Jamf Holding Corp. (JAMF) Q3 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reflects a mixed sentiment. While there is consistent revenue and ARR growth, competitive pressures and regulatory challenges pose risks. The lack of a shareholder return plan and muted guidance for Q4 suggest caution. However, strong security ARR growth and positive customer feedback at JNUC provide optimism. The market cap suggests moderate volatility. Overall, the sentiment is neutral, with potential upward movement limited by economic and competitive headwinds.
Key Financial Performance
Revenue Q3 revenue was $161.9 million, representing a year-over-year growth of 12%. This growth was driven by strong performance in subscription revenue, which accounted for 98% of total revenue.
Non-GAAP Operating Income Non-GAAP operating income reached $27.7 million, with a margin of 17%, reflecting an 800 basis points improvement from the prior year period. This improvement was attributed to cost-saving initiatives and increased revenues.
Annual Recurring Revenue (ARR) ARR grew 12% year-over-year to $635 million, driven by the commercial business and demand for security solutions.
Security ARR Security ARR reached $152 million, representing a year-over-year growth of 26%. This growth was primarily driven by demand for the Jamf business plan.
Non-GAAP Gross Profit Margin Non-GAAP gross profit margin was 82%, flat with Q2 and within expectations.
Unlevered Free Cash Flow Margin Trailing 12 months unlevered free cash flow margin was 13%, compared to 11% in the prior year.
Non-GAAP G&A Margin Non-GAAP G&A margin was 14%, similar to Q1 and Q2, and an approximate 100 basis point improvement from Q4 2023.
Non-GAAP Sales and Marketing Margin Non-GAAP S&M margin was 32%, improving 200 basis points from Q2 and approximately 400 basis points from Q4 2023.
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Operating Highlights
New Product Launches: Launched Jamf Partner Hub and new Partner Program to drive business through channel partners.
Security Solutions: Introduced a new mobile security SKU, which has seen great traction since its launch in August.
AI Assistant: Announced enhancements to compliance features and introduced an AI assistant at the Jamf Nation User Conference.
Market Expansion: Entered into a 5-year agreement with Microsoft as part of the ISV Partner Program to expand collaboration and offer solutions on Azure.
International Expansion: Secured a deal with a public IT service provider in Germany for 18,500 seats of Jamf Safe Internet.
Operational Efficiencies: Comprehensive system update aimed at enhancing customer and partner experience, driving scalability and efficiency.
Cost-Saving Initiatives: Achieved a non-GAAP operating income margin of 17%, an 800 basis points improvement from the prior year.
Strategic Partnerships: Joined the Okta Elevate Partner Program to enhance cloud identity solutions for Apple devices.
Focus on Security: Security ARR reached $152 million, representing 26% growth year-over-year, driven by demand for Jamf business plan.
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Risk or Challenges
Competitive Pressures: Despite strong performance, Jamf faces competitive pressures, particularly in the education sector, where growth has been muted. The company anticipates a refresh cycle in the market, which could influence device sales and customer expansion.
Regulatory Issues: There are no specific regulatory issues mentioned, but the company acknowledges the need to navigate compliance and security requirements, especially in sectors like education and healthcare.
Supply Chain Challenges: The company has not explicitly mentioned supply chain challenges, but the overall industry is experiencing fluctuations in PC shipments, which could indirectly affect Jamf's business.
Economic Factors: Tight customer budgets and extensive approval processes are impacting demand. The company is optimistic about future growth driven by anticipated recovery in the PC market and increased demand for AI PCs.
Customer Retention and Growth: The company has seen flat net retention rates and acknowledges challenges in device upsell, particularly in the education sector. However, they are optimistic about growth in security solutions and new customer acquisitions.
Market Dynamics: The mixed shipment data for Apple devices indicates uncertainty in the market, with some analysts reporting declines while others show growth. This inconsistency could pose risks to future sales.
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Guidance & Outlook
Security ARR Growth: Security ARR reached $152 million in Q3, representing a year-over-year growth of 26%.
Strategic Partnerships: Entered into a 5-year agreement with Microsoft as part of the ISV Partner Program to expand collaboration and offer solutions on Azure.
New Partner Program: Launched the Jamf Partner Hub and new Partner Program to enhance channel partner business.
Comprehensive System Update: Implemented a comprehensive system update to improve customer and partner experience, aiding scalability and efficiency.
Focus on Buyer Personas: Refining go-to-market approach focusing on key buyer personas: Mac Enterprise, Enterprise Mobile, SMB, and K-12.
International Expansion: Investing in strategic geographies with growing Apple adoption, evidenced by deals in Germany and Japan.
Q4 Revenue Guidance: Expect total revenue of $161.9 million to $162.9 million, representing year-over-year growth of 7% to 8%.
Full Year 2024 Revenue Guidance: Total revenue expected to be $626.3 million to $627.3 million, reflecting year-over-year growth of 12%.
