JAMF - Earnings call transcript Q2 2024

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Operator

Thank you for standing by. Welcome to JAMF's Second Quarter 2024 Financial Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded. And now I'd like to introduce Jennifer Gaumond.

Jennifer Gaumond

Good afternoon, and thank you for joining us on today's conference call to discuss Jamf's second quarter 2024 financial results. call Goodkind, Chief today's Officer; Chief on Ian and Financial me are Strosahl, John Executive With Officer.

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

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

cause on statements. actual of jamf.com. uncertainties includes forward-looking These You from involve section that to our may Today's results Relations could access differ materially the Investor this and statements information risks forecast. discussion

the refer more also call, related I details, are update SEC the For recent forward-looking date XX-K. to non-GAAP discuss other and information our assumes statements, they like including during the remind which would you in please annual we recent to that will most Jamf's performance. measures Jamf some risk on Form obligation of made. to factors our report most speak to discussed as no reports, only

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

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

the turn Now I'd John Strosahl. John? over like to call to

John Strosahl

We XX% QX on year-over-year of security representing product. QX Jamf's XX%, the with to XX.X ARR. from and margin end representing grew continued to and At our management of XX%. ARR run $XXX.X we deliver revenue customers. of high our revenue Jamf expectations improvement again than these income XX,XXX a margin platform represents outlook. end XX% points devices Of Jen. QX, customers, QX both In Thanks, QX QX, more X,XXX non-GAAP we non-GAAP for ARR basis of was set was income Security XXXX. million, growth the million to grew and income exceeded XXXX. on This $XXX XX% $XX.X the operating and ended operating XX% year-over-year total operating million. non-GAAP million, of

as a across to group to continue the expansion. unique historically to we and We to technology tech K-XX related nearly consecutive industries years share. We're ability the also softness X diverse shipment workflows seeing year-over-year in of for of our of after QX market while through industries Apple We're of highest the refer shipments declines. lagged year-over-year with has estimates platform's device XX%, adoption IDC Deskless. shipment gaining encouraged PC X by growth continue strength deliver devices, purpose-based growth worldwide of in to at industries manufacturer quarters great traction where X%, experiencing see any see growth PC which

reminder, As not rely expansion. outlook our a XXXX device significant uplift does on for in

cover on its seamless and to across while organizations to secure demonstrate updates through experience as phishing is stable Jamf winning by alike attestation confidential further new offer pick and devices more capabilities and on is to their managed off, provider their Apple implementation. data committed these integration. of unique its their platform. reiterating innovate out to Apple all device These continues maintains power Combined, all focus cloud updates, exciting Intelligence. user through suite models users software their the AI where language includes Apple processing makes zero-touch some of Apple's even chipsets. At fully their Developer of and endpoint remains coming committed and like take leveraging private Jamf's software June Conference. integrations, also computing the on QX, we Intelligence implementation Apple Worldwide space our help updates successes computing, Before Jamf to on auditable embrace not platform to of This silicon their scale incredibly Apple large commitment some realize to will compute. Apple with continues device teams endpoint which enterprise for touch integration in Apple comprehensive Apple customer also their of device is privacy-first Apple and enhanced helping resistant platform as choice. OS of hardening sensitive their over organizations introduced now traditional through within device has innovation I'd Apple This an organizations event, manage leaves security of or than security VisionPro improvements deployment of IT identity up unveiled through a ecosystem. privacy, and management. in helping beyond in the generative revolutionary Apple best model capabilities model, privacy important cloud in realize ever. techniques, on-device leveraging to only and that powerful cloud combined device protecting security to a but provides that benefit the are to

harness to benefit continues optimizing innovate, Apple the provides As tools globally. businesses these and the to to expertise advancements, necessary Jamf

have planned demonstrate of number We our to commitment. conference October user a in announcements Jamf's for Nation exciting our

