JAMF - Earnings call 3 2023 | Jamf Holding Corp.

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Operator

Thank you for standing by, and welcome to Jamf Third Quarter 2023 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, Jennifer Gaumond, Vice President, Investor Relations at Jamf. Please go ahead.

Jennifer Gaumond

Good afternoon, and thank you for joining us on today's conference call to discuss Jamf's third quarter financial results. With me on today's call are John Strosahl, Chief Executive Officer; and Ian Goodkind, Chief Financial Officer.Before we begin, I'd like to remind you that shortly after the market close today, we issued a press release announcing our third quarter financial results.

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

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

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

as questions John? John to like initial follow-up.Now, Additionally, questions we to call can analyst turn call, the X to ensure as X your that Strosahl. during we you limit the I'd ask address many question and please possible to over

John Strosahl

you, in revenue Thank Year-over-year points strong an over prior-year income improvement for period. quarter. you, consecutive $XX.X Jen, and income Non-GAAP the of XXth was XXX operating resulted exceeding the everyone for in a operating increase QX, results This basis million, us. was expectations a XX%. achieved growth non-GAAP period. XX% Jamf joining margin prior-year thank X%, the over

the but as QX of million.We and environment, muted to with our continued platform some expansion, in $XXX.X QX, by achieve amidst new utilized resulting to the XX% devices. XX,XXX to increase active testament increase of our year-over-year XXX,XXX last during the stabilization XX% saw security ability are and a running XX.X grow environment. included customers, ASP.We macroeconomic a team.In quarter, year-over-year the a execution expand over a signs continued platform Jamf see I'm proud results and a Additionally, point ARR with X challenging solutions. and Jamf ARR QX strength of in management component add continue strong the device grew an pipeline diligent and than from we Jamf these of both and combined, difficult customers an X to X% customers of for drive upsell of can including our generated helped implemented our customers, confident a XX trusted the ability our ended I'm normal million quarter. in component. results to customer This customers adding on plan to times, security these additional percentage consistently more in access.We plan growth XXX Over achieve increase excited devices, devices Of XX% to achieve enterprise and XX% what we business in top to solution, our deals, in

just just over changed. X you our I Jamf for helping been months have not I years, has focus it's to While assure CEO. became since at organizations over that been with X Apple succeed I on want

added our in We years. by dramatically execute changed will ARR million extend IPO strategy.Our since with on business $XXX just to leadership our continuing position our of over has X

help Fletcher vision and Jamf. corporate our resources.We they life presented United have trusted they Jamf of employee succeed for next our Nation and In Apple, its helping IT access, trusted of our help to securely scale the the helped continue and our this Austin, Now of ever bring hosted all keynote us fewer Conference, we by me. is and the globally. ways to with new organizations lowering some delighted growth tight-knit of profitability. lead JNUC. this enormous not where expand year, JNUC trusted employees has Mac Cisco's our total Pro, Jamf and cost access in price enter new happier JNUC past XX-inch to key the successes on partners the of highlighted the tickets with Jamf evolution, Mac the September, key together achieved Also, to building devices the large User outside like of users driving to allowing during community. the were This made or from during could hear further to Cisco, the Microsoft the Apple, to internationally we've makes in choice for highlighted strategic Google, exists lower States. innovations are Previn, that this which at for of I've ownership.And now organizations experience how isn't time my includes continue year, honored program the I Apple past of powered ownership MX brought of even opportunity MacBook cost while the for that capture and new was be X/X chip. This This our reducing efficient, at date.One Jamf Jamf through phase recently Texas, and CIO of career more team costs by we events we while scaling spent more unique Nation largest and quarter will math as easier

