JFrog Ltd.

Ladies and gentlemen, thank you for joining us and welcome to the JFrog Third Quarter 2025 Financial Results Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Jeffrey Schreiner, Head of Investor Relations. Jeffrey, please go ahead.

Thank you, Nicole. Good afternoon, and thank you for joining us as we review JFrog's third quarter 2025 financial results, which were announced following the market close today via press release. Leading the call today will be JFrog's CEO and co-founder, Shlomi Benhaim 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 the full year of 2025. 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 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, 2025 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 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, Shlomi Benhaim. Shlomi.

Thank you, Jeff. Good afternoon and thank you all for joining the call. JFrog's focus as a foundational platform and system of record for software delivery continues to drive momentum in our business. And I'm pleased to report another solid quarter across all metrics. Our execution remains focused, our investment remains strategic, and our customers continue to tell us we are helping them to meet the demands of a fast changing technology market. In Q3, JFrog's total revenue was $136.9 million, up 26% year-over-year. Our operating margin was 18.7% in the quarter, demonstrating our ongoing discipline between expenses and strategic investments. Cloud revenue for Q3 equaled $63.4 million, representing 50% year-over-year growth. We experienced another strong quarter of cloud revenue growth driven by increased usage of conventional software packages and ongoing increases in usage of artifacts such as PyPI, Docker containers, NPM, and models coming from Hugging Face for AI and machine learning. Our go-to-market teams are executing on a clear strategy of guiding cloud customers with usage overages toward higher annual commitments in order to build stronger partnerships and drive predictable long-term value for customers and for JFrog. Our enterprise sales motions continue to bear fruits with greater than $1 million customers growing to 71 compared to 46 in the year-ago period, equalling 54% growth year-over-year. Customers spending more than $100,000 annually grew to 1,121 compared to 966 in the year-ago period, equalling 16% year-over-year growth. In Q3, our full trading quarter net dollar retention was 118% demonstrating sustained growth among our customers base, driven by strong cloud usage and fueled by our holistic software supply chain security offering. Ed will further discuss net dollar retention later in the call. Now let me spotlight Q3's wins, including cloud and security, and discuss JFrog's AI and machine learning developments. First, addressing our cloud growth in Q3. Our ongoing growth in the cloud is supported by two vectors, our expertise in managing customers' binaries as they scale alongside AI-generated artifacts, and our observation of emerging trends in AI software package volume. We believe Qtree's cloud performance reinforces how customers view the JFrog platform and artifactory at the core of their operations. JFrog is already positioned as the universal binary repository to manage all software artifacts and is becoming the model registry of the software supply chain. As software continues to be created at an ever-growing pace by both humans and machines, the volume of artifacts rises, demanding not just intelligent storage, but a robust binary delivery system and a single reliable system of record. As their delivery pace increases, our customers are adopting hybrid, fit-for-purpose cloud strategies for their emerging AI workloads. They tell us they value cloud elasticity for AI adoption and deployment, but remain flexible in their approach due to the unpredictable compute cost, advising us that it's still too early for them to go all in on the public cloud. Meanwhile, the volume of AI-driven packages is rising, fueled by our Hugging Face integration and native support for ML models, Docker, NPM, PyPI, and other key components demanded by AI. We continue to monitor cloud adoption and AI-driven usage closely and believe it is still too early to bet on significant cloud usage goals. Our hybrid and multi-cloud offerings differentiate JFrog and uniquely position us to capture expansion due to AI, whether in the cloud or on-prem, delivering unmatched software supply chain, holistic platform capabilities, and deployment flexibility. Next, to security. In Q3, again, we saw some of JFrog's largest customers' wins, including new logos and significant multi-year contracts. Many of these deals included JFrog's holistic security solutions, such as JFrog Curation and JFrog Advanced Security. We experience this customer's purchasing behavior across multiple verticals and geographies. For example, we closed a three-year deal with the United Kingdom's Customs and Revenue Agency with a TCV of $9 million. In a similar move, a key US federal agency chose JFrog to shift left with JFrog Security Solutions and protect their software supply chain and 2,000 developers with an Enterprise Plus subscription, JFrog Advanced Security, and JFrog Curation as their open source software package firewall. In North America, our enterprise focus drove the closing of a net new customer deal with a TCV of more than $4 million for one of the world's top energy corporations. They were seeking to modernize and standardize software supply chain security and processes for the 3,500 developers choosing the core JFOC platform with JFOC security solutions in the cloud. This example wins give us confidence that the future of the software supply chain security and software governance market is being written not by point solutions, but by holistic system of record that incorporate binary management and end-to-end security consolidated into a single platform. A unified platform is a growing requirement, as companies have seen software supply chain attacks increase significantly over the past year. These attacks have become more sophisticated, targeting built pipelines, AI and machine learning software supply chains, and exploiting vulnerabilities in software binaries. Recent NPM, IPI, and MCP attacks show hackers are keeping pace with technology, but our security research team and the J4 Curation solution have been praised by our customers for protecting them from these recent, potentially devastating attacks. A cybersecurity lead at a