Inside a $31 Million Vote of Confidence in JFrog Amid a 119% Surge | The Motley Fool

On November 13, New York City-based Shannon River Fund Management disclosed a purchase of 647,140 shares of JFrog Ltd. ( FROG +0.28%), boosting its position by approximately $31.38 million. What Happened According to a Securities and Exchange Commission (SEC) filing dated November 13, Shannon River Fund Management LLC increased its stake in JFrog Ltd. ( FROG +0.28%) by 647,140 shares during the third quarter. The value of the fund’s position rose by $31.38 million, bringing its total holding to 863,924 shares worth $40.89 million as of September 30. What Else to Know This purchase raised JFrog Ltd. to 6.58% of the fund’s 13F AUM, but it remains outside the top five reported holdings. Top holdings after the filing: NASDAQ:PEGA: $79.59 million (12.8% of AUM) NASDAQ:TSEM: $69.56 million (11.2% of AUM) NASDAQ:IDCC: $61.70 million (9.9% of AUM) NASDAQ:WIX: $58.63 million (9.4% of AUM) NASDAQ:FLEX: $49.24 million (7.9% of AUM) As of Wednesday, JFrog Ltd. shares were priced at $66.81, up 119% over the past year and well outperforming the S&P 500, which is up 15% in the same period. Company Overview Metric Value Price (as of Wednesday) $66.81 Market Capitalization $7.90 billion Revenue (TTM) $502.61 million Net Income (TTM) ($79.81 million) Company Snapshot JFrog Ltd. offers a comprehensive DevOps platform, including products such as Artifactory (package repository management), Pipelines (CI/CD automation), Xray (security scanning), and device management solutions for IoT fleets. JFrog serves technology, financial services, retail, healthcare, and telecommunications organizations seeking to streamline and secure their software supply chains. The company operates a subscription-based business model, generating revenue from software licenses, support services, and enterprise solutions for both cloud and on-premises deployments. JFrog Ltd. is a technology company specializing in software development lifecycle solutions with a focus on automating, securing, and managing the delivery of software at scale. Its platform is widely adopted by enterprise clients requiring robust DevOps infrastructure to support continuous integration and delivery. The company's strategy centers on providing end-to-end tools that address critical needs in software package management, security, and distribution. Foolish Take JFrog’s performance in the third quarter shows why a fund might be leaning in amid some pretty staggering gains. In its latest results, the company delivered $136.9 million in revenue, up 26% year over year, with cloud revenue jumping 50% and now accounting for nearly half of total sales. Non-GAAP operating income came in at $25.6 million, translating to an 18.7% margin, while free cash flow reached $28.8 million for the quarter. Net dollar retention held at a strong 118%, and the number of customers spending more than $1 million annually climbed to 71. Those metrics are the markers of a platform becoming embedded. So how does that compare to the fund? Its largest holdings include mature compounders like Pegasystems and Tower Semiconductor, and making JFrog a mid-single-digit percentage of assets suggests confidence in durability, not a short-term trade. Nevertheless, valuation risk is real after a 119% run, but businesses that combine accelerating cloud adoption, expanding enterprise spend, and rising cash generation rarely...

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