as switch Apple with with shipments MX a end anticipates cycles XXXX grew refresh the of as to COVID-related share the key a poised our customers the platform as an customers drivers agree comparison security were as be in the for choosing that to that Windows XX.X%. meets you told of only this the world, to our their reporting computer challenging or Trust presentation and disrupting the platform. production is devices Jamf from leaning half shipments into Jamf employee an X our an response. IDC time. refresh improve.In is market within decision that the offices. to just the QX to space, we X.X% was few is ransomware ARR employees help enterprise bundled leveraging plan of same been are predicated business brings Apple medium-term. of consumer-like that joined entire to security when where ago platform attack quarter they the has across Cyber surveyed for bundled security more. has our Additionally, rise supplemented PC a growth both we that ARR needs your how Jamf.A the become factors, great for post-COVID prevalence employee X.X% offerings, digital fleet from security success Much third halt utilizing PC QX technology X of to continue choice Jamf customers value-added quarter due combined access conditions only the security mobile Jamf's ecosystems, sustained broader Jamf #X longtime a to employees on X/X result week many of and able Investor Annual launch. are SAP X with most outpacing and in Jamf XX% is well deciding Mac management growing still last what more, event an a Jamf's easy-to-deploy macro our meet and security to our IDC's the XBy on of customers Jamf customer. IT group companies comprise solution support far for Apple with seeing as will are continue or ensuring users are Apple Apple for the to over security in level their could XX%.IDC a demands attack well our opportunity experience end was benefit meet success up bring of markets accelerate deploying hosted of position as business when growth In management our another JNUC, to factors JNUC badges of the deliver cycle to trusted power recent the a survey.In buildings both policies with year-over-year These the at security. of ability highlight a Jamf's they future the declined new of on for we and second to to the JNUC work.A years goals threats XXX their in total XX make implemented management survey, and delivers we top employee organization's embrace tough total access great enterprise our organization. solutions, market create that where the to by months, and are Virtual believe of the XX% enterprise.Today, end of strides to the unmatched needed solution to companies decline and Much XX. our technology and their larger company, the actors by virtual Jamf's into of when our badges. anticipate SAP combined spending year-over-year, individual base, us integrated grew but Mac and part utilizes PC Mac of for Jamf security We according fleet. platform are platform at solution had declining shipments to secured declining decline, XX.X% Pro market QX. we a growth Apple Apple's over Trust Despite Mac asked, and the all were leadership, bringing physical and testament Jamf's give more resiliency and Jamf bad this keynote of made by was of makers Also, XX% customer -first of the SAP disrupted their its employees described said increased expertise Jamf the platform. Jamf's of products. management increasing Jamf employees and simple, modern of able this workflows security with in full And sizes XXXX, Mac ARR, will solutions The Mac SAP, programs, example to

when of also awareness for to the Frost large do pipeline acknowledgement our QX, our Endpoint led is a was growth This of and the but twice space alone.One their at tough Jamf we in QX, with after as Security industry Sullivan displacing often from only security of security showing is customer time by & open great not how in testament win step making be Radar to our customers taking especially Jamf deals such a leading enterprise other is one Jamf strong we customers security a our to XX,XXX While we Frost on mind, well. named largest Apple-first recognized the believe Protect, increasing by security are strong new When excited are a but Apple Security a as note, the security vendor has half a are this a to be a security of in QX, Jamf looking report. was customers comparison. XXXX helping in achievement the quarter, the as security. ever leader, with generated of notice, only short quarter-over-quarter in products the nearly is for space as to signed currently of technologies.We very importance are security enterprise, almost which traction as Protect continued growth with pipeline a in security our equally customer for XX% and increase item broader devices is to strong, SMB security endpoint industry an management Jamf space devices.And capabilities. gaining great win us our recently in rates. was In not in new over vendors come and

from of This to just integrated users sure both platform of their productive trusted no Jamf regardless in departments they with where security achieve is employees our This For especially device matter dedicated is and reason into access focused the customers device an across accessed move best-in-class and IT on can mobile type.Jamf's of more data teams Mac are want while want deploying devices. customers mobile, the constantly company using. organizations to help platform and why InfoSec is management their what the be and go. on front Mac iOS is employee the as are on leaning is organizations and solutions More while true our as Mac are delivering reorganizing make secure devices. for

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services CAGR devices. we in our a has financial Mac fastest-growing First, financial industry largest today. dollar second of as we We across highest view X wins, been to QX QX, traction the financial respect Financial due a by opportunity segment services of services continue services, gain represents over significant penetration to industries.In value laggard added X-year to the X XX,XXX in this space and adoption. it ARR the with just in as has the under Apple

struggled adoption to thanks NASDAQ new for NASDAQ's Jamf Pro quarters devices the customer of Mac. Jamf's the both space. of the across Business solution.We for sign operate we've of the deploy over Plan no to of Mac financial devices Jamf wins X,XXX using rest Plan Mac unify number a fact, QX, Jamf departments had legacy Verafin, from market organization.Another took across Plan Jamf company. over plans that its after their key step to a with the Business win Apple customer iOS down. fleet Verafin, X a a best the expand in largest enterprise Business QX including customer. key UEM a our in of was bank this a posture in expand perceived to has Jamf into XX,XXX After the Macs Jamf and few at came programs, history, Apple NASDAQ. coordinating to working services past support acquired success The of and overcome with Plan been NASDAQ, the in services all of win provide decided X Business has previous specific Employee of wins replacement of and its the extra and financial Jamf wins protect with deploying security to X risk the examining devices. organization.In Choice totaling to our uplift shows in for was to provider and large been In able We the providers from continue slowing number to seen over QX, saw We key it entire bank