Jamf As Apple Jamf, celebrates. at innovates we to like when say

Pro productivity sector legacy Pro choose developing development extensive Jamf. and also no successes remarks, impact with chose strategic to their technology like organization this key we can which fleet the customer with Investor based bank highly help leadership, like to end little mobile see and configuration reasons leadership, leading with to delays saw manage in Mac to safely make we along This across decided focused customers Key our reality experiencing the the the Jamf deployment organizations user with security For private Day, technical highlight international end augmented expansion, continue their expansion in meet to deploy U.S. to India and a needs software. of QX. management of to the of use Mac my global Mac. ultimately, during the in The were a applications and Jamf company In to discussed win was Mac to vendor. to some efficiently users. on of I'd bank Efficiency Jamf remainder move we plus drivers was strategic our ease growth

period a the bank. of cutting-edge work. be in through efficiency vendor efficiencies for in Jamf recognized industry. demonstrate a software licenses in enhance in pilot technology the continues number Our UEM Jamf Marketscape our underscores and technology team securing Jamf leveraging to a leadership And a managing security. Recently, to leaders able to was Apple commitment This investment Apple operational senior to bank's the was named XXXX testament IDC the in devices Worldwide leader and at for to assessment,

quarter deals driver, particularly was expanding a mobile second in the of QX, mobile component. having large growth the Our strong with with X strategic largest

features district devices. of school The in Jamf CISO, largest who able one XX to iOS. and of for This significant provider expand in top a incumbent Jamf well-entrenched strong security both security the the term. Mac conversation new devices, hired is over number our win Pro First Jamf a X-year the stronger displays interested for U.S. iOS districts district for demonstrate a Mac was to as recently is well key Connect as a and

be earlier pilot cases workflows Pro bags, mobile. Apple countless solutions mentioned few. organization's cases, handling managed Vision in for secured and remarks, unique all iPads use Watch medical and large cases, mobile flight environment. need their opportunity to a use continue for just devices as provide within for and for these I As and In are industry a tracking to point-of-sale within baggage Jamf's driver growth representing deskless devices my

for is at management with platform QX, across This In and an is but of to deals scale. security grow. of seats and the in and the thousands of for Jamf management made ability customers Pro our This opportunity to Apple. Additionally, new customer away of on and customers adding both number that the expanded Jamf in of for of only to reflects legacy Jamf, a Jamf's providing deliver both to largest consider our management and against iOS telecom a see with the not up moving one deals significant continues ability Connect Jamf is with from to XX% Mac, mobile, similar to lighthouse a security of include component approximately XX unified customers security top Currently, new security XX one QX. These competitive expanding space security retail security. beyond The and QX. a in pipeline Jamf UEM we win incredible representing management commercial of for expanding deals deliver locations, our also number a customers of QX, component. Windows experience deals a driving a differentiator users our both key included both into second

management airline And trusted India their the we are of security international the trusted as the allowing who is ultimately for a our example to and strong with success embraced vision, capabilities our will delivering CISO with refer devices. building and MAC Another approach access Jamf's our of last, leading airline trusted in both access access, holistic with has a this secure see benefits what win. competitive to relationship expansion. platform what

out our Apple. with of we to adoption As growing at in strategic Day, we Investor laid continue invest geographies

international the of domains and and review with X-month the with now results iPhone XX,XXX Key primary superior the and partner I've engine Connect nearly Western attacks. is Apple access and QX we it to of machine secure and their markets almost demonstrate to the XXX,XXX ZTNA to remote Europe expanding to mature our Protect Western win I'll to Japan. our nearly threat defense with India, power for where European technology Protect. addition phishing our Mi:RIAM, agency a over mobile were rapidly, Mi:RIAM AI Jamf QX Ian provide doubling fleet the strength strength deals Jamf Jamf the expanded turn like XXXX more with ability X of period, outlook. area In now threat over in QX, Jamf government tied mentioned to identified for evaluated and already are Jamf a from of fleet. the In in continue average, our agency's and zero-day this our aspects prevention. On Connect an and Jamf see experience Jamf learning to

