Jfrog Ltd (FROG) 2024 Q3 法說會逐字稿

Thank you. Ladies and gentlemen, thank you for joining us, and welcome to JFrog's third quarter 2024 financial results conference call.

謝謝。女士們，先生們，感謝您的加入，歡迎參加 JFrog 2024 年第三季財務業績電話會議。

I will now hand the conference over to Jeffrey Schreiner, Vice President of Investor Relations. Jeffrey, please go ahead.

現在，我將會議移交給投資者關係副總裁 Jeffrey Schreiner。傑弗裡，請繼續。

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

下午好，感謝您加入我們，一起回顧 JFrog 2024 年第三季的財務業績，該業績於今天收盤後透過新聞稿公佈。今天主持電話會議的將是 JFrog 的執行長兼聯合創始人 Shlomi Ben Haim；以及 JFrog 財務長 Ed Grabscheid。

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 Q4 and the full year of 2024. 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.

在本次電話會議中，我們可能會根據聯邦證券法並根據 1995 年私人證券訴訟改革法的安全港規定做出與我們業務相關的前瞻性聲明，包括與我們未來財務業績相關的聲明，以及我們對第四季度和 2024 年全年的展望。預期、相信、繼續、估計、期望、打算、將和類似表達旨在識別前瞻性陳述或對未來預期的類似指示。

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.

請注意不要過度依賴這些前瞻性陳述，因為它們僅反映我們截至今天的觀點，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 the 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 September 30, 2024, and other filings and reports that we may file from time to time with the SEC.

這些聲明受各種風險和不確定因素的影響，可能導致實際結果與預期有重大差異。有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱我們截至 2023 年 12 月 31 日的年度 10-K 表，該表可在我們網站的投資者關係部分找到，以及今天早些時候發布的收益新聞稿。其他資訊將在我們截至 2024 年 9 月 30 日的季度 10-Q 表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. 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公認會計準則財務指標。這些非 GAAP 財務指標被用來衡量 JFrog 的業績，應作為 GAAP 指標的補充，而不是替代，或與 GAAP 指標隔離。請參閱我們的收益報告中的表格，以了解這些指標與最直接可比較的 GAAP 財務指標的對帳情況。本次電話會議的重播將在 JFrog 投資者關係網站上限時提供。

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

因此，我想將電話轉給 JFrog 的執行長 Shlomi Ben Haim，Shlomi？

Thank you, Jeff. Good afternoon to you all, and thank you for joining our call. It was a very active quarter for JFrog, including at our annual user conference, swampUP, when industry leaders like JPMorgan Chase, Intel, Google, Snowflake, Capital One and others share their powerful experience with the JFrog platform on stage. Our partners, including GitHub, NVIDIA and Docker joined us in announcing new levels of collaboration, underscoring our commitment to a unified platform experience. swampUP was also an opportunity to spotlight and review the innovations driving JFrog's future growth, including our supply chain platform as the first to integrate DevOps, DevSecOps and MLOps in one seamless solution. Additionally, we expanded our security offerings with JFrog Runtime Security with customers recognizing it as critical solution for organizations seeking full visibility from development to production and back.

謝謝你，傑夫。大家下午好，感謝大家參加我們的電話會議。對於 JFrog 來說這是一個非常活躍的季度，包括在我們的年度用戶大會 swampUP 上，摩根大通、英特爾、谷歌、Snowflake、Capital One 等行業領導者在台上分享了他們使用 JFrog 平台的強大經驗。我們的合作夥伴，包括 GitHub、NVIDIA 和 Docker 與我們一起宣布了新的合作水平，強調了我們對統一平台體驗的承諾。 swampUP 也是一個聚焦和回顧推動 JFrog 未來成長的創新的機會，包括我們的供應鏈平台，它是第一個將 DevOps、DevSecOps 和 MLOps 整合在一個無縫解決方案中的平台。此外，我們還透過 JFrog Runtime Security 擴展了我們的安全產品，客戶認識到它對於尋求從開發到生產再到後端的全面可視性的組織來說是至關重要的解決方案。

At JFrog, we say, once you leap forward, you won't go back. Our customers share this belief as is well shown in our growth retention and the opportunities ahead align with our strategy, keeping us excited, focused, driven and inspired.

在 JFrog，我們說，一旦你向前邁進，就不會回頭。我們的客戶也抱持著同樣的信念，這充分體現在我們的成長保持力上，未來的機會與我們的策略一致，使我們保持興奮、專注、有動力和靈感。

I'm pleased with our success in the third quarter. We believe we demonstrated not only strong execution within JFrog, but more broadly, customers are telling us that they see JFrog as a key strategic partner in the software development processes.

我對我們第三季的成功感到非常高興。我們相信，我們不僅在 JFrog 內部展示了強大的執行力，而且更廣泛地說，客戶告訴我們，他們將 JFrog 視為軟體開發流程中的關鍵策略合作夥伴。

Now allow me to cover some of our achievements during the quarter in more detail. JFrog's Q3 was strong on all fronts. Our disciplined go-to-market execution led to some of the largest platform wins in JFrog's history, fueled by DevOps workload migration to the cloud, coupled with comprehensive software supply chain security. JFrog's unified solutions empower enterprises to seamlessly align DevOps security and MLOps on a single source of truth, an approach that differentiate us and continues to strongly resonate with market demand.

現在，請容許我更詳細地介紹一下我們在本季取得的一些成就。JFrog 第三季在各方面均表現強勁。我們嚴謹的市場執行為 JFrog 帶來了史上最大的一些平台勝利，這得益於 DevOps 工作負載遷移到雲端，再加上全面的軟體供應鏈安全。JFrog 的統一解決方案使企業能夠在單一事實來源上無縫地協調 DevOps 安全性和 MLOps，這種方法使我們與眾不同並繼續強烈回應市場需求。

In Q3, JFrog's total revenue was $109.1 million, up 23% year-over-year. Cloud revenue for the quarter reached $42.4 million, representing 38% year-over-year growth fueled by strategic cloud migration and steady usage patterns among committed annual customers. Based on these Q3 results, we remain confident in our full year 2024 guidance for cloud growth of around 40%. Customers in Q3 with ARR over $100,000 grew to a total of [966], up from [848] in the year ago period. The number of customers with an ARR exceeding $1 million increased to [46], up from [30] in the year ago period, representing 53% year-over-year growth.

第三季度，JFrog總營收為1.091億美元，年增23%。本季雲端收入達到 4,240 萬美元，年增 38%，這得益於策略性的雲端遷移和年度承諾客戶的穩定使用模式。根據這些第三季的業績，我們仍然對 2024 年全年雲端成長約 40% 的預期充滿信心。第三季 ARR 超過 10 萬美元的客戶總數從去年同期的 [848] 名成長至 [966] 名。ARR 超過 100 萬美元的客戶數量從去年同期的 [30] 增加到 [46]，年成長 53%。

In Q3, our go-to-market team demonstrated strong execution, winning large fields for our complete platform, primarily driven by demand for our cloud and security offerings. As previously shared, some of the significant deals we won faced delays due to a slower, more rigid procurement environment.

在第三季度，我們的行銷團隊展現了強大的執行力，為我們的完整平台贏得了大量市場，這主要得益於對我們的雲端和安全產品的需求。正如之前所分享的，我們贏得的一些重要交易由於採購環境放緩、更加嚴格而面臨延遲。

Let me first address the cloud. Our cloud business experienced sequential growth driven by increased migration activities, though overall usage trend remains more moderate compared to the previous year. Customers tell us that the scalable and hybrid nature of the JFrog platform gives them the confidence they need to modernize their software development business, and we were pleased with an increased migration pace and usage in Q3. We maintained a cautious outlook regarding cloud migration deals in our 2024 pipeline as we do not believe customers' migration activity has yet turned the corner.

讓我先談談雲。我們的雲端業務在遷移活動增加的推動下實現了連續成長，但整體使用趨勢與前一年相比仍然較為溫和。客戶告訴我們，JFrog 平台的可擴展和混合特性使他們有信心實現軟體開發業務的現代化，我們對第三季遷移速度和使用率的提高感到滿意。我們對 2024 年雲端遷移交易持謹慎態度，因為我們認為客戶的遷移活動尚未出現轉機。

Next, to highlight security. The market continues to demand higher standards for software integrity with a focus on achieving trusted, secure and traceable processes from software creation on the left to distribution and production on the right. DevOps and DevSecOps are therefore inseparable, and the JFrog platform is purpose-engineered to meet this requirement. In line with this industry shift, enterprises are prioritizing modernization of their holistic software supply chain security.

其次，要突顯安全性。市場對軟體完整性的要求越來越高，重點是實現從左側的軟體創建到右側的分發和生產的可信、安全和可追溯的過程。因此，DevOps 和 DevSecOps 是密不可分的，而 JFrog 平台就是專門為滿足這項要求而設計的。隨著產業的轉變，企業優先考慮其整體軟體供應鏈安全的現代化。

They seek to streamline developer workflows by consolidating point solution tools and reducing vendor dependencies, thereby enhancing security and efficiency across the software supply chain. This trend has been voiced by our customers and prospects over the recent quarters and was evident in our Q3 wins, which as predicted included JFrog Advanced Security and JFrog Curation as key drivers.

