Jfrog Ltd (FROG) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for joining us, and welcome to JFrog's first quarter 2024 financial results conference call. I'll now hand the conference over to Jeffrey Schreiner. VP, Investor Relations. Jeffrey, please go ahead.

女士們、先生們，感謝您加入我們，並歡迎參加 JFrog 2024 年第一季財務業績電話會議。我現在將會議交給 Jeffrey Schreiner。投資人關係副總裁。傑弗裡，請繼續。

Good afternoon, and thank you for joining us as we review JFrog's first quarter 2024 financial results, which were announced following market close today via press release. Leading the call today will be JFrog's CEO and Co-Founder, Shlomi Ben Haim, and Ed Grabscheid, JFrog's CFO.

下午好，感謝您與我們一起回顧 JFrog 的 2024 年第一季財務業績，該業績是在今天收盤後透過新聞稿宣布的。今天的電話會議由 JFrog 執行長兼聯合創始人 Shlomi Ben Haim 和 JFrog 財務長 Ed Grabscheid 主持。

During this call, we may make statements related to our business that are forward-looking under federal securities laws and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to our future financial performance and including our outlook for Q2 and the full year of 2024.

在本次電話會議中，我們可能會根據聯邦證券法做出與我們的業務相關的前瞻性聲明，並根據1995 年《私人證券訴訟改革法案》的安全港條款作出，包括與我們未來財務業績相關的聲明，包括我們對第二季和 2024 年全年的展望。

The words anticipate, believe, continue, estimate, expect, intend, will, and similar expressions are intended to identify forward-looking statements or similar indications of future expectations. You are cautioned not to place undue reliance on these forward-looking statements, which reflect our views only as of today and not as of any subsequent date. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

預期、相信、繼續、估計、期望、打算、將和類似表達等詞語旨在識別前瞻性陳述或未來預期的類似指示。請您注意不要過度依賴這些前瞻性陳述，這些陳述僅反映我們今天的觀點，而不反映任何後續日期的觀點。請記住，我們沒有義務根據新資訊或未來事件修改或公開發布這些前瞻性陳述的任何修改結果。

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of material risks and other important factors that could affect our actual results. Please refer to our Form 10-K for the year ended December 31, 2023, which is available on the Investor Relations section of our website and the earnings press release issued earlier today. Additional information will be made available in our Form 10 Q for the quarter ended March 31, 2024, and other filings and reports that we may file from time to time with the SEC.

這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期有重大差異。討論可能影響我們實際結果的重大風險和其他重要因素。請參閱我們截至 2023 年 12 月 31 日的年度 10-K 表格，該表格可在我們網站的投資者關係部分以及今天早些時候發布的收益新聞稿中獲取。更多資訊將在我們截至 2024 年 3 月 31 日的季度的 10 Q 表格以及我們可能不時向 SEC 提交的其他文件和報告中提供。

Additionally, non-GAAP financial measures will be discussed on this conference call these non-GAAP financial measures, which are used as measures of JFrog's performance, should be considered in addition to, not as a substitute for or in isolation from GAAP measures. Please refer to the tables in our earnings release for a reconciliation of those measures to their most directly comparable GAAP financial measures and a replay of this call will be available on the JFrog Investor Relations website for a limited time.

此外，本次電話會議將討論非 GAAP 財務指標，這些用作 JFrog 業績指標的非 GAAP 財務指標應被視為 GAAP 指標的補充，而不是替代或孤立於 GAAP 指標。請參閱我們收益報告中的表格，以了解這些指標與其最直接可比較的 GAAP 財務指標的對帳情況，並且 JFrog 投資者關係網站將在有限時間內提供本次電話會議的重播。

With that, I'd like to turn the call over to JFrog's CEO, Shlomi Ben Haim. Shlomi?

說到這裡，我想將電話轉給 JFrog 的執行長 Shlomi Ben Haim。什洛米？

Thank you, Jeff. Good afternoon to you all, and thank you for joining our call. I'm pleased to report another strong quarter for JFrog, with all metrics exceeding the high end of our guidance range. Unification of DevOps, DevSecOps, MLOps and MLSecOps in a single platform continues to resonate in the market, resulting in continued expansion across the portfolio. In the first quarter of 2024, JFrog delivered total revenue of $100.3 million, up 26% elevated. Our cloud revenue continued to show positive momentum in Q1, equaling $36.9 million, a growth of 47% year-over-year.

謝謝你，傑夫。大家下午好，感謝您加入我們的電話會議。我很高興地報告 JFrog 又一個強勁的季度，所有指標都超過了我們指導範圍的高端。DevOps、DevSecOps、MLOps 和 MLSecOps 在單一平台上的統一性繼續在市場上引起共鳴，從而導致整個產品組合的持續擴展。2024 年第一季，JFrog 總營收達 1.003 億美元，成長 26%。我們的雲端收入在第一季持續呈現正面勢頭，達到 3,690 萬美元，年增 47%。

Cloud growth above our guidance range of mid 40s was supported by increases in customer consumption. In Q1, JFrog customers with ARR greater than $100,000 grew to 911 compared to 785 in the prior year, increasing 16% year over year. Customers with ARR greater than $1 million increased by three days in the quarter now equaling a total of 14. This is up from 21 in the year-ago period, growing 90% year-over-year, reflecting the continued success of our sales teams top-down efforts and adoption of the complete software supply chain platform by the enterprise. Our customers continue to tell us with having a single system of record that allows the seamless secure flow binaries for DevOps and security is mission critical to their business.

雲端運算成長超過我們 40 年代中期的指導範圍，這得益於客戶消費的成長。第一季度，ARR 超過 10 萬美元的 JFrog 客戶從去年的 785 家增加到 911 家，年增 16%。ARR 超過 100 萬美元的客戶在本季增加了 3 天，目前總數達到 14 天。這比去年同期的 21 個有所增加，年增 90%，反映出我們的銷售團隊自上而下的努力以及企業對完整軟體供應鏈平台的持續成功。我們的客戶繼續告訴我們，擁有一個單一的記錄系統可以為 DevOps 提供無縫的安全流二進位文件，而安全性對於他們的業務至關重要。

In addition, we see the practices of DevOps being implemented by organizations that wish to enable the next generation of applications already incorporating gen-AI and machine learning. In the past year, we extended the JFrog software supply chain platform to include analogs and Enertech of solutions as mandatory requirements to support our users alongside DevOps and DevSecOps comprehensive solution. This unified approach led to some of the things behind our first quarter successes that will be discussed today.

此外，我們也看到一些組織正在實施 DevOps 實踐，這些組織希望啟用已經整合了 gen-AI 和機器學習的下一代應用程式。去年，我們擴展了 JFrog 軟體供應鏈平台，將解決方案的類似物和 Enertech 納入強制要求，以支援我們的用戶以及 DevOps 和 DevSecOps 綜合解決方案。這種統一的方法促成了我們今天將討論的第一季成功背後的一些因素。

On our call today, we will cover the continued adoption of the JFrog's platform, including embedded holistic security solutions. Next, I will look at the cloud usage and migration trends. We will also share updates about our partners and channel go to market activities and game changing technology integrations. Finally, I will share how JFrog's AI and ML solutions support the emerging needs of our customers.

在今天的電話會議上，我們將討論 JFrog 平台的持續採用，包括嵌入式整體安全解決方案。接下來，我將了解雲端使用和遷移趨勢。我們還將分享有關我們的合作夥伴和通路進入市場活動以及改變遊戲規則的技術整合的最新資訊。最後，我將分享 JFrog 的 AI 和 ML 解決方案如何支援客戶的新興需求。

Let me address the adoption of the JFrog platform by the world's largest companies. As the unified software supply chain platform without the factory at its core, the JFrog platform continues to be chosen as mission critical partner by some of the world's most demanding and highly regulated enterprises who are increasingly looking to standardize on holistic solutions.

讓我談談世界上最大的公司對 JFrog 平台的採用情況。作為一個不以工廠為核心的統一軟體供應鏈平台，JFrog 平台繼續被世界上一些要求最嚴格、監管最嚴格的企業選為關鍵任務合作夥伴，這些企業越來越希望整體解決方案實現標準化。

One of the most recognizable financial services companies in the world, Fidelity, recently expanded their relationship with JFrog to drive depth of scale alongside security, while increasing SLA capabilities for the thousands of developers. Supporting over 42 million customers with a stated goal of over 90% of their applications in the cloud by 2026, Fidelity needed a partner with robust hybrid and multi-cloud capabilities to support the cloud first and enterprise-scale dev SecOps vision.

