JFrog Ltd.

Thank you. Ladies and gentlemen, thank you for joining us. And welcome to JFROG's third quarter 2024 financial results conference call. I'll now hand the conference over to Jeffrey Schreiner, Vice President of Investor Relations. Jeffrey, please go ahead.

Good afternoon, and thank you for joining us as we review JFrog's third quarter 2024 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 Ed Grabscheid, 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 and including our outlook for Q4 and the full year of 2024. 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 the 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, 2023, 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 September 30th, 2024, 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 an isolation from, GAAP measures. Please refer to the tables in our earnings release for a 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, Ploemi van Huynh. Ploemi?

Thank you, Jeff. Good afternoon to you all, and thank you for joining our call. This was a very active quarter for JFrog, including at our annual user conference, SwampUP, where industry leaders like JPMorgan Chase, Intel, Google, Snowflake, Capital One, and others shared their powerful experience with the J-PROG platform on stage. Our partners, including GitHub, Nvidia, and Docker, joined us in announcing new levels of collaboration, underscoring our commitment to a unified platform experience. SwampUP was also an opportunity to spotlight and reveal the innovations driving J-PROG's future growth, including the release of J-PROG ML, which extends our software supply chain platform as the first to integrate DevOps, DevSecOps, and MLOps in one seamless solution. Additionally, we expanded our security offerings with JFrog Runtime Security, with customers recognizing it as critical solution for organizations seeking full visibility from development to production and back. At JFrog, we say, once you leap forward, you won't go back. Our customers share this belief, as is well shown in our growth retention, and the opportunities ahead align with our strategy, keeping us excited, focused, driven, and inspired. I'm pleased with our success in the third quarter. We believe we demonstrated not only strong execution within JFrog, but more broadly, customers are telling us that they see JFrog as a key strategic partner in the software development processes. Now, allow me to cover some of our achievements during the quarter in more detail. JFrog's Q3 was strong on all fronts. Our disciplined go-to-market execution led to some of the largest platform wins in JFrog's history, fueled by DevOps workload migration to the cloud, coupled with comprehensive software supply chain security. JFrog's unified solution empowers enterprises to seamlessly align DevOps security and MLOps on a single source of tools and approach that differentiate us and continues to strongly resonate with market demand. In Q3, JFrog's total revenue was $109.1 million, up 23% year-over-year. Cloud revenue for the quarter reached $42.4 million, representing 38% year-over-year goals, fueled by strategic cloud migration and steady usage patterns among committed annual customers. Based on these Q3 results, we remain confident in our full year 2024 guidance for cloud growth of around 40%. Customers in Q3 with ARR over $100,000 grew to a total of 966, up from 848 in the year-ago period. The number of customers with an ARR exceeding $1 million increased to 46 up from 30 in the year-ago period, representing 53% year-over-year goals. In Q3, our go-to-market team demonstrated strong execution, winning large deals for our complete platform, primarily driven by demand for our cloud and security offerings. As previously shared, some of the significant deals we won faced delays due to a slower, more rigid procurement environment. Let me first address the cloud. Our cloud business experienced sequential growth driven by increased migration activities, though overall usage trends remained more moderate compared to the previous year. Customers tell us that the scalable and hybrid nature of the JPEG platform gives them the confidence they need to modernize their software development business, and we were pleased with an increased migration pace and usage in Q3. We maintain a cautious outlook regarding large migration deals in our 2024 pipeline, as we do not believe customers' migration activity has yet turned the corner. Next, to highlight security. The market continues to demand higher standards for software integrity with a focus on achieving trusted, secure, and traceable processes from software creation on the left to distribution and production on the right. DevOps and DevSecOps are therefore inseparable, and the JPEG platform is purpose engineered to meet this requirement. In line with this industry shift, enterprises are prioritizing modernization of their holistic software supply chain security. They seek to streamline developer workflows by consolidating point solution tools and reducing vendor dependencies. thereby enhancing security and efficiency across the software supply chain. This trend has been voiced by our customers and prospects over the recent quarters and was evident in our Q3 wins, which, as predicted, included JFrog Advanced Security and JFrog Curation as key drivers. It's not a question anymore about if a company will adopt a holistic platform that incorporates end-to-end software supply chain security, but the question of when. As mentioned, in Q3, we held our 10th annual user conference warm-up in Austin, Texas. As the industry continues to demand more from development teams, we gathered with our customers and the community to drive the future of DevOps, DevSecOps, and MLOps. We were excited to announce the availability of J4 Grand Themes Security, delivering as part of our platform the very first DevSecOps solution that allows companies to have full integrity and software lineage traceability from cost to production and back across every development and pipeline phase. In addition, we showcase the second phase of our strategic partnership with GitHub, announcing co-engineered solutions that unify both companies' advanced security capabilities and importantly, bring AI capabilities via the co-pilot integration with JFrog Curation and JFrog Catalog. GitHub CEO Thomas Domke joined me on a keynote session, shared, quote, together with JFrog, we have let this lightning out of the bottle. And of course, we're bringing the power of JFrog to GitHub co-pilot. Now you can ask co-pilot about your packages, in Artifactory and about your internal processes and configurations specific to your company. And this is just the beginning." End quote. We also announced a strategic collaboration with NVIDIA to bring secured, optimized machine learning models into the software supply chain and serve our joint customers with Artifactory as NVIDIA's new model trusted registry. This announcement was also shared In our shareholder and analyst briefings, we conducted onsite in Austin and are available on our IR website or at swampup.jfrog.com. Before we dive into financials, in Q3, we demonstrated strong execution across our product strategy and deliveries, ecosystem partnerships, platform expansion, sales wins, free cash flow, and overall business efficiency. This success is in line with our strategy, and we are excited about the opportunities ahead. With that, I'll put the call over to our CFO, Ed Grabscheid, who will provide an in-depth recap of our Q3 financial results and our outlook for Q4 and full fiscal year of 2024. Ed.