JFrog Ltd

Previous wording

We provide an end-to-end, hybrid, universal Software Supply Chain Platform that enables organizations to continuously and securely create and deliver software updates across any system. This platform is the critical bridge between software development and deployment of that software, paving the way for modern software supply chain management and software release processes. We enable organizations to build and release software faster and more securely while empowering developers, security teams and machine learning operation teams to be more efficient. As of December 31, 2023, we had a global customer base of approximately 7,400 organizations across all industries and sizes, including approximately 83% of Fortune 100 organizations, increasing from approximately 7,200 organizations as of December 31, 2022. All of the top 10 technology organizations, 9 of the top 10 financial services organizations, 9 of the top 10 retail organizations, 9 of the top 10 healthcare organizations, and all of the top 6 telecommunications organizations in the Fortune 500 have adopted the JFrog platform, embarking on their journey towards Liquid Software. For the year ended December 31, 2023, our 10 largest customers represented approximately 7% of our total revenue and no single customer accounted for more than 1% of our total revenue. For the year ended December 31, 2023, 38% of our revenue was generated from customers outside of the United States.

Current wording

JFrog provides a hybrid, universal, end-to-end software supply chain platform for delivering trusted, secure software updates from code to production. Our goal is to function as the single source of truth for an organization’s software footprint, bridging digital gaps between developers, security teams, machine learning engineers, data scientists, and other business units to empower a world of always-on, always-current software which we refer to as “Liquid Software.” As of December 31, 2024, we had a global customer base of approximately 7,300 organizations across all industries and sizes, including approximately 82% of Fortune 100 organizations. All of the top 10 technology organizations and top 10 financial services organizations, 8 of the top 10 retail organizations, 8 of the top 10 healthcare organizations, and all of the top 5 telecommunications organizations in the Fortune 500 have adopted the JFrog platform, embarking on their journey towards Liquid Software. For the year ended December 31, 2024, our 10 largest customers represented approximately 8% of our total revenue and 40% of our revenue was generated from customers outside of the United States.

Previous wording

We have designed our subscription structure and go-to-market strategy to align our growth with the success of our customers. Our business model benefits from our ability to serve the needs of all customers, from individual software developers, security teams, and IT operators to the largest organizations, in a value-oriented manner.

Current wording

We have designed our subscription structure and go-to-market strategy to align our growth with the success of our customers. Our business model benefits from our ability to serve the needs of all customers, from individual software developers, security teams, MLOps teams, and IT operators to the largest organizations, in a value-oriented manner.

Previous wording

We generate revenue from the sale of subscriptions to customers. We offer subscription tiers for self-managed deployments, where our customers deploy and manage our products across their public cloud, on-premise, private cloud, or hybrid environments, as well as JFrog-managed public cloud deployments, which we refer to as our SaaS subscriptions. Revenue from SaaS subscriptions contributed 34% of our total revenue for the year ended December 31, 2023, compared to 28% for the year ended December 31, 2022.

Current wording

We generate revenue from the sale of subscriptions to customers. We offer subscription tiers for self-managed deployments, where our customers deploy and manage our products across their public cloud, on-premise, private cloud, or hybrid environments, as well as JFrog-managed public cloud deployments, which we refer to as our SaaS subscriptions. Revenue from SaaS subscriptions contributed 39% of our total revenue for the year ended December 31, 2024, compared to 34% for the year ended December 31, 2023.

Previous wording

Our self-managed subscriptions are offered on an annual and multi-year basis, and our SaaS subscriptions are offered on a monthly, annual, and multi-year basis. Revenue from Enterprise Plus subscription represented approximately 46% of our total revenue for the year ended December 31, 2023, compared to approximately 38% for the year ended December 31, 2022. The growth in revenue from our Enterprise Plus subscription demonstrates the increased demand for our end-to-end solutions for customers’ entire software supply chain management.

