Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Thank you for standing by, and welcome to the Jamf Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Jen Gaumond, Vice President, Investor Relations. Please go ahead.

Jennifer Gaumond

Good afternoon, and thank you for joining us on today's conference call to discuss Jamf's fourth quarter and full year financial results. call Financial Hager, President Officer; Operating today's Ian Executive and on Officer. Chief Goodkind, and me are Chief Dean Officer; Chief With John Strosahl,

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

We also and presentation, with file quarterly containing earnings Excel to modeling. an assist with published along our financial QX presentation updated statements investor

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

reconciliation to of You can those release. comparable find the GAAP in earnings measures the our measures nearest

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

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

Dean Hager

mission was our and to for Jen, customers, outstanding help deliver to as succeed Thank you, we to fulfill of joining organizations a Apple. us. everyone milestones XXXX year continue Jamf our for solutions and with for

user the while them Apple customers, people the experience. simple world their in XX,XXX We and over protecting hybrid helping navigate by empowering finished year legendary organizations the serving with consumer work today's challenges their opportunities

devices year-over-year full growth expectations we our XXth revenue XX platform, is completed considering celebrated report of year in ago. XX%. reaching year million of consecutive which XX%, We QX quarter, two Jamf for years in paid to XX again with the devices are the We on million growth remarkable XXXX just resulting exceeded revenue with pleased

in just management achieved net our device the over under time largest history for year. year-over-year of Jamf first growth in achieving a X Mac the Macs addition XXXX, also In million X

significantly XXXX, and enhanced managing for Apple we work. platform During at our market-leading securing

helped million Jamf's $XXX management now $XXX in device three from mark Jamf over ARR surpass continued ARR almost QX, at product a million been with and leadership created end security the ARR past of entirely over of our that business of and million execution the years. solutions, has the $XXX

faced Jamf's supply success about macro is throughout and in QX earlier quarter sales the recruiting year. in difficult we and from more XXXX We chain remarkable device the last even talent issues challenges considering the environment.

highlighted in lower that renewals. in normally expectations and Additionally, renewal, QX, we layoffs muted QX, which at growth continued for quarter commercial in highest customer Jamf's hiring customer device resulted

is profitably. well positioned growth historically Jamf for challenges Fortunately, responsibly and having market approached

both challenging non-GAAP cash actions in XXXX of onboarding to the plans exceeding explained approach and targeted expectations QX, that additional XXXX, free Last through chose expense with and our hiring to staff short for of most we the for flow. operating compensation us because in year. prudent along of we unlevered quarter, I to environment hiring income led new took employee Jamf's

to our due to Additionally, headcount sales we were goal. in achieve our late able year-end targeted recruiting XXXX,

the ramp demand reps of to anticipated to productivity latter in meet full will these expect time in XXXX. We part

year. measures cost XX% growth the future growth line provide and an voluntary expanded full detail headcount positioning targeted targeted differentiated employee We us on bottom strong combined results product growth. to the with Ian believe we We will later, while achieve will put for place, in sales in retention balance for additions still help with slower line more accomplish Jamf were while investment able of which this achieving

ever. and company in the market strong as us that presents challenges are Jamf's many XXXX market showed the ways, as Despite fundamentals

like would of comment acquisition our our I security solutions. and and of growth on to cross-selling market, the retention, view further device customer Specifically,

year declining a address not XXXX for PC was shipments, First, XX% market. according compared the I'll good to to IDC. XXXX,

and grew market in States. Android overtaking both iPhone XXXX, in iPad grew United the while in share, However, Mac shipments

the reports Specifically the IDC same shipping regarding over industry only show years, in Mac XX% Mac the has Mac, X% significantly the of the all rest other XXXX than PCs period. more shipped outgrown in three past while more PC for XXXX,

reached In XX% the United in points reached than first higher in according the Gartner, Mac XXXX, for market share time. globally States QX, market year. double-digit Mac X And to share prior shipments

market The we expanding managing growth addressable at well to Jamf's securing bodes Mac market and the for total and Apple set Mac for as work. by continue long-term innovation and continued share standard

base Regarding QX, installed by in than Jamf the active more full in customer retention, customers resulting customers, acquisition added its X,XXX year. for grew XX,XXX and

loss rate overall Jamf's the retention remain XXXX pre-pandemic gross above months were and the of approximately trailing XX end year. at only the for same as and the prior levels

churn environment, monthly market. at the the like small of macro challenging low particular, renewals. solutions end of a specifically with Now, In designed with Jamf in greatest convenience typical the is for As businesses

companies market the to employees. an From quickest fastest-growing fewer react and market quickest is to SMB commercial rebound. downturns than has ARR the perspective, X,XXX Jamf's the to largest Historically, the segment, represented small business with been but also by market