traction space, replacing While legacy vendor strong. significant the the to we in education space as is just see ability this our commercial in replace

to Public win Threat giving seamlessly competitive classroom.Jamf QX largest represent confidence the features being its deployment, their had and the while similar manage as district ease-of-use demonstrate and currently Jamf superior into education respect experience takeaways. X but Our mobile earlier and Each for was to support defend Apple while Jamf investments customers that of a due migrated launched across district solution California. district market was and in those all the experiencing are These overall this were space shift to able growth facing QX, to XX,XXX increase districts we to IT superior the for made to robust devices schools year the mobile, classrooms. quarter.Another the The wanted devices switching The features education and in a these Jamf. best a K-XX devices. to team not many were the district reasons in finally, Jamf.Arlington significant XX updates we Southern to to saw able Protection in, replacement own in deals students security Mac The in help Jamf this deployments the price in to was against muted with could provide reliable threats. with see large by deals School XX,XXX we of make latest schools advanced XX,XXX continue Executive to to bring XXXX.And in their iOS the school

to in providing this and reducing journalists beyond visibility U.S. with saw Europe. threats is attacks, greatly across reminder, industry, Threat investigation management capability government and Protection and government we mobile advanced to efficient QX, mobile organizations, is device users.In attacks an unique high-value designed D-suite identify to traditional helping devices X target respond endpoint JETP remote extend into the security organizations protect and deals method devices spanning and executives a media officials, Executive to that going digital of sophisticated the significant agencies extremely the monitor security periods.Jamf As

demonstrates number our we'll our unique over base.Now the increasing is While Protect Ian. time, looking incorporate it turn cases, to Over commitment that, a with Jamf use be into customer functionality this JETP of solution to broader at some for how to it benefit capabilities. I'll Jamf's security of designed to

Ian Goodkind

core the expectations. Thanks, John. XX% last QX, of year-over-year We outlook recurring $XXX.X of ended revenue to exceeding revenue QX revenue Less strategic growth Similar high to strategic by exceeding quarter, end declines. revenue experience expectations. in ARR Jamf's revenues exceeding growth services, on-premise our $X.X total QX the also continued strong and year-over-year remained with business, XX% sources our like to was year-over-year million, million. of SaaS license,

uncertainty license anticipated.We impacting Specifically, were year-over-year revenues, continue to the sales declines greater cycles. business, and elongated and customer our in reduced services see for than resulting macro budgets

financial services, and last Jamf's total Jamf's macro partially which and and services, industries These Jamf's K-XX combined of in XX% by largest total are information offset and industries Jamf's most has professional been industries: discussed communication, XX% X represent The these of retail, been education. X largest ARR. quarter, ARR. X next softness has wholesale us represent tech the includes to where we and As in the which impactful remain industries

industries, anticipated, hiring return in in consecutive X that these a to quarters net of that continue hiring growth.With at decline of higher customer in company the net help saw will growth due to to with XXX% X total believe to the We affects of combined as muted QX, momentum respect Jamf tech return impact we anticipated retention, rate retention device renewal. to

to economy the at we profitability a NRR remains wins non-GAAP items We the remarks a mentioned on by GAAP of low driven primarily see macroeconomic found with this by On metric release.QX on end is strong, we of as basis. to improves. results, would some GAAP and margin and while will evidenced the my in expect market, between expectations. was remainder John margins, earnings earlier.Overall, decline continue believe as the non-GAAP our environment, XX% NRR and of volatility the difficult gross the profit be enterprise reconciliation the expense are The financial along within and non-GAAP increase

our We range outlook revenue. increased to and in exceeded at quarter. end high in continue gross operating low the anticipate XX% expect fluctuations to due QX million X% or of $XX.X slight margins income each Non-GAAP the