Current wording

Our self-managed subscriptions are offered on an annual and multi-year basis, and our SaaS subscriptions are offered on a monthly, annual, and multi-year basis. Revenue from Enterprise Plus subscription represented approximately 51% of our total revenue for the year ended December 31, 2024, compared to approximately 46% for the year ended December 31, 2023. The growth in revenue from our Enterprise Plus subscription demonstrates the increased demand for our end-to-end solutions for customers’ entire software supply chain management.

Previous wording

We have an unwavering commitment to the software developer, security teams, and IT operator communities, and show this commitment by offering varying forms of free access to our products in addition to the paid subscriptions described above. This free access takes the form of free trials and open source software, and helps generate demand for our paid offerings within the software developer, security and IT operator communities.

Current wording

We have an unwavering commitment to the software developer, security teams, MLOps teams, and IT operator communities, and show this commitment by offering varying forms of free access to our products in addition to the paid subscriptions described above. This free access takes the form of free trials and open source software, and helps generate demand for our paid offerings within the software developer, security and IT operator communities.

Previous wording

We generated revenue of $349.9 million and $280.0 million for the years ended December 31, 2023 and 2022, respectively, representing year-over-year growth rate of 25%. We continued to invest in our business and had net loss of $61.3 million and $90.2 million for the years ended December 31, 2023 and 2022, respectively.

Current wording

We generated revenue of $428.5 million and $349.9 million for the years ended December 31, 2024 and 2023, respectively, representing year-over-year growth rate of 22%. We continued to invest in our business and had net loss of $69.2 million and $61.3 million for the years ended December 31, 2024 and 2023, respectively.

Previous wording

On October 7, 2023, Hamas militants and members of other terrorist organizations infiltrated Israel’s southern border from the Gaza Strip and conducted a series of terror attacks on civilian and military targets. Following the attack, Israel’s security cabinet declared war against Hamas and a military campaign against these terrorist organizations commenced in parallel with continued rocket and terror attacks from Hamas.

Current wording

On October 7, 2023, Hamas militants and members of other terrorist organizations infiltrated Israel’s southern border from the Gaza Strip and conducted a series of terror attacks on civilian and military targets. Following the attack, Israel’s security cabinet declared war against Hamas and commenced a military campaign against these terrorist organizations. Since the commencement of these events, there have been additional active hostilities, including with Hezbollah in Lebanon, Iran, and most recently, the Houthi movement which controls parts of Yemen. The conflict has recently expanded into Lebanon and though ceasefires have been reached with Hamas in Gaza and Hezbollah in Lebanon, it is possible that hostilities will resume without warning and escalate into a greater regional conflict, and that additional terrorist organizations and countries could actively join the hostilities.

Previous wording

Although we are domiciled in Israel, we are a global, cloud-based company, with operations spanning numerous countries with redundant infrastructure and code located outside of Israel. We maintain a comprehensive business continuity plan and have taken the necessary steps in line with such plan, in an effort to ensure that our operations and service to our customers remain consistent, in light of certain employees drafted as reservists in the war between Hamas and Israel. Our business continuity plan is structured around three pillars and was activated on October 7, 2023, hours after the attack on Israel. The first pillar is our internal plan focused on the safety of our employees in Israel and maintaining internal communication channels. The second pillar revolves around technology to support continuity of our services, security, cyber defense, and research and development. The third pillar is dedicated to our external-facing activities to promote continuity of customer engagements, support and external communication. As of the date of this Annual Report on Form 10-K, there has been no major interruption or material adverse impact on our operating results. We will continue to monitor the situation as it progresses.

Current wording

Although we are domiciled in Israel, we are a global, cloud-based company, with operations spanning numerous countries with redundant infrastructure and code located outside of Israel. We have activated and maintained a comprehensive three-pillar business continuity plan and have taken the necessary steps which we believe are in line with such plan, in an effort to ensure that our operations and service to our customers remain consistent. The first pillar is our internal plan focused on the safety of our employees in Israel and maintaining internal communication channels. The second pillar revolves around technology to support continuity of our services, security, cyber defense, and research and development. The third pillar is dedicated to our external-facing activities to promote continuity of customer engagements, support and external communication. While certain of our employees and consultants have been called into military service, there has been no major interruption or material adverse impact on our operating results as of the date of this Annual Report on Form 10-K. We will continue to monitor the situation as it progresses.