他們尋求透過整合點解決方案工具和減少對供應商的依賴來簡化開發人員的工作流程，從而增強整個軟體供應鏈的安全性和效率。在最近幾個季度，我們的客戶和潛在客戶都表達了這種趨勢，並且在我們第三季度的成功中得到了體現，正如預測的那樣，JFrog Advanced Security 和 JFrog Curation 是主要驅動因素。

It's not a question anymore about if a company will adopt a holistic platform that incorporates end-to-end software supply chain security, but a question of when. As mentioned, in Q3, we held our tenth annual user conference, swampUP, in Austin, Texas. As the industry continues to demand more from development teams, we gathered with our customers and the community to drive the future of DevOps, DevSecOps and MLOps. We were excited to announce the availability of JFrog Runtime Security, delivering as part of our platform, the very first DevSecOps solutions that allows companies to have full integrity and software lineage traceability from code to production and back across every development and pipeline phase.

這不再是一個公司是否會採用包含端到端軟體供應鏈安全的整體平台的問題，而是何時採用的問題。如上所述，我們在第三季度在德克薩斯州奧斯汀舉辦了第十屆年度用戶大會 swampUP。隨著業界對開發團隊的要求不斷提高，我們與客戶和社群齊聚一堂，共同推動 DevOps、DevSecOps 和 MLOps 的未來。我們很高興地宣布推出 JFrog Runtime Security，作為我們平台的一部分，它提供了第一個 DevSecOps 解決方案，使公司能夠從程式碼到生產以及在每個開發和管道階段擁有完整的完整性和軟體沿襲可追溯性。

In addition, we showcased the second phase of our strategic partnership with GitHub, announcing co-engineered solutions that unify both companies' advanced security capabilities and importantly, bring AI capabilities via the Copilot integration with JFrog Curation and JFrog Catalog.

此外，我們展示了與 GitHub 戰略合作夥伴關係的第二階段，宣布了共同設計的解決方案，統一了兩家公司的高級安全功能，更重要的是，透過 Copilot 與 JFrog Curation 和 JFrog Catalog 的整合帶來 AI 功能。

GitHub's CEO, Thomas Dohmke, joined me on a keynote session shared, "Together with JFrog, we have let this lightning out of the bottle. And of course, we're bringing the power of JFrog to GitHub CoPilot. Now you can ask CoPilot about your packages in Artifactory and about your internal processes and configurations specific to your company, and this is just the beginning."

GitHub 執行長 Thomas Dohmke 在與我一起的主題演講中說道：「我們與 JFrog 攜手，讓這股閃電從瓶子裡迸發出來。當然，我們將把 JFrog 的強大功能帶到 GitHub CoPilot。現在您可以向 CoPilot 詢問有關 Artifactory 中的包裹以及您公司特定的內部流程和配置，這只是個開始。

We also announced a strategic collaboration with NVIDIA to bring secured, optimized machine learning models into the software supply chain and serve our joint customers with Artifactory as NVIDIA's new model trusted registry. These announcements were also shared in our shareholder and analyst briefings we conducted on-site in Austin and available on our IR website or at swampup.jfrog.com.

我們也宣布與 NVIDIA 建立策略合作，將安全、最佳化的機器學習模式引入軟體供應鏈，並透過 Artifactory 作為 NVIDIA 的新模式可信任註冊表為我們的共同客戶提供服務。這些公告也在我們在奧斯汀現場舉行的股東和分析師簡報會上發布，並可在我們的 IR 網站或 swampup.jfrog.com 上查閱。

Before we dive into financials. In Q3, we demonstrated strong execution across our product strategy and delivery ecosystem partnerships, platform expansion, sales wins, free cash flow and overall business efficiency. This success is in line with our strategy, and we are excited about the opportunities ahead.

在我們深入討論財務問題之前。在第三季度，我們在產品策略和交付生態系統合作夥伴關係、平台擴展、銷售成功、自由現金流和整體業務效率方面表現出色。這次成功符合我們的策略，我們對未來的機會感到興奮。

With that, I'll turn the call over to our CFO, Ed Grabscheid, who will provide an in-depth recap of our Q3 financial results and our outlook for Q4 and through fiscal year of 2024. Ed?

接下來，我將把電話轉給我們的財務長 Ed Grabscheid，他將深入回顧我們第三季的財務業績以及我們對第四季和 2024 財年的展望。艾德？

Thank you, Shlomi, and good afternoon, everyone. During the third quarter of 2024, total revenues were $109.1 million, up 23% year-over-year. As noted by Shlomi, cloud revenues in the quarter equaled $42.4 million, up 38% year-over-year, representing 39% of total revenues versus 35% in the prior year.

謝謝你，Shlomi，大家下午好。2024 年第三季度，總營收為 1.091 億美元，年增 23%。什洛米指出，本季雲端運算營收為 4,240 萬美元，年增 38%，佔總營收的 39%，而去年同期為 35%。

Self-managed revenues or on-prem were $66.7 million, up 15% year-over-year during the third quarter. We anticipate self-managed revenue growth trends to remain stable in the fourth quarter, but note some customers who are planning to migrate to the cloud have paused their investment in on-prem deployments.

第三季自營收入或內部部署收入為 6,670 萬美元，年增 15%。我們預計第四季度自我管理收入成長趨勢將保持穩定，但請注意，一些計劃遷移到雲端的客戶已經暫停了內部部署的投資。

Net dollar retention for the four trailing quarters was 117%, in line with our guidance. Our gross retention rate remained at 97%. A key motion driving our growth has been customer expansion through the adoption of Enterprise Plus, our full platform subscription as we expand our platform capabilities with security and MLOps, we believe further penetration into our existing customer base presents an opportunity for continued growth. In Q3, 50% of total revenue came from Enterprise Plus subscriptions, up from 46% in the prior year. Revenue contribution from Enterprise Plus subscriptions grew 35% year-over-year.

過去四個季度的淨美元保留率為 117%，符合我們的預期。我們的總留存率維持在97%。推動我們成長的一個關鍵動力是透過採用 Enterprise Plus 來擴展客戶，這是我們的完整平台訂閱，隨著我們透過安全性和 MLOps 擴展我們的平台功能，我們相信進一步滲透到我們現有的客戶群中為持續成長提供了機會。第三季度，總營收的 50% 來自 Enterprise Plus 訂閱，高於去年同期的 46%。Enterprise Plus 訂閱的營收貢獻年增 35%。

Now I'll review the income statement in more detail. Gross profit in the quarter was $90.3 million, representing a gross margin of 82.8% compared to 83.7% in the year ago period. The decrease in gross margin relative to the year-ago period is primarily due to the higher mix of cloud revenues, which carries a lower gross margin profile than corporate average.

現在我將更詳細地回顧一下損益表。本季毛利為 9,030 萬美元，毛利率為 82.8%，去年同期為 83.7%。毛利率較去年同期下降主要是由於雲端收入結構較強，導致毛利率低於企業平均值。

We maintain expectations for annual gross margin targets remaining between 83% and 84% in fiscal year 2024. Operating expenses for the third quarter were $75.5 million, up $2.2 million sequentially, equaling 69.3% of revenues, up from $62.3 million or 70.3% of revenues in the year ago period.

我們預計 2024 財年的年度毛利率目標仍將在 83% 至 84% 之間。第三季的營運費用為 7,550 萬美元，比上一季增加 220 萬美元，佔營收的 69.3%，高於去年同期的 6,230 萬美元或 70.3%。

Current quarter expenses include contributions from the acquisition of Qwak, which closed in early July. We remain focused on expense discipline while continuing to maintain the proper level of investment to capture future growth opportunities. Our operating profit in Q3 was $14.7 million or 13.5% operating margin compared to an operating profit of $11.9 million or 13.4% operating margin in the year ago period.

本季的支出包括 7 月初完成的收購 Qwak 的貢獻。我們將繼續注重費用控制，同時繼續保持適當的投資水平，以抓住未來的成長機會。我們第三季的營業利潤為 1,470 萬美元，營業利益率為 13.5%，而去年同期的營業利潤為 1,190 萬美元，營業利潤率為 13.4%。

Diluted earnings per share equaled $0.15 based on approximately 115.3 million weighted average diluted shares compared to $0.15 per share in the prior year on 110.2 million weighted average diluted shares.

根據約 1.153 億股加權平均稀釋股份計算，每股稀釋收益為 0.15 美元，而去年同期為 1.102 億股加權平均稀釋股份，每股稀釋收益為 0.15 美元。

Turning now to the balance sheet and cash flow. We ended the third quarter of 2024 with $467.8 million in cash and short-term investments, down from $591.3 million as of June 30, 2024. I would like to note that we utilized $153.7 million in cash for the initial consideration paid for the acquisition of Qwak in early July. Cash flow from operations was $27.6 million in the quarter. After taking into consideration our CapEx requirements, free cash flow was $26.7 million or 24.5% free cash flow margin. As of September 30, 2024, our remaining performance obligation totaled $346.1 million.

現在來看看資產負債表和現金流。截至 2024 年第三季度，我們的現金和短期投資為 4.678 億美元，低於 2024 年 6 月 30 日的 5.913 億美元。我想指出的是，我們在 7 月初以 1.537 億美元現金作為收購 Qwak 的初始對價。本季經營活動現金流為 2,760 萬美元。考慮到我們的資本支出要求後，自由現金流為 2,670 萬美元，或 24.5% 的自由現金流利潤率。截至 2024 年 9 月 30 日，我們剩餘的履約義務總額為 3.461 億美元。

Now I'd like to speak about our outlook and guidance for the fourth quarter and full year of 2024. For the fourth quarter, we expect revenue to be in the range of $113.5 million to $114.5 million. We forecast non-GAAP income from operations to be in the range of $14 million to $15 million and non-GAAP net income per share to be in the range of $0.13 to $0.15 based on 117 million estimated diluted weighted average shares outstanding.