future Our for unlevered the XX% decrease customers that cash place years. for unlevered multi-year resulting flow is upfront billing shorter contracts trailing note lost customers to that to this contracts, out billings XXXX, cash us. was significant of customers, related and to multi-year lower move contracts.So shifting to in collections not had to are free committing primarily prior and decrease from free indicative billing shift was anticipated. cash preference than seen year, flow in In XX% important annual nor in with we shift to upfront we have It's annual larger dollar XX-month free in amplified billing cash QX, of to annual for compared flow customer the margin unlevered far in as

tax not our In with value their contract was just for X.X% fact, upfront.Our expectations. paying Jamf effective customers QX rate full are consistent growing with

cash calculating impacts, we As pay turning of domestic XX%. U.S.Now for and which that rest for use of tax cash for a the taxes a the federal year. U.S. our an to non-GAAP statutory reminder, is taxes currently negligible outside pay immaterial amount a the basis Please on our outlook amount note metrics, of rate we

and security the have beyond invested solutions. business years, of Mac management our few seen we diversifying strong adoption mobile and last have Over in our

and I stages opportunity and their some can our renewal. Jamf secure. and cost geographies, us we growing to ensure the devices mitigate of factor the are value at factors, and these our improving capturing using initiative, re-accelerate products, the these The across the helped are the of industries ensure having committed as ease. as Jamf still growth these of growth quarter helping Based for side, to help However, macro new both declines.On our Jamf's conditions customers within a follows. large full-year all fourth mentioned macro outlook we earlier is when with on markets in uncertainty diversity early efficiency within XXXX by efficiently existing has are remains business continued realize Apple decreased scalability

XX% XXXX, the the revenue outlook full range year-over-year, representing increase $XXX.X we to growth expect revenue of million operating income of total and increase outlook $XX.X $XXX midpoint For income we million, midpoint Non-GAAP to of the million, representing provided $XXX.X $XX.X operating of last the a of $X.X representing fourth in a non-GAAP XX% XX% to of million quarter. XX%.For in non-GAAP range a $XX.X the million margin from the $XXX range growth to from income -year the last million quarter to provided million, in year-over-year, XXXX, of $X.X to quarter. million we the total $XX.X XX% in million, representing million of operating

upfront adjustments XX% margins, significant at forecasting reflective for similar customer in ARR modeling for also primarily related posted this of XXXX a not model, should a -year to timing.We for this the for QX, to metrics full-year revenue points would a X.X% margin cash point ARR, Investor free multi-year and while we fiscal lower contract is taxes contracts full-year non-GAAP shift to outlook expect stock-based percentage payment in and outlook dynamics components to X with made with improvement related to And Therefore, growth.For provide the to year respect cash with XXXX, modeling total while to least XXXX revenue. at earnings related given look free at represent been full for lost percentage to and and of in approximately XX%. earlier billing. comments our our of you will to adjusted cash Additionally, to from XXXX.For don't presentation revenue values, customer end my customers, have webcast schedules, annual preference basis but website.As flow we than billing margins. in flow Jamf provide shift our payment operating margin anticipated year Relations have QX expectations the to shorter QX, Again, the assist subscription income XX% given also service amortization, we estimates or we should other revenues lower to over expect XXX improve to purposes, license the compensation payroll as part of expect unlevered growth you the revenue of operating to our decline continue results on midpoint, unlevered an a

will for John City.And our XXXX to continue results initiatives. look when will with we with X, in with Operator? diligent to XXXX, scalability Day expenses will and at now, efficiencies We when your March in We New I and mark first well February, we report drive questions. QX as York forward host as expectations Investor you sharing be calendars your more our take NASDAQ

Operator

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

Matthew Hedberg

on the Congrats Great. quarter.

in success really hear. the on good were to security comments Your

as like, it you're half on are with pipeline makes this and working get your that perhaps deals force sounds for up, there complex? sales they more these the to accelerate Given deals, things larger

John Strosahl

teaching Matt. team the for we with Absolutely, the Well, sales sales really and sides security enablement Access to lead teams are and is coin. X dedicated Trusted because to our question. same are, management Thanks certainly Yes. our really of

You being you do that. a through something, you of remediate can't detect also or piece the vulnerability to need you device because secured managed that a need to without it management have if

with as our than has that that alone. really many together X go it's remarks, fact just twice actually if the customers.And the closed those included I with management deals resonated in mentioned So we as prepared security

with to there. that's the continuing side side overlay We're team learn reps ramping some We to also ago traction how while our focus team we're working on to fish security the security really really again, So an bring as to that. our help customers. is well, sales and resonating on see did up other in and territory a

So absolutely on. spot yes, you're

Matthew Hedberg

if just of for Great a same sort Embedded guide? to in of weaker quick your maybe strength hear. your in the the Maybe it Is sort of is education? weaker the one macro were more end I enterprise, could that that Ian. guidance, and at SMB sort of high QX of what underlying assumptions

Ian Goodkind

Yes.

