JFrog Ltd. Ordinary Shares Canaccord Genuity's 46th Annual Growth Conference

Thanks for joining. Thank you for having us.

Yeah, we were very pleased with the results of the quarter. As you mentioned, 29% growth on the top line, 53% growth in the cloud, and we see three contributing factors here. Not in particular order of magnitude, but security continues to be a significant growth driver for the company, and we had a great quarter in terms of security. We gave some of the proof points around security wins in those million-dollar cohort, as well as in the new customer lands. We continue to see strong usage with our cloud products. Some of those customers, and broadly across our portfolio, are going above minimum commitments. That's contributing, and then, of course, annual commitments. We see those customers not only using above minimum commits, but we also see an expansion of those existing customers to a higher annual commitment.

The combination of that leads to our JFrog Platform, and continued strength in our full platform. Was there a surprise? No. We kind of expected this and I think the surprise really came from the Street and from investors on how strong JFrog is performing.

Yeah. We love that the term tsunami of binaries is sticking and we saw that, and we strategically positioned JFrog to be able to capture that tsunami of binaries. It really comes down to a few factors here that are easy to describe. Organizations today are becoming software factories, every organization, and they're moving at the speed of machines. When you're moving at the speed of machines, this creates a surge in the amount of creation of code that, of course, turns into a binary. Add on top of that large language models, MCP, and skills, which 6, 8 months ago wasn't even part of discussion. Those are also binary. You're creating an exponential amount of binaries, and we're seeing that increase through Artifactory, through software supply chain, and how critical JFrog is becoming to these large organizations, in particular the foundational labs and many of the AI native companies, and this is a tsunami that we're seeing.

Yeah. Yeah. Thank you for the question, Kingsley.

I think what you're describing is what we're seeing, is that JFrog was the system of record for your software artifacts, your software binaries. We are now positioned, and we would like to think of ourselves positioned, as now your system of record for your large language models, for your MCP connections, for your skills registries. Those are all going to be critical in the world of AI, in which we've already seen some customers come to us and look at hosting their skills, their MCP connections in Artifactory, thus bringing more importance to Artifactory and having to treat those, as you stated, as almost first-class citizens in the same way that you would treat the way that the artifacts and the software artifacts have been treated previously. Because each of those skills are attached to an agent.

Is the agent, in fact, doing what it was programmed with those skills to do? That's being managed, and where you would go to find that out, Artifactory. Is the MCP connection that I have with JFrog or Atlassian or other companies, is that acting up or is it acting different than it's supposed to be in the way that it's registered in Artifactory? The models likewise. The models are becoming first-class binaries because they're, in fact, the largest form of a binary, typically in a container, and now they're becoming different in the way they impact our storage.