現在，我想談談我們對 2024 年第四季和全年的展望和指導。我們預計第四季營收將在 1.135 億美元至 1.145 億美元之間。我們預測非 GAAP 營業利潤將在 1,400 萬美元至 1,500 萬美元之間，基於 1.17 億股預計攤薄加權平均流通股，非 GAAP 每股淨利潤將在 0.13 美元至 0.15 美元之間。

For the full fiscal year 2024, we expect revenues to be in the range of $425.9 million to $426.9 million. Non-GAAP income from operations to be in the range of $56.4 million to $57.4 million and non-GAAP net income per share to be in the range of $0.59 to $0.61 based on 116 million estimated diluted weighted average shares outstanding.

對於 2024 財年全年，我們預計營收將在 4.259 億美元至 4.269 億美元之間。根據預計 1.16 億股攤薄的加權平均流通股，非 GAAP 營業利潤將在 5,640 萬美元至 5,740 萬美元之間，非 GAAP 每股淨利潤將在 0.59 美元至 0.61 美元之間。

Now let me provide more context around our guidance. We anticipate our cloud revenue to achieve around 40% year-over-year growth in 2024 with year-to-date cloud growth currently at 42%. Fourth quarter cloud growth will be supported by a full quarter of contribution from large-scale wins in the third quarter, annual customer commitments as well as contribution from smaller scale migrations to the cloud. We believe our cloud growth forecast for 2024 still represents strong execution in what remains to be a challenging spend and procurement environment.

現在，讓我提供有關我們指導的更多背景資訊。我們預計，到 2024 年，我們的雲端收入將實現年增約 40%，目前今年迄今的雲端成長率為 42%。第四季的雲端運算成長將受到第三季大規模勝利、年度客戶承諾以及小規模雲端遷移貢獻的整個季度貢獻的支持。我們相信，在一個依然充滿挑戰的支出和採購環境中，我們對 2024 年雲端運算成長的預測仍然具有強勁的執行力。

We continue to be cautious in our forward outlook de-risking large-scale pipeline opportunities from our current guidance. We have not observed a material shift in sentiment in regards to the overall spending environment and still observe customers being sensitive to the timing of large-scale budgetary commitments.

我們對未來展望繼續保持謹慎，根據目前的指導方針，降低大規模管道機會的風險。我們尚未觀察到整體支出環境方面的情緒發生重大轉變，並且仍然觀察到客戶對大規模預算承諾的時間很敏感。

During the third quarter, we saw security become a critical driver of larger customer deals and view the JFrog platform combined with security as the industry standard for enterprise customers looking to manage and secure their software supply chain and consolidate point solutions. We continue to anticipate that JFrog Advanced Security and JFrog Curation will achieve material revenue contribution in 2025.

在第三季度，我們看到安全性成為大型客戶交易的關鍵驅動因素，並將 JFrog 平台與安全性相結合視為尋求管理和保護其軟體供應鏈和整合點解決方案的企業客戶的行業標準。我們繼續預期 JFrog Advanced Security 和 JFrog Curation 將在 2025 年實現實質的收入貢獻。

Given our fourth quarter guidance, we reiterate our net dollar retention range for the full year 2024 in the mid-teens. Finally, the acquisition of Qwak closed in the beginning of July. Revenue contribution in the third quarter associated with this transaction was less than 0.5%. As we integrate Qwak into JFrog over the coming periods, we will provide further updates regarding our outlook for growth and profitability.

根據我們第四季的指導，我們重申 2024 年全年的淨美元留存範圍在十五六位數。最終，對 Qwak 的收購於 7 月初完成。本次交易相關的第三季營收貢獻不到0.5%。隨著我們在未來一段時間內將 Qwak 整合到 JFrog 中，我們將提供有關成長和獲利前景的進一步更新。

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

現在，在回答大家的問題之前，我會把電話轉回給 Shlomi，請他作結語。

Thank you, Ed. Our Q3 achievements and successes belong to our global team. Driven by the thirst for innovation and powered by our customers' happiness, our team delivered a robust quarter with growth in cloud and security leading the way. Frogs, I'm incredibly proud of each of you and constantly inspired by your resilience and spirit. We remain focused and committed to achieving a solid 2024 in line with our guidance. And while macroeconomic challenges persist, we believe the foundation laid are bearing fruits.

謝謝你，埃德。我們第三季的成就和成功歸功於我們的全球團隊。在對創新的渴望和客戶滿意度的推動下，我們的團隊取得了強勁的季度業績，雲端運算和安全領域的成長遙遙領先。青蛙們，我為你們每個人感到無比自豪，你們的韌性和精神一直激勵著我。我們將繼續集中精力並致力於按照我們的指導方針，在 2024 年取得堅實的成績。儘管宏觀經濟挑戰依然存在，但我們相信，奠定的基礎正在結出果實。

Before we take your questions, let us all remember that it has now been over a year since the terrorist attacks on Israel begun. And as we speak, 101 of our brothers and sisters remain held captive by Hamas in Gaza. We pray for peace in the region and for the fast and safe return of those hostages to their families.

在我們回答你們的問題之前，讓我們先記住，以色列遭受恐怖攻擊已經一年多了。如今，我們的101名兄弟姊妹仍被加薩的哈馬斯囚禁。我們祈禱該地區實現和平並祝福人質能夠迅速安全地返回家人身邊。

Thank you for attending our call today and may the Frog be with you. Operator, we are now open to take questions.

感謝您今天的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) Sanjit Singh, Morgan Stanley.

（操作員指示） 摩根士丹利的 Sanjit Singh。

Thank you for taking my questions and congrats on the solid Q3 results. I wanted to get a sense of how you saw Q3 come in. If I rewind back to 90 days ago, you guys did see some deals push out and so would you characterize Q3 as a function of some of those deals closing and generating revenues quarter? Or was it more kind of more broad-based strength beyond just closing deals? And then I had a follow-up.

感謝您回答我的問題，並祝賀您第三季的穩健業績。我想了解您如何看待 Q3 的到來。如果我回溯到 90 天前，你們確實看到一些交易推出，那麼你們會將第三季描述為其中一些交易完成並產生收入的季度嗎？或者它是一種除了達成交易之外的更廣泛的實力？然後我進行了後續行動。

Hi Sanjit. This is Ed. Thank you for the question. So we're really pleased with the results. We thought it was a strong quarter of execution. The overperformance that we saw during Q3 was largely due to these significant projects that we talked about that we derisked from our forecast. We saw several of those deals closed in Q3, one of those being a deal that was pushed from Q2. So therefore, the overperformance of what we saw was largely due to the fact that we saw many of those large deals being closed.

你好，Sanjit。這是埃德。感謝您的提問。所以我們對結果非常滿意。我們認為這是一個執行力強勁的季度。我們在第三季看到的超額表現很大程度上是由於我們討論的這些重要項目，而這些項目已從我們的預測中消除了風險。我們看到其中幾筆交易在第三季完成，其中一筆是在第二季推遲的交易。因此，我們看到的超額表現很大程度上是由於我們看到許多大型交易已經完成。

That's great context. And great to hear that these strategic deals are coming over the line. I wanted to -- my follow-up question is around security and Shlomi your comments around 2025 being the year. It's hard to go from -- we have to sort of build that pipeline. And so in terms of what you're seeing right now, to give you that confidence that 2025 will be the year for more material contribution from security, what are some of the proof points that you're seeing right now that gives you that confidence on the advanced security side?Thank you very much.

這是非常棒的背景。我很高興聽到這些戰略交易即將達成。我想——我的後續問題是關於安全性，Shlomi，你對 2025 年的評論是這樣的。這很難——我們必須建立這樣的管道。那麼就您現在看到的情況而言，為了讓您有信心 2025 年將是安全領域做出更多實質貢獻的一年，您現在看到的哪些證據點可以讓您在高級安全方面充滿信心？非常感謝你。

Hey Sanjit, this is Shlomi. Security is being part of all big deals that we secured in Q3. And as we reported, those are our strategic customers. So the sales cycle took longer than expected. But then when we won this deal, that was a sizable deal that was triggered by cloud and security, very much aligned with our strategy. When we are looking at the pipeline, they're being very cautious about it and derisking it. We see more opportunities that combine cloud growth and security. And as we mentioned, it is now coupled together on all the big platform deals. So that gives us the confidence that we are getting into 2025 with the same momentum we created it. So that gives us the confidence that we are getting into 2025 with the same momentum we created.

嘿 Sanjit，我是 Shlomi。安全是我們在第三季達成的所有重大交易的一部分。正如我們所報道的，這些都是我們的策略客戶。因此銷售週期比預期的要長。但是當我們贏得這筆交易時，這是一筆由雲端和安全性引發的大規模交易，與我們的策略非常一致。當我們審視管道時，他們對此非常謹慎，並且降低風險。我們看到了更多將雲端成長與安全性結合的機會。正如我們所提到的，它現在與所有大型平台交易結合在一起。因此，我們有信心，我們將以同樣的勢頭進入 2025 年。因此，我們有信心，我們將以同樣的勢頭進入 2025 年。

Thank you for the context.