Fortune 50 American company noted to us following the NPM attack, quote, Our JFrog curation deployment provides a very effective and efficient supply chain protection. We were able to shut down recent provider attacks in mere minutes once discovered, and the control has proven 100% successful since." End quote. Nothing fuels us more than our customers' feedback, and we are committed to safeguarding the software supply chains and aiming to ensure digital trust across the software package lifecycle. Hackers are targeting software supply chains. They know that binaries, software packages, containers, and AI models are gateways into our customers' runtime environment. This is now a real threat to every organization. Without strong protection for your software supply chain and binaries, you remain exposed. Attacks are not a question of if, but when. While one quarter doesn't define a consumption trend, Q3's adoption of JFrog security solutions give us cautious optimism for broader long-term momentum. Now to AI and machine learning. We continue to gain traction in the market as the model registry providers and are being positioned as a system of record for AI delivery, validated by some of the world's leading AI companies. In fact, Justin Boitano, VP of Enterprise AI at NVIDIA, noted at the JFrog Annual User Conference SwampUP in mid-September that JFrog enables enterprises to securely build, manage, and scale AI agents the next generation of intelligent software from development to production. Quote, AI agents are the next wave of enterprise innovation, but they are also the newest and most critical software artifact to secure. This is no longer just about models. It's about industrializing intelligent autonomous agents. By integrating with NVIDIA AI Enterprise and streamlining deployment onto AI factories, JFrog is delivering the essential pipeline to rapidly secure, manage, and scale these AI agents from development straight into production." End quote. Moving throughout 2025, JFrog has embraced the AI revolution, focusing on what we believe we do best, driving the next standouts in the market as the single source of truth for AI software packages. We integrated JFrog ML into the JFrog platform, empowering data scientists and developers to build, test, experiment, and deliver trusted models into production. We launched our MCP server alongside groundbreaking MCP security research, redefining how developers and AI agents interact with their software delivery platform. In addition, we introduced AI Catalog, a new add-on to J4 Curation designed to secure and govern both third-party and internally developed AI models, ensuring they are safe, compliant, and aligned with company policies for responsible use across the organization. Our next generation of offerings in ML and AI, as well as our DevOps and security products, were highlighted for customers and analysts at SwampUP in Q3. Every year, JFrog welcomes customers, prospects, and partners to our SwampUP conference, a key industry gathering for DevOps, DevSecOps, and MLOps users. This year, JFrog innovations were front and center with pain-solving solutions for customers. On stage, we announced a new way for companies to govern and trust their application with an innovative product, JFrog AppTrust. We were joined for the opening keynote by NVIDIA, ServiceNow, GitHub, and Sonar to showcase our partnerships in an industry-first DevGovOps solution. DevGovOps brings software development, security, and GRC groups together, focusing on, once again, the key asset of any company, the software binary. As the complexity in the world of software increases, the requirements of security compliance and governance put pressure on development teams. The need to release fast and often, combined with high regulation, requires automation and collection of evidence, such as quality testing or security results, to keep software flowing with confidence. With the new JFrog app trust product, companies will now have an automated way across platforms to manage governance as they deliver software faster than ever before. Through to our vision of cross-industry collaboration and our commitment to build solutions that are too integrated to fail, UpTrust was launched in partnership with ServiceNow as the IT op system of record with JFrog as the system of record for the software supply chain in the words of Rahul Tripathi, General Manager of ITSM at ServiceNow. The future of software built by developers and AI agents must include automated governance achievable only through evidence-based quality gates and systems. JFrog UpTrust is paving the way to make that vision a reality. In security, we further showcase new abilities to secure developer extensions or the plugins developers use in their environments. This is a different type of supply chain attack, and JVAM customers can now protect developer extensions in addition to their software assets. We also launched agentic remediation capabilities and demonstrated on stage how JFrog solutions use AI agents to detect vulnerabilities in source code, identify remediation methods, prioritize contextual path to fix problems, and even protect against similar vulnerability in the future, first through our GitHub co-pilot integration and soon available for other code assistance. Finally, we introduced JFogFly, the world's first agentic repository, reimagining software supply chain management in the era of AI. With JFogFly, AI agents become co-builders alongside developers, orchestrating artifacts seamlessly across the entire software lifecycle. This allows developers to focus on what matters most, delivering software to production faster, at scale, and without friction. Small teams now enjoy a zero-hustle, AI-driven experience, tightly integrated with GitHub and native AI tools like Cursor, Cloud Code, and GitHub Copilot. JFogFly's agentic capabilities will be shared with selected users, giving developer teams the opportunity to experience AI-assisted software creation and delivery. These capabilities are planned for full integration into the JFog platform, powering our customers in the new era of intelligent automated software supply chain practices built on an agentic binary repository. We believe that these product innovations shared at SwampUP are, in the words of our customers, AT&T, a home run for our users. With that, I'll turn the call over to our CFO, Ed Grebscheid, with an in-depth recap of Q3 financial results and our updated outlook for the full fiscal year of 2025. Ed?