JFrog Ltd. (NASDAQ:FROG) Q1 2024 Earnings Call Transcript

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Brad Reback: Great. Thanks very much. Ed, on the digestion commentary, I understand the mid-40% cloud growth for the year, but it sure feels like you’re trying to point us towards less pronounced seasonality in the June quarter than we’ve seen the last couple of years. So maybe we’re towards the lower end of that mid-40s in 2Q. Thanks.

Ed Grabscheid: Yes, hi Brad. The way that we look at this is that it is a metric that has seasonality. What we’re guiding to in the mid-40s is for the full year. That means it’s around the mid-40s. It could be up a few points, it could be down a few points. What we know today and what we see is the commitments, and that’s around mid-40s. Anything above that would be usage. Anything below that, that could be because of monthlies. But what we see is around mid-40s. And seasonality will play a factor in that quarter-to-quarter.

Brad Reback: Okay, thanks very much.

Operator: Our next question comes from the line of Nick Altmann with Scotiabank. Please go ahead.

Nick Altmann: Awesome. Thanks guys. Just given the channel efforts and how you guys have bulked up the sales force over the last year. Can you maybe just talk to some of the productivity from some of the newly onboarded partners both last year and when you guys kind of held your first partner event, and then specifically on the direct go-to-market side, maybe just talk to overall sales productivity? Thanks.

Shlomi Ben Haim: Yes, Nick, the channel and partners, as we keep updating you, it’s one arm of the transition to the top down enterprise, indirect sales that we are running. The collaboration with the partners and with the channels is by geography and it’s by expertise. So it’s different partners that you will see on security versus different partners that you will see on DevOps is different partners that you will see in France versus different partners that you will see in Japan. And one last thing is that now we added and announced the Carahsoft partnership to also go after the public sector or the highly regulated environment, which they are super familiar with. So, we are expanding more and more the relationship with our partners and with our channels to have more resellers in the field that can promote the JFrog platform offering.

Nick Altmann: Okay, thanks. And then I wanted to follow up on the digestion comment. I think it was Koji asking about whether it was more sort of geared towards the SMB side of the equation. But any other trends that you saw within the installed base around the digestion? Was it sort of broad based? Was it GS [ph] specific, sector specific? Just any more granularity on that digestion comment that you made in Q1 and sort of any trends or patterns that you call out would be helpful. Thanks.

Ed Grabscheid: Yes, there was nothing that we saw in terms of trends. It was a broad base across the portfolio. Nothing that we can point out specifically.

Operator: There are no further questions at this time. I turn the call back to Shlomi for closing remarks.

Shlomi Ben Haim: Thank you everyone for joining our call. We had a wonderful quarter. We are looking for a more peaceful day in the region and may the Prague be with you. Thank you very much.

Operator: This concludes today’s call. Thank you for attending. You may now disconnect.

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