感謝您提供的背景資訊。

Pinjalim Bora, JP Morgan.

賓賈利姆·博拉 (Pinjalim Bora)、摩根大通 (JP Morgan)。

Great. Thank you for taking the questions and congrats from me as well. Shlomi, just wanted to ask you, staying on the security thread a little bit more. I believe if you have a lot of deals that are kind of coming for or came for renewal or coming for renewal in Q2, Q4 that had kind of a big security component signed about a year ago, there were some introductory pricing involved in there. I want to ask you, what is kind of the customer behavior in those deals as they are coming for renewals? Is it possible to kind of understand the conversion rates of those deals, signing into bigger security deals? Any way to understand kind of the uplift you're seeing on the ACV side.

偉大的。謝謝你們回答這些問題，我也向你們表示祝賀。什洛米，我只是想問你一下，關於安全問題，請再多談一下。我相信，如果您在第二季、第四季有很多即將達成或即將續簽的交易，這些交易在大約一年前簽署了很大的安全部分，那麼其中會涉及一些介紹性定價。我想問您，這些交易中客戶在續約時的行為是什麼樣的？是否有可能了解這些交易的轉換率，並簽署更大的證券交易？有什麼方法可以理解您在 ACV 方面看到的提升嗎？

Hi Pinjalim, this is Ed. I'll go ahead and start with that. So we went general announcement of the security in the second half of last year. And as you mentioned, we did a lot of introductory pricing. Those are now coming up for renewals, and we're starting to see the adoption of those and expansion of seats on those customers. The focus has really been on these large projects, these migration in large projects where we're seeing sizable deals in terms of the number of seats and security. And those are what's leading most of these projects that we talk about. These projects, once we have a proof of concept, we have a win in terms of we know they're committed to JFrog. The timing of those projects are still uncertain. That's why we're derisking those.

你好，Pinjalim，我是 Ed。我將繼續並從那裡開始。因此我們在去年下半年就安全問題​​進行了全面公告。正如您所說，我們做了很多介紹性定價。這些現在正在進行續簽，我們開始看到這些服務的採用以及這些客戶的席位的擴大。我們的重點確實放在這些大型專案上，這些大型專案的遷移，我們在席位數量和安全性方面看到了相當大的交易。這些正是我們所談論的大多數項目的主導因素。這些項目，一旦我們有了概念證明，我們就贏了，因為我們知道他們會致力於 JFrog。這些項目的實施時間仍不確定。這就是我們要降低這些風險的原因。

And if I may, Pinjalim, thank you for the question. what we designed into the offering is that Advanced Security, Curation and now JFrog Runtime are all parts only of the Enterprise X and Enterprise Plus subscription as an add-on. So what we see is not only that the introductory prices gave us kind of the runway that we needed in order to penetrate the market and to displace other products but also to consolidate our customers around the platform play and not just security as an add-on.

如果可以的話，Pinjalim，謝謝您的提問。我們在產品設計中將高級安全性、Curation 以及現在的 JFrog Runtime 都作為附加元件納入 Enterprise X 和 Enterprise Plus 訂閱中。因此，我們看到，介紹價格不僅為我們提供了進入市場和取代其他產品所需的平台，而且還圍繞著平台整合了我們的客戶，而不僅僅是將安全性作為附加功能。

Yeah, understood. One follow-up for Ed. I know you're not really talking anything about 2025, but I wanted to ask you, how should we think about the puts and takes? You're exiting at about 17%, 18% growth seems like the macro environment is still not kind of green lights as of now. On the other hand, you have seems like built a big RPO base that probably gives you more visibility and then there is the security trend. How should we kind of think about 2025 as we think about the models?

嗯，明白了。對 Ed 的一次後續行動。我知道您實際上並沒有談論 2025 年，但我想問您，我們應該如何考慮利弊？您以 17% 左右的成長率退出，18% 的成長率似乎表明宏觀環境目前仍然不是綠燈。另一方面，您似乎已經建立了一個大型 RPO 基礎，這可能會為您提供更高的可見性，然後還有安全趨勢。當我們思考這些模型時，我們該如何看待 2025 年？

Yeah. Thank you for your comments and question on that, Pinjalim. We're not at the moment commenting on 2025. As we normally do, we'll do that at the end of the fiscal year and during our fourth quarter. But one comment I'd like to make is that we're being more conservative in the way that we are building our outlook and as we build our overall guidance going forward.

是的。謝謝您的評論和提問，Pinjalim。我們目前不對 2025 年發表評論。與平常一樣，我們會在財政年度末和第四季進行此項工作。但我想說的是，我們在建立前景和未來整體指導方面將更加保守。

Understood. Thank you very much.

明白了。非常感謝。

Mike Cikos, Needham.

麥克·西科斯，尼德姆。

Hey, guys, thanks for taking the question here. And I just wanted to circle up on two components, really, first closing out the point from Pinjalim, but I know that you're talking about how you're being more conservative in building this guidance from the ground up going forward. So is that a comment as it relates to where we stand today? Because I know you've obviously signaled that you're more cautious in derisking for these large cloud migrations? Or was there potential for incremental prudence to be introduced?

嘿，夥計們，感謝你們在這裡回答這個問題。實際上，我只想概括一下兩個部分，首先，結束 Pinjalim 的觀點，但我知道您正在談論如何在未來從頭開始構建這一指導方針時更加保守。那麼這是否與我們今天的立場有關？因為我知道您已經明顯地表示您對降低這些大規模雲端遷移的風險會更加謹慎？或者是否有可能引入漸進式審慎措施？

Hi Mike, this is Shlomi. We are looking at Q3, we are very pleased, very strong beat, very strong delivery on the quarter on all fronts. We are doing Q4 now, and we derisked our pipeline. We looked at the opportunities. But we still remain cautious because what we are seeing is that the big cloud migration, the big security deals, the big platform deals are not yet completely out of the woods. So we have to remain cautious. And to deliver on a strong 2024, we are committed to what we guide you with, but we will take the conservative approach as we communicated in the past.

你好，Mike，我是 Shlomi。我們正在展望第三季度，我們非常高興，本季各方面的業績都非常強勁，交付情況非常強勁。我們現在正在進行第四季度的工作，並且我們降低了管道風險。我們研究了這些機會。但我們仍然保持謹慎，因為我們看到大型雲端遷移、大型安全交易、大型平台交易尚未完全走出困境。因此我們必須保持謹慎。為了實現強勁的 2024 年目標，我們致力於為您提供指導，但我們將採取過去溝通過的保守方法。

I appreciate that. And then I guess my follow-up, I know it's probably a secondary, even admittedly maybe more of a tertiary metric. But if I look at billings and RPO, this quarter specifically, both those metrics were significantly stronger versus what it's been more recently. And I just wanted to get a better sense, should we equate that to maybe some of the catch-up in these larger deals that push from Q2 to Q3? Or is there anything else to kind of point to, to help us understand those dimensions?

我很感激。然後我想我的後續行動是，我知道這可能是次要的，甚至可能更像是第三指標。但如果我具體看一下本季的帳單和RPO，這兩個指標都比最近的水平強勁得多。我只是想更了解一下，我們是否應該將其等同於從第二季到第三季的這些較大交易中的一些追趕？或者還有其他什麼可以指出來，幫助我們理解這些維度嗎？

Hi, Mike, it's Ed. Thanks for your question. Yes, and thank you for noticing that. It was a very strong quarter. Much of that is the contribution that we saw in these very large deals. And in addition to that, when you start to look at RPO, the fact that now we are starting to see many of these deals be multiyear deals. So that's taken into consideration, obviously, in the RPO as well.

嗨，麥克，我是艾德。感謝您的提問。是的，感謝您注意到這一點。這是一個非常強勁的季度。其中大部分是我們在這些非常大的交易中看到的貢獻。除此之外，當您開始關注 RPO 時，事實上我們現在開始看到許多此類交易都是多年期交易。因此，RPO 顯然也考慮到了這一點。

I mentioned, Mike, in the previous call that some of those sizable deals that were kind of pushed from the second quarter to the third, and maybe some would be pushed in the future are sizable, not only because of the potential, but also because of the strategic play, that our team is working according to, and if the deal can be larger, it requires me to wait a bit more, but to bring a multi-deal, multi-cloud, multi-technology in a completely different side, we will wait, and we will deliver and what you see in the RPO is a result of that exact strategy.

麥克，我在之前的電話會議中提到過，一些規模可觀的交易從第二季度推遲到了第三季度，也許有些交易會在未來被推遲，這些交易規模巨大，不僅是因為潛力，還因為我們的團隊正在按照戰略思路開展工作，如果交易規模可以更大，那我還需要再等一段時間，但是為了將多項交易、多雲、多種技術

Great. Thank you very much guys.

偉大的。非常感謝大家。

Ryan MacWilliams, Barclays.

巴克萊銀行的瑞安‧麥克威廉斯 (Ryan MacWilliams)。

Thanks for taking the question. Just on the cloud side, how would you say macro is currently impacting cloud usage at this point? And did you notice any linearity for cloud consumption throughout the quarter, like maybe getting better towards the end of the quarter or since in 4Q? Would love to hear about how those usages are undergoing.

