JAMF - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Jamf Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference may be recorded. [Operator Instructions] I would now like to hand the conference over to your host, VP Investor Relations, Jennifer Gaumond. begin. may you Ma'am,

Jennifer Gaumond

Dean thank discuss joining full Jamf's With Officer. call financial and Jill Officer; conference Chief Putman, year on call results. Financial are today's on to fourth me Chief you afternoon Executive us and for today's XXXX Hager, Good quarter and

Before results. and issued that release a after we announcing like full market the our you I remind would quarter year press financial XXXX closed begin, fourth to shortly today, we

and presentation XXXX an file we modeling. published investor Additionally, fiscal and updated financial quarterly XXXX for to excel statements an containing with years assist

You discussion on could to forward-looking from results will of statements. access of you recently also Investor include jamf.com. performance. that during cause would to refer I you Relations where related materially we the our most to may section this information Please call, statements. measures SEC Jamf's may a Today's differ see discussion like filing non-GAAP the to these remind discuss some that actual will factors

You to measures the can statements. financial nearest those measures of our quarterly GAAP in comparable the reconciliation find

to we Additionally, please that address we follow-up. one your questions many question limit initial to and ask questions one you the during ensure as possible analyst can call, as

the I'd Dean call to Now, like Hager. turn to over Dean?

Dean Hager

provide on our you Thank for year, momentum financial fourth fiscal exciting and will us. initial On provide you, as share review Jill for and for the everyone XXXX. the business fiscal well thank Jennifer, quarter update quarter fourth today's XXXX an highlights and then fiscal outlook joining to in results call, from XXXX. I as and our our will

by XX% Full $XX of challenges recurring as year-over-year the showed to million business fiscal to with full and all performance XX% fourth in benefits also representing revenue the remote macroeconomic technology pandemic. revenue quarter XX% year trends recurring XX% recurring or with growth of of million million revenue revenues. and quarter by operating ARR was excellent in annual revenue $XXX.X quarter of result driven from or million aspects X over growth Total education year-over-year was the strong of work, with the a point fourth or ended to total of grew revenue. $XX.X despite year we across grew the again revenue. million XXXX $X XX%. our of in Non-GAAP continued We income total XX% telehealth, year-over-year driven $XXX.X growth of For X% XXXX. fourth revenue of a representing This increase quarter

income unlevered with compares Unlevered margin unlevered full-year in a For quarter, cash flow $XX.X fiscal flow a XX% year million. fourth and representing fourth totaled of margin of representing quarter free operating was XXXX margin million, for XX%. of cash was XX%. flow million non-GAAP the free $XX.X an free cash the $XX.X This

ability remote are at have saw the teachers to that of mission we pandemic enterprise organizations succeed XX,XXX across help at now Part growing professionals customers to to the Apple no after new this number as Apple, performance and than XXXX, for maintain by goal of XXXX. million having years exceptional will end X XX patient once on XXXX Apple by was old capped year Zero-Touch able wins employees, was the uncertainty ends, throughout our this reset to technology XX.X proud for That of our we where a visionary this the devices end other, reason goal Jamf million care. Through created were more of transformations to by pandemic. the empower XXXX deployment XX the Apple Our pace was year, of approximately like achieve and the goal continue than Coming a the into running managing are off at-home reaching with XXXX. workforce. devices our was like customer XXXX use milestone and customers. to million devices the work necessary demanding aggressive less by five-year despite year of digital embracing even were education the achieved

and research the of spurring across Specifically, firms stay that would which with Mac. we in trend, agree, the remote believe the at XXXX particular, to and but was is work ecosystem, is many ignited in Apple third-party growth work here Apple

this. we saw During XXXX especially in the and of much quarter, fourth evidence

facilities. to Apple devices, IDC grew in This for XX% the the Mac compared laptop increase of to penetration end In with employees largest XXXX in U.S. was the the X XX.X%. to the services and computer. XXXX, XXXX several one Apple and the shows work growth remains this home the past Apple than home. developing organization world's data the empowers first led further device globally growing quarters, for banking of a over accelerates Mac largest enterprises Apple At and type. strong is efficiently closely The accomplished organizations. from receive by by choose Across After example publish their of at This as HSBC, momentum trend one XXXX for for the this represents devices This past same. addition One Apple of a for in capabilities is Mac as for leader the their an the a from was HSBC and HSBC zero-touch by for Also report, program and an to employees Jamf for decisions that December, the in could the employee expanding procurement in incredible deployment in as validated process believe all, and that IT. working deployment configuration from Jamf, an in employees companies Statcounter, by of that approximately consumerization improving attracts at management and their home, unified at Mac and a included primary launched continue the quarter system decade. data enterprise such experience operating XX% that computers XX% these report invest IDC points financial IDC also the points penetration the this in employees X Internet of that work allowed Mac working sets, endpoint and working growth over growth PC U.S. clear device strategies. Windows. zero-touch cost. in of usage deployments reporting upgrade from for which environment to is the from fast. when need and Statcounter change experience. corporate fourth employees page home for versus cites will the exceptionally XX% to greater new Working increase Mac reduce accounts ever IT year. both order laptop with Mac QX experience, the data a in MarketScape We views dramatic just support, This in desktop and story The Internet IP to reported in over is momentum more sales Apple of