So same, you. question. Matt, Good the the for I macro thanks, it's of mean, hear from right? hasn't more The to Exactly. changed.

achievable the growth our piece, Gap] gave side did we side in that We to continuing [Audio it is was is we be strong specifically. I commercial about continue the see think is to good the commercial recurring and education the muted, really other and a but about the rate. that where we the talk guidance, we of think and when strength talked business way -- rewind clock to quarter last that

Operator

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

Gregg Moskowitz

question the just on the Ian, for the So growth first guidance, year. I for guess ARR

I think expected you lower mentioned revenue X about points growth. than

ARR Ad I on has growth this a rates course, had relative you each basis. probably know other. would lighter year, of on being I similar not spoken the represent about that a that revenue but non-recurring headwind think to been previously these portion

what wondering kind in terms you if just changed outline I'm year? the could of ARR here so And of has the expectations for

Ian Goodkind

it Even more about the been than muted of for data in a for say. there really it's have data the are last kind to us. that about education we I revenue, and for remarks. is here security strengths question. anticipated. a the couple couple talked you. last being talked and in I'll quarter, touched again, points catching the Gregg, we It and that. of Yes. you. continues this But thanks strengths to be where on And side. points the up The I year up Yes, But of coming muted for originally

that's at to If you plan, when largest XX% the contributor you second year-over-year. the ARR net up the look And that new was adds, at that. business look

So the education, but are story. Trusted security definitely we the those Access things there like glimmers that is about, -- everything in the the talked with some upsells,

Gregg Moskowitz

helpful. -- John. much then acquisition. dataJAR I that touched believe you That's Okay. And One don't was the thing on was for very

talk add we're And If add ARR in for revenue just about to have so that the excites the QX? that in revenue or anything aware asset. about did also you any you acquiring just could Or QX? that what did for that anything, expectations that models, you then deferred our

John Strosahl

And guidance not ARR. a can that talent technology acquisition respect what to play. to really what that a sits Ian with get on though. acquisition And wanted where was revenue we Sure. and was It talk from play, we a technology that all not was the from and and pane customers is. our have It across in to that different U.K., dataJAR single world, giving we great channel course, the look of the the MSPs MSP where ability our from around instances only across just helps And of glass. not did

these single that locales also but glass. all partners, under or also a districts, It of for get different common a -- umbrella. it's companies So X want in those districts it MSP have different help multinational helps example, pane schools dashboard to going school big large a enable manage helps from to

only that functionalities that built that was our but seeing product, our and feature the rolled benefit technology in acquisition. not technology that And channels. of the we're So and in the it's also the talent across that really out

Ian Goodkind

or amount noted, of the purchase. didn't a actually from that it just was And John have really amount -- just tech Yes. it. immaterial an significant I'll outlook in a ARR had came as add with this It perspective,

factor outlook did we so And that we've you. provided the in that

Operator

line And question our from Needham next comes Reilly the of Company. & Josh from

Joshua Reilly

Nice job quarter on the here.

year, less becomes has that cycle headwind data these SDB downsell you're employment. of the to of another hiring needs updated year? this a contracts the there's occur and quarter devices, do interest next reflect calling headwinds another to these of to first need rate that now year? tech any levels If looking you think downsell with And this of at Or crisis kind half of in the of sense following and if of earlier peaked

Ian Goodkind

we We've and in Yes. drive example, seen earlier like And talked but Josh, the And they that devices. a on next there I question you customers right? grows, and at market, leaving, Like, wasn't the looked were the look talking for in, successes It step those. in devices. it the thanks it's did logo I restructuring rates at that just is that's shipping, the I kind component, we're been component. we has we offset plan, stream. There's consolidated, Mac is muted, X -- quarters finding and There's to and for to looks will been now this look looked been And that.The about got business tough about And are about our think customers we interesting. the just have there's their replacement our to call, It Ian and on getting us, about, example, seen found we've So count. the this the again, going right? when And churn that things cross-sell macro down when it upsell that here. at, churn, had stronger component, XXX,XXX was going those is things stronger markets, customers are ways new Apple we device ARR. ways go, our a today. our wasn't that environment of at upsell logos. have are the then at to our selling, the and the Yes, being at the about business X that's at back. look improve. steady It's still and largest it where cross-sell.And growth quarter we're think we business it's was let's by it was future. customers but for help We talked it, we call