感謝您回答這個問題。僅在雲端，您認為宏觀目前對雲端的使用有何影響？您是否注意到整個季度的雲端消費呈現線性成長，例如可能在本季末或從第四季開始有所改善？很想聽聽這些用途的進展。

Hey Ryan, this is Shlomi. Thank you for joining the call. Listen, we see in our pipeline, some of our biggest customers still planning on migrating to the cloud, but it's not ready yet to be executed in full steam ahead, so proof of concepts are being made. The cloud vendor has been chosen. Deals are being negotiated not only with us, but also on the marketplace, it takes a bit longer. This is why our approach about cloud migration is more conservative than it used to be in the past.

嘿，Ryan，我是 Shlomi。感謝您加入通話。聽著，我們看到，我們的一些最大客戶仍計劃遷移到雲端，但尚未準備好全力執行，因此正在進行概念驗證。雲端供應商已經選定。交易不僅與我們進行談判，而且在市場上進行談判，這需要更長的時間。這就是為什麼我們在雲端遷移方面的方法比過去更保守。

The second thing is that these customers, if they are customers and not prospects, they are not investing in the self-hosted while planning the move to the cloud. And that's kind of a double click also on what happened until they decide to kind of shift gears and start to move to the cloud. And we will work -- we will partner with them until they would be ready, but that takes a bit longer in today's macro.

第二件事是，如果這些客戶是客戶而不是潛在客戶，他們在計劃遷移到雲端時就不會投資自託管。這也是對所發生的事情的一種雙重打擊，直到他們決定改變方向並開始轉向雲端。我們會努力與他們合作，直到他們做好準備，但從今天的宏觀角度來看，這需要更長的時間。

And just to follow up on that migration point. Is there any way to further incentivize those migrations like maybe taking more price on the self-hosted side? And let's just say the macro does become clear in the fourth quarter. Are these migrations ready to go? Like could you activate more quickly to the cloud and they could like accelerate their timing moving over? Or will this be like a multi-quarter migration process from here?

只是為了跟進這個遷移點。有什麼方法可以進一步激勵這些遷移，例如在自託管方面提高價格？我們只能說宏觀情勢在第四季會變得明朗。這些遷移準備好了嗎？例如，您能否更快啟動雲端，他們能否加快轉移的時間？或者這會像是一個跨季度的遷移過程嗎？

Yeah, that's a very good point. When we think about incentives, you don't punish your customers that are now struggled with today's macro by raising the price on the self-hosted unless you don't want to partner with them in the future. But we will think as we do every year about the pricing of the self-hosted solution next year, and that might motivate our future migration to the cloud. Those that are currently in the pipeline, we are partnering with them to make sure that we accomplish a full successful migration that will not only lead to the migration per se, but also a cohort that will show year-over-year growth as they keep using our platform.

是的，這是一個非常好的觀點。當我們考慮激勵措施時，你不會透過提高自託管價格來懲罰那些現在正努力應對當今宏觀經濟的客戶，除非你不想在未來與他們合作。但我們會像每年一樣思考明年自託管解決方案的定價，這可能會促使我們將來向雲端遷移。對於那些目前正在籌備中的企業，我們正在與他們合作，以確保我們完成全面成功的遷移，這不僅會導致遷移本身，而且還會導致隨著他們繼續使用我們的平台，群體數量將呈現逐年增長。

That makes sense. Thanks.

這很有道理。謝謝。

Kimberly Crane, Canaccord.

金佰利克蘭（Kimberly Crane），Canaccord。

Congrats on the quarter. Thanks for taking the question. I want to start with cloud growth. 40% growth in the year, I think that implies some pretty significant acceleration in Q4. And you called out a couple of things, a full quarter of large scale ones in Q3, annual customer commitment and then smaller migrations to the cloud. Is there any way to stack rank those? And then I guess as a follow-up, is there any sort of consumption true-up expected similar to last Q4.

恭喜本季取得佳績。感謝您回答這個問題。我想從雲端成長開始。今年的成長率為 40%，我認為這意味著第四季將出現相當顯著的加速。您提到了幾件事，第三季的整整一個季​​度的大規模遷移、年度客戶承諾以及小規模的雲端遷移。有沒有什麼方法可以對它們進行堆疊排序？然後我想作為後續問題，預計是否會出現與去年第四季類似的消費成長情況。

This is Ed. There's no way really to stack rank those. Those are the three contributing factors to what we see as we move into Q4. The cloud usage so far has been kind of consistent with what our expectations have been. In terms of the sequential growth, when you look at it last year compared to this year, I want to remind everybody, first off, that we had a onetime benefit in Q4 of 2023. We don't anticipate a similar level of a true-up onetime benefit during Q4 of same time this year. But on a sequential, when you remove that onetime benefit, it will be somewhere around the same range from a dollars perspective.

這是埃德。實際上沒有辦法對它們進行排序。這是我們進入第四季時看到的三個因素。到目前為止，雲端的使用情況與我們的預期一致。就連續成長而言，當你將去年與今年進行比較時，我想提醒大家，首先，我們在 2023 年第四季獲得了一次性收益。我們預計今年第四季同一時間的一次性收益不會達到類似水準。但按順序來看，當你刪除那筆一次性福利時，從美元的角度來看它將大約在同一範圍內。

And then overall, I think what you'll see is that the execution in terms of our strategy around cloud has still delivered very strong cloud growth in a tough budgetary environment.

總的來說，我認為你會看到，在嚴峻的預算環境下，我們圍繞雲端的策略執行仍然實現了非常強勁的雲端成長。

Okay. Thank you. That's it for me.

好的。謝謝。對我來說就是這樣了。

Shrenik Kothari, Baird.

什雷尼克·科塔里，貝爾德。

Yeah, thanks for taking my question. Great execution. Shlomi, you mentioned it's no longer a question of if companies will adopt end-to-end security but when. Of course you showcased hundreds of logos at swampUP and saw these, I would say, larger deals are showing up in RPO. Just curious, with customers still in early stage of kind of deploying these advanced securities, like how are you kind of helping them overcome the deployment integration bottlenecks. Are you needing to kind of ramp up your sales marketing efforts? Are you really pushing hard on training support about kind of deeper integration into the DevSecOps workflows? Just curious -- or a bit both, then I have a quick follow-up.

是的，感謝您回答我的問題。出色的執行。Shlomi，您提到，問題不再是公司是否會採用端到端安全，而是何時採用。當然，您在 swampUP 上展示了數百個徽標，並且看到了這些，我想說，更大的交易出現在 RPO 中。只是好奇，對於仍處於部署這些高級證券的早期階段的客戶，您如何幫助他們克服部署整合瓶頸。您是否需要加強銷售行銷力道？您是否真的在努力推動有關更深入融入 DevSecOps 工作流程的培訓支援？只是好奇——或者兩者兼而有之，然後我會快速跟進。

Well. Hi, Shrenik. I hope that I heard the question right. If you're asking about our strategy of how to take these technologies that was some of it innovated and announced at swampUP, how we take it to the market. I guess this is what you asked. Our strategy is that the JFrog platform will consolidate all the solutions that you need around software supply chain management with one platform. Therefore, the end-to-end security from the creation of the code, all the way to production, including Runtime Security that was announced at swampUP and therefore, the MLOps technology following the acquisition of Qwak to provide our customers the ability to use the same platform for MLOps and not just DevOps and DevSecOps.

出色地。你好，Shrenik。我希望我聽清楚了這個問題。如果您問的是我們如何採用這些技術的策略，那麼其中一些技術是在 swampUP 上創新和宣布的，我們如何將其推向市場。我猜這就是你問的。我們的策略是，JFrog 平台將透過一個平台整合您圍繞軟體供應鏈管理所需的所有解決方案。因此，從程式碼創建一直到生產的端到端安全性，包括在 swampUP 上宣布的運行時安全性，以及收購 Qwak 之後的 MLOps 技術，使我們的客戶能夠使用同一平台進行 MLOps，而不僅僅是 DevOps 和 DevSecOps。

All of these add-ons are available for our customers on the Enterprise X and the Enterprise Plus subscription. And if you are not there, it will generate an upgrade. And if you are there, it would be a by-seat mechanism that will allow them to implement these technologies on top of the platform.

所有這些附加元件均可供 Enterprise X 和 Enterprise Plus 訂閱的客戶使用。如果您不在那裡，它將產生升級。如果你在場的話，這將是一個按席位機制，允許他們在平台上實施這些技術。

Got it. I appreciate it. Very helpful. And a quick follow-up, Ed and Shlomi, if you could chime in. In terms of the strategic partnership with GitHub, which kind of includes unification of the advanced security and bringing AI through Copilot integration. Can you give us some color in terms of this deeper integration? Is it already playing? Or how is it expected to play out in perhaps 2025 specifically and beyond? And how should we think about kind of that influencing overall adoption, retention amongst the 7% customer base, of course, upsell? And what are the key KPIs that you're tracking to measure that?

知道了。我很感激。非常有幫助。接下來是簡短的後續問題，Ed 和 Shlomi，如果你們願意的話。就與 GitHub 的策略合作夥伴關係而言，其中包括統一高級安全性並透過 Copilot 整合帶來 AI。您能否向我們詳細介紹一下這種更深層的整合？已經播放了嗎？或預計 2025 年及以後具體會如何發展？我們該如何看待它對整體採用率、7% 客戶群的保留率以及追加銷售的影響？您追蹤並衡量這一點的關鍵 KPI 是什麼？

Wonderful question. There are three -- actually three factors that will determine whether this partnership is good or not, right? One is the retention of our customers; two bringing prospects and new customers on board; and three is to generate more innovation together with our partners, some of it might be a business innovation of what we can sell together. Currently, we are at the pace of co-engineering and pushing very hard, including just a week ago at GitHub Universe the GitHub conference that we announced more capabilities with Copilot. We are on all three fronts, DevOps security and AI with Copilot. At this moment, we are not pursuing a co-sell mechanism with Microsoft. We might consider it in the future together with our partners.

