In the past week On the wave of IPOs, a company has fallen a bit by the wayside among the statements of better-known companies like Asana and Palantir. JFrog, a company that ProWellTech reported helps enable developers and businesses to deliver application updates "in the background without disturbing the user experience" when it raised $ 165 million in 2018, is poised for an exciting debut.
Because? The Unicorn - same round as 2018 rated JFrog at around $ 1.2 billion according to PitchBook data - it has a unique blend of growth, margins and profitability that should make its pricing cycle incredibly attractive.
The Exchange explores startups, markets and money. You can read it every morning on Extra Crunch or receive The Exchange's newsletter every Saturday.JFrog will give us an idea of how Wall Street will value a fast growing managed software company that doesn't lose money. It's not something we see often and other market aspirants like the aforementioned Asana and Palantir are far from similar levels of profitability.
Let's take a quick look at how much JFrog would be worth if it were a more normal SaaS company - read: less profitable - and then ask ourselves how much it might be worth as a recently profitable cash-generating company. The numbers are quite surprising.
JFrog
If you want to learn more about the basics of JFrog's business and why developers and companies care about the company, go here. Today we just do numbers.
Back to the basics as a refresher since the beginning of last week, here's what you need to know about JFrog's business:
- Revenues grew from $ 63.5 million in 2018 to $ 104.7 million in 2019 and from $ 46.1 million to $ 69.2 million from the first half of 2019 to the first half of 2020. These earnings by 65% and of 60.1%, respectively, put JFrog on a comfortable pace of growth for a company making nine-figure revenues.
- JFrog lost less money as he grew up. From $ 1.00 per share in 2018 to $ 0.20 per share in 2019 and from $ 0.08 per share in the first half of 2019 to just $ 0.02 per share in the first half of 2020.
- JFrog's gross margins were 81% or better in each multi-quarter period we recorded.
- JFrog's operating cash flow has also improved over time, going from + $ 8.6 million in 2018 to $ 10 million in 2019 and from + $ 0.415 million in the first half of 2019 to + $ 5.9 million in the first half. of 2020.
- And, after a few quarters of extremely limited losses, JFrog released its first known GAAP profitable quarter (as of Q1 2018) in Q2 2020, generating $ 1.7 million in net income on revenues of $ 36.4 million in same period.
Now ask yourself, how much is that company worth?
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