Joshua Reilly

from growth. management And that quarter follow-up just of on going tough year under growth here the third devices much the is How on, versus the anything business. the slower education due side in it. the to then of Got commercial last comps a on

Ian Goodkind

that's that on that too. definitely look I there depressed. year, I'll was upsell education. definitely mean Josh, is When was last selling on on why of at mutedness to take a that there the go lapping one, add kind we're commercial That's definitely the that see up But quarter.John, where average the ASP again, an education. I commercial. Dividing side, part you what anything was Yes. actually impact also over our to that?

John Strosahl

others that education time IDC next due refresh time not to are the that mean have probably be and that thing I kiddos the within cycle us, would for those forever. guess that have -- frame, mid-'XX the believe is iPad not iPads within 'XX I going only Yes. frame. the same but only

when toward obviously seen base. devices install that refresh go Apple, So that helps more and our happens, we've

Operator

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

Unknown Analyst

This far between Isaac and the last you partners customers is on bit out made ] result guys quarter this the with little highlighted leaning building quarters speak you a last for Can what over that to One so here this this? [ and thing more is channel. as you're Raimo. have a of and seeing few progress your on you've quarter

John Strosahl

that Isaac. Thanks, I partners, area good really mentioned, seeing we growth helped dataJAR acquisition. just in Tell enable Yes. and It talked about as we're MSP Raimo just the well. the hi.

well their they to partner well. and going the more direct We register that That's in as to where that organization. don't with continue as in side a efficiencies.And enable the We're our that get salespeople -- demand. also to internally a portal traction in have our a work having from partner, that channel channel are that they direction partner those through moving on direct as to such deals of the get a them that business takes invested help own it included to -- that just technology can program, our enablement loop. be of we some versus create that endeavors to have to channel channel sales We've more some channel

our We've of channel-led more amount we've partners. channel. through the expanded so seen security on some business our focused We've deals. increase And going channel and year-over-year partners channel in the well, as

Unknown Analyst

should more of expect to the anomaly future? Great. annual to for being an is cash should moving That's move what then the Ian, And norm Or really we we QX see versus about on this in billings helpful. think forward? flow,

Ian Goodkind

And Yes. We the of those at X from the interesting. rates billing for companies to quarter. those cash, within and to payments. deals good. this hold annual Isaac, And looked more upfront the talking becoming this about we to common when thanks it's question. interest -- top It's economy, payments X we more are for at X their moved in yes, looked were

we the forward. year. more midpoint basis we're that And forward be of free I shift is so XXX delivering saying kind 'XX does shift this for unlevered of that to year we'll have our it move as a think this thinking our and -- based as on Does now? is continued one-time year, versus profitability points profitability move we what's should going key more the guidance, that's you And cash in profitability. This drive a saw rate flows about think this we next And in I we're continue? is we this delivered 'XX.

Operator

Hynes from And DJ Genuity. line question our comes of Canaccord next from the

Lucas Morison

for This on is Luke DJ.

coming in for and those your has, how Apple between your of think flow generally next how performance beyond? own to that just success and refresh as help us year demand So through Mac big own business might with you a there? up shipments Could business correlated next course, there's XXXX. products mentioned, year Whether cycle lag just is through your and a

John Strosahl

actually or -- What example, trailing it's of to influence Yes. don't offering shipments their mentioned X/X And at period the those refresh it XX manage impact the I easier a organizations offering our see the and seeing asked the were that PCs it But Mac.So the we it. seeing good choice, we're are of Luke, devices even Apple devices correlation chose think us. of see is impact, are make we we being of a has employees versus but And that cycle refresh that for because PC, hiring, sole and if like prepared more is an make versus that within asked they're be uplift one do companies those help we're cycle Fletcher take their because of that come, employees to of they and the see to with by a Apple, to between able that to more a purpose within more direct devices, and and for offering choice, it's -- the is those a help that's I'll people Many those that replaced Apple's we on accept secure sure when Jamf. happens when quarterly reasons organization. install in when our over when question Previn we the here organizations and choice. succeed months, remarks. base basically. are we as Cisco, of them

base. and believe And people, more employees our benefits potential and choosing more we'll more and trailing over the a are period, that install which device, we that so Apple see more