partners These serves faster our to of total market. many MSP than customers Additionally, by additive largely and small growing channel businesses Jamf's direct to is MSP are XX,XXX served routes Jamf's customers. Jamf's emerging

world-class. top Jamf's contract Jamf at end at continues in value to Of of And the with customer XXX% beginning Jamf's ARR by of all customers measured the of high Jamf's annual XXXX. the XXXX, XX their Jamf retained XXX market of drew customers largest them. loyalty be

been seen has count past in device over Jamf challenge pressing growth. two most quarters the The has

with XXXX, historically. for grew XX headcount to been changes purchase and anticipated has seats our market rate customer of not Although slowed employment for current only we've customers Jamf top growth the in all device the as their by and significantly growth seen tendency

and new logos. renewals customer for both true is This

employee as market expansion quickly rebounds during is improve. that count dynamics negatively growth, slower device device tells Although periods typically of us impacted history

through ARR, business security over expansion. of our products transformed several and growth public with Jamf million and position Jamf's constitute Apple, of going platform and in equaling has organizations the number innovation, Fortunately, in years. has succeed collection to is for a This increase of beyond which just X,XXX growth includes critical $XX, helps running to Jamf's now vectors XX,XXX, quarter than to help past acquisitions now drive of solutions and device, grown Jamf's since is in commitment management in XXXX both and now enhance our is more XX% over Jamf's XXXX, the positive customers other beyond. mission of ago. customers ARR The over one of security and partnerships per of over our improvements accomplishment to device as $XXX which two year-over-year. growth an expand Jamf's QX $X

QX now momentum hand over John highlight John? I'll things to and wins. Jamf's of to market areas

John Strosahl

our at QX, strides in expanding work. influencers, partnering executing secure took Thanks, to Jamf industry Dean. significant and In strategy platform, our and with Apple manage

new completed have sensitive Jamf November, security and of the unique ZecOps. who in extremely to most data. is sophisticated high-profile to This our In capability individuals mobile we target attacks access allow to the acquisition industry organizational identify will

the standard the Protect aims Jamf up iOS Mac. for With security already to to this we've with set bring visibility and technology, Jamf

the With the our and integrated influencing security deliveries, all Trust with continue several Jamf AWS. DTNA, both QX cloud providers, solution is Apple-first or key Network Google to with security product only Microsoft, X management relationship We enhance new for Access, industry frameworks partners also of management solutions. for Zero our and and largest

Then that we noteworthy. with AWS, announcement AWS JNUC is collaboration, of announced joined QX, in to capable solution supporting management September, program. ECX addition Jamf At Jamf's Macs. our Jamf Verified virtual in Accelerate Access, in ISV the only specifically is AWS' ZTNA managing

the marketplace, can collaborate committed Jamf to incentivized to annual Jamf AWS and and this is serve included use Jamf their sell of result credits Jamf AWS best teams AWS sales AWS products, products. a spend to customers teams in As purchase partnership, customers, or are sales

year. than One iOS customer in Jamf example Airlines. its parts with of for customer Allegiant providing AWS Jamf iOS In team over partnered renewal, with cloud joint growth facilitate the and benefit team and past benefit and process. Allegiant have significantly more streamlining AWS the was flight spend, AWS for doubled marketplace immediate migration utilizes Allegiant's their committed annually Jamf procurement Jamf's QX, fleet financial our long-time of the devices operations to all from using listing

cautious we look the dynamics, remain are optimistic. into given XXXX, we market As but

and total continued continues four opportunity. market to customer leadership remain and quickly illustrates Our to leadership market addressable expand loyalty like strong. and market significant that areas our highlight I'd

and the to the students deployments serving globally, First, of Taiwan, Australia. be districts XX largest estimated world, market, the school some around XX now education continues U.S. million the top Jamf in including Japan, an Germany and the empowering leader, education eight of government in market

Last XXXX, Safe momentum six In QX, of with we selected We Internet XXX first you in brand-new July sales Safe Even first measured solution is quarter, quarter a Jamf's told in schools, launch by the of product was that quarter Safe for Jamf availability. a Jamf schools, QX not the traditionally Internet launched we history, most big for thousands Safe Internet also having have its months Jamf though Safe of geographies customers seats. of Jamf customers books. Jamf that support successful in Jamf Google Internet In continued. major include over in to now availability. Internet Jamf upsold Chrome And of Safe finished all with extended XXXX Internet.