Ian Goodkind

revenue We QX, security ARR. recurring was over total main the of the total of license, year-over-year and this growing XX%. QX driver ARR QX outlook. and $XXX.X services growth exceeding Jamf's Less ended John. revenues strong declines. continue expect representing Thanks, of high 's ARR commercial with to year-over-year revenue XX% SaaS sources remained was ARR XX%, growth and of like XX%, continue in revenue Jamf's ARR remains XX% Jamf's strategic ARR, end business exceeding year-over-year time. was million, of to total revenue we our experience commercial expectations. of Jamf on-premise

to remainder profitability and items of basis. will slightly Our be net compared retention QX. as a rate in margins, my XXX% expected expense QX on on to non-GAAP decreased The when remarks

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

expect high revenues, continue gross to a operating initiatives more the Non-GAAP quarter. each XX% and to exceeded to $XX.X QX margins X,XXX our $X of increased expect We due end QX basis saving point range in outlook slight XXXX. million margin or XX% and by improvement million income fluctuations cost than the low representing over

the flow Our free cash was compared in prior year. trailing unlevered XX% margin XX-month to XX%

effective Our was expectations. X.X%, for our negative rate tax consistent QX with

that As we tax for domestic Please cash is of calculating note impacts, statutory pay rate non-GAAP amount a we reminder, nominal taxes. currently a for our use metrics, XX%. which

QX outlook. of margin of QX One, improvement decreased Security sales QX to Investor meet point you end QX as non-GAAP percent and was revenue range; basis and both operating decreased track progress against basis security of in outlined key some similar QX, and our least total expense XX%. our to XXX a that milestones non-GAAP QX general approximately two, similar marketing will help and the XX% at financial XXXX. XXXX; administrative XXX goals and During improvement our as we approximately our achieve QX we non-GAAP ARR. quarterly growth ARR exceeded growth guidance expense income point from sales QX high was of a Three, and was our year-over-year in marketing In XXXX. Day, G&A margin revenue. XX%, from percent four, total revenue. XX%,

turning QX for Now and to outlook year full XXXX. our

through revenue we the For upsell growth, to in XXXX. remainder continue expect of device softness

We to areas new logo cross-sell the and highlighted. drive will in John continue

and with rule quarter tools expand third operating at $XXX.X year-over-year for million million, Day. operating program reached scaling of of growth set need and growth back-office will revenue drive to of optimizing launch XXXX, the make comprehensive of Jamf's $XXX.X went the like a these income enhance our partner includes live to in investments focused scalability partners initiatives later Investor profitable and XX%. expect and We both empowering XX% platform The income the enhancements with continue customer management goal partner earlier update up with to month month, representing the to Based total to Non-GAAP midpoint. on of our a and future million margin new we'll initiatives margin organization, Jamf the and milestone of program. efficiency systems related this experience. We're for on to growth representing We $XX.X to million, XX future these our this the insights $XX.X expansion. non-GAAP capabilities of our Jamf. outlined go-to-market as Scalability automating when new return structures we partner we And factors, and these key the processes. to in with incentive XX.X% at to our to Jamf

Additionally, Nation QX, of falls in expenses. this user impacting conference Jamf instead QX QX year's

midpoint $XX an year operating point For million increase of Non-GAAP a XX.X% increase strong given our $X.X basis over million to This reflects XX% of million, $XX Total income the the operating of XXXX, in $X representing year non-GAAP growth XXX fiscal midpoint. QX, at an of are the of representing of performance margin full at the continued XXXX. reflects million midpoint. an $XXX.X $XXX.X This our at midpoint. to improvement approximately million, the at increasing expectations. year-over-year revenue income and we million

year growth to we ARR cash income to free free flow margin XXXX, full full similar for ARR, flows suggest growth. revenue unlevered While year non-GAAP modeling we similar unlevered we With outlook respect year full XXXX to an operating provide don't for margin. to cash be expect

committed Jason the on as financial provide product outlook our as assist estimates an details led Conference by hosting presentation we other to Wudi. Nation And with also to Investor Innovation earnings We Investor will Jamf in our Day, respect payroll modeling to webcast stock-based early event. Nashville session With the the in amortization, the posted we Chief of be remain Relations and of and in presented during next with be for longer-term website. An our goals will during outlined week. we Officer, we the last, metrics for investors User compensation-related part taxes sent also out the October, in-person invitation part

Now John and I will take your questions. Operator?