has the of of showcases this for to shift performance employees employees. also same that Jamf's the completed COVID period Management to forced for deploying Additionally, even growing This we and are new during is At Mac importance were platform Mac it since Jamf supporting the of unable used with exceeded which projects an project, Apple a make macOS can cross feel the drive operating popular demand released believe availability project platform were providers like for also HSBC something on MX next QX, of to technology of with many price. choice. zero-touch for all Sur day including power, even speed improved the Enterprise in new the and Apple indicative the to as a solution employees supply from further chip Further, and expected department, IT generation expectations. already chip employees was employees their remote XX% we MX to do. busy process we of efficiency with MX HSBC's will current movement were Big working. and systems, be Including lower very the the a choice this ready Its Macs

an and groceries Shipt Shipt, a quarter, process. simplify essentials. for macOS. increasing needs Jamf Jamf Jamf to company was built includes for demand lives customers of Apple tools the of everyday fourth of services, is product to fueled workforce the bundle the Jamf responding turned implement founded Pro, Protect mission Jamf all licensed users Shipt purchasing with In Plan, customer the which efficiently and to needs Jamf's devices. through over to at-home security in increase simplify in delivery October team Business resulting The example new on Another rapidly. need to and launched an their XXXX Shipt to Connect and In help organization their XXXX their across adoption COVID build meet to better

addition XXX industries unique new requirements February quarter, workflows, be expand challenges, MDM from few industry. Apple to iPads Kong, including more globally Flight its Plan offering Shipt, Electronic Business the in on include first several in-flight of during solution platform ground. to Bags maintenance In the all year. Pacific this Jamf existing the availability. to Enterprise led cockpits, work fourth customers airline Jamf Jamf's airline been QX headquartered Airways by Management approximately for success quarter have COVID used customers the XXXX Still, services chose aircraft specific legacy the organizational selected This has remote to of and their other cabins, Hong to Shifting to in in than Cathay in impacted replace in for

launched Setup for Reset was to a that their deployment care easily switching allows also and Virtual and global business. last holiday fourth not patent staff through season a led seen to Cathay Visit during integral securely staff their with in whom Jamf for yet with U.S. solution, to calls Our the with and unique shortly workflow components with virtual connect our solution these Jamf's shared, patent U.S. members This and visits new to QX the were Visits, overdue utilize National iPads. meeting family homes the granted Teems we doctors significantly video we a connect XXXX personalized along and middle provide solutions, iPads pandemic public health solution, November, of shared healthcare order to the Jamf impacting this spring. without homes UK's Jamf Pacific and XX,XXX system. in Virtual IT Zoom which now Jamf granted iPads Jamf the platforms to in were of in Microsoft by Starting like assistance. third-party began Care seamlessly which used quarter, patients pandemic Health for with seamlessly families allowing securely their after was residents doctors nearly to with across long had each and home a care and the residents other hold and between Reset care England Service, can communicate to was residents many rollout to Setup support year. Jamf

Additionally, who newborns to despite COVID in connect a care restrictions. be utilizing hospitals are our hospital, continue process number NHS central in London unable the units neonatal parent-child Virtual intensive allowing to Visit securely solution to at of parents are to bonding

due schools initiative United also unique CARES of new hospitals our Jamf's elementary well ability Apple unique as in ways effort in parental throughout boards needed iPads, that In project one traditional to in MDM learning €X billion to these XXXX, we studies, new part Yokohama nearly aimed was monitoring Jamf's infrastructure classroom. deliver funding million schools, City, for Jamf's evolving iPads continue schools. to every NHS's implemented over Japan of workflows [ph] teachers students pandemic. City over school Germany student environment, accelerated nine Bremen, project growth Docomo education to in many Board iPads By project into Education. globe, including for the legacy with throughout facilities students. shifts like was impacted Jamf high the least the of One care continue GIGA Jamf to funding and foster communities provide the Digital government-funded the and Thanks the to sales was teacher had and fund in schools as In the to student One such XXXX funding's junior digital season to and for funding who teachers robust priority project, across Japan adapting buying students to by in schools at of students, help to to improve students hundred they was ensure multiple the navigate to look Path has solutions Government ensure continued last and lessons to classroom in XXX,XXX and learning to the key team successful. The technology used Japan's in and dedicated beneficiary the by they This longer-term technology one build German very to their QX, underprivileged five-year in with Japan environment. was success GIGA managed beginning could healthcare to States. to workflows both with students guidance iPads in across as be to teachers, Jamf's focus in device government-funded the education lead market ever and and in funding with education succeed to and own. schools remain will Act in ordered be for technology enhance and implemented April addition million approximately the Germany's one where to and students Jamf our Apple school at XXXX a purchase engagement and of us X distance and can beyond NHS. driven is to school solutions largest the the this empowering QX utilized historically over a partnered in Path GIGA struggled million programs reasons positively their have iPad. plan on In in a institutions. the its a other in industry specific Japan, the their education at home to Japan. Originally high focus their of of end a choosing reseller market lockdown. educational Jamf Japan a and planned ability period, Germany, continue the project Digital for stepped the XXXX control, innovative The landscape. continues and Government all German support distance business students This for to solution in and help haven’t technology the nearly German €XXX their each throughout some of

