Jfrog Ltd at UBS Global Technology and AI Conference Transcript

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

Question: Jeff Hickey - UBS - Analyst : But Ed, you've been in the seat now, I think, as CFO, basically since the beginning of the year. Previously, you were Head of FP&A at JFrog. I wanted to start out maybe you could just give us, for those new to the JFrog story, a bit of what you work on, a bit of the DevOps and the progression into the security motion, as well as ML and AI ops as well.

Question: Jeff Hickey - UBS - Analyst : Got it, very helpful. Maybe clicking in on the security add-ons that you've started to roll out. It's an exciting area for the company. It's an area you're very focused in. Could you give us an overview of just that security focus and how much uplift can that drive even just with your existing customer base? What does that pipeline look like, the discussions you're having? And we can touch later in the conversation about some of the large deals you've started to land.

Question: Jeff Hickey - UBS - Analyst : On the consolidation piece, you earlier this year announced a pretty important and tight integration with GitHub, with your advanced security offerings, their advanced security offerings. When you're talking with customers about potentially squeezing down from 8 to 10 tools down to maybe a few, who are you perhaps displacing in those types of discussions? And maybe you could talk about, too, just the GitHub partnership, how it came about. Did you both organically come together to talk with customers, join customers, and could it be an avenue for maybe new logo growth as well?

Question: Jeff Hickey - UBS - Analyst : Are there any potential future opportunities to expand your integrations with GitHub? Or it has been interesting just -- throughout the year, you've announced more and more over time. This has not been just one thing.

Question: Jeff Hickey - UBS - Analyst : Got it. Shifting back, you talked about the large deals and how that has also seen some elongated sales cycles. These are just big chunkier deals. They can take a very long time to work through. I believe you closed some of the largest deals in company history basically just a few months ago. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 5:55PM, FROG.OQ - Jfrog Ltd at UBS Global Technology and AI Conference As we're sitting now in December, and obviously you can't give us too clean of insight into Q4 in general, but just curious, last year I think a lot of software investors saw a bit of dynamics of budget flush and JFrog historically seems to be more of an H2 tilted company. I was curious if you could provide just additional color on that. Is it really just even historically you just have more deals tilted towards the second half of the year And should we expect this to continue even into something like 2025?

Question: Jeff Hickey - UBS - Analyst : Makes sense and I don't think that's unique to you. Historically, just thinking about go to market, obviously, the roots of Artifactory as an open source developer tool saw a lot of bottoms up, just groundswell adoption. And there has been a lot more focus from JFrog in the past several years REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 5:55PM, FROG.OQ - Jfrog Ltd at UBS Global Technology and AI Conference to shift more towards a top-down C-suite selling motion. What have been the key learnings, just organizationally, internally, as you've gone through that progression? And how do those learnings tie into now trying to sell to CISOs as opposed to a developer audience?

Question: Jeff Hickey - UBS - Analyst : Perfect. Shifting gears like you brought up self-managed and obviously a big driver to the cloud growth rate is just the pace of migrations from self-managed customers over to the cloud. That has been an area you've been vocal has not been at the same level of -- the same trajectory relative to a couple years ago. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 5:55PM, FROG.OQ - Jfrog Ltd at UBS Global Technology and AI Conference Just thinking maybe into 2025, what level of visibility do you have in some of your larger customers actually doing migrations from self-managed to the cloud? And is there anything else you could do or you're thinking from either like a sales incentive standpoint or just a product functionality standpoint that you could deploy to try to do some more migrations?

Question: Jeff Hickey - UBS - Analyst : And could you also talk about just structure around sales incentives when it comes to selling security? That's obviously a big area you've talked about becoming more of a driver in 2025. Could you potentially see yourselves making any tweaks to just the seller compensation incentive models or any other areas?

Question: Jeff Hickey - UBS - Analyst : Taking into just some of the numbers, you most recently posted net dollar retention of 117% pairing up with 22%, 23% revenue growth. Could you help us just understand what the underlying drivers of that 117% are and how we should think about the sensitivity of those moving forward, maybe from a standpoint of DevOps/Artifactory as well as security as well as just self-managed task migration.

Question: Jeff Hickey - UBS - Analyst : Got it. That's helpful. Thinking about 2025, you've been more vocal recently about just maybe your approach to guidance maybe being a bit more conservative guiding to what you can truly see. Just given the large deal variability you saw in Q3, how will that influence your guidance philosophy moving forward? Maybe you could just elaborate on that.

Question: Jeff Hickey - UBS - Analyst : That's very helpful. One, coming from the audience, thinking through the Quack ML acquisition and ML AI Ops, how does that compete in the marketplace? And how can that, in a sense, in any way, be differentiated with your GitHub partnership? And obviously, a lot of these DevOps players are also rolling out MLOps functionalities.

Question: Jeff Hickey - UBS - Analyst : Got it. I think we maybe have time for one more question, or maybe a couple if we can squeeze in. But I wanted to ask just within your customer cohort, comparing smaller and larger customers, if you could give us a bit more color on what you're seeing with those monthly customers and you've called out slower free to pay conversions. That's something we've heard from other DevOps vendors like Atlassian over the past several quarters. Are you seeing a significant divergence in the spending appetite between the largest customers you have and smaller ones or are they more impacted by macro? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 03, 2024 / 5:55PM, FROG.OQ - Jfrog Ltd at UBS Global Technology and AI Conference