很棒的問題。實際上有三個因素決定這種合作關係是否良好，對嗎？一是保留我們的客戶；二是帶來潛在客戶和新客戶；三是與我們的合作夥伴一起進行更多的創新，其中一些可能是我們可以共同銷售的商業創新。目前，我們正以聯合工程的步伐大力推進，包括一周前在 GitHub Universe GitHub 會議上我們宣布了 Copilot 的更多功能。我們涉足所有三個方面，即 DevOps 安全性和帶有 Copilot 的 AI。目前，我們還沒有與微軟推行共同銷售機制。我們將來可能會和我們的合作夥伴一起考慮這個問題。

Got it. Thanks a lot. Appreciate it.

知道了。多謝。非常感謝。

Miller Jump, Truist Securities.

Miller Jump，Truist Securities。

Great. Taking the questions. So Shlomi, I wanted to go back to your comments on Ryan's question earlier. You talked about cloud migrations, causing some customers to kind of drag their feet, signing deals on the self-managed side as well. But just looking at the top line this quarter, self-managed was the larger driver of outperformance against our estimates. So I'm just trying to understand, like, are customers getting more comfortable staying on-prem? Or are you saying there's no change there?

偉大的。回答問題。所以 Shlomi，我想回到你之前對 Ryan 的問題的評論。您談到了雲端遷移，這導致一些客戶拖延，並在自我管理方面簽署協議。但僅從本季的營收來看，自我管理是超越我們預期的更主要的表現推動力。所以我只是想要了解，客戶是否更願意留在本地？或者您是說那裡沒有變化？

No. Actually, if you remember, Miller, what we called last quarter, the twilight zone, this is where they are staying because they know strategically that they are going to migrate to the cloud, but they don't have the bless of the business of their managers or even the bold to complete the process.

不。實際上，米勒，如果你還記得，我們​​上個季度所說的“暮光之城”，這就是他們停留的地方，因為他們從戰略上知道他們將要遷移到雲端，但他們沒有得到其經理的業務支持，甚至沒有勇氣完成這個過程。

So while staying on the self-hosted, not because they chose to, but because they don't have any other option, they cannot invest in adopting security, in adopting MLOps, in adding more servers. So what happened is that they keep the business running with what they had for years, and they are planning with us the strategic migration to the cloud. We believe that this momentum that we saw in Q3 with the big deal will go on to the fourth quarter in 2025, but we have to be very conservative because we are not yet out of the woods.

因此，他們繼續使用自託管，並不是因為他們選擇這樣做，而是因為他們沒有其他選擇，他們無法投資採用安全性、採用 MLOps 和添加更多伺服器。所以，他們維持著多年來的業務運轉，並與我們一起規劃向雲端的策略遷移。我們相信，我們在第三季度的大交易中看到的這種勢頭將持續到 2025 年第四季度，但我們必須非常保守，因為我們尚未擺脫困境。

Understood. Okay. So I guess I also just want to double click on the consolidation opportunities that you all called out. I guess in these cases, are you having to wait for other vendors contracts to end to expand with the customer? And if that is the case, do you expect Q4 to actually have relatively more of those opportunities in the rest of the year?

明白了。好的。所以我想我還想雙擊你們都提到的整合機會。我想在這些情況下，您是否必須等待其他供應商的合約結束後才能與客戶擴大合作？如果是這樣的話，您是否預計第四季度實際上會比今年剩餘時間內有更多這樣的機會？

Consolidation is -- it's a matter of what technology we are talking about. I never seen an enterprise customer that never had a security vendor or even 5 or 10 covering the software supply chain. And nobody just switched from one tool to another over a day, not even over a year. But what we hear from the CIO, what I hear from our customers, what you heard at swampUP when you met our customers is that they want to consolidate.

整合是——我們正在談論什麼技術的問題。我從未見過哪個企業客戶沒有安全供應商，甚至沒有 5 或 10 個安全供應商來覆蓋軟體供應鏈。沒有人會在一天之內甚至一年之內從一種工具切換到另一種工具。但我們從 CIO 那裡聽到的、從客戶那裡聽到的、以及您在 swampUP 遇到我們的客戶時聽到的都是，他們希望進行整合。

They don't want to have multiple vendors. They don't want to have a technology that is compromising on how they do software supplies and security. So it would be probably in the beginning, running in parallel and slowly kind of sunsetting the competitor's point solutions. This is what we hear from the market. This is being expressed very loudly by the CISOs and the CIOs of our customers.

他們不想擁有多個供應商。他們不想採用一種會損害其軟體供應和安全的技術。因此，它可能在開始時是並行運行的，然後慢慢地淘汰競爭對手的點解決方案。這是我們從市場聽到的消息。我們客戶的 CISO 和 CIO 都大聲表達了這個觀點。

I understood. Thank you.

我明白了。謝謝。

Koji Ikeda, Bank of America,

美國銀行 Koji Ikeda

Thanks for taking the questions. Just one for me. And I wanted to double-click here on kind of the reserveness of the buyer into committing with JFrog on a bigger scale today. And so is there something very specific in the way that JFrog is being used or deployed within enterprises that's driving this more reserved posture. And Shlomi, you maybe alluded to this a little bit in your answer to another question. It sounds like there's also a component of the buyer needing to catch up a little bit with the understanding of what JFrog is offering today to really invest in the future with JFrog? I'm just trying to understand this a little bit more. Thanks.

感謝您回答這些問題。對我來說只有一個。我想在這裡再次強調買家今天對與 JFrog 進行更大規模合作的保留態度。那麼，JFrog 在企業內的使用或部署方式中是否存在一些非常特殊的原因，導致了這種更保守的姿態。什洛米，您可能在回答另一個問題時稍微提到了這一點。這聽起來好像還有一部分買家需要稍微了解一下 JFrog 目前提供的產品，以便真正與 JFrog 一起投資未來？我只是想進一步了解這一點。謝謝。

Thank you, Koji. So what is it that we see? We see that in Q3, JFrog won three of the most sizable deals ever in the company's history. These deals were not born in Q3. They were born a year ago and even more. And some of our customers not only grew by doubling their spend on JFrog, but by adding more technologies, not just DevOps, now also DevSecOps and even other technologies like the Connect for IoT devices.

謝謝你，Koji。那我們看到的是什麼？我們看到，在第三季度，JFrog 贏得了公司歷史上最大規模的三筆交易。這些交易並非在第三季誕生。他們出生在一年前甚至更早的時候。我們的一些客戶不僅透過增加對 JFrog 的投入實現了成長，還增加了更多技術，不僅是 DevOps，現在還有 DevSecOps 甚至其他技術，如用於 IoT 設備的 Connect。

Strategically, our customers start to understand that software supply chain needs to be managed by one platform, and they have to choose. And I'm very glad that they chose JFrog. What the buyers -- to your question about the buyers, they start to see the JFrog budget line growing. And from being discussed on a VP level to a C-level, Board level, this is a completely different playbook, and we are very happy that we got there.

從策略上來說，我們的客戶開始明白軟體供應鏈需要由一個平台來管理，他們必須做出選擇。我很高興他們選擇了 JFrog。對於您關於買家的問題，他們開始看到 JFrog 預算線不斷增長。從副總裁級別討論到高階主管級別、董事會級別，這是一個完全不同的劇本，我們很高興我們做到了這一點。

This is what we saw in the pipeline when we communicated Q2. This is what we see now. But again, we will be very conservative with what happened in the macro and with the size of the deal that are not being signed by a CEO minus 4 or minus 5, but sometimes by the Board approvals themselves.

這就是我們在溝通第二季時看到的情況。這就是我們現在所看到的。但是，我們會對宏觀情況和交易規模非常保守，這些交易不是由執行長減 4 或減 5 簽署，有時是由董事會自己批准。

Thanks Shlomi.

謝謝 Shlomi。

Andrew Sherman, TD Cowen.

安德魯·謝爾曼（TD Cowen）

Thank you and congrats on the quarter. Great to hear about these big deals closing. Wondering about Q4 pipeline? Are there more of these type of big deals in the pipeline? And what's your visibility into those? How have you factored in closure rates and the timing of any deals there?

謝謝您並恭喜本季取得佳績。很高興聽到這些大交易即將完成。想了解第四季的管道狀況嗎？還有其他類似大交易正在籌劃中嗎？您對此有何看法？您是如何考慮交易的成交率和交易時間的？

Yeah. That's obviously something that we see for a few quarters, right? There is no pipeline for big deals or mega deals as we call it at JFrog that was born a quarter before. So the answer is yes. We see those sizable deals in the future quarters as well pipeline, but we derisked the pipeline. And we are looking at every deal from the bottom up and top down, we communicate with our customers about the strategy. Sometimes it's even our decision to push it a bit because we can win a deal now and maybe miss the opportunity to add security to it.