Previous wording

We intend to continue to enhance our platform by developing new products and expanding the functionality of existing products to maintain our technology leadership. Today, with JFrog Artifactory at its center, our platform is comprised of additional security solutions and the connected device management solution. We have continued to invest in innovation and introduce new products and capabilities. For instance, in July 2023, we released JFrog Curation, a solution that prevents malicious open source or third-party software packages and their respective dependencies from entering an organization’s software development environment.

Current wording

We intend to continue to enhance our hybrid, universal, end-to-end software supply chain platform by developing new products and expanding the functionality of existing products to maintain our technology leadership.

Previous wording

We invest heavily in integrating our products with the major package technologies so that our products can be easily adopted in any development environment. We believe that these integrations increase the value of our platform to our customers, as they provide freedom of choice for software developers, security and IT operators and help avoid vendor lock-in. We intend to expend additional resources in the future to continue introducing new products, features, and functionality.

Current wording

We invest heavily in integrating our products with the major package technologies so that our products can be easily adopted in any development environment. We believe that these integrations increase the value of our platform to our customers, as they provide freedom of choice for software developers, security teams, and IT operators and help avoid vendor lock-in. We intend to expend additional resources in the future to continue introducing new products, features, and functionality.

Previous wording

We quantify our expansion across existing customers through our net dollar retention rate. Our net dollar retention rate compares our annual recurring revenue (“ARR”) from the same set of customers across comparable periods. We define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers so long as we generate revenue from these customers. We annualize our monthly subscriptions by taking the revenue we would contractually expect to receive from such customers in a given month and multiplying it by 12. We calculate net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). We then calculate the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. We then divide total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. Our net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters. Our net dollar retention rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. As of December 31, 2023 and 2022, our net dollar retention rate was 119% and 128%, respectively. We expect our net dollar retention rate to stabilize around current levels.

Current wording

We quantify our expansion across existing customers through our net dollar retention rate. Our net dollar retention rate compares our annual recurring revenue (“ARR”) from the same set of customers across comparable periods. We define ARR as the annualized revenue run-rate of subscription agreements from all customers as of the last month of the quarter. The ARR includes monthly subscription customers so long as we generate revenue from these customers. We annualize our monthly subscriptions by taking the revenue we would contractually expect to receive from such customers in a given month and multiplying it by 12. We calculate net dollar retention rate by first identifying customers (the “Base Customers”), which were customers in the last month of a particular quarter (the “Base Quarter”). We then calculate the contracted ARR from these Base Customers in the last month of the same quarter of the subsequent year (the “Comparison Quarter”). This calculation captures upsells, contraction, and attrition since the Base Quarter. We then divide total Comparison Quarter ARR by total Base Quarter ARR for Base Customers. Our net dollar retention rate in a particular quarter is obtained by averaging the result from that particular quarter with the corresponding results from each of the prior three quarters. Our net dollar retention rate may fluctuate as a result of a number of factors, including the level of penetration within our customer base, expansion of products and features, and our ability to retain our customers. As of December 31, 2024 and 2023, our net dollar retention rate was 116% and 119%, respectively. We expect our net dollar retention rate to remain relatively stable, with minor fluctuations around current levels.

Previous wording

We focus on growing the number of large customers as a measure of our ability to scale with our customers and attract larger organizations to adopt our products. As of December 31, 2023, 886 of our customers had ARR of $100,000 or more, increasing from 736 customers as of December 31, 2022. We had 37 customers with ARR of at least $1.0 million as of December 31, 2023, increasing from 19 customers as of December 31, 2022.

Current wording

We focus on growing the number of large customers as a measure of our ability to scale with our customers and attract larger organizations to adopt our products. As of December 31, 2024, 1,018 of our customers had ARR of $100,000 or more, increasing from 886 customers as of December 31, 2023. We had 52 customers with ARR of at least $1.0 million as of December 31, 2024, increasing from 37 customers as of December 31, 2023.