protect and prepare students to We we customers schools more and the approach an rate as academic accelerated for are reach next spring year. excited at

the Jamf is Another as the believe long XX security Mac global to of provide leader and complement the nine and Mac largest market we brands management work. expand where If in currently is market into leadership and substantial continues robust driver companies. clear at will future. of top a XX growth share of position top XX the Jamf serves it XXXX, solutions Jamf's

stated XXXX. in who example under grow long-time Mac seat adding million was earlier, management Jamf Cisco, to by customer, Mac their XX%. Jamf contract As QX, growth Jamf in increasing with over count Dean of its renewed footprint, X Mac continues their One

component has choosing of to iPad and by According also of management preference this Jamf's device presence mac, been Mac. include our with Expanding fastest-growing is user account. growth for to iPhone Cisco, Mac the segment XX% new employees key

has for Jamf expanded consolidation market our mobile XXXX, This, the market unique mobile market Jamf. an In personally provide management device emerging corporate owned to replacement with and value devices. combined for in product legacy created support both

implementations iPhone for customers, of In customer XX seats. by QX XX both devices the different In competitors. alone, just replaced of X,XXX driven win our at iPad one was least of and Jamf these nine Apple

and Jamf's transformation. unique greatest iPad for capability purpose iPhones of shared support One the one-to-one and strength to is of our industry

in supporting iPads and industry five and X,XXX care, workflows than Apple QX care. health iPhones patient alone home more for clinical new wins with million X like Jamf communications In devices at least bedside, supports

is leadership to iPads. American At market flight promising five and airline establishing their mobile deploy success iPhones JNUC wins be mechanics, for XX,XXX like in for shared with transportation. had using bags September, Another additional flight Jamf to flight X,XXX Jamf at specific electronic cases QX, use pilots devices Jamf attendants where industry is rapidly and least workflows for Airlines and travelers. In used

Considering growth trajectory more as disruption the and mobile market, we an of solution their requirements security management device the regarding align solution. unified market, Jamf's we size in Apple-first anticipate strength will of long-term are the bullish organizations legacy management the and with the Jamf's

personal from opportunity final uniquely which only security both that management industry-leading products, complete address devices of solution and ensures solution combination our emerging I'll access the to Jamf positions our corporate offer Jamf's with is The trusted. all believe we Apple work is

development been Yet, several as now discussed In less has has over capability acquired total, QX of year-over-year $XX has with earlier, reached in at organic million over past and the Jamf's Jamf's three security years $XXX growing Jamf million, acquisitions. built ARR ARR. security than XX%.

as we early only growing and are get into scale a continue integrate single and still efficient and we stages more solution believe our the in products our security to of platform. stronger achieve We will

addressable December expanded customer Jamf A with Jamf's solution our they win first total their expanded time in business Media Pro Global also security is threat to Apple-only in XXXX, December to of prevention showcases their our devices. of XXXX, long include XXXX. to of from The December And expanding Jamf that market then in implementation This plan Microsoft Company. Windows

device for types beyond. device Apple value set greater stage and that opportunities devices continued expansion product Apple cross-sell management and for in customer strength create Jamf's the all and has of upsell

it turn I'll to that, Ian. With over

Ian Goodkind

growth ended in We of mark, John. XX% growth Total surpassed XX% million year-over-year, the of with resulting ARR year QX growing revenue Thanks, to revenue $XXX fiscal $XXX.X year-over-year million. XX%.

strategic major and see and education, enterprise partners top geographies, business, channel and to with of continue balanced the We milestones commercial many industries, growth across size facets many and the including our security, commercial management way. along of

currency, our throughout year. estimate exchange If retention that in of ARR at We due a renewal using company held calculated decline that the to expectations the impact constant QX, churn hiring actual we reminder, report as primarily rate to is has impacting the for rate total saw were to in an immaterial. year be market. would ARR the a customer fiscal are As net the in to device end well muted as XXX% low increased growth continued XXXX at

on We believe and are basis. my The macro non-GAAP temporary to be expense and declines a increase remarks metric primarily we items the on this and as difficult margins, these conditions environment, would by are expect remainder driven will improve. macro profitability of

expectations. found are margin our GAAP in earnings results, between with was QX reconciliation the profit XX% gross release. non-GAAP, and along within Our financial and non-GAAP the GAAP

We fluctuations quarter. in range continue margins the gross expect each anticipate low XX% to slight and

non-GAAP QX over QX the outperformance proactive prior of in margin due containment non-GAAP resulting to cost and operating improved revenue margin operating X% year, in We initiatives.

Our increased flat prior we XX-month [QX], to by QX. established driven in free the margin collections the was was which This exceeded in cash year. result expectations trailing XX%, unlevered primarily flow

effective tax X.X%, is rate consistent our expectations. with annual Our

for As XX%. is a QX non-GAAP calculating for we currently reminder, statutory XXXX starting rate use impacts, tax will our which domestic with metrics,

amount Please pay taxes have for the the immaterial IR outside and of amount has we methodology using We and Excel of a statements a that an posted quarterly containing been cash included file our this financial negligible basis U.S. calculations prior current in taxes federal cash on to website. that our pay periods note updated U.S.

