Shares JFrog Ltd. hit their highest value in almost four years today after the software development company revealed strong revenue growth and raised its guidance for the full year.

The company reported second-quarter earnings before certain costs such as stock compensation of 18 cents per share, edging past Wall Street’s target of 16 cents, while revenue soared 24% to $127.2 million, well above the $122.9 million forecast.

On the other hand, the company saw its overall loss grow to $21.6 million at the end of the quarter, rising from a loss of $14.3 million in the year-ago period.

Even so, Wall Street was clearly impressed with JFrog’s performance, which also saw it post an adjusted operating income of $19.3 million in the quarter, ahead of the Street’s forecast of $17.6 million. Billings for the period were up 32% to $149 million. The company’s stock soared in the hours after the report, and was up more than 16% after-hours.

JFrog is the creator of a comprehensive software supply chain platform that’s used by DevOps, DevSecOps, MLOps and MLSecOps teams to secure and manage the components of business critical applications. Its platform is centered on Artifactory, which is an open-source code repository, somewhat similar to GitHub except that it’s used for storing binary files rather than application code. Those are the files used by the underlying server hardware to understand the human-readable programming language those apps are written in.

In addition, the company sells a continuous integration and continuous delivery platform called JFrog Pipelines, which is used to create automated software workloads that transform the raw application code into binaries.

Co-founder and Chief Executive Shlomi Ben Haim (pictured) said the company’s unified focus on DevOps, security and MLOps positions it as a “system of record” for all software packages and a gold-standard model registry for the artificial intelligence ecosystem. “Our second quarter results reflect continued strong execution amid a period of ongoing uncertainty,” he continued. “We remain focused on disciplined operations, while driving high-quality, sustainable growth across the business.”

JFrog’s impressive growth was especially apparent in the cloud, where revenue topped $57.1 million in the quarter, up 45% from a year earlier. It accounted for 45% of the company’s total sales, up from 38% in the year-ago quarter, demonstrating that the company continues to make progress in its efforts to shift more customers to the cloud.

The company also posted an improving net dollar retention rate of 118%, up from 116% a year ago. NDR measures how much revenue a business retains from its existing customers over a specific period, accounting for upgrades, downgrades, and customer churn. So any number above 100% indicates that sales from existing customers are growing,

Customer growth continued to accelerate too. According to JFrog, it ended the quarter with 1,076 customers that delivered at least $100,000 in annual revenue, and 61 who generated at least $1 million, up from 928 and 42, respectively, one year earlier.

The company also struck a key strategic alliance with Nvidia Corp. during the quarter, saying its platform will serve as the primary artifact repository and secure model registry in that company’s recently announced Enterprise AI Factory, which provides a secure and scalable environment for developing AI agents and applications.

JFrog seems to think it’s going to extend its good performance, for its executive leadership decided to raise the company’s fiscal revenue guidance to $508.5 million at the midpoint of their forecast range, up from $502.5 million before. That puts it above Wall Street’s target of $503.3 million. For the current quarter, JFrog has further optimism, offering revenue guidance of $128 million at the midpoint versus the $125.8 million analyst forecast.

JFrog’s investors liked what they saw, and the company’s after-hours jump means its stock is now up more than 32% in the year to date, well ahead of the broader S&P 500, which has gained just 7% in the same period.

Photo: JFrog