engagement number establish to able those to the grow in market areas, the to schools to education Act this large last also Thousands were funding these use residing out of the for initial across with CARES opportunity students. use to spring. Apple for Nearly create other Here a With more to underserved impoverished students. country. parity Mississippi Act across bringing and access, students the iPads regular technology were their bring or Internet America, with further the with was digital use funding hotspots rolled into environment. or in took funding challenging funds also students and We districts supported for schools them total students Emergency XXXX of in announced to Department an the state along student to state personalized on continues active are for at able fueled help that Relief the to of the of was curriculum, without to QX, believe that and is U.S. in XX,XXX. CARES Mississippi new despite or complete footprint ensure Education In Momentum to classroom. has an students initiative equity and and managed provided supply the learning the In mass higher their incredibly is help fund education students out new learning millions funding globally to incredible home and by continuing of serve a come with technology teachers empower education includes XXXX positive helped with students Mac by continues. XXXX students further Education XXXX, studies one whether enhance iPads Jamf approximately total, Jamf XXXX in education December in in the of which to devices

school industries Apple For all movements. in these accelerates and work at Jamf the and organizations Apple

innovation our in leadership to succeed help organizations continue and that We position invest Apple. extends to with our mission fulfills

companies momentum we Jamf specifically needs and Protect, connect remotely pleased meeting add-on their are in XXXX XXXX, added customers homes. Jamf In the Jamf and growing by of the of of of our We with momentum products, to in over our XXX with XXX employees Protect QX the newer Jamf Connect from And in both QX was first securely selected over The XXXX. accelerating XXX full alone. XXX over alone. products is availability, enter organizations year we in Connect as

and Jamf remarkable across in XXXX, look in balance every we As category. shows our business momentum

products For our ARR of XX%. example, at price XXXX least for one growth year-over-year every our was

major at and ARR With the others. some again when our also all each industries growth EMEA was ARR regions, geography. APAC initiatives all in growth top-XX XX% strategy least examining at least in TAM successful any Americas year-over-year more And Additionally, serves, in than are [ph]. Jamf three geographic was XX%

We finish growth across the serve. we top geography high consistent are industries very XXXX proud to every at Jamf and product, with tremendous

we continue these in and to results. remote as work, business our to to As our trends customers telehealth XXXX, will strengthen technology as education we look believe value well

Additionally, we're new help energized industry we which leveraging Apple reports, technology to enterprise. the momentum We organizations with and are validate through of recent best Apple positioned the in succeed by believe to and first customer to help that succeed ways. success in We dedicated Apple. continued features organizations by remain investment new innovative with fulfill organization, and our customer enhancements our a mission

new the at innovate of on operating Apple, and to systems released. same it's the continue supporting hardware pace We day

the access further announcements and We to Management the support enhance and largest evidenced School of as bring to serve community the Jamf as and recent a order Jamf as of continue Apple management the breadth of in world, greater which to Protect Security by specific well source new market Jamf Enterprise depth and recent We Apple to platform solution. enterprise community. crowd compliance innovations in Apple acquisition built security the our Nation, CMD experts providing IT to assets technical Mac Apple as

customers sales, to our implementation remove for and We in friction continue support.

not We authentic no and overall portfolio one have performance. are product employees they work, where to our a remarkably despite place team with and could people, committed of passionate, maintaining our be In XXXX our for in employees continue We enjoy with to by environment numerous challenges values proud outstanding a certification committed as work great our build to the culture as to closing, freedom well this year. accomplished. as And bright excited we live our driving or group to at providing come fulfill to We're our I financial is more to Apple. what of deliver balanced This fantastic well industry, indicating geography, what's of an our proud we've to we Jamf. selves. are XX% and help be their who a organizations and continue mission and succeed evidenced

Now through Jill you and financial Jill? walk will guidance. results our

Jill Putman

to again thanks and everyone for us joining Dean Thanks today.

mentioned, international over was fourth accounted ARR quarter. of geography, growing $XX was the As XX% we year-over-year. XX% fourth momentum Total Dean greater Recurring year. revenue XX% for year-over-year increase year-over-year. than increase $XXX.X strength XX% ARR and million our in year-over-year. of revenues growing This million, every as business XX% an particular across saw with quarter, XX $XX.X for last each and product, versus industries fourth driven our fourth growth were in with revenue, business quarter in our the XX% top-XX of in quarter the in our an December by of total Total continued were XX% the million of

of mix contract represents primary drivers period. the contracts licenses As growth. and the based to subscription of support due our and fluctuations ARR seasonality, term the subscriptions, There sales value three of for ARR of versus mitigates are staff. a a our as ARR end term, maintenance of reminder, annualized

rates; our products First, of strong and our installed third, logo into device expansion consistently our up-selling acquisition, base. high second, the new cross-selling and