to turning XXXX. Now

second have reps macro We hiring of the ensure and the accelerating maximum except we XXXX we second continue to onboarding a in our As of have to initiatives XXXX. XXXX. meet cost slowed enough sales flexibility sales the number in to navigate difficult ramped for environment, our half we fully stability taken areas of in anticipated in all while ensure quota-bearing to half demand business

resulted in actions These lower-than-expected expense. headcount

cost categories enacted QX, discretionary other such spend. in initiatives we travel Additionally, in and as

these a our operating both exceed for combined cash with income result, revenue in free and helped cost As us non-GAAP unlevered expectations savings, outperformance flow when QX.

companies and are prudent believe short may that fortunate we in other have therefore, of XXXX. we given hiring Additionally, and position a are our over-hired we in goals, compared overspent to technology

our work, aggressive all we increasing headcount XXXX, for Now on more by management and expense are eliminating being performance focus and noncritical it's backfills. management on hiring given largest reviewing

owners of As such, we only anticipate we value-added with ending XXXX with headcount at footprint, or and execute below reducing are current headcount, budget spend levels. we software activities. all We're on cost ensuring identify facility evaluating and spend Outside to savings. working our

cost include projects with is our activities increased has to to Jamf this and reduce cost, investing in structure us. and prudent These the so excellence. not in in manner will historically operational that further provide new a operated scalability future respect

to highest expense generation. strong, structure continuing we and of committed the managing reinvesting judicious with areas has be the in balanced profitability expected and with towards drive to Our return the not flow while continue will consistent XX. remain philosophy cash growth changed, of to and We Rule business our

respect to outlook to uncertainty, cautious with With due outlook. XXXX financial we continued for our macroeconomic our remain

we demand fundamentals Jamf’s and intact, However, continued solutions. business for innovative of underlying believe we our remain the expect

the year nine Our due with the six thereafter. outlook conditions improvements assumes first of macroeconomic growth for to months bookings muted to

a We outlook. expectations factors, believe our have our help as with cost We deliver containment raise. on combined also these us will around described, tightened beat measures, and

$XXX.X first representing the total the $XXX.X to we XXXX operating As million XX% in revenue of first income as the of range million. in non-GAAP year of expect quarter is year-over-year; of million, such, our the growth range XX% million $X outlook XXXX, and quarter for to full for to follows: $X

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

did as throughout cost in to margins initiatives. XXXX, XXXX income non-GAAP we continue pursue As anticipate operating we we

will ARR growth Additionally, growth similar anticipate while ARR provide we rate in revenue rates don't growth an our be and we outlook, XXXX.

with estimates the provide metrics in stock-based website. the taxes compensation-related webcast for Investor as and payroll presentation We Relations and modeling assist earnings of posted on also to other part our amortization,

Dean, your John now will Operator? questions. I and And take

Operator

[Operator Joshua comes And the Instructions] of line Reilly question from our first Needham. from

Joshua Reilly

All tough right. Nice execution a in macro here.

And If is how maybe customer growth be you slower you year, can how net how to more and much that macro, in XXXX? a year? is headwind growth different much new bookings the look review we this some of from or customers a in the at get just color expansions on can might versus expansions typical

Dean Hager

lot why that one? us, Josh. a don't joining you Ian, Thanks for -- Why Yes. don't grab

Ian Goodkind

sure. fronts, to logos, from Yes, hear Yes, really expansion new good impacting and on Josh, both environment is on us customer right, macro you. the bookings.

where demand is that had customers and QX, new we example, allocate able so resources for in saw We way. allocate we to resources -- strongest. were X,XXX -- we And

at guidance look as macroeconomics to combined did our months the factor mentioned. nine We we've portfolio. the six we into So these first for

in intact, economy XXXX, Long increased of returns. our economy. the our the quarter we as we business to the of returning expect fourth return due have the then And some to remain and fundamentals term, bookings

Joshua Reilly

Got it.

be XXXX? XXXX. as they remember of you strong be I have as original Will structure? education guys these pretty a if deals the deal think here were relative X-year to expect correctly, you I how do to pipeline renewed in And renewals in again pricing

Dean Hager

Yes.

thanks for the question. So

year. fiscal of the June quarters the education, July In in for U.S., being course, of end then fiscal in education QX. Our largest is year renewal and beginning next the are the QX

common concentrated for months. high is renew lot devices education what reason within as Jamf for years. that months. be. schools for such, to And solution provide are a the three for Apple renewal quite due those lease result, may a will a schools those renewal take just The for they will three education frequently their that the pretty for two years of It in is is As and when years, our was around three leases same may buying

expect this now this year education have that also solution year. season the advantage we will we So Jamf that upcoming I the be upcoming have The is pattern buying Chromebook. would for a Internet first support normal buying Safe with this one

grow the significant hopefully sell to solution going that's a adding mix. some to into have -- So another and by renewals allow of back those us

Operator

our Instructions] comes from line the Hynes of next from DJ question [Operator And Canaccord.