是的。這顯然是我們在未來幾季看到的情況，對吧？在 JFrog，我們所謂的大型交易或超級交易在一個季度前誕生，目前還沒有形成管道。所以答案是肯定的。我們看到未來幾季也會出現這些規模可觀的交易，但我們降低了這些交易的風險。我們從下至上和從上至下審視每一筆交易，並與客戶溝通策略。有時我們甚至會決定稍微推動一下，因為我們現在可以贏得交易，但可能會錯過增加安全性的機會。

So when we strategically speak with our customers, we might take a bit longer. It's not only the macro, it's also the strategy of the adoption of the full platform. So to optimize the opportunity and also to take into consideration the macro environment, we are derisking the pipeline on a daily basis as we reported before. And to your question, we are very excited about what we see in the pipeline moving forward.

因此，當我們與客戶進行策略對話時，我們可能會花費更長的時間。這不僅是宏觀的，也是採用全平台的策略。因此，為了優化機會並考慮宏觀環境，我們每天都在降低管道風險，正如我們之前報告的那樣。對於您的問題，我們對未來的發展感到非常興奮。

That's great, Shlomi. And one more for you. On the AI front, when do we think we could see that show up in revenues for you? I know we're still early, but these AI binaries are huge, and that could potentially drive more storage revenue for you, I would think, but I would love to hear your thoughts on that.

太好了，什洛米。還有一個給你。在人工智慧方面，我們認為何時可以看到其為您帶來收入？我知道我們還為時過早，但這些 AI 二進位檔案非常龐大，而且我認為這可能會為您帶來更多的儲存收入，但我很想聽聽您對此的看法。

Yes. Great question. AI, let's make it very clear. Putting fluff aside, AI equals models. Models equals binaries. So if we plant the right seeds in the ground now, we will see the fruit. The question about when, I wish I have an answer for you. I know that all of my customers, including the paying customers for the MLOps solution are at the experiment mode -- and most of them, even those that were brave enough to take it to production, are looking at compliance and regulation and security and adoption and scale and budget. So many open questions there that I think it will take a bit longer than just a few quarters. When we will have more clarity, obviously, we will include it in our guidance. Currently, we are investing in R&D and paving the path for future growth with this growth engine.

是的。好問題。艾略特，讓我們把事情說清楚。拋開多餘的話，人工智慧等於模型。模型等於二進位。因此，如果我們現在在地裡種下正確的種子，我們就會看到果實。關於時間的問題，我希望能夠提供你答案。我知道我的所有客戶，包括 MLOps 解決方案的付費客戶都處於實驗模式——其中大多數客戶，甚至那些有足夠勇氣將其投入生產的客戶，都在關注合規性、監管、安全性、採用、規模和預算。還有太多懸而未決的問題，我認為這將花費比幾季更長的時間。當我們獲得更清晰的資訊時，我們顯然會將其納入我們的指導中。目前，我們正在投資研發，並利用這具成長引擎為未來成長鋪路。

Excellent. Thank you.

出色的。謝謝。

Jeff Hickey, UBS.

瑞銀的傑夫·希基（Jeff Hickey）。

Great. Thanks so much for taking just a couple of questions. I wanted to ask if we could get any color on monthly customers. I think you described steady usage patterns on the cloud side amongst committed customers. Last quarter, you derisked the cloud guide this year partially from the monthly side. Are those trends that you're seeing there really consistent with where we were back in early to mid-August. Or has there been any kind of change from what you're seeing internally?

偉大的。非常感謝您回答我的幾個問題。我想問一下我們是否可以獲得月度客戶的任何顏色。我認為您描述的是忠實客戶在雲端的穩定使用模式。上個季度，您從月度角度部分降低了今年的雲端指南風險。您看到的趨勢與 8 月初至 8 月中旬的趨勢一致嗎？或是從您內部看到的情況來看有沒有什麼變化？

Yes. Thank you, Jeff. I'll start and Ed will chime in. What we are strategically doing is incentivize our cloud monthly users to go annual. And the main reason for that is not only growth, but reducing volatility. And this is what we discussed last quarter. And what we see is that the retention of our customers in the cloud is high. And we see two groups. Those that are ready to go annual and to become enterprise, not only by their profile, but also by their usage and those that are happy with a couple of thousands of dollars of ARR a year and that the platform will serve them, but I don't see them as top of funnel, and this is what we did.

是的。謝謝你，傑夫。我先開始，然後艾德會加入討論。我們的策略是激勵我們的雲端月度用戶轉向年度訂閱。而主要原因不僅是成長，還要減少波動性。這就是我們上個季度要討論的內容。我們看到，我們的客戶在雲端的保留率很高。我們看到了兩組。那些準備按年收費並成為企業的客戶，不僅要看他們的個人資料，還要看他們的使用情況，以及那些對每年幾千美元的 ARR 感到滿意並且該平台將為他們服務的客戶，但我不認為他們是漏斗的頂端，而這就是我們所做的。

Currently, we are very happy with the progress of migrating some of them to an annual base and hopefully, to reduce the volatility and the true-up movement that we had last year. And -- moving on to the future, we want to see more of these customers adopting more than just the DevOps monthly solution, but also security. And this will be part of our strategy for upgrade in 2025.

目前，我們對將部分資料遷移至年度基礎的進展感到非常滿意，並希望能夠減少去年出現的波動性和實際變動。展望未來，我們希望看到更多客戶不僅採用 DevOps 月費解決方案，還採用安全性。這也將成為我們2025年升級策略的一部分。

Yeah. And just to carry on with what Shlomi is saying, the cloud usage for those monthly customers has been stable compared to what we saw previously. And it's consistent with our expectations. And those monthly customers are around 20% and have come down over time, and we expect as we continue to move forward with the strategy of moving those monthly customers to annual customers, that the contribution from them would start to decline over time.

是的。繼續說 Shlomi 所說的，與我們之前看到的情況相比，這些月度客戶的雲端使用量一直很穩定。這與我們的預期一致。這些月度客戶約為 20%，並且隨著時間的推移而下降，我們預計，隨著我們繼續推進將月度客戶轉變為年度客戶的策略，他們的貢獻將隨著時間的推移開始下降。

Got it. That's really helpful color. And then one quick follow-up. Ed, just on the net dollar retention guidance, reiterating for mid-teens, you're at 117 right now, and that's a trailing 12 month metric. Is there anything else we should keep in mind as we're just through the growth algorithm outside of maybe just a relative conservatism you mentioned earlier.

知道了。這確實是很有用的顏色。然後進行一次快速的跟進。艾德，僅就淨美元保留指導而言，重申中十幾歲的水平，現在為 117，這是過去 12 個月的指標。在我們剛剛通過增長演算法時，除了您之前提到的相對保守主義之外，我們還應該記住什麼嗎？

Yes, Jeff, that's a good question. I wouldn't take too much from that besides the fact that we remain very conservative in the outlook approach, and that's being factored into the guidance in the mid-teens that we're projecting going forward.

是的，傑夫，這是個好問題。除了我們在展望方法上仍然非常保守這一事實之外，我不會對此做出太多評價，而且這已被考慮進我們未來預計的十幾歲的指導中。

Great. Thank you.

偉大的。謝謝。

Brad Reback, Stifel.

布拉德·雷巴克（Brad Reback），Stifel。

Great. Thanks very much. Ed, can you give us a sense of the $74 million sequential increase in RPO, how much of that was current RPO versus long-term?

偉大的。非常感謝。艾德，您能否向我們介紹 RPO 連續 7,400 萬美元的成長情況，其中有多少是當前 RPO，有多少是長期 RPO？

Sure. We had $245 million of that is current RPO and growth on our current RPO is around 24% on a year-over-year basis.

當然。其中，我們目前的 RPO 為 2.45 億美元，與去年同期相比，目前 RPO 的成長率約為 24%。

Great. That's super helpful. And then last numbers question, hopefully for the night. Gross margin obviously down ticked each quarter this year, and I know you talked about [83 to 84] for the year, but looks like we'll exit less than that. How should we think about that stabilizing going forward? Is it in the low 80s or maybe into the 70s?

偉大的。這非常有幫助。然後是最後一個數字問題，希望是今晚的問題。今年毛利率每季都明顯下降，我知道您說過今年的毛利率為 [83% 到 84%]，但看起來我們的毛利率不會低於這個數字。我們該如何看待未來的穩定？是 80 出頭還是 70 出頭？

Yeah. So what we see is we start to see more cloud revenue and a change in the mix. We have a lower margin profile for our cloud. We continue to focus on optimization in terms of our cloud cost of revenue. However, as that mix shifts, you would expect that gross margins would start to decline over time. This is what we saw during Q3. We had a greater mix in terms of our cloud on a year-over-year basis. 39% of our revenue is coming from cloud versus last year at 34% and I would expect, as we move forward and that becomes a bigger piece of our total revenue, our gross margins would start to decline.

是的。因此，我們看到雲端收入開始增加，並且收入結構發生變化。我們的雲端運算利潤率較低。我們將繼續致力於雲端收入成本的最佳化。然而，隨著這種組合的變化，你會預期毛利率會隨著時間的推移而開始下降。這是我們在第三季看到的情況。與去年同期相比，我們的雲端運算組合更加豐富。我們39%的收入來自雲端運算，而去年這一比例為34%，我預計，隨著我們向前發展，雲端運算在我們總收入中所佔的比重越來越大，我們的毛利率將開始下降。

Got it. Thanks very much.

知道了。非常感謝。

Jason Celino, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Jason Celino。

Hey, thanks for bringing me in. Actually a free cash flow question, so not quite the last numbers question on the night. It looks like the free cash flow guide is coming up nicely by more than kind of the revenue raise. Just curious what's kind of leading to that?