Fidelity 是世界上最知名的金融服務公司之一，最近擴大了與 JFrog 的合作關係，以推動規模深度和安全性，同時為數千名開發人員提高 SLA 能力。Fidelity 為超過4,200 萬名客戶提供支持，其既定目標是到2026 年將超過90% 的應用程式儲存在雲端中，因此需要一個具有強大混合和多雲功能的合作夥伴來支援雲端優先和企業級開發SecOps 願景。

Gerard McMahon, Head of ALM Tools and Platforms at Fidelity, noted in a webcast with JFrog, the whole development processes has become much more symbiotic. It have to shift left, shift middle, and shift right. As we continue to use tools like JFrog Xray and JFrog Artifactory, security is much more ingrained into the full lifecycle of software delivery.

Fidelity ALM 工具和平台主管 Gerard McMahon 在 JFrog 的網路廣播中指出，整個開發流程變得更加共生。它必須左移、中移、右移。隨著我們繼續使用 JFrog Xray 和 JFrog Artifactory 等工具，安全性將更加根植於軟體交付的整個生命週期。

Fidelity is not alone. We see companies increasingly integrating DevOps and security strategies to consolidation, scalability planning, and embracing cloud, hybrid, and multi-cloud environments. DevOps stakeholders have already taken ownership of software supply chain security in most company. But enterprises failing to streamline security tools by minimizing point solutions will face higher expenses, wasted time, inability to automate security practices, also known as DevSecOps, and possibly place the entire organization at risk.

忠誠並不孤單。我們看到公司越來越多地將 DevOps 和安全策略整合到整合、可擴展性規劃中，並採用雲端、混合和多雲環境。大多數公司的 DevOps 利害關係人已經掌握了軟體供應鏈安全的所有權。但是，未能透過最小化點解決方案來簡化安全工具的企業將面臨更高的費用、浪費時間、無法自動化安全實踐（也稱為 DevSecOps），並可能使整個組織面臨風險。

One of the strongest differentiators is the company security research team that few tools with unique data often before anyone else in the market delivering crucial value into their SecOps processes. Reflecting this reality, the JFrog security research team recently released a softer supply chain state of the union report. The report revealed that many company still have major security gaps with only about half of companies actively scanning and securing both codes and binaries.

最強大的差異化因素之一是公司的安全研究團隊，很少有工具擁有獨特的數據，通常比市場上其他任何人都先於他們的 SecOps 流程提供關鍵價值。為了反映這一現實，JFrog 安全研究團隊最近發布了一份較軟的供應鏈聯盟狀況報告。報告顯示，許多公司仍然存在重大安全漏洞，只有大約一半的公司積極掃描和保護程式碼和二進位檔案。

It also revealed that despite sometimes using 10 or more security point solutions, companies are unable to detect that nearly 75% supposedly critical vulnerarabilities are not even exploitable. Industry analyst, Paul Nashawaty from Futurum Group noted regarding the report and its consequences. JFrog's analysis reveals an important finding, a sizable percentage of vulnerabilities that have been reported are not exploitable. This emphasizes how crucial it is for our engineers to distinguish between theoretical vulnerabilities and those that pose risk concerns.

它還顯示，儘管有時使用 10 個或更多安全點解決方案，但公司無法檢測到近 75% 的所謂關鍵漏洞甚至無法利用。Futurum Group 的產業分析師 Paul Nashawaty 指出了該報告及其後果。JFrog 的分析揭示了一個重要發現，已報告的漏洞中有相當大比例是不可利用的。這強調了我們的工程師區分理論漏洞和引起風險問題的漏洞的重要性。

Our security research teams reports are closely tracked by the market as they often uncover groundbreaking insights. These findings serve as the cornerstone for enhancing our tools capabilities, ensuring JFrog Xray, JFrog Advanced Security and JFrog Curation, deliver our users unmatched DevSecOps protection.

我們的安全研究團隊的報告受到市場的密切關注，因為他們經常發現突破性的見解。這些發現是增強我們工具功能的基石，確保 JFrog Xray、JFrog Advanced Security 和 JFrog Curation 為我們的用戶提供無與倫比的 DevSecOps 防護。

I would now like to address our cloud business. Exiting the first quarter of 2024, we continue to see organizations looking for optimization for the cloud spend in tight budgetary environment. We are actively building the pipeline for cloud migration and anticipate enterprise efforts will accelerate throughout the year, similar to how they approach 2023.

我現在想談談我們的雲端業務。2024 年第一季結束後，我們繼續看到組織在預算緊張的環境中尋求優化雲端支出。我們正在積極建構雲端遷移管道，並預期企業的努力將在全年加速，類似於 2023 年的情況。

We are also seeing cloud customers looking to standardize on best of breed platforms to effectively manage the software delivery. For example, JFrog customer, Informatica, recently signed a new deal to grow the JFrog platform as the system of record for the software supply chain. Attracted to JFrog universality, breadth of solution and cloud-first development approach, Informatica supercharge their platform experience. The DevSecOp team noted Informatica empowers our customers to realize the transformative capabilities of their data, utilizing company's AI power data management platform. By partnering with JFrog and leveraging the solutions for our DevSecOp need, we are able to take advantage of best practices across our software supply chain to improve efficiency.

我們也看到雲端客戶希望在最佳平台上實現標準化，以有效管理軟體交付。例如，JFrog 客戶 Informatica 最近簽署了一項新協議，將 JFrog 平台發展為軟體供應鏈的記錄系統。Informatica 被 JFrog 的通用性、解決方案的廣度和雲端優先開發方法所吸引，增強了他們的平台體驗。DevSecOp 團隊指出，Informatica 利用該公司的 AI 電力資料管理平台，使我們的客戶能夠實現其資料的變革能力。透過與 JFrog 合作並利用滿足我們 DevSecOp 需求的解決方案，我們能夠利用整個軟體供應鏈的最佳實踐來提高效率。

We expect JFrog's cloud growth in 2024 much like the previous year to continue to be driven by usage expansion. We anticipate that cloud migration projects will gradually emerge carefully managed within budget constraints. Our guidance aligns with evolving market trends, and we remain committed to collaborating with our customers and partners to facilitate the adoption of our software supply chain platform.

我們預計 2024 年 JFrog 的雲端成長將繼續受到使用量擴張的推動，與前一年類似。我們預計雲端遷移專案將逐漸在預算限制內精心管理。我們的指導方針符合不斷變化的市場趨勢，我們仍然致力於與客戶和合作夥伴合作，以促進我們的軟體供應鏈平台的採用。

Now I want to address our partner and reseller network as part of our strategic channel goals. JFrog is constantly expanding our partner network across resellers, integrators, and technology partners. As an investment in this area, we recently formalized a partnership with the leading governmental distributor, Carahsoft, to serve as the JFrog Distributor.

現在我想將我們的合作夥伴和經銷商網路作為我們策略通路目標的一部分。JFrog 不斷擴大我們在經銷商、整合商和技術合作夥伴中的合作夥伴網路。作為對該領域的投資，我們最近與領先的政府分銷商 Carahsoft 正式建立了合作夥伴關係，擔任 JFrog 經銷商。

Natalie Gregory, Vice President of Open Source Solutions at Carahsoft said, supply chain attacks in recent years have highlighted the importance of integrating security into each phase of software development. A single source of tools for company binaries in a solution like JFrog Artifactory along with integrated security as part of a holistic platform, allows JFrog to provide agencies with unparalleled DevSecOps agility and peace of mind for the software supply chain. We anticipate further growth in JFrog’s indirect and reseller sales for the enterprise as we continue to expand our partner programs across sectors and geographies

Carahsoft 開源解決方案副總裁 Natalie Gregory 表示，近年來的供應鏈攻擊凸顯了將安全性整合到軟體開發每個階段的重要性。JFrog Artifactory 等解決方案中公司二進位檔案的單一工具來源以及作為整體平台一部分的整合安全性，使 JFrog 能夠為各機構提供無與倫比的 DevSecOps 敏捷性和軟體供應鏈的安心感。隨著我們繼續跨行業和跨地區擴展合作夥伴計劃，我們預計 JFrog 的間接銷售和經銷商銷售將進一步成長

Finally, allow me to discuss the expansion of our platform to support ML Ops and gen-AI initiatives. In today's hype, everyday of DevOps tool is talking about how those solutions support or utilize AI-based practices. But beyond the buzz words, there is a critical question, can the solution deliver on its promises? Can the infrastructure you use effectively guide ML-powered software securely from development to production?

最後，請容許我討論我們平台的擴充功能以支援 ML Ops 和 gen-AI 計劃。在當今的炒作中，DevOps 工具每天都在談論這些解決方案如何支援或利用基於人工智慧的實踐。但除了流行語之外，還有一個關鍵問題：解決方案能否兌現其承諾？您所使用的基礎設施能否有效地引導機器學習驅動的軟體從開發到生產的安全流程？

ML models like all other binaries that require management, security, and governance. JFrog with this model as a package approach once again offers adoptive solution to the industry, enabling freedom of choice for ML engineers and responsible AI adoption by the organization. With our commitment to universality, we have always focused on making the JFrog platform to integrate it to fade.