Previous wording

We believe there is a significant opportunity to grow the number of customers that use our platform. As of December 31, 2023, approximately 32% of the Forbes Global 2000 were our customers. Our results of operations and growth prospects will depend in part on our ability to attract new customers. To date, we have primarily relied on our self-service and inbound sales model to attract new customers. Prospective customers can evaluate and adopt our products through our free trials and open source software options. The costs associated with providing these free trials and open source software options are included in sales and marketing. While we believe we have a significant market opportunity that our platform addresses, we will need to continue to invest in customer support, sales and marketing, and research and development in order to address this opportunity.

Current wording

We believe there is a significant opportunity to grow the number of customers that use our platform. As of December 31, 2024, approximately 32% of the Forbes Global 2000 were our customers. Our operating results and growth prospects will depend in part on our ability to attract new customers. To date, we have primarily relied on our self-service and inbound sales model to attract new customers. Prospective customers can evaluate and adopt our products through our free trials and open source software options. The costs associated with providing these free trials and open source software options are included in sales and marketing. While we believe we have a significant market opportunity that our platform addresses, we will need to continue to invest in customer support, research and development, and sales and marketing in order to address this opportunity.

Previous wording

Subscription—self-managed and SaaS revenue is generated from the sale of subscriptions for our self-managed software products and revenue from our SaaS subscriptions. For subscriptions to our self-managed software products, revenue is recognized ratably over the subscription term. For our SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period.

Current wording

Subscription—self-managed and SaaS revenue is generated from the sale of subscriptions for our self-managed software products and the sale of our SaaS subscriptions. For subscriptions to our self-managed software products, revenue is recognized ratably over the subscription term. For our SaaS subscriptions, revenue is recognized ratably over each commitment period within the subscription term, based on minimum usage commitments and any excess usage in the corresponding commitment period.

Previous wording

Income tax expense (benefit) consists primarily of income taxes related to the U.S. and other foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on certain deferred tax assets in Israel as we have concluded that it is not more likely than not that the deferred tax assets will be realized. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as share-based compensation, and changes in our valuation allowance.

Current wording

Income tax expense consists primarily of income taxes related to the U.S. and other foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on deferred tax assets in Israel as we have concluded that it is not more likely than not that the deferred tax assets will be realized. We may recognize tax benefits from the release of valuation allowance in connection with acquisitions that create deferred tax liabilities. Our effective tax rate is affected by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance.

Previous wording

The increase in total subscription revenue for the year ended December 31, 2023 compared to the year ended December 31, 2022 consisted of approximately $64.5 million growth from existing customers and the remaining attributable to new customers.

Current wording

The increase in total subscription revenue for the year ended December 31, 2024 compared to the year ended December 31, 2023 consisted of approximately $70.3 million growth from existing customers and the remaining attributable to new customers.

Previous wording

Total cost of revenue increased for the year ended December 31, 2023 compared to the year ended December 31, 2022. The increase was primarily attributable to an increase of $9.1 million in third-party hosting costs primarily driven by increased revenue from SaaS subscriptions, an increase of $2.8 million in share-based compensation expense as discussed in the section titled“Share-Based Compensation Expense” below, and an increase of $1.8 million in personnel-related expenses mainly as a result of increased headcount.

Current wording

Total cost of revenue increased for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily attributable to an increase of $9.9 million in third-party hosting costs primarily driven by increased revenue from SaaS subscriptions, an increase of $4.8 million in personnel-related expenses mainly as a result of increased headcount, an increase of $4.8 million in share-based compensation expense as discussed in the section titled“Share-Based Compensation Expense” below, and an increase of $4.0 million in intangible amortization mainly as a result of our acquisition of Qwak AI Ltd. (“Qwak”) in July 2024, partially offset by a decrease of $2.5 million in costs associated with software and subscription costs.