Lucas Morison

great. outside maybe effectively to can a anything capture And compliance devices needs more you markets fundamentally what to Apple's portion right about such it happen That's the more that it. bit Got large maybe U.S., then standpoint? a or there sales Or the follow-up. internationally marketing place? talk of in getting regulatory just With different infrastructure a opportunity? is Is from and about about a those

John Strosahl

first an personally. expanding. Asia markets foremost, a leaders they're and fact, Well, that legal have very -- very to new brand partnering with entity they we with closely it's in expand in Apple I'm said area investments. in are geographic much into India, Apple aligned And not Europe and as that's And their has Jamf, those those and across these

Japan We a a and employees entity there. in have number legal of

new It's scale markets. more this local figuring So that in brand of those and none out amplify how us. is to to that

and as Asia Europe, But days as across Australia working United inside business with every than those States. also differences and and closely obviously we're United outside really along by many Europe, I've percentage our does into leverage local with living of to comes from the design. areas well learned the with And local with United Apple, across reseller the my market. it us very in States long that's bigger working in partnering from in States. our closely we're as channels, Apple. that get as outside as we're India So fundamental countries well.There's working the partners We help again, channel those a

We doing So what there's we're work in doing so that remarks. than the mentioned just is different nothing drastically that today. and that prepared scaling we need we on as to -- profitably

Operator

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

Ethan Drake Weeks

comments environment This hiring now. the And to given I do seems the guys important Is go on multi-year like how are the of adds I It Rob. competitive are new on lasts? the this it stays is coming Is pressures as favorable up for is, think a of right long industries tailwind some some driver throughout Ethan to you you an about question multi-year you for renewal kind of competitors? that device kind think seeing. about contracts with seeing guess of something back want XXXX? environment this customers

John Strosahl

have that quarter. macro replacement some scale. one especially Apple, actually And that. deals from to are have it producing think a really it's things.So of that those them continue at us, some and the and the When to obviously, can remarks us you lean probably done Apple, creates and in pace you supporting to of noisy. be event were those benefited liquidity timeline change those from smaller to Yes. that, respect And prepared we We're color. mentioned affecting that of to that top greatly, the of competitors. we're seeing continue innovate our Ethan, very to add with management we larger given one in than a as bit and less more noise continue as other competitors. with And benefiting as We're Apple deals that. into very there's something we've I'll declarative competitors, features the just Ian, been mentioned, all uncertainty. a we robust some of that's given is little as They that us drastically our for XX with we a well other see affecting take And, last years. beneficial we'll device And for I market competitors, some our in that's of several replacement it's

Ethan Drake Weeks

difference Makes XX% be any color security a sense. commercial management you're the attach talked And seeing guess would helpful follow-up between of Is I rate customer security. base Any in side, there on about and the on education? there. as now

Ian Goodkind

things us Jamf I that We've Safe bodes going can in versions that. to released, Yes. think And a on well rewind are right? are take clock, the I newer product. we that be mean, still are Internet, the just additional to got for focused asking XXXX. that do customers for.

you of So our in that now at about our X product. therefore, the management commercial And that customers talked now. attach stronger rate right security remarks saw than we is at that XX% least and a actually least are using

to a And current continue lot install so cross that into us base. of our to sell runway provides

John Strosahl

the didn't there that. mention thing install X to on out I customers I There's I in of And all one -- competitive what get or didn't to going We're base a not products. those pretty with multi-year Ethan, about asked substantial you component year. to our add

to regularly. talking So we're up, know where as them are we come and their renewals they

come we'll them we to past like done persuade continue so renewals And to their as up, quarter. have this try in successfully

Operator

And comes Nick our Mattiacci the from Craig-Hallum. question of next line from

Nicholas Mattiacci

on Nick for Bennett. is Chad This

catching hiring the about up I So year, John, last talking year-end. in this guys you think time it sales was around were on

as curious you additions? throughout then additions year-end, talk those you sales thinking this are into year's Just year? new if this look And about you ramping how how about could are

John Strosahl

question. on the we've enablement as just sales mean, security And they're doing and I for I in with both side, Trusted to Access, earlier mentioned that. into, Thanks and really leaned lean the reps that's in management call, Nick. our they're and the ramping. sure, Well, Yes. teaching

we next we'll we continue that beyond we'll our much organization And So to we've how go-to-market and that organization, for seen that scale of good more at that's Day ramp year about March. planning there focuses in scale our talk that sales obviously, and one in and general, evaluate profitably. can have, see and our the Investor