機器學習模型與所有其他需要管理、安全和治理的二進位檔案一樣。JFrog 將此模型作為一攬子方法再次為該行業提供了採用的解決方案，使 ML 工程師能夠自由選擇，並讓組織負責任地採用 AI。憑藉我們對通用性的承諾，我們始終專注於讓 JFrog 平台能夠將其整合到褪色。

With Artifactory as the modern registry of choice, we recently introduced the industry's first DevOps platform to seamlessly integrate with ML flow and Qwak platforms, as we anticipate ML Ops market needs. Driven by the organic growth of our platform and customer's demand, we continue to actively integrate AI and machine learning into software supply chain practices.

隨著 Artifactory 作為現代註冊中心的選擇，我們最近推出了業界第一個 DevOps 平台，與 ML 流和 Qwak 平台無縫集成，因為我們預計 ML Ops 市場需求。在平台有機成長和客戶需求的推動下，我們持續積極將人工智慧和機器學習融入軟體供應鏈實踐中。

ML flow, a data breach open-source project, which has over 14 million monthly downloads, gives users the ability to build, manage, and deliver ML models in a streamlined workflow. Ali Ghodsi, CEO of Databricks, the data intelligence platform designed to help organizations harness the power of big data and artificial intelligence said, originally, developed by Databricks, ML flow streamlines the machine learning processes with a platform for experiment tracking, model packaging, and model deployment.

ML flow 是一個資料外洩開源項目，每月下載量超過 1400 萬次，使用戶能夠在簡化的工作流程中建置、管理和交付 ML 模型。Databricks 是一個旨在幫助組織利用大數據和人工智慧力量的數據智慧平台，其執行長Ali Ghodsi 表示，ML 流程最初由Databricks 開發，透過一個用於實驗追蹤、模型打包和分析的平台簡化了機器學習流程。

Through our JFrog platform integrations, users can now seamlessly utilize JFrog Artifactory as a modern registry with JFrog Xray to secure the ML model artifacts. This integration accelerates both the development and deployment phases of ML powered applications, helping companies to drive responsible AI practices.

透過我們的 JFrog 平台集成，使用者現在可以無縫地利用 JFrog Artifactory 作為 JFrog Xray 的現代註冊表來保護 ML 模型工件。這種整合加速了機器學習驅動的應用程式的開發和部署階段，幫助公司推動負責任的人工智慧實踐。

As noted, we also announced the JFrog and Qwak integration. Qwak is an ML Ops platform designed to facilitate the construction, deployment, management, and monitoring of AI workflows, allowing users to deliver AI applications at speed and scale.

如前所述，我們也宣布了 JFrog 和 Qwak 的整合。Qwak 是一個 ML Ops 平台，旨在促進 AI 工作流程的建置、部署、管理和監控，使用戶能夠快速、大規模地交付 AI 應用程式。

This integration further expands the JFrog platform catering to ML engineers by providing them with a single source of tools for their models. Alon Lev, CEO of Qwak noted, integrating with a proven Artifactory repository like JFrog Artifactory, allows Qwak to provide the automation capabilities that makes data scientists and ML engineers more efficient, while allowing DevOps and DevSecOps team to manage ML models like any other software package in a holistic secure software supply chain.

這種整合進一步擴展了 JFrog 平台，為機器學習工程師提供了單一的模型工具來源。Qwak 執行長Alon Lev 指出，與JFrog Artifactory 等經過驗證的Artifactory 儲存庫集成，Qwak 能夠提供自動化功能，使資料科學家和機器學習工程師更加高效，同時允許DevOps 和DevSecOps 團隊像任何其他軟體包一樣管理機器學習模式在整體安全軟體供應鏈中。

As JFrog continues to bring together DevOps, SecOps, MLOps, and MLSecOps into a single enterprise grade platform, we look forward to supporting the emerging needs of our users and aim to further expand the platform to enable ongoing consolidation needs across the software supply chain. We are excited about the growth opportunity the world of MLOps and MLSecOps introduce as part of the GenAI revolution, and we will keep expanding our platform towards the direction, as its natural leap forward for us and for our customers.

隨著 JFrog 繼續將 DevOps、SecOps、MLOps 和 MLSecOps 整合到企業級平台中，我們期待支援用戶的新興需求，並致力於進一步擴展該平台，以滿足整個軟體供應鏈的持續整合需求。我們對 MLOps 和 MLSecOps 領域作為 GenAI 革命的一部分引入的成長機會感到興奮，我們將繼續朝著這個方向擴展我們的平台，這對我們和我們的客戶來說都是自然的飛躍。

With that, I will turn the call over to our CFO, Ed Grabscheid, who will provide in-depth recap of Q1 financial results and update you on our outlook for both Q2 and full fiscal year of 2024. Ed?

接下來，我將把電話轉給我們的財務長 Ed Grabscheid，他將深入回顧第一季的財務業績，並向您介紹我們對第二季和 2024 年整個財年的最新展望。艾德？

Thank you, Shlomi, and good afternoon, everyone. During the first quarter of 2024, total revenues were $100.3 million, up 26% year over year. First quarter results exceeded the high end of our guidance range across all measures as a result of ongoing strength in our cloud revenues and growth in our enterprise plus subscriptions. We continue to see customers looking to consolidate their software supply chain tools towards a best-of-breed platform solution.

謝謝你，Shlomi，大家下午好。2024 年第一季度，總營收為 1.003 億美元，年增 26%。由於我們的雲端收入持續強勁以及企業和訂閱的成長，第一季業績超出了我們所有指標指導範圍的上限。我們不斷看到客戶希望將其軟體供應鏈工具整合為最佳平台解決方案。

Our results demonstrate strong execution during the first quarter, as noted by slowing in the first quarter of 2024, we saw customers allocating efforts towards efficiency in their software development spend versus a focus on accelerating new projects. Cloud revenues in the quarter equaled $36.9 million, up 47% year over year, representing 37% of total revenues versus 31% in the prior year.

我們的結果表明，第一季的執行力強勁，正如 2024 年第一季放緩所指出的那樣，我們看到客戶將精力投入到軟體開發支出的效率上，而不是專注於加速新專案。該季度的雲端收入為 3,690 萬美元，年增 47%，佔總營收的 37%，而上年同期為 31%。

The growth in the cloud revenues above our guidance in the mid 40s for 2024 was driven by customer usage levels above commitments. We reiterate fiscal 2024 baseline cloud growth around the mid 40s for the full year. Self-managed revenues or on-prem were $63.4 million, up 16% year over year during the first quarter. We anticipate self-hosted revenue growth trend in 2024 will be similar to 2023. Net dollar retention for the four trailing quarters was 118%, in line with our guidance for high teens during 2024.

雲端收入的成長超過了我們 2024 年 40 年代中期的指導，這是由於客戶使用水準高於承諾。我們重申 2024 財年全年雲端成長基線在 40 多歲左右。第一季自我管理收入或本地收入為 6,340 萬美元，年增 16%。我們預計 2024 年自託管收入成長趨勢將與 2023 年類似。過去四個季度的淨美元保留率為 118%，與我們對 2024 年高青少年的指導一致。

Our gross retention rate remained at 97%. Our first quarter results saw strong customer adoption of the complete J. fraud platform, driven by customers consolidating point solutions and securing their full software supply chain. In Q1, 49% of total revenue came from Enterprise Plus subscriptions, up from 44% in the prior year. Revenue contribution from Enterprise Plus subscriptions grew 39% year over year.

我們的毛保留率保持在 97%。我們第一季的業績顯示，在客戶整合單點解決方案並確保其完整軟體供應鏈安全的推動下，完整的 J. 詐欺平台得到了客戶的大力採用。第一季度，總營收的 49% 來自 Enterprise Plus 訂閱，高於去年的 44%。Enterprise Plus 訂閱的營收貢獻年增 39%。

Now I'll review the income statement in more detail. Gross profit in the quarter was $85.3 million, representing a gross margin of 85.1% compared to 82.9% in the year ago period. The increase in gross margin relative to the year-ago period is attributable to the elimination of outsourced costs derived from the synergies related to the acquisition of Vdoo and ongoing cost discipline efforts. We reiterate expectation for annual targets remaining between 83% to 84% in the near future, then trend towards the low 80s aligned with our long-term model and cloud growth.