Previous wording

Research and development expense increased for the year ended December 31, 2023 compared to the year ended December 31, 2022. The increase was primarily attributable to an increase of $8.0 million in share-based compensation expense as discussed in the section titled“Share-Based Compensation Expense” below, an increase of $4.8 million in personnel-related expenses mainly as a result of increased headcount, and an increase of $1.8 million in costs of development environments and tools, partially offset by a decrease of $2.1 million in compensation expense associated with holdback and retention arrangements from our acquisitions in 2021.

Current wording

Research and development expense increased for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily attributable to an increase of $15.5 million in share-based compensation expense, an increase of $9.0 million in personnel-related expenses mainly as a result of increased headcount, and an increase of $3.0 million in costs of development environments and tools, partially offset by a decrease of $3.6 million in compensation expense associated with holdback and retention arrangements from our acquisitions.

Previous wording

General and administrative expense increased for the year ended December 31, 2023 compared to the year ended December 31, 2022. The increase was primarily attributable to an increase of $8.1 million in share-based compensation expense as discussed in the section titled“Share-Based Compensation Expense” below and an increase of $1.6 million in personnel-related expenses mainly as a result of increased headcount, partially offset by a decrease of $1.9 million in professional fees for recruiting, accounting and other services.

Current wording

General and administrative expense increased for the year ended December 31, 2024 compared to the year ended December 31, 2023. The increase was primarily attributable to an increase of $5.1 million in personnel-related expenses mainly as a result of increased headcount and an increase of $2.7 million in professional fees mainly related to legal and recruiting services.

Previous wording

The increase in share-based compensation expenses for the year ended December 31, 2023 compared to the year ended December 31, 2022 was primarily attributable to grants to new and existing employees.

Current wording

The increase in share-based compensation expenses for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily attributable to grants to new and existing employees. Additionally, in 2024, we recognized $5.2 million share-based compensation expense primarily in research and development, related to Qwak acquisition holdback ordinary shares and replacement RSUs.

Previous wording

Our effective tax rate is affected primarily by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, as well as non-deductible expenses, such as share-based compensation, and changes in our valuation allowance. See Note 14, Income Taxes, to the Consolidated Financial Statements for further information on the provision for income taxes.

Current wording

Our effective tax rate is affected primarily by tax rates in foreign jurisdictions and the relative amounts of income we earn in those jurisdictions, non-deductible expenses, excess tax benefits from share-based compensation awards, and changes in our valuation allowance. See Note 14, Income Taxes, to the Consolidated Financial Statements for further information on the provision for income taxes.

Previous wording

Since our inception, we have financed our operations primarily through sales of equity securities and cash generated from operations. Our principal uses of cash in recent periods have been funding our operations, investing in capital expenditures, and business and asset acquisitions.

Current wording

Since our inception, we have financed our operations primarily through cash generated from operations and sales of equity securities. Our principal uses of cash in recent periods have been funding our operations, investing in capital expenditures, and business and asset acquisitions.

Previous wording

As of December 31, 2023, our principal sources of liquidity were cash, cash equivalents, and short-term investments of $545.0 million. Cash and cash equivalents primarily consist of cash in banks and money market funds. Short-term investments generally consist of bank deposits, certificates of deposit, commercial paper, corporate debt securities, municipal securities, and government and agency debt. We believe our existing cash, cash equivalents, and short-term investments, together with cash provided by operations, will be sufficient to meet our needs for the next 12 months, as well as in the long-term.

Current wording

As of December 31, 2024, our principal sources of liquidity were cash, cash equivalents, and short-term investments of $522.0 million. Cash and cash equivalents primarily consist of cash in banks and money market funds. Short-term investments generally consist of bank deposits, certificates of deposit, commercial paper, corporate debt securities, municipal securities, and government and agency debt. We believe our existing cash, cash equivalents, and short-term investments, together with cash provided by operations, will be sufficient to meet our needs for the next 12 months, as well as in the long-term.