Q4 Non-GAAP Operating Income Guidance: Expect non-GAAP operating income of $25.5 million to $26.5 million, with a margin of 16% at the midpoint.
Full Year 2024 Non-GAAP Operating Income Guidance: Non-GAAP operating income expected to be $98.8 million to $99.8 million, with a margin of 15.8% at the midpoint.
Security ARR Growth Target: Targeting at least 25% growth in security ARR, achieved 26% growth in Q3.
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Shareholder Return Plan
Shareholder Return Plan: Jamf has not announced any specific share buyback program or dividend program during the call. However, they did mention a focus on profitability and cost-saving initiatives, which may indirectly support shareholder returns.
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Key Q&A
Q:Do you have any updated thoughts on the full year ARR growth?
A:We don't guide to ARR but during the quarter, education was a headwind. We saw good growth rates on the commercial side and strong growth for security.
Q:What feedback did you hear from customers at the JNUC event regarding their confidence to buy more products?
A:Customers were excited about new product enhancements and there was a positive atmosphere at the event.
Q:Can you talk about how the data points have looked for the Apple refresh across all devices?
A:We're still awaiting a refresh in the market, especially in tech and education. There are signs of anticipation for new devices but not a full force return yet.
Q:Can you help us frame expectations for next year's ARR growth?
A:We are in the process of building out our plan for next year and will disclose details when we report our Q4 numbers.
Q:What drove the uptick in Jamf Business Plan customer increases?
A:Both product enhancements and improved go-to-market execution contributed to the uptick.
Q:Can you address the Microsoft relationship and how it impacts your strategy?
A:Microsoft and Jamf is more of an 'and' than an 'or'. We have several integrations and are working on a multi-cloud strategy.
Q:Can you talk about the total customer count adjustments?
A:There was a one-time adjustment due to a comprehensive system update, and we took off customers that were counted multiple times.
Q:What are the most important growth drivers for next year?
A:Anticipated refresh cycles, security growth, improved go-to-market efficiency, and international expansion are key growth drivers.
Q:Review of Unclear Management Responses
A:Management avoided giving a direct answer regarding specific guidance for next year's ARR growth, stating they are still building out their plan and will disclose details later.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
AI
ARR demand
ARR put
AWS
Enterprise
Germany
Hamza
ISV
Microsoft relationship
Partner Program
Rudow CFO
Rudow Incoming
SKU
Walravens JMP
adjustment device
buyer persona
company device
confidence
customer count
customer increase
deck
decline quarter
deskless opportunity
device customer
fact
hiring education
increase history
increase outlook
market motion
marketplace
milestone
model
period
refresh
role
security solution
set
system update
JAMF Transcript
Jamf Holding Corp. (JAMF) Q2 2025 Earnings Call Transcript
Positive8-8
The earnings call presented strong financial performance with a 15% revenue growth and improved margins. The Q&A highlighted strategic initiatives and positive traction in new markets, despite some economic uncertainties. The company has a substantial cash position and optimistic guidance for the year. The repurchase of convertible notes and strong ARR growth further support a positive outlook. The market cap indicates a potential 2-8% stock price increase over the next two weeks, classifying the sentiment as positive.
Jamf Holding Corp. (JAMF) Q1 2025 Earnings Call Transcript
Unknown5-6
Jamf's earnings call presented a mixed picture. Strong financial metrics, including revenue and cash flow growth, were offset by competitive pressures and regulatory concerns. The guidance was maintained, reflecting caution due to macroeconomic uncertainty. The lack of a share buyback program and slight decrease in free cash flow margin also weigh negatively. However, optimistic outlooks on new partnerships and the Identity Automation acquisition could mitigate some concerns. With a market cap of around $2 billion, the stock is unlikely to see significant short-term movement, leading to a neutral sentiment.
Jamf Holding Corp. (JAMF) Q4 2024 Earnings Call Transcript
Unknown2-27
The earnings call summary presents a mixed picture. Financial performance shows strong revenue growth and margin improvements, but guidance is weak, with a slight decrease in net retention rate. The Q&A session reveals management's confidence in security as a growth driver, yet they avoided specifics on achieving long-term goals and the impact of macroeconomic factors. The lack of a share repurchase plan and potential regulatory and economic risks further neutralize the outlook. Given the small-cap nature of the company, the stock price is likely to remain stable, resulting in a neutral sentiment.
Jamf Holding Corp. (JAMF) Q3 2024 Earnings Call Transcript
Unknown11-10
The earnings call reflects a mixed sentiment. While there is consistent revenue and ARR growth, competitive pressures and regulatory challenges pose risks. The lack of a shareholder return plan and muted guidance for Q4 suggest caution. However, strong security ARR growth and positive customer feedback at JNUC provide optimism. The market cap suggests moderate volatility. Overall, the sentiment is neutral, with potential upward movement limited by economic and competitive headwinds.
JAMF Report
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