現在我將更詳細地回顧損益表。本季毛利為 8,530 萬美元，毛利率為 85.1%，去年同期毛利率為 82.9%。毛利率較上年同期成長的原因是消除了與收購 Vdoo 相關的綜效以及持續的成本控制工作產生的外包成本。我們重申，在不久的將來，年度目標將保持在 83% 至 84% 之間，然後朝著與我們的長期模型和雲端成長一致的 80 左右的趨勢發展。

Operating expenses for the first quarter were $71.3 million, up $5.2 million sequentially, equaling 71% of revenues, up from $63.5 million or 80% of revenues in the year ago period. We continue to remain focused on expense discipline while investing in scaling our enterprise sales team, channel partner ecosystem, and strategic R&D spending.

第一季營運費用為 7,130 萬美元，比上一季增加 520 萬美元，佔營收的 71%，高於去年同期的 6,350 萬美元，佔營收的 80%。我們持續專注於費用紀律，同時投資擴大我們的企業銷售團隊、通路合作夥伴生態系統和策略研發支出。

Our operating profit in Q1 was $14.1 million or 14% operating margin compared to an operating profit of $2.7 million or 3.4% operating margin in the year ago period, an improvement of 10.6 percentage points. Earnings per share equaled $0.16 based on approximately $114.6 million weighted average diluted shares compared to $0.06 per share in the prior year on $106.9 million weighted average diluted shares.

我們第一季的營業利潤為 1,410 萬美元，營業利潤率為 14%，而去年同期的營業利潤為 270 萬美元，營業利潤率為 3.4%，提高了 10.6 個百分點。根據約 1.146 億美元的加權平均稀釋股票計算，每股收益為 0.16 美元，而上一年則根據 1.069 億美元的加權平均稀釋股票計算，每股收益為 0.06 美元。

Turning to the balance sheet and cash flow, we ended the first quarter of 2024 with $579.6 million in cash and short-term investments, up from $545 million as of December 31, 2023. Cash flow from operations was $17.5 million in the quarter. After taking into consideration our CapEx requirements, free cash flow was $16.6 million or 16.6% free cash flow margin. We remain committed to our free cash flow margin targets provided within our long-term model, implying an estimated midpoint of 28% over the coming years. As of March 31, 2024, our remaining performance obligation totaled $261.7 million.

談到資產負債表和現金流，截至 2024 年第一季度，我們的現金和短期投資為 5.796 億美元，高於截至 2023 年 12 月 31 日的 5.45 億美元。本季營運現金流為 1,750 萬美元。考慮到我們的資本支出要求後，自由現金流為 1,660 萬美元，即 16.6% 的自由現金流利潤率。我們仍然致力於實現長期模型中提供的自由現金流利潤率目標，這意味著未來幾年的中點估計為 28%。截至 2024 年 3 月 31 日，我們的剩餘履約義務總計 2.617 億美元。

Now I would like to speak about our guidance for the second quarter and full year 2024. Our outlook for 2024 implies continued momentum within our cloud business, driven by expectations for increasing customer usage, adoption of our enterprise plus platform, and contribution from new security products.

現在我想談談我們對 2024 年第二季和全年的指導。我們對 2024 年的展望意味著我們的雲端業務將保持持續成長勢頭，這主要是受到客戶使用量增加、企業+平台採用以及新安全產品貢獻的預期的推動。

We anticipate seasonality in 2024 to be consistent with 2023 as customer activity likely accelerates through the year, weighted more towards the second half as budgets and resources are allocated to key initiatives after focus on expense rationalization by customers during the first quarter. Given the expectation of our self-hosted and cloud businesses, we reiterate our guidance suggesting a net dollar retention rate in the high teens exiting the fiscal year 2024, implying stability through the remainder of the year.

我們預計2024 年的季節性將與2023 年保持一致，因為全年客戶活動可能會加速，下半年的比重更大，因為在第一季重點關注客戶費用合理化後，預算和資源被分配給關鍵舉措。考慮到我們對自託管和雲端業務的預期，我們重申了我們的指導意見，即 2024 財年結束時淨美元保留率將保持在十幾歲左右，這意味著今年剩餘時間將保持穩定。

We will continue to expand operating expenses on a dollar basis during 2024, but see room for operating leverage as ongoing cost discipline and strategic investment remain balanced. For Q2, we expect revenue to be between $103 million and $104 million dollars, equaling 23% year-over-year growth at the midpoint, with non-GAAP operating profit between $13 million and $14 million and non-GAAP earnings per diluted share of $0.13 to $0.15, assuming a share count of approximately $116 million shares.

2024 年，我們將繼續擴大以美元為基礎的營運支出，但隨著持續的成本限制和策略投資保持平衡，我們看到營運槓桿還有空間。對於第二季度，我們預計營收將在1.03 億美元至1.04 億美元之間，相當於中點年增23%，非GAAP 營業利潤在1,300 萬美元至1,400 萬美元之間，非GAAP 攤薄後每股收益為假設股數約為 1.16 億股，則為 0.13 美元至 0.15 美元。

For the full year of 2024, we raise our revenue range between $425.5 million and $429.5 million. Non-GAAP operating income is expected to be between $56 million and $58 million and non-GAAP earnings per diluted share of $0.59 to $0.61, assuming a share count of approximately 116 million shares.

2024 年全年，我們將收入範圍提高到 4.255 億美元至 4.295 億美元之間。假設股票數量約為 1.16 億股，非 GAAP 營業收入預計將在 5,600 萬至 5,800 萬美元之間，非 GAAP 攤薄後每股收益將在 0.59 至 0.61 美元之間。

Now I'll turn the call back to Shlomi for some closing remarks before we take your questions.

現在，在回答您的問題之前，我將把電話轉回給什洛米，讓其結束語。

Thank you, Ed. In one week, Israel will observe its 76th Independence Day. This year, Israel can't truly celebrate but only mark the day. The 132 civilian hostages still held by Hamas and Gaza since October 7, reminds us that until they are safely reunited with their families, an important milestone like Independence Day cannot be celebrated in full.

謝謝你，艾德。再過一周，以色列將迎來第 76 個獨立紀念日。今年，以色列無法真正慶祝，而只是紀念這一天。自 10 月 7 日以來，132 名人質仍被哈馬斯和加薩扣押，這提醒我們，在他們與家人安全團聚之前，像獨立日這樣的重要里程碑無法充分慶祝。

Despite the ongoing challenges of the war in Israel and global macroeconomic uncertainties, the JFrog team remains dedicated to our goals and culture. Team JFrog, your unwavering commitment and consistent delivery of truly admirable. I am saluting your resilience period and thank you for your hard work.

儘管以色列戰爭和全球宏觀經濟不確定性帶來持續的挑戰，JFrog 團隊仍然致力於我們的目標和文化。JFrog 團隊，你們堅定不移的承諾和始終如一的交付，真正令人欽佩。我向你們的恢復期致敬，並感謝你們的辛勤工作。

Q1 was a solid start for the year. We continue to believe the JFrog as a system of record for the entire software supply chain is uniquely positioned for success in the expanding world of DevOps and security as well as seeing potential growth in the emerging market of GenAI.

第一季是今年的好開始。我們仍然相信，JFrog 作為整個軟體供應鏈的記錄系統，具有獨特的優勢，能夠在不斷擴大的 DevOps 和安全領域取得成功，並看到 GenAI 新興市場的潛在成長。

We also recently announced our annual user conference, swampUP, to be held in September in Austin, Texas. This year's keynotes will change the DevOps, DevSecOps, and ML Ops landscape as we again prepare together with our partners and community to set the industry standards moving forward. With that, thanks for attending our call and may the frog be with you. Operator, we are now open to take questions.

我們最近也宣布我們的年度用戶大會 swampUP 將於 9 月在德克薩斯州奧斯汀舉行。今年的主題演講將改變 DevOps、DevSecOps 和 ML Ops 格局，因為我們再次與合作夥伴和社群一起準備好制定前進的行業標準。感謝您參加我們的電話會議，願青蛙與您同在。接線員，我們現在可以回答問題。

(Operator Instructions)

（操作員說明）

Sankit Singh, Morgan Stanley.

桑基特·辛格，摩根士丹利。

Yeah, thank you for taking the question. Shlomi, I just wanted to get to your latest read on the spending environment and the macro environment. This time last year, the market and including JFrog customers were still in sort of on cost optimization mode watching their cloud spend. At the same time, they're also hesitant to invest in data center. And so has 2024 started, what trends sort of remain similar to back then? And to what extent are you seeing any sort of improvement in terms of your customers willing to invest?

是的，謝謝你提出這個問題。Shlomi，我只是想了解您對支出環境和宏觀環境的最新解讀。去年的這個時候，市場（包括 JFrog 客戶）仍然處於成本優化模式，並關注​​他們的雲端支出。同時，他們也對投資資料中心猶豫不決。2024 年已經開始，哪些趨勢仍與當時相似？您認為客戶投資意願有多大程度的改善？

Hey, Sanjit, thank you for the question. So what we see actually in the cloud environment is that our cloud keeps growing faster than the on-prem, mainly because of user consumption, and the cloud migration projects are being included in our pipeline as we see the market coming back very slowly, both that direction. On the self-hosted, we see a bit of a growth on the adoption and the expansion, but it remains the same as it was in 2023.