Previous wording

Net cash provided by operating activities of $21.4 million for the year ended December 31, 2022 was primarily related to our net loss of $90.2 million, adjusted for non-cash charges of $94.8 million, including share-based compensation expense of $68.7 million and depreciation and amortization of $14.7 million, and changes in our operating assets and liabilities of $16.8 million. The changes in operating assets and liabilities were primarily related to an increase in deferred revenue of $28.6 million and a decrease in prepaid expenses and other assets of $9.3 million primarily due to the one-time acquisition holdback payments in 2021, partially offset by an increase in accounts receivable of $11.2 million, a decrease of $9.1 million in operating lease liabilities primarily as a result of payments, and an increase of $7.2 million in net deferred contract acquisition costs related to capitalized commissions. The increases in deferred revenue, accounts receivable, and deferred contract acquisition costs were driven by higher sales.

Current wording

Net cash provided by operating activities of $110.9 million for the year ended December 31, 2024 was primarily related to our net loss of $69.2 million, adjusted for non-cash charges of $155.0 million, including share-based compensation expense of $131.1 million and depreciation and amortization of $21.5 million, and changes in our operating assets and liabilities of $25.1 million. The total cash inflows of $74.0 million from changes in operating assets and liabilities were related to an increase of $60.1 million in deferred revenue and an increase of $13.8 million in accrued expense and other liabilities mainly due to higher accrued compensation and benefits and accrual for holdback payments related to Qwak acquisition. These inflows were partially offset by an increase of $13.5 million in accounts receivable, an increase of $12.1 million in net deferred contract acquisition costs, a decrease of $8.1 million in operating lease liabilities as a result of payments, an increase of $7.8 million in prepaid expenses and other assets, and a decrease of $7.3 million in accounts payable. The increases in deferred revenue, accounts receivable, and deferred contract acquisition costs were driven by higher sales. The changes in prepaid expenses and other assets and accounts payable were mainly due to timing of payments.

Previous wording

Net cash used in investing activities of $53.3 million for the year ended December 31, 2022 consisted primarily of net purchase of short-term investments of $48.5 million and capital expenditure of $4.3 million.

Current wording

Net cash used in investing activities of $165.4 million for the year ended December 31, 2024 consisted primarily of payments for the Qwak acquisition of $156.7 million, net of cash acquired, and net purchases of short-term investments of $5.5 million.

Previous wording

Net cash provided by financing activities of $11.0 million for the year ended December 31, 2022 consisted primarily of proceeds from exercise of share options of $5.9 million and proceeds from employee share purchases under our ESPP of $5.2 million.

Current wording

Net cash provided by financing activities of $21.2 million for the year ended December 31, 2024 consisted primarily of proceeds from exercise of share options of $10.4 million and proceeds from employee share purchases under our ESPP of $8.7 million.

Previous wording

The contractual commitment amounts in the table above are associated with agreements that are enforceable and legally binding. Purchase obligations represent our commitments primarily for hosting services, software products and services under contracts of 12 months or longer. Obligations under contracts that we can cancel without a significant penalty are not included in the table above. We believe we will have sufficient liquidity from our operations to fulfill the commitments.

Current wording

The contractual commitment amounts in the table above are associated with agreements that are enforceable and legally binding. Purchase obligations represent our commitments primarily for hosting services, software products and services under contracts with remaining terms of 12 months or longer. Obligations under contracts that we can cancel without a significant penalty are not included in the table above. We believe we will have sufficient liquidity from our operations to fulfill the commitments.

Previous wording

Our consolidated financial statements are prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. As events continue to evolve and additional information becomes available, our estimates and assumptions may change materially in future periods. We believe our judgments and estimates associated with the determination of standalone selling price for each performance obligation in revenue recognition and accounting for income taxes, which we discuss further below, could have a material impact on our consolidated financial statements.

Current wording

Our consolidated financial statements are prepared in accordance with GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosures. We evaluate our estimates and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. As events continue to evolve and additional information becomes available, our estimates and assumptions may change materially in future periods. We believe our judgments and estimates associated with the determination of standalone selling price for each performance obligation in revenue recognition, accounting for business combinations, and accounting for income taxes, which we discuss further below, could have a material impact on our consolidated financial statements.