I think we have 2 great IPO’s coming this week. While everyone is busy talking about SNOW, JFROG is equally, maybe even more compelling.
46% Revenue Growth
82% Gross Margin (stable)
139% Net Dollar retention
16 month Payback Period
25x EV/Revenue Run Rate @ $41 IPO price
57% Free Cash Flow Efficiency
Customer list includes Microsoft, SAP, Google, T-Mobile, NetFlix
2019 Revenues - $105 M up 65% YOY
6 month 2020 Revenues - $69M up 50%
Continues to cut losses. $28M in 2018, $5M in 2019 and just $426,000 Q1&2 2020
Unfortunately, they raised their IPO from $33-37 to $39-41. That would put the valuation in the 3.5-3.7B. It’s priced to perfection at EV/Revenue multiple of 25x. but who’s looking for value in SaaS?
Howard Chen does a far better deep-dive into the company;s IPO than I could ever do. https://blog.publiccomps.com/jfrog-s-1-analysis/
Folks, we’re seeing some companies with crazy good financials and JFROG should be on that list.
Just FYI… JFROG is not the ticker symbol.
The company is JFrog Ltd.
The ticker (US) is FROG.
Never bother with a 5-character ticker symbol. Warning bells echo loudly.
post tenebras lux
For not in my bow do I trust, nor can my sword save me.
Never said it was the ticker. It’s the company name.
While everyone is busy talking about SNOW, JFROG is […]
“Snowflake” is the name, “JFrog” is the name…
SNOW is the ticker, FROG is the ticker
Points made, scores settled. Thanks very much, DoctorEvil, for the reference to the publiccomps writeup!
Point 1:I can’t find anything on the company’s history. There’s no wikipedia page about JFROG.
Point 2:If I am not mistaken, I think it’s a Israeli company. I think it’s better to invest in US companies. US stocks still have the best liquidity and investor demand from all over the world. I tried buying stocks from many countries, none of them come close to the quality of US companies. Note: I am not from US.
JFROG is not a market leader. Github is the market leader.
Donovan Jones on Seeking Alpha also discussed JFROG’s (FROG) IPO and concluded that it was priced for perfection at the original mid-point price of $35 per share, so he’s planning to watch it for now.
He included the financials already listed in DoctorEvil’s original post. Plus he noted that according to the Rule of 40 in which the combined revenue growth rate and EBITDA percentage rate equal or exceed 40% the firm is on an acceptable growth trajectory. FROG’s most recent calculation was 49% as of June 30, 2020, so the firm is doing quite well in this regard.
Also, Jones cites a 2018 MarketsAndMarkets report which estimated that the global market for DevOps software was $2.9 billion in 2017 and should reach $10.3 billion by 2023 for a CAGR of 24.7% from 2018 – 2023.
For now, given that SaaS is very popular, and there is a lot of buzz about several IPO’s, I plan to watch FROG jump for a while and perhaps catch it when it decides to take a short dip.
All the best,
I don’t want to get too into the tech weeds but GitHub and JFROG compliment each other more than compete.
Git is where your source code resides. Git does all the version control because it can read plain text. Git cannot handle binary files that have no textual context. If you want to handle binary code, JFrog Artifactory is the only universal solution that supports most package managers. It can connect with your CI environment and do more than manage your binary repositories.
In short, GitHub is used for source code and JFROG Artifactory is used for the binaries which go with the source code. Like I said Tech Weeds but definitely different markets. JFrog is more in competition with Agile Stacks, Sonatype, XebiaLabs.
Yes. Jfrog was based in Israel. They moved to and the IPO lists Sunnyvale, CA as their headquarters. If you are interested and for the most accurate information, I’d suggest you read their IPO registration for Company history and financials
BTW - I have zero/none/nada interest in JFROG just thought it was a nice addition to the Snowflake discussion as they will list at approximately the same time.
Best of luck.
JFrog now IPO-inf at $44/sh
Makes the P/S ~26 I believe. They are close to breakeven, so P/E is ~???
I should have proofed that. I thought the Infinity symbol I found was an html emoticon, but I didn’t check before pasting it.
(I know that P/E is not important here, but we’ve already identified that FROG clears the “Rule of 40” so I didn’t wish to repeat.)
I am planning on watching from the sidelines, but hope to remember to pay closer attention when the first earnings report comes out.