嘿，桑吉特，謝謝你的提問。因此，我們在雲端環境中實際看到的是，我們的雲端持續比本地部署更快地成長，這主要是因為用戶消費，而雲端遷移專案正在納入我們的管道中，因為我們看到市場恢復非常緩慢，兩者那個方向。在自架方面，我們看到採用和擴展有所增長，但仍與 2023 年相同。

cloud and on-prem remind us a lot as we reported that 2023 Q1 started with 47% year-over-year growth in the cloud, and more and more cloud customers are looking forward multiyear subscription when they speak about migration and betting more on migration from [software].

雲端和本地部署提醒了我們很多事情，因為我們報道稱，2023 年第一季度開始，雲端運算同比增長了47%，越來越多的雲端客戶在談論遷移時期待多年訂閱，並更多地押註於遷移從[軟體].

Understood. And just a follow-up, maybe for Ed, on the cloud business. Ed, if I back out the on true up to last quarter, I think which was around $1.5 million, when I look at the sequential growth in cloud, it was lower than it has been in prior Q1s for the past couple of years. Any reason for the lower sequential growth this quarter once it would take you that normal normalization?

明白了。也許對艾德來說，這只是雲端業務的後​​續行動。Ed，如果我回溯上個季度的真實情況，我認為約為 150 萬美元，當我查看雲端運算的連續成長時，它低於過去幾年第一季的水平。一旦實現正常正常化，本季環比成長較低的原因是什麼？

Hey, Sanjit, this is Ed, and thank you for the question. What we saw in Q4 was a quarter of significant consumption. We see Q1 is more of a digestion quarter. Now when you look at on a year-over-year basis, we grew 47%. On a dollar basis, we grew much more in Q1 than we did in the prior quarter. So what we're seeing is that customers expanded in terms of usage in Q4, in Q1, they took that opportunity time to digest a little bit more and think about project spend and software development projects more towards later quarters.

嘿，桑吉特，我是艾德，謝謝你的提問。我們在第四季看到的是四分之一的大量消費。我們看到第一季更像是消化季度。現在，如果你對比去年同期來看，我們成長了 47%。以美元計算，我們第一季的成長遠高於上一季。因此，我們看到的是，客戶在第四季度和第一季度的使用量方面有所擴大，他們利用這個機會消化了更多信息，並更多地考慮了後面幾個季度的項目支出和軟體開發項目。

I appreciate the color. Thank you very much.

我很欣賞它的顏色。非常感謝。

Pinjalim Bora, JPMorgan.

平賈林·博拉，摩根大通。

Great. Hey, thanks for taking the questions. Shlomi, I'll ask you on ML Ops. ML flow is interesting, but maybe talk about how your conversations with customers are trending at this point. Are you seeing customers considering JFrog as -- JFrog Artifactory as a proxy form the kind of hugging phase or any kind of model repositories? And since a lot of the ML Ops works can use a lot of open source library, is it kind of even underscoring the security aspect of the JFrog platform that you have? So anything around ML Ops, what are you hearing from customers would help.

偉大的。嘿，感謝您提出問題。Shlomi，我會問你關於 ML Ops 的問題。機器學習流程很有趣，但也許可以談談您與客戶的對話目前的趨勢如何。您是否看到客戶將 JFrog Artifactory 視為擁抱階段或任何類型模型儲存庫的代理？由於許多 ML Ops 作品可以使用大量開源程式庫，這是否強調了您所擁有的 JFrog 平台的安全性？因此，任何有關 ML Ops 的內容以及您從客戶那裡聽到的信息都會有所幫助。

Hey, Pinjalim, hi. ML ops obviously is the natural expansion or what we call the natural leap forward JFrog, as we treat all models as a back and create another binary. What we hear from our customers, what we get from the market by the way, what we do for the community as well is that they are looking to have a single source of suppliers for models, just as they have for the other packages. Artifactory, obviously, stirs that Xray serves as the scanner for motors and malicious models. And this is what we announced back in Q4 of the pervious years.

嘿，平賈利姆，你好。ML 操作顯然是自然擴展，或者我們稱之為自然飛躍 JFrog，因為我們將所有模型視為後台並建立另一個二進位檔案。我們從客戶那裡聽到的，順便說一句，我們從市場上得到的，以及我們為社區所做的，就是他們正在尋求模型的單一供應商來源，就像他們對其他包的供應商一樣。顯然，Artifactory 引起了人們的注意，Xray 充當了馬達和惡意模型的掃描器。這是我們在去年第四季宣布的。

Now with the universality philosophy in mind, we are providing all the data scientists and ML engineers with the freedom of choice to whatever platform works for you, whether it's ML flow, which is super popular, as we mentioned, with millions of downloads a month or other like, Qwak, and other coming from AWS SageMaker. So the universality around of the factory will make the factory the registry of choice for models as well as is today for the other binaries.

現在，考慮到普遍性理念，我們為所有資料科學家和機器學習工程師提供了選擇適合您的任何平台的自由，無論是機器學習串流，正如我們所提到的，它非常流行，每月有數百萬次下載或其他類似 Qwak 以及來自 AWS SageMaker 的其他內容。因此，工廠的通用性將使工廠成為模型以及今天其他二進位的首選註冊表。

Yeah, understood. One question for you, Ed. On the cloud business -- correct me if I heard this wrong, but seems like you're seeing incremental efficiency efforts by customers optimization, efforts by customers in Q1. Just wanted to make sure I heard that correctly. And maybe how are those customers kind of optimizing at this point, because that's something different than what others are saying that optimization was already done mostly? And maybe help us understand the consumption trend going into April or so far in May.

是的，明白了。艾德，有個問題想問你。關於雲端業務—如果我聽錯了，請糾正我，但似乎您看到了客戶優化帶來的效率提升，以及客戶在第一季所做的努力。只是想確保我聽到的是正確的。也許這些客戶目前正在如何進行最佳化，因為這與其他人所說的優化已經完成的情況有所不同？也許可以幫助我們了解進入四月或五月至今的消費趨勢。

Thank you for the question, Pinjalim. What we're seeing first off is that, again, this being a quarter of digestion after a very strong Q4, we guided to the mid 40s and we were -- we exceeded our guidance in terms of 47% on a year-over-year basis. What we're seeing in terms of the trends is that the customer today, that behavior is more towards and aligned with what we're seeing in 2023, that purchasing decisions as well as large projects will most likely come towards the second half of 2024. But what we are reiterating our guidance around mid 40s for the full year.

謝謝你的提問，Pinjalim。我們首先看到的是，在第四季度非常強勁之後，這是一個季度的消化，我們指導到了 40 多歲，我們——我們超出了我們的指導，同比增長了 47%——年為基礎。我們所看到的趨勢是，今天的客戶的行為更接近並符合我們在 2023 年所看到的情況，採購決策以及大型專案很可能會在 2024 年下半年做出。但我們重申全年 40 多歲左右的指導。

Understood. Thank you very much.

明白了。非常感謝。

Koji Ikeda, Bank of America.

池田浩二，美國銀行。

Yeah, hey, guys. Thanks so much for taking the questions. I wanted to ask a question for maybe another question here on the SaaS side. I know there is a lot of focus on this revenue line item here. And so as we think about it, I wanted to ask your question on the visibility in SaaS. When I look at the net new revenue in SaaS after normalizing for that onetime, it looks it looks about the same as the fourth quarter. And so really trying to understand what your visibility looks like with your SaaS customers, say, for the rest of your business?

是的，嘿，夥計們。非常感謝您提出問題。我想問一個關於 SaaS 方面的問題，也許是另一個問題。我知道這裡的收入項目受到了很多關注。因此，當我們思考這個問題時，我想問您有關 SaaS 可見度的問題。當我查看一次正常化後 SaaS 的淨新收入時，看起來與第四季大致相同。那麼是否真的想了解您的 SaaS 客戶（例如您的其他業務）的知名度如何？

Yeah. So what we see and what we've commented before is that we guide towards mid 40. That's on the commit -- anything above mid 40s would be usage and we don't necessarily guide on usage. So if we see a percentage growth that is above the mid 40s, that is because additional consumption. What we see today and what we have visibility to is in the commitments, and we continue to reiterate at mid 40s for our cloud business.

