JFrog (FROG) investor relations material

Core business and market positioning

• Focuses on automation in the software supply chain, balancing speed and security as organizations scale and adopt more open-source languages.

• Acts as a governance layer between source code and runtime, providing visibility and control over binaries.

• Scalability across 36 programming languages is a key differentiator, especially as AI models and agents use diverse languages.

• Binaries are increasingly viewed as the critical asset in AI-driven development, shifting industry focus from source code.

Cloud growth and consumption trends

• Cloud growth is now driven by consumption-based usage, with customers paying for data packages and overages.

• Overages are attributed to experimentation and model training, with expectations that production-level usage will become more valuable.

• Customers are hesitant to commit to multi-year cloud deals due to unpredictable usage patterns.

• Seasonality is less pronounced except for Q4, which remains slower due to holidays.

Security and governance

• Security threats, especially malicious NPM packages, have surged, driving demand for Curation as a firewall-like governance tool.

• Curation adoption has accelerated post-Log4Shell, now favored over Advanced Security for its governance and security benefits.

• Advanced Security is seeing gradual adoption as organizations consolidate point solutions over multi-year agreements.

• Governance is emerging as the next major growth area, with products like AppTrust and AI Catalog gaining traction.