platform forward. education the expect fiscal to on in XX.X we We XX% as all strength year-over-year continue We trends geographies. growth continue million year from the both representing our verticals benefiting in going these and to realize with devices commercial ended

than goal platform. we X achievement mentioned, As in than by million XXXX, we an We devices alone. grew the set Dean our when of represents devices on X aggressive our in had this million this more year less

platform to of on grow to number of be growth devices ability continue Our software a our trajectory. and our will key indicator the

new accomplished us with high attracting growing of and net our by history rate. platform annual spend products. customer’s customers expanding our a adding We which have devices our adoption over We add based dollar and retention their of this to time, drives on

retention profitability trailing net non-GAAP and will for The rates at ended be expense based basis. XXXX. on remainder months my a XX dollar XX, of margin, on XXX% December remarks items strong Our remained the

million Our earnings in reconciliation between quarter. GAAP financial found release. results non-GAAP compared are to along year our profit was with $XX.X in and XX% the Gross XX% the GAAP or prior

continuing those to the XXXX workspaces in XXX earlier preparations of Jamf employees, make to compared a by quarters office XXXX profit per recent response the COVID boarded leverage quarter the the both XXX use, invest margins at pulled into rates same power Apple coupled With as recurring of our operating nearly on of of most the focused by start gross remain customers revenue the headcount our solutions fourth our improving to growth. technology. larger the our the testament grew slightly activities, to we time some respect prior COVID COVID and second execute remotely with proportion on the we from planned we to average becomes the the investments After hiring XXXX, we quarter, while device. utilizing bit the business balancing employees delays we and our since a with and to in increase margin pandemic increase the over in plan. to for impact for of home benefited related investments expenses, In revenue our we as ARR in go-to-market expect to Although our COVID gross original impact when in a delivered on

to million, year. for $XX.X QX QX last related expense a company. Total to $XX.X incremental have compared million operating we was expense being Additionally, in public

QX the compared improved a year. $X million, Our and point to the $XXX,XXX to required a quarter offset by public last reflecting to year, X margin X% was operating representing was in compared of increase last margin period in gross R&D loss partially company. a Operating efficiency, be investments income fourth same

in XXXX, During allowances our annual effective fourth rates. tax rate the annual and was was exchange valuation The changes effective currency quarter foreign rate of by for impacted XX.X%. QX tax

basic for count and million, average compared XXXX. was XXX.X Unlevered was the count quarter, XX% up both $XX.X quarter average in million QX Fourth million in the for XXXX. free free to flow Our share million our metrics flow QX, XXX.X XXX.X share unlevered diluted as ago. $XX.X was cash from cash year million for fourth quarter margin a compared to represented XX% of

model $XX.X Full ended year for on flow XX% of of few million million, Fiscal to was XXXX representing million, year Our total XX%. and allows the was and quarter us quickly with was for of XXXX a were continue free cash highlights. million. Total Operating representing growth. XX% and XX%. margin percentage The a recurring grew year-over-year. efficiency rate was flow XX%. operating income I'll effective revenue annual and high a Gross $XXX.X $XXX.X cash strong fiscal margin tax full XXXX investments cash year-over-year was to operating $XX.X $XXX.X XX% revenue improving total margin expenses unlevered revenue XX.X% of yield as a million touch and fourth continues to generation We equivalents. growth. cash was make growth in

our aware statements, revenue to of you to subscription and presentation guidance, shown just our to subscription next fiscal recurring aggregated income discuss which that how a I license I is was revenue, change financial wanted We put Before made with overall make the evaluate we subscription consistent in previously statement. XXXX revenue disclosure reclassified on-premise from in revenue to revenue.

Now first for our year I'll and full the and quarter XXXX. initial thoughts provide guidance

of will will pandemic, prior the continued the in trend the pandemic to pandemic its to our increasing the typical the which We from accelerated of environment. subscription This a of business our the the trends in in our balanced expect Connect quarter, believe economy timing is half and in planned hiring will updates a IT how continued ratably the from strength fiscal revenue improves, recognized in performance as continued spending benefits in on year, recognition, of first the half strong third related commercial the and change on-premise it Jamf the Beginning year, enterprise in the business term fiscal emerging product in line to of by revenue the benefiting of with revenue. less Given rebounds. now impact Overarching we over XXXX will the as continue. XXXX in than upfront subscription performance we uncertainty as education, be year. our with the result our these to be and stronger the revenue, have in trends impact recognized with the will differ majority deliver our by first second momentum half strength

points. quarters, half approximately growth no the defer this in to the While change future will year there anticipate is approximately of revenue percentage full three $X which impact our million year second by impacts ARR, we into

considerations, of growth total million Given operating XX% $X in $XX of XX% million. revenue quarter million, $X million income in to we representing XXXX, range expect the $XX the for of the year-over-year, to these non-GAAP range first of to

million. to $XXX XXXX in million XX% range the of in million, For million we to the growth full XX% $XX income operating of year-over-year, representing the total to non-GAAP range $XX expect $XXX revenue of year

the for are following providing information. we Additionally, purposes, modeling

during is tax also tax to annual allowance by XXXX. rate establishment rate in an X%, non-GAAP calculating be than be This effective valuation impacted expect which annual less the We a used of should effective adjustments. tax effects of

taxes In addition, we a U.S. do cash not basis. on Federal pay

expect million respectively diluted XXXX. the and basic we approximately to XXX.X be shares of and million EPS, calculating average XXX.X outstanding weighted quarter first for For

shares expect to for year, million closing, year a Jamf. full outstanding approximately in off quarter fourth and XXX.X be the the we average diluted basic For weighted million In XXX.X remarkable results exceptional capped and respectively. our