DJ Hynes

I Dean, up thread, on last which Safe on Internet. a maybe can pick question that just two-part maybe is

So Jamf prop base nearly seems pretty there doubling right? the to is school But a value obvious me, right? ASP, the of it

So know at TAM education early, with of gets the And material any it's I price observations the like question expansion count is the question how renewals? of Chromebook, device like potential? the just guess the I that for terms kind but space. attach of expansion in that on second I in sensitivity rates part guess is that super of

Dean Hager

And you're all, add uplift the Jamf we of Great Safe mix, on first within to that into right question. some when I'll the price -- just Internet give about so call device it Yes. XX% specifics, education. per it's a --

we're for Internet Internet -- speaking, about been we from our that filtering device or provider are were their management from priced provider. We and one However, priced. their priced right buying have schools there organizations, another and Safe Generally out attractively going feel market.

to financially. actually So advantageous it from Jamf, it's all them getting by

in mentioned customers first quarters the couple of selected That's we XXX it. that our base. there But from were mostly that

can referenceability, solution, no them. going a and you buzz. good launch new when with done mean, job you no a we've upselling So I imagine And you back start

builds And that so over time.

meant I Safe with announced some six closed. pleased for already gosh, dozen And Jamf XXX been Chromebook, yesterday. -- new first Safe in has or the having a of have we of that. months, just Jamf by so we're yesterday, already us is aware which customers we think So what And Internet, I already sales Internet

devices as we're most So know, the -- you that. frequently schools. in used American And share, market for potential Chromebook the actually by pretty the of optimistic large is

from it's TAM a so actually big And perspective. a uplift pretty

DJ Hynes

got Super I it this dynamics The I out out that report I'd right? something it's Yes. At got a follow-up competitive and so Work helpful. by question, came bit, Okta's when investors, growth, just and put around questions But I figured to asked Kandji's you. gets

base, kind seeing positioned And help we're kind a just not was can versus or the in that And impact you where of metrics granted, But you'd Any it report. growth there? make presented devices. they're observations on of competitive user that how count with investors in Jamf? the customer market might

Dean Hager

the used competitive size been every to of And Jamf that's years. growth to of was report a when so. a set were first proud on stage, that report we single for the some were our Sure. roughly just number all, of of year. that's We Frankly, be #X company solutions,

many XXX% that report having noting over cites report, other as dominant words in the Okta it's the growth last customer customers Now same position, worth in are Jamf any that the has that In used Jamf that Xx And tools. a as years. had the X is

combination what Apple the the also Jamf's about report the in bodes had space. well growth of to the and say pretty market So dominance Kandji's of management attractiveness then that

speaking, top competitors of at since Kandji Jamf speaking, the overall. are it answer come for of the question, market attempt from means Jamf So to end the going XX your most to positive that pretty we XX specific sign runs to see and companies, But generally market. a the lower generally that global

really right SMB actually of or X,XXX Jamf's market now. commercially S the is the said, that employees, to market XXX segment that With fastest-growing

So pretty competitors being that doing there segment new space. the been in well we've despite in

Operator

next our question Piper comes And Owens the of line Sandler. from Rob from

Rob Owens

that down understand the of subscription quarter-over-quarter. guess, been even that about? of function understand fourth that help us the talking have in mix Help some might Just the Is maybe in a there? churn saw here you in end I you the why unpacking be quarter with business, Or embedded subscription? guys guidance down dominant on-premise just at what's the QX us off, of being First range. the high sequentially, a

Dean Hager

to Why and jump off kick I'll here in don't I it quick Ian.

there, comment -- clarity. provide second Your some it to thanks us allows question, and for Rob the because

more spot way, of timing a You're on-premise on there. with for deals. do perspective means anything large our timing And QX kind just on cloud. plays of to markets from It other the onetime with on-premise that some Jamf revenue, the how than some with out Jamf commercial by has

cloud, So actually are be their I own quotes, large run fairly on-premise, put there some run but we end up in recognizing you they the little if to revenue as a want that see on-premise any QX on marks, revenue. there'd chime Jamf in And that bit. with did in customers which affect commentary can me QX means quotation versus and you do that? Ian, staying

Ian Goodkind

from Dean. actually QX right, I really is that's lowest. the QX high from is a perspective on-prem. our seasonality mean, remember, and is I seasonally Yes, mean commercial our perspective, it

So revenue piece looked on-prem, that -- recurring that you the excludes if alone is but the just at increasing. actually

that it that makes revenue so distorts really And is that or onetime number. some of

Rob Owens

still a seen you half next? any the to shake a and first customer base? and is year, isn't back that see much have acquisition of this from loose done maybe that that's something VMware as follow-up, wait opportunity Or And Great. half of as

Dean Hager

Yes, quite replacement as that acquisition that as to market customers happen clarity that's open for get and what's to large going a I've that on I create I think been there us. market going opportunity pretty believe closes, the

that as out the in And of had although That's implementations QX we of organization X,XXX than we And we devices. our we will greater replaced did cited with out organization didn't we proceed think we one script, in opportunity grow XXXX. were specifically, type that I through a XX to. referring cite call competitor

Operator

from the of Lenschow And our line from Raimo next question comes Barclays.

