4 DevOps platform capabilities with the technology of AppSwift, a company we acquired in Q3 of last year. We are already seeing early demands for the product in the enterprise and how it will drive broad platform extensions. No other company provides a complete end-to-end DevOps and security flow all the way to connected devices. Today, over-the-air update solutions are made by companies forced to build their own technology that doesn't connect to the CI-CD flow, making them insecure and slow. The market of software updates on devices takes DevOps beyond not just the data centers and the cloud, but all the way to the edge. We believe J4 Connect is the next logical step in fulfilling the Liquid Software vision, and it is now offered in the GA version. At SwampUP, we were proud to make additional announcements across our three core areas, DevOps, Security, and IoT. In our core DevOps area, we were honored to share the SwampUp stage with the tech lead of the Swift project at Apple, which is the new standard for iOS developers. Swift package management is moving from a source code-centric approach to a binary-centric approach, and the team has worked closely with JPEG to develop the first enterprise-grade software package support for Swift in JPEG Artifactory. Building on our solid foundation in JFrog X-Ray, we also announced new advanced capabilities for end-to-end software supply chain security. This includes detecting malicious software packages, scanning the discovered secrets such as API keys and passwords, and infrastructure as code security scanning to detect cloud security misconfigurations before it's set up on the cloud. This was the most consequential set of security capabilities ever announced by J-Frog. These new capabilities will be offered to customers as an additional package on top of our existing subscriptions beginning in late Q3. When we acquired Vidoo last year, we committed to delivering integration in 2022. The development and introduction of our advanced security package demonstrate the execution of that promise. Finally, we announced integrations with ServiceNow and Microsoft Teams that enhance J-PROG offerings across marketplace and make J-PROG solutions too integrated to fail. Both Microsoft and ServiceNow products need access to J-PROG Artifactory as the repository that stores all binaries and enables full automation of the DevOps pipeline. and to X-Ray, which secures them at all stages. For J4 customers, these integrations will create a DevOps environment from developers all the way to runtime with best of breed products that coexist and avoid vendor locking. Before we turn to our financial review, I would like to address the macroeconomic changes the world is now experiencing. A downturn in the global economy requires companies to look at their business efficiency, product diversity, cash management, and path to profitability. Our renewal rates in both on-prem and cloud have remained robust and continue to perform very well. In addition, our cloud revenues continue to see positive usage trends, however, During the second quarter, we started seeing elongated sales cycles for large new business deals compared to trends we have seen in the past. We would also note that Asia-Pacific, which is currently our smallest geographic region in terms of revenues, has seen slower levels of DevOps adoption relative to our prior expectations. Given our customers' view of JFrog's DevOps platform, As a critical component to modernize the software supply chain, we anticipate only a small potential impact on overall customer usage. We acknowledge and have accounted for the current macroeconomic headwinds emerging globally in our guidance. We are confident that JPOC is well positioned to succeed. We believe JPOC continues to grow long-term revenue at 30% or greater even as overall global IT budgets may be pressured during the second half of the year. 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 Q3 and full year 2022. Jacob?