Jfrog Ltd at KeyBanc Technology Leadership Forum Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Let's start high level. If you just want to start off with a brief introduction of JFrog for maybe those who aren't familiar with the business, where does JFrog sit in that DevSecOps landscape?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : And I don't want to keep it as an industry level for a second and think about how the adaptation and adoption of cloud-native architectures and microservices, containers and how that's kind of changed the way we think about application development and kind of how that creates more of a need for JFrog. Is there anything you could speak to there?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Great, that's helpful to get kind of the lay of where JFrog sits in this landscape and hopefully everyone is a little bit more familiar with the business now for those who aren't. But you just reported earnings, 2Q earnings last week. It was a solid report, and now the macro is still challenging, and you called out some of those things. But correct me if I'm wrong, it seems like we could characterize it as some of the macro trends are stabilizing a bit. So kind of maybe talk about how the macro has trended over the past few quarters. What happened in 2Q and kind of some of those headwinds that you are seeing?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : That was great to see kind of usage coming back and some signs of stabilization. Maybe want to dig a bit more into the migration side of things. And this is migrations to your cloud product. What are you seeing from customers that's holding them up now in this stage and what might need to change for us to see that starting to come back at a more rapid pace?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : You're not alone in seeing some of these pressures from the macro environment and customers with tighter IT budget constraints right now. So what do you think customers think of as the relative priority of DevOps solutions and maybe more specifically JFrog within that?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Okay. Ready to talk about AI?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : So how are you thinking about the impact of AI in generative AI on application development and within that, JFrog solutions, and I'm specifically thinking about, you know, AI assisted coding tools that go GitHub Copilot or ChatGPT. How does that change the pace of application development and how JFrog supports that?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Have you shared anything about capabilities, Gen AI capabilities within the JFrog platform, how that would maybe look from a monetization standpoint?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : We'll stay tuned for swampUP announcements. So jumping over to the kind of more of the product.

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Yes, please. Unidentified Participant (inaudible - microphone inaccessible).

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : I think that is a good segue into the security part of your business because that's kind of opening up, you into broadening the platform and some of those new personas we talked about. So you're now advanced security back in October, I believe it was. What are some of the new capabilities that the advanced security package brings to the JFrog Platform? And how does that complement existing capabilities that you had with Xray and then kind of maybe even fold into that, your newest announcement, which was Curation JFrog?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Great, and then that does bring in -- open you up to a new persona. How does that change kind of the go to market and what are those changes you're making there? And maybe what kind of impact might that have to sales and marketing margins or operating margins?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : I want to open up questions to the floor if anyone has any kind of closing questions, I think we have couple of minutes left. Alright, so just to kind of close out here, I think on 1Q earnings, you gave a long-term model and it was about a 22% to 24% CAGR on the top line. Can you talk about some of the assumptions that go into driving this long-term model? And then maybe anything that's not baked in right now that could be incremental to the upside there?

Question: Billy Mandl - KeyBanc Capital Markets Inc. - Analyst : Awesome. Well, I think we're out of time here, Jacob. Thanks. That's been a great conversation.