Raimo Lenschow

-- how you And there like go for the And happening? slightly I renewals based that you also the What the year? not Like, seeing script expansions. are ticking, case number seat think you down are as will new a headwind then as on you people NRR on the it's buying much of If X mentioned and that long a on about renewals? follow-up. have you be down is for

Dean Hager

and out didn't repeat I Raimo, you there from a bulk the of you've Could until heard your Yes, blanked renewals, that? second. -- I gotten for question, you

Raimo Lenschow

Yes. Yes.

anything renewals? wondering have obviously, you headwind just have there that Is on there? the maybe you be as employees around is see you're -- And that buying as less if was that renewals. renewal different the that could of renewals expansions? I the people a So there is down down new really a as side not that Or or the kind just the cohort it come year progresses anything customers up for like seeing

Dean Hager

Yes.

seen, course, and one very, so And of of And industry. say, in is resource used Jamf reductions that area actually things the heavily has as very we the tech the rather found in of let's you've of tech been active late.

slower really found that of the actually Jamf, that run And also are of a still higher and lot head their customers, is layoffs, at have because you from at of some we heavily do was the like count layoff they year the than of hired just looks a even really, September, last that lot renewal. to within because tech if Jamf hear it headline might did renewal have from it growth hired course, beginning is their people, of just say, through before stories we because they most companies up then activity, tech. what But

it So but down. like isn't impact it it's us, rarely doesn't

For looks like that Does just growth. us, it make slower sense?

Raimo Lenschow

No. Yes. Yes.

you the that up, room. the you XXX Is be bit I please? your can like -- here. think are something more coming this about And given like cars, about But containment all Makes -- controlling think to like around math, bps. little expand you of that a maybe my Can you that there controlling about efforts noise -- cost made margins if kind by you talk then could Okay. projects, me year, on missing that, I'm have it seems sense.

Dean Hager

that and -- ham will Yes. Why bit. egg Ian of don't a kind and little I

you're are long-term we yes, points. of a of plan. expansion margin been a of our -- right, basis nearly First part do all, have has this XXX And

said, Jamf had just And doing that. grow We will on has planned like responsibly. always revenue we always our

-- very and short-term we are attractive challenge. market because well of clear a getting in ultimately, more as believe us, responsibly that is a the margins we our actually in grow if window prepared actually macroeconomic also the remarks, but we attractive will wasn't it We for

of And of the course, be that other opportunity. believe margins we on going that we will window. great within expand What to is side

do sacrifice Do term want of continued Ian? that, not market short-term make because for want share long on to a the to challenge. we more comments expansion macroeconomic So you

Ian Goodkind

as and I Yes. about reminder, year. to not commented there, going QX talked earlier actually on add we've as we it overpay just -- go would We in and well, talent. too, this pay expensive What this we things a hey, we're did said,

what -- earlier in So XXXX.

so well heard into we're those making costs we are sure go our we appropriately. big -- all as for look that manage us all taking can And and you've at things them a into bode XXXX,

that going are knee-jerk around compared increasing profitability that X% not to year. prior damage our to We're do to number anything business, the long-term but we

steps, out it achieve targets are it's that bode us for some there. already we those So long-term help long of -- we've term. us and we taking And well taken have steps, going will to

Operator

RBC. Matt And comes from question our Hedberg next the of from line

Matt Hedberg

which kind And I It be of similar as wondering, device on variables two both 'XX? you and and a in could do grow guess year-on-year like growth XX%. ARR both should XXXX, ARPU suspect ARPU, maybe like those again -- said it growth growth an an what adds of based of it revenue, device you I'm ARPU in driver the between basis. slow revenue could In as looked on ARR slowed bigger devices the about 'XX. will to looks looks

Ian Goodkind

It's is, the first in. cross-sell. talked where on from major it's and been on mean, Yes. devices. logos. our right? upsell to we've new feel growth And Dean, additional jump really on I I devices, It's go can about free

that's Again, And seen on the device expansion, biggest we I new security our we've what the side, actually right, impact. guidance. growth, really we X,XXX where mentioned, we've good That's in And on But XX% year-over-year. to we continued with here. see had have -- the then growth just factored have customers.

of our to Now XX% up portfolio. that's

customers XX,XXX have We on it.

there, to -- actually that starting build to and we're So muscle is starting momentum. we're gain the