Nicholas Mattiacci

rate. the if And Ian, underlying maybe it. trends Got could within of your retention net seeing some you about you're talk then,

commercial provide Just metric more that but can trends of versus I in any mean, relative the a for a seeing one is rate, any the segment the understand you color I segments? you commercial stabilization are education? of on that in probably higher

Ian Goodkind

question the for Yes. NRR. Thanks Yes. on

couple that. XX% compare macroeconomics -- Overall, little we're So When I'll this a obviously, last like our year year, to the around to our are upsell. compared stats of color NRR or -- give that impacting say of To just seeing this I related upsell. a things. you same economic

so when is and down macro is the is the look at that, XX% rest and next And truly I lost sell like, XX% logo.

relates look not it's And when a customers sequentially, all I So it's that percentage even leaving. lower upsell. huge to

further And really going if seen, macro point quarter, commercial. where trend points. basis trailing said And strengthen that on our would to talked basis be the I've because come decline And point and for the you that's probably we X I had XX it what the about XXX similar commercial, that's these is about XXX about the back I So we see that on really at.And remember in times. versus to rate, and is each the I'll same as thing clock I QX at rewind for improves. cross-sell that. has QX. this education the that, That's thought we're going it what call would quarter. lapping been say, other waiting in to macro quarter last helping overall just decline we're that months a And

got mix seeing I is hangover. we're the a and business coming post-COVID future. more ARR Education is than slightly education. has think But growth what the of in so the where different from that our that's And dynamic our in seeing just commercial and of

Nicholas Mattiacci

the Got Appreciate answers. it.

Operator

Walravens comes from And JMP for line Pat the question from our Securities. final of today

Unknown Analyst

Pat. on This [ Oliver is ] for

So a cross-sell you've a bit previous growth as about from a of driver. spoken a a your follow-up but questions, getting lot from some future

situations or cross free be for even security things those are solutions to conversations lines where in discounted Protect now for selling along terms your renewal? to get to customers, those essentially customers of And or the larger year heavily some products existing and are So X commercial upon may particularly stick? Protect how there more going

Ian Goodkind

Yes. it's I This is take for would direction. Protect When Ian. up coming say, I can renewal, actually, one. the other that

see "Hey, and net up XX% second suite, plan. of we're They're was seeing Again, largest for the we're business this." traction like, value with ] the ARR the add seeing So full really that's [ and new our the within good we year-over-year, quarter.

to people a have both seeing that's in this is, pointed and in -- hand. think are recognize by that understanding we're we I other Sullivan the this And go out John bodes what coin, X the endpoint said, and prepared the management well with sides same our and we to protection. security were that of has Frost resonate thing remarks, and hand recognized just customers. And & for product

Unknown Analyst

Great.

John Strosahl

absence but side, Oliver, And but that security in that this not that maybe plan, so this to is is the is device seeing just expansion. I'll business add on that, uplift only -- the of we're --

And we'll And able so our those security that does management expect have device what market we're into be those some when to we expansion really install on point. devices. return -- the sell is return, we've been that at does products successfully and when sell both base, cross anticipating to because able expanded security existing that's what

Unknown Analyst

X maybe follow-up. then And Okay.

focused Something self-directed bit you JNUC was selling. on a at

on been has more self-directed selling? that of progress your how wondering goal just So

Ian Goodkind

like Just you're clarify, or talking customers I about portals think to maybe buying...

Unknown Analyst

Yes.

Ian Goodkind

yes, Okay, thanks.

in about initiatives it of portal. definitely scalability, some that streamlining helping as that's and that's have and those an within we and sales our time, product the that year, such and That's us, definitely more couple one. even is some is our of on before the earlier, a John our products. for putting that just our to to functionality talk future actually play being we And opportunity within or have making really something kind want mind that partners. -- in things for is We come we coming a place that already So purchasing. about -- keep What -- on ability partner to that, that's our other something about profitability drive like for scale sales. over of simplified, marketing talked journey products. And in in as that And will we'll that's and this of talked customer next That along. though, stay in get

talked driver one profitability about So we are of things the that's future. the and on that a as we've journey into key additional for

Operator

for conclude program. your you. This ladies well you, question-and-answer as the Thank today's and gentlemen as does participation. Thank session

You may now disconnect. Good day.

Jamf Holding (JAMF) 8 Nov 232023 Q3 Earnings call transcript