是的。因此，我們所看到的以及我們之前評論過的是，我們正朝著 40 歲中期邁進。這是提交的內容——任何超過 40 歲左右的內容都會被使用，我們不一定會指導使用。因此，如果我們看到成長率高於 40 多歲，那是因為額外的消費。我們今天所看到的以及我們所看到的是我們的承諾，我們在 1940 年代中期繼續重申我們的雲端業務。

Got it, that makes sense. And just a follow-up here, if I may. JFrog, we definitely view you guys as an enterprise for SecOps tool. So I think there's no denying that. But you do have SMB and smaller bid markets as customers. And so wanted to ask the question on how demand and resiliency are shaking out in the lower end of your customer base?

明白了，這很有道理。如果可以的話，我在這裡做一個後續行動。JFrog，我們絕對將你們視為 SecOps 工具的企業。所以我認為這是無可否認的。但您確實有中小企業和較小的投標市場作為客戶。因此想問一下您的低階客戶群的需求和彈性是如何改變的？

Thanks, Koji. Specifically on security, it is the known vein for all sizes of companies. Software supply chain security is being changed, not only consolidated, but being changed because of the threat that is coming from the runtime environment in which you have binary stresses only. So the JFrog Advanced Security, the JFrog Curation, and Xray are covering this need for the SMB as well.

謝謝，小二。特別是在安全性方面，這是各種規模的公司都知道的。軟體供應鏈安全性正在發生變化，不僅是鞏固，而且由於來自僅具有二進制壓力的運行時環境的威脅而發生變化。因此，JFrog Advanced Security、JFrog Curation 和 Xray 也滿​​足了中小型企業的這項需求。

Now, all types of customers, all four pilot customers -- and I’m not speaking about really small developer jobs, but the SMB for sure are looking for solutions that provide a comprehensive coverage over the software supply chain. And this is what the JFrog Security solution is attract by.

現在，所有類型的客戶，所有四個試點客戶 - 我不是在談論真正的小型開發人員工作，但中小型企業肯定正在尋找能夠全面覆蓋軟體供應鏈的解決方案。這正是 JFrog Security 解決方案的吸引力。

Thanks, guys. Thanks for taking the questions.

多謝你們。感謝您提出問題。

Mike Cikos, Needham.

麥克·西科斯，尼達姆。

Hey, guys. Thanks for taking the questions here. I'll jump on the bandwagon here, since we're all asking about SaaS and cloud. Just to punctuate that point that we were speaking about with Koji. But I want to make sure one of the things we're getting from clients here is you delivered the 47% growth in Q1. We're reiterating the mid 40s for the full year. I think what I'm getting from folks is the idea that, hey, it's a skinny upside to mid 40s, i.e., like it doesn't leave you a lot of wiggle room.

大家好。感謝您在這裡提出問題。我會在這裡跟上潮流，因為我們都在問 SaaS 和雲端。只是為了強調我們與 Koji 談論的這一點。但我想確保我們從客戶那裡得到的訊息之一是你們在第一季實現了 47% 的成長。我們重申全年的目標是 40 年代中期。我想我從人們那裡得到的想法是，嘿，40 多歲中期的上升空間很小，也就是說，它不會給你留下很大的迴旋餘地。

And Ed, if I could just go back to your earlier comments, it sounds like the mid 40s that you've guided to for the year is based on commitment, right? So in the context of that visibility, that mid 40s is, quote, unquote in hand, if you will. And then the consumption is really the go-get to drive upside to that. Is that a fair characterization?

Ed，如果我能回到你之前的評論，聽起來你今年指導的 40 多歲是基於承諾，對吧？因此，在這種可見性的背景下，40 年代中期是，引用，不引用，如果你願意的話。然後，消費確實是推動這一成長的關鍵因素。這是一個公平的描述嗎？

Yeah. Thanks for the question. Mike. First of all, our guidance suggests that our pipeline would support the mid 40s and that is based on consumption. Secondly, based on -- I'm sorry, commitment. The secondly, usage would be a driver. Anything above that mid 40s growth. Any acceleration beyond that wouldn't be migrations, although we don't anticipate anything from a migrations perspective to pick up from what we saw at the levels of 2023.

是的。謝謝你的提問。麥克風。首先，我們的指導表明我們的管道將支援 40 年代中期，這是基於消費的。其次，基於──對不起，承諾。其次，使用情況將成為驅動因素。任何高於 40 年代中期的增長。任何超出此範圍的加速都不會是遷移，儘管從遷移的角度來看，我們預計 2023 年的水準不會出現任何增長。

And if I may, sorry, just to add one more sentence about. We started 2023 with the same volatility and the same hesitation in the market. People on the first quarter of far more cautious about the budgets. They are claiming, they are not yet executing. These migration project are not even being discussed at this point. They want to stabilize the expenses and then to start the year.

如果可以的話，抱歉，我想再補充一句。2023 年伊始，市場同樣出現波動和猶豫。人們對第一季的預算更加謹慎。他們聲稱，但尚未執行。目前甚至還沒有討論這些遷移項目。他們希望穩定開支，然後開始新的一年。

And exactly as it happened in 2023 and then with leases and finished the year with the big highs on the cloud goal, this is what we will see here this year. The market is still not out of the woods and customers are looking at cloud expansion and cloud spending with the magnifier or so. Q1 is very much aligned, even exceeded our our guidance. It is very much aligned with our target. But also, if you look at the dollar base, it's a big success among our portfolio.

正如 2023 年發生的情況一樣，然後是租賃，並以雲端目標的高點結束了這一年，這就是我們今年將在這裡看到的情況。市場仍未走出困境，客戶正用放大鏡左右關注雲端擴展和雲端支出。第一季非常一致，甚至超出了我們的指導。這與我們的目標非常一致。而且，如果你看看美元基礎，你會發現我們的投資組合取得了巨大的成功。

Understood, thank you for that. And then just a follow up here. I think transparently, a little bit of a head scratching outside of your purview, it is just on the comment around the digestion and response to Sanjit's earlier question.

明白了，謝謝你。然後在這裡進行後續操作。顯然，我認為這超出了您的職權範圍，這只是關於對 Sanjit 先前問題的消化和回應的評論。

So I'd just like to get a sense that digestion was that anticipated? And then the follow up is, has that been more front end loaded? Was it back-end loaded to Q1? Has there been any change in behavior in the interim? Again, to give you some sort of confidence that those projects that people are looking at are going to start coming online in the second half of this year?

所以我只是想了解消化是否是預期的？接下來是，是否有更多的前端載入？它是後端載入到 Q1 的嗎？在此期間，行為有任何改變嗎？再次，讓您相信人們正在關注的那些項目將在今年下半年開始上線？

Yeah, this was not a head-scratcher for us. This was something to be expected. The customer behavior and what we see in terms of seasonality, there's typically seasonably weaker in Q1 as budget decisions are being made. New software development projects are being determined, and that typically will scale through and grow throughout the course of the year, and this is the trend that we're seeing.

是的，這對我們來說並不令人頭痛。這是意料之中的事。從客戶行為以及我們在季節性方面看到的情況來看，隨著預算決策的製定，第一季通常會出現季節性疲軟。新的軟體開發專案正在確定中，通常會在一年中不斷擴大和成長，這就是我們看到的趨勢。

Got it. Okay, thank you for calling that out. I really do appreciate it. Turn it over to my colleagues.

知道了。好的，謝謝你指出這一點。我真的很感激。把它交給我的同事。

Jason Ader, William Blair.

傑森·阿德，威廉·布萊爾。

Yeah, thank you. Good afternoon, guys. I wanted to ask about security. Shlomi, maybe talk about pipeline builds for security and what you guys are seeing out there on the ground with the sales reps? And then, what are the biggest challenges you're seeing in terms of really just getting this thing out there and getting people onto the JFrog platform?

是的，謝謝。下午好，夥計們。我想問一下安全問題。Shlomi，也許可以談談安全管道建設以及你們與銷售代表在現場看到的情況？那麼，在真正推出這個產品並讓人們進入 JFrog 平台方面，您所看到的最大挑戰是什麼？

Yeah, Jason, these are two great questions. First, about the pipeline, we are thrilled to see that pipeline growing with a with our enterprise portfolio. And we are very happy to see that they are not only considering a JFrog advanced security versus Curation or Curation versus JFrog Advanced Security, but both. And to remind you, this is also coming with a different model on top of our subscription that comes pace. So we see the pipeline, we see it growing. These are very promising enterprises that are looking at full adoption of software security -- software supplies and security.