嘿，謝謝你帶我進來。實際上是自由現金流問題，因此不是當晚最後一個數字問題。看起來，自由現金流指南的成長動能比收入成長的勢頭好得多。只是好奇是什麼導致了這樣的情況？

Well, what's leading to that is the fact that we closed several very, very large deals, what we talked about during the quarter. So the execution during the quarter with -- three of the largest deals in the history of the company is contributing to the free cash flow. In addition to just a very strong collections in general, we do have some customers that are a multiyear that pay upfront. But the timing of the free cash flow can shift from quarter-to-quarter.

嗯，導致這種情況的原因是我們已經完成了幾筆非常非常大的交易，這是我們在本季談論的。因此，本季執行的——公司歷史上最大的三筆交易正在為自由現金流做出貢獻。除了整體上非常強勁的收款量之外，我們確實有一些多年期預付款的客戶。但自由現金流的時間可能會因季度而異。

Okay. That makes sense. And then Shlomi, with the GitHub partnership, I think you talked about being in the co-innovation phase at the moment. Curious if you can share any anecdotal top-of-funnel metrics or anecdotal drivers of -- for advanced security and curation, like what that looks today maybe before -- versus before the GitHub partnership announcement? I guess what I'm trying to ask is if you've seen some immediate pipeline or top of funnel interest from -- over the last couple of quarters?

好的。這很有道理。然後是 Shlomi，關於 GitHub 合作夥伴關係，我想您談到了目前處於共同創新階段。好奇您是否可以分享一些關於高級安全性和管理的頂級漏斗指標或驅動因素的軼事，例如今天的情況，或者在 GitHub 合作夥伴關係公告之前的情況？我想問的是，在過去幾個季度中，您是否看到了一些直接的管道或管道頂部的興趣？

Yes, that's a good question. I don't think that any of our customers will buy security only because of the co-engineered integration with GitHub or the single pane of glass for security on one platform. But it's a very strong differentiator. And even customers that are using GitHub, customers that are using Atlassian Bitbucket, even these customers are exposed to this integration of the best-of-breed platform, JFrog and GitHub, and they are sensitive to it. It's also being presented that way on our pricing page as a feature, as a differentiator for Enterprise X and Enterprise Plus users. So I think it creates some momentum on the top of funnel, but it's not -- it cannot be the only reason. It's just one of the catalysts.

是的，這是個好問題。我認為，我們的任何客戶都不會因為與 GitHub 的共同設計整合或在一個平台上的單一安全玻璃而購買安全性。但這是一個非常強大的區別因素。甚至使用 GitHub 的客戶、使用 Atlassian Bitbucket 的客戶，這些客戶都接觸過這種最佳平台 JFrog 和 GitHub 的集成，並且對此很敏感。它也在我們的定價頁面上以這樣的方式呈現，作為 Enterprise X 和 Enterprise Plus 用戶的區別。所以我認為它在漏斗頂部創造了一些動力，但它不是唯一的原因。這只是催化劑之一。

Okay. That makes sense. Thank you.

好的。這很有道理。謝謝。

Jason Ader, William Blair.

傑森·阿德，威廉·布萊爾。

Yeah, thank you. Good afternoon guys. Just a couple of quick ones for me. Ed, I just want to clarify, did you say that you -- that the self-managed subscription business would have a similar growth rate in Q4 as Q3. Did I hear that incorrectly?

是的，謝謝。大家下午好。對我來說，只有幾個簡單的問題。艾德，我只是想澄清一下，你是否說過－自我管理訂閱業務在第四季的成長率將與第三季相似。我是不是聽錯了？

I don't believe I said that, but what I would -- Jason, the way to think about it is Q4 is our highest renewal quarter. Therefore, the self-managed because of the upfront portion, you would see that we would get revenue contribution in Q4. We expect that the self-managed growth will be basically in line with what we've seen over the last few quarters.

我不相信我這麼說過，但我想說的是──傑森，我認為第四季是我們續約率最高的季度。因此，由於前期部分的自我管理，您會看到我們將在第四季度獲得收入貢獻。我們預期自主管理成長將與過去幾季的情況基本一致。

Okay. I'm just trying to square that because to get to 40% growth in cloud for the full year, that would assume around $48 million in cloud-managed subscription in Q4, which means that self-managed would have to be down somewhat sequentially and 8% growth year-over-year, which would be a much lower growth rate, not even double-digit growth rate in self-managed unless I'm missing something like with licenses if licenses are way down in Q4. But otherwise, the math just doesn't work. So I'm trying to figure that out.

好的。我只是想解決這個問題，因為要實現全年雲端運算 40% 的成長，就需要假設第四季度雲端管理訂閱量達到 4800 萬美元左右，這意味著自我管理的訂閱量必須比上一季度有所下降，並且同比增長 8%，這將是一個低得多的增長率，自我管理的增長率甚至不會達到兩位數，除非我錯過了許可證之類的數據數量，因為我錯過許可的數據數量，除非我錯過了第四季度數據，除非我錯過了第四季度的數據數量，因為我錯過許可證。但除此之外，數學就是行不通的。所以我正在嘗試弄清楚。

Your self-managed will be around the same rate, maybe up or down a percentage point, most likely down.

您的自我管理率將保持大致相同，可能上升或下降一個百分點，最有可能的是下降。

Okay. But then you can't get to 40% for the year on cloud. That's the point. Just the math doesn't work. You gave a $114 million midpoint guidance. So maybe we can take this offline. The math doesn't work.

好的。但是，你不可能在雲端運算上達到全年 40% 的水平。這就是重點。僅靠數學是行不通的。您給出了 1.14 億美元的中間指導價。因此我們或許可以將其離線。數學不起作用。

We guided to around 40% for the year.

我們預計今年的成長幅度將達到 40% 左右。

Okay. Just it won't -- if your growth rate in self-managed is close to the growth rate in Q3 year-over-year, the cloud number will not get you to 40% growth, it will get you to like [38%] for the year. I'm just telling you that's the math.

好的。但事實並非如此——如果你的自我管理成長率接近第三季的年成長率，那麼雲端運算的數字不會讓你達到 40% 的成長率，它會讓你全年的成長率達到 [38%]。我只是告訴你這就是數學。

Yeah, that's correct. It's around 40%. We'll talk to you after the call, we can help you with that, but it's around 40% for the full year.

是的，正確。大約是40%。我們會在通話後與您交談，我們可以為您提供幫助，但全年的費用約為 40%。

Okay. But it sounds like it's going to be below 40%.

好的。但聽起來好像會低於 40%。

Jason, I think we can take it as a follow-up. Our guidance for The Street is 40% on the cloud, the self-hosted with no significant change, do the math later, if you want, but that's what we commit.

傑森，我想我們可以將其作為後續行動。我們對 The Street 的指導是 40% 放在雲端，自託管沒有重大變化，如果你願意的話，可以稍後再計算，但這就是我們的承諾。

Okay. All right. And then just on the net retention, I know you said sort of mid-teens exiting the year, right? So I just want to get a sense if you believe net retention first of all, do you think it's going to be stable with Q3 and Q4? And then what are the puts and takes kind of going forward? And where do you expect that to get to, let's say, in a year? I mean, is there a specific target in your mind? And then how do you get there? Like what drives that to that target?

好的。好的。然後就淨保留率而言，我知道您說過今年的保留率大概是十幾歲左右，對嗎？所以我只是想了解一下，如果您首先相信淨保留率，您是否認為它會在第三季和第四季保持穩定？那麼，未來的利弊是什麼？您預計一年後會達到什麼程度？我是說你心裡有具體的目標嗎？那你怎麼去那裡呢？比如，是什麼推動了這個目標的實現？

Yeah. So we're focused for this call on Q4 and the full fiscal year and what we see going into Q4 is stabilization of our net dollar retention rate around the mid-teens.

是的。因此，我們在本次電話會議上重點關注第四季度和整個財年，我們預計第四季度的淨美元留存率將穩定在十五六個百分點左右。

As predicted.

正如所料。

Got you. And I know you're not giving guidance, but what are the puts and takes or what would drive net dollar retention higher? Would it be security? Would it be some of these larger renewals? I'm just -- again, I'm just trying to understand what...

明白了。我知道您沒有給出指導，但是，利弊是什麼，或者什麼會推動淨美元保留率上升？這會是安全的嗎？這會是一些規模更大的續約嗎？我只是──再說一遍，我只是想了解什麼…

Jason, net dollar retention is triggered by security add-ons and cloud migrations.

傑森，淨美元保留是由安全附加元件和雲端遷移觸發的。

Security add-ons and cloud migration. Thank you.

安全附加元件和雲端遷移。謝謝。

Thank you. Due to time constraints, we will end the Q&A session here. I will now turn the call back over to Shlomi for closing remarks.

謝謝。由於時間限制，我們的問答環節就此結束。現在我將電話轉回給什洛米，請他作最後發言。

Yes. We had a very strong quarter. This is not happening by itself. I have 1,700 heroes working for JFrog, resilient, smart and committed to deliver a very strong 2024, and we will deliver. We want to thank you for joining us here today and from the swamp, may the frog be with you. Take care.

是的。我們本季的表現非常強勁。這並不是自然發生的。我有 1,700 名英雄為 JFrog 工作，他們堅韌、聰明，並致力於實現非常強勁的 2024 年，我們一定會實現這一目標。我們要感謝您今天加入我們，願沼澤中的青蛙與您同在。小心。

This concludes today's call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。