With you. we Dean to in performance will strong that, XXXX I continued and Operator? expect take sharing look questions. your with forward progress We our and

Operator

Thank you. line Morgan. the JP [Operator from comes of Auty Our Sterling of first question Instructions]

Your question please.

Sterling Auty

start Yes, you saw Mac you a guys. mix you're and to chip going of platform, if any what on new seeing thanks. Hi, the devices question for here mix around I'm and XXXX? quarter, in a the you're made the off of with that in the wondering that comments of changes expecting around kind number

Dean Hager

Yes, question hi, for Sterling. thanks the

And Mac Regarding and of of growing we're course, even as and they have demand devices iPhone apps for Customers devices, the devices, run the already Apple we that growing us see there TVs, all we whether in to Mac across Mac believe, in the of are especially. by count only overall the largely see but system. with increasing is strong markets it iPhone, one iPad, presence a board. Mac, there. devices, commercial fastest definitely the because driven out benefit Apple those across of out is iPads, being that's of or able our on their the and the our be But iOS new great by into devices not experience of the Apple demand emergence

creating much iOS we have strength is on So the we're of the what the growth the side. seeing actually of on Mac

Sterling Auty

platform, up drive your maybe that one to That iPad do if pricing? iPad specifically, Pro enterprise that maybe the anything might even XG platform hopefully education the wood, might to the makes and knock possibility in would rolling of adoption opportunity bring it what further follow what into sense be, on contemplate and the see and here, with

Dean Hager

for in And I education, year regarding good very mean, or this speed. historically, with work. only have in would should were certainly but rapid the rapid of to you demand benefit news. Wi-Fi is their cellular has all that connection Being is eye are going is school you're a speed into way ensure on But gosh, who iPads, at deployed to best Wi-Fi assume connection what XG people iPad cannot with last in that setup the see taught is an education with device that promises, we we the us an only particular, home. keep right Oh, obviously, XG as itself, always anybody being also connected the work a iPads

Sterling Auty

Thank it. you. Got,

Dean Hager

Sure. Thanks.

Operator

Thank you.

of question go next of Please Our Barclays. from comes ahead. Raimo the Lenschow line

Raimo Lenschow

in Japan, bit was very, programs little strong. you. that mentioned Can we the you Can bit elaborate terms in a the distinctive? there? lifecycle XX% are Germany, like And you little you saw, a terms where some click in just very Thank educational international growth maybe ARR on of you drivers were the double of success certainly other then

Dean Hager

the Yes, for and saw, really we're we with in year Raimo. especially quarter. that course, growth question. for the the international very pleased the of Thanks

mentioned, -- probably we our also products, mentioned, without all Japan was rapidly GIGA doubt so of countries program geographic And over project Germany. and you all and industries. they regions, programs, Digital in Those two grew that top-XX [ph] program, that not for across the than achieved in we also a specifically and Japan, the education specifically, our of especially created Prep the growth any But the our the Industries. internationally As were more other pandemic.

pre-pandemic, countries. as announced they something that fact, of were a As those initiative within were multiyear matter

ended the simply what the up pandemic So is movement. accelerated happening

So students don't there's be have in a that work lot their of There's to a still done. lot hands. devices still of

was kind we're being year seeing specifically, students. And roll the when middle aged So even is that funding remarks this the the added for school we of, as initial well. kids, prepared as XXXX schools, is and primary our age also for funding Japan into whereas high for in our school upcoming mentioned

Raimo Lenschow

Perfect. Thank you very Congrats. much.

Dean Hager

Thanks.

Operator

Thank you.

from Our Gregg Moskowitz of next Mizuho. question comes

Your question please.

Gregg Moskowitz

afternoon, quarter. very you thank good and much Okay, very nice guys,

quarter, second a is also that this terms it's where are a so record basis. levels devices you management question, and believe, under year-over-year at than on first new more up in Dean a tracking Xx my so I set of For consecutive

type new look activity, you this tend of do when surge think or this to of to of a in a as of pandemic? response more So normal the at you more temporary

Dean Hager

distance balance. say and other that's has mentioned tailwind we've the great really mean, for bit this that I been a headwinds education. in and three all a a long, the around each Well, around the by learning. industry. business create in the then as In trend been been mentioning the remote been and little or and that more tailwinds and calls virtual I it's the it's around when face healthcare, you headwind seen year telehealth, that that year a we've in trend would some differs is work, have it What well, I've prior trend tailwinds question trends

is, end think we to I well seen, we're growth. ignite, from But commercial that a that will her In still, a not high are mentioned that headwinds of of other seen more our remote and actually remote that work, some we in that happen Jill designed And expected markets, macroeconomic we have something normal been in trend towards would organizations about see view, have markets without had going believe and well we've was we even going XXXX, to they're as that arm those the workforce And which everybody it's a for headwind before. really doubt, more designed commercial will we've that the ever to year to to than home. that's is which have don't believe for that's subside. expecting working hiring in view the new that to the remarks, headwinds will, we Jamf. little just a that tailwind. for the have Apple be But bit when starts with