是的，傑森，這是兩個很好的問題。首先，關於管道，我們很高興看到該管道隨著我們的企業產品組合而不斷增長。我們很高興看到他們不僅考慮 JFrog 高級安全性與 Curation 或 Curation 與 JFrog 高級安全性，而是兩者兼而有之。提醒您的是，除了我們的訂閱之外，這還附帶了一個不同的模型。所以我們看到了管道，我們看到它在成長。這些都是非常有前途的企業，正在考慮全面採用軟體安全性——軟體供應和安全性。

On the other side, on the flip side, to be none of them is coming from the top. They all have security solution, they are all running the proof-of-concept. They are all looking to displace also consolidate. Pipeline building on the landscape of security is taking longer. So on one hand, very, very excited about the pipeline and the type of customers that are approaching us and running a book on the following one, very organized one, consolidating five or more different tools. On the other hand, the lifecycle of a proof of concept for security is longer than that then, of course, Catcher.

另一方面，在另一面，他們都不是來自高層。他們都有安全解決方案，他們都在運行概念驗證。他們都在尋求取代和整合。安全領域的管道建設需要更長的時間。因此，一方面，我們對通路和客戶類型非常非常興奮，他們正在接近我們，並出版了一本關於以下工具的書，非常有條理，整合了五種或更多不同的工具。另一方面，安全性概念驗證的生命週期當然比 Catcher 更長。

Got you, okay. So it's how is that align strongly with your expectations, I guess six months ago, I mean? Is this sort of what you expected or is it taking -- is it a little bit slower than you expected, you still are as optimistic as ever in terms of the value proposition but it's just going to take a little bit more time?

明白你了，好。那麼，這與您的期望（我想六個月前）是如何緊密一致的？這是您所期望的嗎？

We are staying and confident with our bogging and what we guided to you guys that this year will become a material would be some of our performance in our base.

我們對我們的沼澤保持信心，我們向你們提供的指導是，今年將成為我們在基地的一些表現的材料。

Very good. Good luck, guys.

非常好。祝大家好運。

Thank you.

謝謝。

Miller Jump, Truist Securities.

米勒·跳躍（Miller Jump），Truist 證券公司。

Great. Thank you for taking the questions. I guess maybe I'll ask one on the self-managed style side of the business. You actually had a modest reacceleration there this quarter. Just curious if there's anything onetime in nature or anything that made you indicate this might actually exceed your expectations for that part of the business this year?

偉大的。感謝您提出問題。我想也許我會問一個關於企業自我管理風格方面的問題。實際上，本季您的增速略有回升。只是好奇是否有任何一次性的事情或任何事情讓您表明這實際上可能超出您對今年這部分業務的預期？

Hey, Miller, this is, Ed. No one timing -- nothing onetime-based slight acceleration in our self-hosted business. We would expect that the trend in self-hosted will be very similar in 2024 as to what we saw in 2023.

嘿，米勒，這是艾德。沒有一個時機——我們的自託管業務沒有一次性的輕微加速。我們預計 2024 年自架的趨勢將與 2023 年非常相似。

Okay, thanks. And then maybe just one more, obviously, this is a lumpy metric. But it also looked like undertake customers were the slowest on net adds or they've been in some time. Is there anything to indicate that that digestion period that you talked about is indicating large customers more than the overall?

好的謝謝。然後也許還有一個，顯然，這是一個不穩定的指標。但看起來承接客戶的淨添加速度是最慢的，或者說已經有一段時間了。有沒有什麼跡象表明您所說的消化期更多地表明了大客戶而不是整體？

Look, what we saw in Q4 and a lot of this, you're right, it is lumpiness and seasonality. We had significant traction in our large customers really in the second half of 2023. So this quarter that we're saying somewhat digestion as customers are looking at their budgets and considering expansion opportunities, we saw in Q1. Although there was nice growth, it wasn't at the same pace that we saw on previous quarters. We would expect that that would start to trend more normalized in future quarters. And it will be similar to what we saw in 2023.

看，我們在第四季度看到的很多，你是對的，這是塊狀和季節性。2023 年下半年，我們確實對大客戶產生了巨大的吸引力。因此，本季我們說的是一些消化，因為客戶正在考慮他們的預算並考慮擴張機會，我們在第一季看到了這一點。儘管成長不錯，但與我們前幾季看到的速度不同。我們預計這種情況在未來幾季將開始變得更加正常化。這將與我們在 2023 年看到的情況類似。

Understood. Thank you.

明白了。謝謝。

Jason Celino, KeyBanc Capital Markets.

Jason Celino，KeyBanc 資本市場。

Hey, great. Glad to be on. We actually saw some big news this week that a major player in aptech would be spun out as a private standalone. Have you seen any changes in the competitive dynamics in security over the last, call it, six months? And then more importantly, do you see any incremental share gain opportunities on the horizon just on the competitive landscape? Thanks.

嘿，太棒了。很高興參加。實際上，本週我們看到了一些重大消息，即 aptech 的一家主要參與者將作為私人獨立公司分拆出來。在過去的六個月裡，您是否看到安全領域的競爭動態發生了任何變化？更重要的是，您是否認為競爭格局中即將出現任何增量份額成長機會？謝謝。

Yeah, that's a very good question. First of all, the last quarter was full of events that changed everything. And on one hand, we see the need for consolidation on best of breed platform. And those customers are mentioning the platform that they can consolidate around, especially around security and DevOps together.

是的，這是一個很好的問題。首先，上個季度充滿了改變一切的事件。一方面，我們看到需要整合最佳平台。這些客戶提到了他們可以整合的平台，特別是圍繞安全性和 DevOps 進行整合。

On the other hand, there were a lot of changes that actually the ones that acquired Synopsys for the entire stack, and Atlassian has some changes. So obviously, there are a lot of changes. And tectonic plates are moving. But one thing is saying the same customers are looking to consolidate into a comprehensive security solution. And then on that in the security landscape and the competitive landscape didn't change from last quarter.

另一方面，實際上收購 Synopsys 的整個堆疊發生了很多變化，Atlassian 也發生了一些變化。顯然，有很多變化。地殼板塊正在移動。但有一點是，同樣的客戶正在尋求整合到一個全面的安全解決方案中。然後，安全格局和競爭格局與上季相比沒有變化。

Okay. And then maybe just a quick one for Ed. The digestion that we're all kind of discussing today, did you start seeing it very beginning in the quarter or was it toward the end or just pretty consistent throughout? Thanks.

好的。然後也許只是艾德的一個快速的。我們今天討論的消化問題，您是在本季一開始就開始看到的，還是在接近尾聲的時候，還是整個過程中都非常一致？謝謝。

It was consistent throughout the quarter.

整個季度的情況都是一致的。

Okay. Great, awesome.

好的。太棒了，太棒了。

Kingsley Crane, Canaccord.

金斯利起重機，Canaccord。

Hi. Thanks for taking the question. Shlomi, in the spirit of RSA, want to talk about security? In Mandiant’s report, 31 vendors were impacted by zero-day threats in the past year, that’s up from three in 2018 not mentioning thousands of end customers impacted by those breaches. You cited some of JFrog’s security research in your prepared remarks. Can you talk about the value of having that security research team in addition to your security capabilities including things like JFrog creation?

你好。感謝您提出問題。Shlomi，本著 RSA 的精神，想談談安全性嗎？在 Mandiant 的報告中，過去一年有 31 家供應商受到零日威脅的影響，這一數字高於 2018 年的 3 家，這還沒有提及受到這些漏洞影響的數千名最終客戶。您在準備好的發言中引用了 JFrog 的一些安全研究。除了您的安全能力（包括 JFrog 創建等）之外，您能否談談擁有該安全研究團隊的價值？

Yeah, well, thank you for noting that. JFrog security research team is one of the largest in the industry, not only by the size of the team and how they were trained, but also by the amount of footfalls and finding that we are sharing with their customers and with the community.

是的，謝謝你注意到這一點。JFrog 安全研究團隊是業界最大的團隊之一，不僅體現在團隊規模和培訓方式上，也體現在人流以及我們與客戶和社群分享的發現。

Recently, we released the state of the union, both software supply chain security finding and then just after the Docker hub scanning and the malicious packages on Dockerhub together with Docker, This is an amazing differentiator because our customers can know before the rest of the market from when that might become and it's included in the database of our security solution. So obviously, it's a great service for the communities. But it's also boosting our tools to be able to detect some threats before others, others can catch them.

最近，我們發布了聯盟狀況，無論是軟體供應鏈安全發現，還是在Docker hub 掃描之後以及Dockerhub 上的惡意包與Docker 一起，這是一個驚人的差異化因素，因為我們的客戶可以先於市場其他人知道從什麼時候開始，它就會包含在我們的安全解決方案的資料庫中。顯然，這對社區來說是一項很棒的服務。但這也增強了我們的工具能夠在其他人之前偵測到某些威脅，其他人可以發現它們。

Thank you, that's really helpful. And then for Ed, really strong gross margins at 85%. Can you talk about the efficiencies you're finding there, even as cloud it generally increases as a percent of your overall revenue?