Dean Hager

remarks that now. prepared per my in our mentioned device I ARR grown as -- our has And to Yes. $XX

rate to expand expect likely similar to a has expanding. We been going that's it somewhat at as that, continue

as growth of remarks that grow. as But what mirror his of I first not about completely half dissimilar to Ian will goes, this the device And course, of our to likely year the our device in year. think growth look continue half last will far prepared we'll last talked

their to that there bottom even the happen. but on But slowing we we're latter of that even there some this of or impact doesn't could the that -- our year, environment, carefully those in you prepared macroeconomic to the half look the will are a a are be it bit when deliver as considering customers we that think and the a are who recovery personnel at down have watch that latter comes on device growth, hiring living positive if it year half of line believe

Matt Hedberg

maybe the of to it. a one clarification just on maybe as then guide. And dovetail Got sort just other

months what nine assumption is? assuming pressure, you're recovery of basically there's that the of feels kind QX sort recovery kind buying economic but of clear, So sort baseline first some just of or in the is to be muted

Dean Hager

basically the to not need in also anticipating wanting do second position therefore, a recovery of that that, what That's should advantage happen. in but to position half again, way the year to to Yes. be take we're the that being and do that a approaching but we in

Operator

comes our And line of question from William Matt Stotler from next the Blair.

Matt Stotler

seeing? that which in device You here. the differences OS, and iPad you there? just bifurcate any the Maybe hear. Mac device you've a was you're iOS, with on Mac the to seeing bifurcate mean seen impact between best one Mac Can lot XXXX, what mentioned Mac growth. kind of Maybe just key mentioned you and for I growth you're of maybe that good trends

Dean Hager

Yes.

words, know, So the iOS for TAM market grow. a market. us to smaller of In to the the grow of that require order iOS in an more you for well us doesn't as existing is have market we other share

more there's take. So us for available to

driven he where XX talked by iPhone. in remarks John's deals the nine of that iPad in were and about fact, QX, replacement deals had we of matter those XX a As

the wasn't was growth iPhone that a of it because placement Now and was iPad deal. that because

there. Macs run is majority are because essentially the different Mac that we The of out

with growth. growth generally comes So our Mac market map

on that share just regarding devices rise. another mentioned earlier from as I we market commented so in our our specifically point had to And proof what we're growth Mac point, seeing -- vantage

more market an bit little lower and it a rise that and leader it's being the seeing TAM versus share being we're about make sense? having Mac in So that opportunities iOS replacement more Does winning. that

Matt Stotler

portfolio. right, then customers. XX,XXX attach I the that's -- follow-up rate XX,XXX a and just security Helpful there, as guess, very No, on between Yes. And maybe product helpful. the

get Like, seeing penetration has products? Or spent seeing of security-led thoughts deals expansion maybe interested I'd security spend, per been dollar or dollars within starting to terms still And then mostly think customers, deals? What are those management are to about you in see dollar initial right? security deals you you bundled be those as you there. are number with of your

Dean Hager

the first. think Because the the is us. of so in to that land for management answer continues Jamf I I'll easiest Yes, space, established part second be -- that that area to

the at solution more therefore, And organization looking premier solutions is management we for compared needing you are of typically a we that if up Jamf you to solution for and only, those way management ends security. to attractive very and of entire us But an space. price bundle security, buy And go then the with multiple providers. being so go an that from organization our in for management it to with expanding Jamf the priced if is

in perspective security They're been and customer are we platform for money. could the solution a read customer Apple, our of that the price, solutions player. price of that a win sales whole one of to and we competing of process. more a And Historically, they a that Jamf, several lowering it in Jamf they if with showing solutions We whole save the of provides Jamf save management sudden, using only money had. all just platform the players, than therein, an I solutions, management example did on going going pressure and fees, had to the new security has QX. consolidate have all report from frankly, of as actually raised management feeling a customer our point the rather solutions, that's those include indeed, we've vector types never deals And identity that. deal and platform they actually a

Operator

And Moskowitz next the Mizuho. question from our line comes of Gregg from

Gregg Moskowitz

properly that Maybe confidence more you level I'll XXXX take XXXX or the to other margins. little at -- side mentioned of a on question that can you below Jamf in later you to and reaccelerate current headcount speak XXXX your expect levels. does demand But or positioned is once in Dean, Raimo's improve?