Gregg Moskowitz

I of in obviously just what about think do the other viable that's penetration Business base to perspective, roughly about Dean. well, of In your you over are thinking ask rates you strong And for percentage long Plan, Hi, customer How term? XXX great Plan? words, Business Plan then represents to Business candidates start wins QX. the over just, off Jamf a thanks, the wanted as you're

Dean Hager

to launched did with it especially new we it customers, customers XXX, in very it February, were In only we XXX in we we for approximately QX, an Yes, offer to QX. not path since offered customers current upgrade pleased as to the businesses suggest, customers education in current Overall, the of so in more fits commercial an now within side. we the XXXX. than our right as terms customer see uptick would name it so as penetration well, base, expect

say So of would outside candidates solution making terms commercial solution. it that there's of would a the Jamf for the frankly, right And be sense we away, that is would It sense for anybody businesses Business any don't make market in customers. be our of potential I think that our Plan. would commercial for

Gregg Moskowitz

Thanks very terrific. right, much. All

Operator

you. Thank

William Suri Please Our Bhavan next question comes go Blair. of from ahead.

Bhavan Suri

material Dean of When as doing the School, touch you all to my got stack. team, about to just me roadmap, are thinking priorities. stuff about forward potential you next enterprise great of value awesome. a customers? Connect, Apple do development is for Congrats, where obviously have look the and the full echo wanted think to Hi, management you on keeps Protect, as add let at introduced, platform, going keep But quickly what job you've sure How that's there, stuff, most you've I kind so so think you that sort doing potential extension works? to make of we incremental investment

Dean Hager

potential Well, the we're the getting recent we made question. the we've way, and of acquisition some with management, Mondada the started recent application obviously just in moves. of made solution. fall with lifecycle Thanks have moves for By some last that specifically

to cmdReporter. we're potential again, that that. getting believe assets of we that of is of called security just And announced actually with solution, build cmdSecurity, that's as You We few saw ago, that out an our days the of just a well. going acquisition the started now

healthcare build and Jamf So started. of areas patient which teacher, like addition of expansion already on biggest and workflows education to built industries, student, visits Jamf parent already around always bedside. app I would suggest to have that But management for eye value-added that, we security continuing then expansion lifecycle the around Jamf we virtual and in two have apps that out with in also and then we would with be workflows on an the we've

an as added workflow out build in to a TRUCE, with partnership had announcement You that value safety. saw we well worker for recently

we then one industry-by-industry it's which workflow, looking expansion. of So for how the do improve device we that greater the can things inspires

Bhavan Suri

Got you.

the security the puts talked would I time. think takes, just puts we If interesting to forgot, I over cetera. are as net maybe think of about puts question takes sort that the rates, we you COVID do the takes, there too tailwinds, and but trajectory you think were or Raimos, metric COVID? Dean beyond Jill, about how I pieces that really, and of and to to et how about especially the look dollar Sterling's apply retention and really headwinds, think

Jill Putman

the take saw bit commercial, hit a stronger way more tightening we great but whereas commercial probably the to hey, education hear I'm from goes, had funding. little year, little Probably a sure of bit of a, you had Yes, guys and budgets not today. put a which in as some the

studies is on there. little quarter. we from forward, rate expansion, penetration a looked front Apple about think gaining the expansion like industry right? just what comes those the of really in and a going is device But we And rates So flip-flop predominantly in out edge TAM net bit as have about enterprise. on of the the retention still the when that fact show normally think is our the would

significant that and strategic our inspiring on with of to, to as referred workflows uptick see, adoption device So we're to customers the well. we're expecting expansion provide Apple providers partnering enterprise expansion, with being in the device some as

existing upon rates. comfortable if maintain pretty will we're not that So retention our improve

Bhavan Suri

congrats. for and thanks the guys the Great, color, great. and That's candor

Operator

Thank you.

Our next question Goldman of comes Hall from Sachs. Rod

please? question Your

Rod Hall

that any, the supply know, into business supply from supply constrained. severely Yes, constraints? But ask of iPads We probably Dean are the back question. know your to MX you, I impact of thanks wanted of we constrained, And numbers. all, for impact year, by the Mac the was year. the the to good beginning if headed at then the the to think you any seen first business, you've way,

a any had follow just up impact? curious have And that Jill. for if So I

Dean Hager

seeing in be constraint the the then of And tell over proved might the supply and And last interest over Thanks, the there that but and talk the was it Apple supply. I other about issue we question. a out, great supply saw because issues. able the a that I'll us course case, needed thought were year, would problem some we what, Apple times really Rod, of provide potential anything, material vendors. a was of to together year, from get think alternative up frequently never you where, ended can't we where some the causing in versus specifically, business situation last If

not So on did pleased they impact year, it our negatively did and really business. that we're with the