謝謝你，這真的很有幫助。Ed 的毛利率非常高，高達 85%。您能否談談您在那裡發現的效率，即使雲端運算通常會以佔您總收入的百分比的形式增加？

Yeah, very strong gross margins, as you pointed out, 85.1%. One of the reasons that we had such strong gross margins in Q1 is that we removed, eliminated a third-party outsourced database as we now standardized on the Vdoo database that we acquired and two or three years ago. So we saw some efficiency gain there.

是的，正如您所指出的，毛利率非常高，達到 85.1%。我們在第一季毛利率如此強勁的原因之一是我們取消了第三方外包資料庫，因為我們現在對兩三年前收購的 Vdoo 資料庫進行了標準化。所以我們看到了一些效率的提升。

However, what we see in our model is that we'll continue to spend and invest in those databases and other costs associated with our gross margin. So our model indicates that will still -- and as it's in our guidance between 83% to 84% gross margins during 2024.

然而，我們在模型中看到的是，我們將繼續在這些資料庫以及與毛利率相關的其他成本上進行支出和投資。因此，我們的模型表明，到 2024 年，毛利率仍將保持在 83% 至 84% 之間。

Thank you.

謝謝。

Yi Fu Lee, Cantor Fitzgerald.

李毅夫，坎托‧費茲傑拉。

Thank you for taking my question. Question it could be for Shlomi or Ed. I want to focus on the consolidation opportunity. Maybe especially, Ed, you could comment on like the upsell to your other products. I know in your prepared remarks you talked about security as an example. How about other parts like CI/CD, distribute, IoT device management, any updates on that front as well?

感謝您回答我的問題。懷疑這可能是給什洛米或艾德的。我想專注於整合機會。也許特別是，艾德，您可以評論一下對您其他產品的追加銷售。我知道您在準備好的演講中談到了安全問題。其他部分（例如 CI/CD、分發、物聯網裝置管理）怎麼樣？

Obviously, the consolidation of tools on one platform comes with all the capabilities of the factory at the center as the single source of vehicle, then that raises three or four packages, on top of it, the security solution. But also what you mentioned, distribution automation, the database that I just mentioned. It all coming in one platform, one package. And expansion potential is around all of them. It is differently baggage into some of the offerings versus the cloud. In the cloud, we are looking to see more consumption based on more usage and more adoption. And in the past, this expansion by season, by number of servers, by location by project, by sizes of team and so on. So that's a big expansion motion that we see now with the addition of product competence.

顯然，一個平台上的工具整合帶來了作為車輛單一來源的中心工廠的所有功能，然後在其之上提出了三到四個軟體包，即安全解決方案。還有你提到的配電自動化，我剛才提到的資料庫。這一切都集中在一個平台、一個軟體包中。所有這些都具有擴張潛力。與雲端相比，某些產品的負擔有所不同。在雲端中，我們希望看到基於更多使用和更多採用的更多消費。在過去，這種擴展是按季節、伺服器數量、位置、專案、團隊規模等進行的。因此，隨著產品能力的增強，我們現在看到了一項重大的擴張舉措。

Got it, that's extremely helpful. And then my last follow up is on the MLOps opportunity. It’s great that you’ve given customer obviously the freedom of choice. They don’t have to unlock – they don’t have to lock themselves up in anything like they could use hugging face [face maker] I was wondering how material is the MLOps opportunity and when do you think it’s going to be more significant to I guess the contribution to JFrog.

明白了，這非常有幫助。我的最後一次跟進是關於 MLOps 機會。很高興您為客戶提供了明顯的選擇自由。他們不必解鎖 - 他們不必將自己鎖在任何東西中，例如他們可以使用擁抱臉[面部製造器] 我想知道 MLOps 機會有多重要，您什麼時候認為它是這樣的？會更重要。

Yes, MLOps is not matured. AI is not matured, but the practices are being built now. And the nice thing about what we see is that the ML engineers, the Python engineers, the data scientists actually using the best practices of DevOps and DevSecOps to practice MLOps and MLSecOps. So it’s not mature. This might be a tailwind, but it’s not going to change our 2024 guidance. And we are going to invest more and expand more getting JFrog platforms prepared to this big opportunity that is coming in the next year.

是的，MLOps 還不成熟。人工智慧尚未成熟，但實踐正在建立。我們看到的一個好處是，ML 工程師、Python 工程師、資料科學家實際上使用 DevOps 和 DevSecOps 的最佳實踐來實踐 MLOps 和 MLSecOps。所以它還不成熟。這可能是一種順風，但不會改變我們 2024 年的指導。我們將進行更多投資並擴大規模，讓 JFrog 平台為明年即將到來的這一巨大機會做好準備。

Thanks, for that Shlomi.

謝謝，施洛米。

Brad Reback, Stifel

布拉德雷巴克、斯蒂菲爾

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 kind of point us towards less pronounced seasonality in the June quarter than we've seen in the last couple of years. So maybe we're towards the lower end of that mid 40s in 2Q. Thanks.

偉大的。非常感謝。Ed，根據消化評論，我了解今年雲端成長 40% 左右。但確實感覺你在某種程度上向我們指出，六月季度的季節性比過去幾年不那麼明顯。因此，第二季度我們可能正接近 40 年代中期的下端。謝謝。

Yeah. 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.

是的。嗨，布拉德。我們看待這個問題的方式是，它是一個具有季節性的指標。我們在 40 年代中期的目標是全年。這意味著現在是 40 年代中期。可能會上漲幾個點。可能會下降幾個點。我們今天所知道和看到的是 40 年代中期的承諾。任何高於此的值都將被使用。任何低於該數字的情況都可能是由於月刊的原因。但我們看到的是 40 年代中期左右，季節性因素將在該季度發揮重要作用。

Okay. Thanks very much.

好的。非常感謝。

Nick Altmann, Scotiabank.

尼克·阿爾特曼，豐業銀行。

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 and some of the productivity from some of the newly onboarded partners, both, last year and when you guys kind of have your first partner event and then specifically, on the direct go-to-market side, maybe just talk to overall sales productivity? Thanks.

太棒了，謝謝你們。考慮到管道的努力以及您在過去一年中如何擴大銷售隊伍，您是否可以與一些新加入的合作夥伴談談，並了解一些新加入的合作夥伴的生產力，無論是去年還是您的時候你的第一次合作夥伴活動，然後具體來說，在直接進入市場方面，也許只是談論整體銷售生產力？謝謝。

The channel and partners as we keep updating you, its one of the transition to the top down enterprise index sales that we are running. The collaboration with the partners and with the channels is by geography and it is by expertise. So it's different partners that you would see on security versus different partners that you will see on DevOps, and different partners that you would see in France versus people partnership that you will see in Japan.

我們不斷向您更新通路和合作夥伴的訊息，這是我們正在進行的自上而下的企業指數銷售的過渡之一。與合作夥伴和管道的合作是根據地理位置和專業知識進行的。因此，您在安全方面會看到不同的合作夥伴，在 DevOps 方面會看到不同的合作夥伴，在法國會看到不同的合作夥伴，而在日本會看到不同的人員合作夥伴。

And then, one last thing is that now that we added and announced a Carahsoft of a partnership. They also go after the public sector, the highly regulated environments, which they are super familiar with. So we are expanding more and more the relationship with our partners and with our channels, with lot more resellers that can promote the JFrog platform offering.

最後一件事是，現在我們添加並宣布了 Carahsoft 的合作夥伴關係。他們也關注他們非常熟悉的公共部門、高度監管的環境。因此，我們正在越來越多地擴大與合作夥伴和通路的關係，以及更多可以推廣 JFrog 平台產品的經銷商。

Okay, thanks. And then I wanted to follow up on the digestion comment. I think it was Koji asking about whether it is 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 just geo-specific, factor-specific, 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.

好的謝謝。然後我想跟進消化評論。我認為 Koji 是在問它是否更適合中小型企業方面。但是您在消化方面的安裝基礎中看到了其他趨勢嗎？它的基礎廣泛嗎？是否只是針對特定地理區域、特定因素、您在第一季做出的消化評論的任何更多粒度以及您指出的任何趨勢或模式都會有幫助？謝謝。

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

是的，我們沒有看到任何趨勢。這是整個投資組合的廣泛基礎。沒有什麼我們可以具體指出的。

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

目前沒有其他問題。我將電話轉回給什洛米，讓其致閉幕詞。

Thank you, everyone, for joining us the con-call. We had a wonderful quarter. We are looking for a more peaceful day in the region and may the frog be with you. Thank you very much.

謝謝大家參加我們的電話會議。我們度過了一個美好的季度。我們正在尋找該地區更加和平的一天，願青蛙與您同在。非常感謝。

This concludes today's call and thank you for attending. You may now disconnect.

今天的電話會議到此結束，感謝您的出席。您現在可以斷開連線。