Dean Hager

Yes.

go back -- thank you good It's to Gregg. If you, you. hear from

one earnings Jamf's You can the builds last few almost next, right? and each calls play on

that overspend rising and bring with to If employment you talked on our reps, out not board, and compensation quarters, tough those believe go on about couple quota-bearing of specifically saw enough how QBRs rapidly getting to we to market skewed because was that, those. we we and go for really reps really market overpaying back for getting of a plans decided the the and we organizations

we of going by a happen in the the in more reps and QX, comment to for time XXXX this a we but expect in earlier to be we advantage that made talked prepared take QX that sales could the saw was bring that again And fiscal at year. later bit market we little be so beginning year, about board we we little could for starting this attractive employers on recovery of were the that to that that said we

course, a of wrap months up to full to it to takes wrap productivity. nine six properly And

the So free ramped reps from guidance. flow that able we year Yet which we our were started spending year non-GAAP order in everywhere now. we beating the cash dialed OI with our we need back months is why fully nine to else and be the to finish

Gregg Moskowitz

a the Terrific. then And And that been Pro. far the through walk follow-up we what increase? has price increase, Can customers? for Jamf heard note, implemented on the just a you for Okay. from as recently thus reaction you then another rationale also,

Dean Hager

So thanks.

lot things one in we better added than into the We when they XXXX, a proud our entering of are of is have capability. we're XXXX, competitiveness because -- excellent going new into substantially our of of were well solutions as very XXXX

a for Like, Pro significant as access, back remote Jamf on Pro. really attractive time of done app in XXXX. Jamf we've feature into installers instance, We new just the increase called last app part catalog. And price was built right a announced

more getting they So value customers for the they're do expect it solution occasionally. And that much when purchased.

haven't far, as XXXX would Thus renewing significant in understand any are they customers that from we blowback it, something It's seen and forward move with. expected. have and we

Operator

Koji comes Bank America. our And the Ikeda line of next question of from from

Koji Ikeda

of previous anticipated a remarks in actually it I wanted to question a go and the too, in the part bit a you in growth little back dig of about mentioned prepared latter couple to times and 'XX. more,

kind where ready year. to of type the for hey, about, talking your later And customer of question a growth, guess you are size of bit specific maybe of too? hearing talk actually are the contributing sort of that's I this and this half, second you it certain is, about about anticipated get from customers or anticipated outlook customer this are customers could if growth you little

Dean Hager

those example fall, hiring I freezes -- of as instance, Clearly, Well, we tech. a take number we the Well, at there changes. very us reductions were responding in you if for earlier to that a that of approach tech terms a in used resource through fair is occurred that in know an look and just of market for years, tech elastic lot been quickly have tech. for of of

lapping year. so And fall happened a this or year what later next

the more a normal I we year. in organizations, as customers, be anticipating think those they'll that think later of I they're of most to and hiring environment our tech in speak

ready is we But line costs a we even environment. bit bottom which we ramped in we're predict that our reps to perfectly, the managing if market be with can of nobody back a that the employment normal that will Now more future deliver also come little both committed that doesn't occur. to ready be say why will to on should

Ian Goodkind

and just I'll one then add one answer thing maybe Dean, other thing. I'll

we our and it back standpoint, to a they've have was found cheaper, we've some "Hey, bit already been talked On about we tried first sales thought talked functionality, quarter, the volatility. But the customers in the of SMB the to from marks the and side, even about move talked folks, we our little fastest a coming something some to that but comeback." we aggregately they've we didn't right, of just have

And we've model an those able throughout year and Dean's we've the point, But year. improve throughout we'll of to well. be had some results those to where the elastic built on as discussions deliver

Koji Ikeda

past to it, look super And Got about you flow it. That's guide know guys guys But one you to cash margin. ask free don't margins, margins of XX%, wanted of two X%, of you flow follow-up guided operating margins. flow margins just fiscal free to here. generation. the I margins cash I helpful. free I and X% cash X%, 'XX to XXXX operating operating just years, at when operating XX%

thinking flow about should type really there be So just alter could XXXX? free we generation thinking anything should cash that that how in we be about of Is cadence?

Ian Goodkind

Yes. Thanks for the question.

right. think it about I thinking you're

rate similar what cash goes flow Our margin operating expect watermark. thought -- right? is But low was typically go our margin to about low free one XXXX. up, up I unlevered mark would our we Quarter at for seasonality,

payments, this have year. increased collections should did we some so And because expect year-end we you have

will So that increase that operating similar year, we're income GAAP the to what guiding QX, you'll from see throughout standpoint. impact but

Operator

to Dean This further back Hager program does question-and-answer conclude of to I'd the remarks. for session like the today's program. turn any

Dean Hager

at us you bottom completing you, today. a and tough XXXX top joining We feel with very everybody, line for outstanding Jamf much, and thank line Thank about great results.

stronger win in As to that most competitiveness long-term continue share. plan grow, see very when better and we market products in we our our are believe XXXX. we and our us, XXXX important XXXX, to to our are We continue profitability, is future, to XXXX, forward entered we than when for we look opportunities that entered to believe of than we front unique expand

to macroeconomic future the in environment will an we on -- As back in excellent capitalize position improving us. it that to comes and an when us put

So great we us. thank much. Have a you and evening, following very you appreciate

Operator

and participation the program. This conference. conclude your does today's ladies you, Thank in gentlemen, for

Good You day. may disconnect. now

Jamf Holding (JAMF) 28 Feb 232022 Q4 Earnings call transcript