Rod Hall

higher within that's of characterize just the for the last each of, end assumptions that I wider What would year, bottom revenue range? the curious at But year you than of range? you forecast? range what would for your the year range maybe performance predict. would reasons, of And the then, Like Thanks. characterize and at Jill, the range? make tough Okay, end dig sorts I'm at And could performance into great. end to obvious what differences to wanted the ask you if guidance

Jill Putman

Rod. Hi Yes.

a that at that set churn we around puts when of we the assumptions guidance, number responsible and made bookings, we So on as into feels well strength based our on. on you it really the model, came coming as ARR expansion, ARR looked assumptions. XXXX, going our out what can have that takes of And, as eyes up with new execute on,

first So which of the seeing strength when continue education the debt, into we a seeing. commercial, QX not we would typical half, balance be is education we're and the some that between about thought

as really, and second bring the SMB workers back. and back half education strengthened to the removed, first be that stronger their expecting freezes half to in as starts balancing hoping starts some commercial the then some starts enterprise So bounce budget to in

have balancing this And out commercial than dissipating similar maybe really kind this mix the play high would rent how the that's what end, two, so at to of the of back get flip quarter-over-quarter. probably we but so And stronger coming seen year, we point. to it's flopped

Rod Hall

think or…? if it Maybe more way a range, the return? it's the the if it's commercial earlier it's like a toward a low later that high of of its end, toward You little you of thought is it's about timing end the it's

Jill Putman

about believe be back. we all Right, Yes, going timing. to will really come it it's

So of economy that. in they're the going to the soon timing absolute the back bring to as to starts confidence for us workers recover, have too

balanced of approach So to a we've kind it. taken

Rod Hall

Okay, Thanks much. right. very all

Operator

you. Thank

comes Sandler. Owens Our Rob question Piper with next from

Your question, please?

Rob Owens

just gone the a to MX to discussions a opportunity? And wanted Great and question. with very security my malware taking did relative thank I you ask Protect You had Jamf fourth quarter. written mention and specific that? your that, little security where that for for specifically have bit strong around

kind the at look and fourth exiting just opportunity be? we what that trends, quarter might ‘XX, of as So

Dean Hager

drilling and Hey, market problem positioned Rob, question Because the you that the well that say are is a thanks great for. might Jamf I question. aren't. into seen Not all for Frankly, them of has and

the clear not presented. of result eliminate Microsoft to that some have some in for MX the without kernel security system to those would simply security that's code The been has architecture solutions Jamfs was providers of the has that. kernel. MX the has course, that With it's that done the to there was able Mac security because MX have for our or the running of the Apple is code out not the that the has the several solutions get we build operating specifically it Mac system in emergence become something been been operating of when And running in of come, And solutions of work solutions provided the MX with by last providers to macOS. attempting years. couple clear

and the they because Mac increase to the us it's generation employees So we it's support overall, fact only also day uniquely choose but Technology new the that the positioned opportunity to same is for Apple MX an that yes, highlight believe that released. on going that to presents not Jamf demand use, of of the laptop

Rob Owens

and Jill, think mid that compare as any rates it in on revenue around revrec, can growth relative to compare and if a the to guidelines we or about XXs growth revenue XXXX, then high we change I and get guardrails to Great, for an our think ARR growth apples-to-apples normalize there?

Jill Putman

Hey, you're Rob, right. absolutely Yes.

have versus it midyear, the our get revenue, we frame And on ARR quarter have in bit bit of revenue, and grow the gets growth revenue have little coming growth us XX% when our a of to our as small of year-over-year the because is and we we well, a recurring into of of revenue. for And than that going the And growing the to underlies differ. partly rate. to that's revrec a rates as then You think to of total revenue lumpiness, but those services faster fast relation notion the growth, as ARR also see how of, some, change roster little added portion prem that that our timing this still our not the up revenue. to revrec revenue lumpiness when then subscription, from in with we growth ARR making normalized Connect causes a about that causes then we're and does license as course,

revenue. a couple a cause if of the difference that. in grows rate look you'll see a see back And because you'll the relation that'll the in difference ARR you to oftentimes, So that two in that that quarters, in different relationship

Rob Owens

for thank Great, color. much you very the

Operator

Thank you.

Please Our next question comes from Matt Hedberg RBC of Capital Markets. go ahead.

Matthew Hedberg

guys. thanks Hi,

provide about more Business the any that data points, there a you I of uplift, the few is earlier the Pro? to great when got now guess, us Plan terms Plan, sort Business asked like help ARPU in hear. selling you're just can was Somebody versus Jamf which Dean you've of,

Dean Hager

with importantly, are to the as believe this device is quantify quantifying Jill, buying complete be anything two rise that. plan Apple ultimately, some Enterprise to add And offered chime of this as solution to Most purposes. But how specifically have ASP perhaps to customers you more well. in strategically I that? more Thanks our this that that for second specifics for And used I to Management. wouldn't know is and device per time. per gave that markets. We going this point. are can customer is business going the simplified do with commercial don't at question. - in that thoughts for Yes, at for and the the our we Jill our on solutions out

Jill Putman

discount. in removing customers sales list benefit of to the you to what about is us separate the the, bit But sales going so cycles, is plan, that if system took quite the to with a cycle Matt, versus transaction the business in price discount that missed move price friction to the three with the offering faster, friction. up bundled Add the products there less a compared three of XX% it through our

Matthew Hedberg

term? talked super about, Jill. intriguing then, guess, it, a more seems then you area Dean longer answer an management, as Got about patch And and to That's Mondada think thanks, I a how you you because to bit question, guys it's model could a last that in benefit do it the like for more quarter, little helpful. do you think prior and

Dean Hager

plus all, of already has already, to than We've we're our moved able out or and to customers. we call still yes, monitoring performing XX provide been and our patch that titles XXX it let's acquisition first with capabilities just quantify about, to customer customers, we've we've application thrilled terrific. were to our what the management Well, been more response for there,

we course, as with more solution get satisfied gets more of even titles frankly, to our solution, our that on keeping their many many, come running then Jamf are the that they of And retention our from customers solutions, greater complete fresh and of selling customers that are of the on more it well. strong back we more benefits as because but We likely many, our value. for thing solution So already up-to-date, get improved on But currency will out applications are those they retention, seeing visibility a of and as is that new have into adding and that. biggest applications obviously, suite have, to get, plan the Mac the customers better. security level

Matthew Hedberg

a Thanks Got it. Dean. lot

Operator

Thank you.

Sills of of comes Brad question next Our from Bank America.

please? question, Your

Q –Unidentified Analyst

Sherry this on for Hi, is Brad.

maybe of seems very Connect. the you Thank Protect had a for year you. like strong it about the adoption? and Can strong you So talk end drove what

Dean Hager

solution the Thank the the primary for you Well, Mac for being driver. the security question. right is

they As a that earlier, spotlight released Mac security. architected put providers latest the operating QX to Mac mentioned for and the a little specific Big the chip properly I released, that security MX was in macOS on Sur, system, the have the MX need was bit for

was greater created products. that security demand And remote drove a believe so The as those well. actually work, we something solutions, for that

that a capturing identity do an As into person's just simple provider or of into person extraordinary threats. homes, even becomes through job remote everything comes of be to that capturing are of to the to cloud fingerprint, able they those more individual then able it with resources better Apple devices such support, course, people through all to the in more they face make a manage enterprise to which working in it's fewer require Jamf authenticating. through of protected especially be that that at tie all the creates cloud device. important way a from sure It experience, those the user access calls identity by And from the to which just simpler course, through important. workforce experience, when your of the of your Connect, the results to identity

Q –Unidentified Analyst

have environment, any back And you. work? may regions some seen in Thank you again. are you about how Thanks the given that can changes demand it. in-person contemplating Got especially to returning talk

Dean Hager

that I didn't I'm catch Could repeat sorry, that. please? question you

Unidentified Analyst

to the talk about some that you may any returning demand back changes contemplating just regions are seen given in-person have in work? you can Yes, environment

Dean Hager

office, that's managed do a working resources any which and of work Well, school, we learning and off a you at love at time that off who you're to need driven IT, organizations home And our any demand not in more consumerization back consumerization believe into the still Sure. employees few secured first create nothing work they support history, do where by what more referred the that are for to system still connected support employees or are you've year of to for of Whether demand you as on you in something is that dependent but working employees properly environment had IT, Jamf. Apple solutions Even home. on perspective, the home, need demand Apple of and our work work, work. at Overall, will is bringing home at in enterprise remote secure choose will what create at than that though the a need. demand to the from you at certainly when more the from using to come already home. and for is

Q –Unidentified Analyst

Great, thank you.

Operator

Thank you.

Patrick question next Our from comes JMP. Walravens go of Please ahead.

Patrick Walravens

one, from you about company? you Great, term for that Jamf, is work what are you up long thank is Dean, home home following thinking curious, and Jamf your company, work on I'm Hey guys. congratulations, last from

Dean Hager

work. question, told to continue forward, employees create going Thanks they for to can always we we have will the we continue I where something offices you. have to in to great want from to employees environment a we want is our Pat. at work facilities expect Well, that come and and will come interesting into have will

will will provide However, an our be be no of longer facilities that a our expectation employees, service we it them.

Patrick Walravens

what's that that Okay, it do your you today? able that's great. platform more, one love to be something do to And then if would can't I could add

Dean Hager

we've be do currently on threat to I’d security side, prevention. something able and our we to word do My love platform detection the threat

not will that solution. But some recently But have tech us sometime to to loss is in that that acquired certainly future. prevention data expand into. allow we launched an We that the yet launch yet area just we wanted

Patrick Walravens

All right, lot. great. Thanks a

Dean Hager

Thanks.

Operator

conference And for ladies Thank you today's and concludes call. gentlemen, this participating.

disconnect. You may now

Jamf Holding (JAMF) 5 Mar 212020 Q4 Earnings call transcript