Operator

first from Piper our from the Owens question Certainly. Robbie today And line comes Sandler. for of

Robbie Owens

like tech into stabilization K-XX Would aging that drill K-XX the probably of point a noting there's I the that shoots to you're installed just of growth, refresh And the guess extent signs green any some or front, down coming. to is what on like verticals maybe and devices that remain base this in of potential that at challenging. of seeing

John Strosahl

wins with some larger thanks the We're is working think John this. Rob, there. awaiting your of a are some can note QX education prepared color existing a our Ian refresh about on one us. refresh customer. Yes, remarks for we to When new working an did we cycle. question. our This largest was education add still We of are our And and market, that That's with in cycle that on we in our logo customers. customers

We about them. haven't in seen discussions but yet, we them are

just that. So it's with we working exactly know coming. when don't coming, we're but them We on know it's

Ian Goodkind

outside deals internet market. the rates are our and that that you, things. could for market we by the U.S., we those that think When Rob, security increase growth to lastly, think add we we I cycle, for from also in or just for the are products, education refresh education that accelerate encouraged market would Jamf's things look our to And and that see opportunities we bundles.

we're stabilization, calling bodes see a -- in I you And just of continued our different we've I us we starting Tech not think retention, and been our seen example, you we've There, we're within stabilization. stabilization when on of well seeing asked at that for -- continued bit future. those that, signs look too. us. at we've that look little that's to signs And see what staring just When just we've for just at we're signs for at the looking we're ways but But seen. NRR. bottom, SMB, net to at think encouraging and

Robbie Owens

them security Great. I upsell deal you what's love customers. to taking And versus or if extract opportunity Obviously, more. the customer then bit remind drill you that that both, what little other? would us one disclosure and guys a you executing the mentioned size to trying management looks I'm security. takes of on that gave us a Can down security are I and do really like. guess to typically

Ian Goodkind

of I'd give Yes. points couple data you A there.

First, that $XXX Connect if or ASPs, you plan look Pro what that we Investor about today those on our Protect and and One think it took them opportunity. a our had that and you million business is to Day, way at Pro other Pro or products. move on to today's everyone about at was shared prices just was is to different at

take uplift So it, would is, plan be. as of double and Protect Jamf Pro, then of XX% a you Jamf Connect almost XX% what when business as Pro uplift. call Jamf And even a think

Operator

And Reilly from from of our Needham. line comes next the Joshua question

Joshua Reilly

seeing customers the management in examples management I to for the but to being job reflected think I of devices seeing Jamf echo there, the are cross-selling security plan progress get on you're here. business quarter highlighted multi-device iOS would security I in you greater markets? thoughts existing iOS of nice Yes. you and commercial a or couple sales? just adoption whether that's wanted in on and your Mac and

John Strosahl

have really When products about upsell. better bundle not I'll before, We've those we together, we have the here. retention, success. commentary we we've good had spoken only do also when start better John Josh, Yes, on.

our really are management something X The So security the is really resonating coin, together you and find can sides and customers. really with -- customers out are of our it's same you significant of can mobile component. actually that the capability. our prepared remediate we a quarter and had remarks, wrong the in mentioned that the through Two deals largest management for both

so that, both capabilities. of And on side a the product the is customers again, management customers new security those and and testament to taking

Joshua Reilly

the markets, for do Got Or just are look and for the your seasonally thoughts we guys' or at QX strong is around as it. of as think own period do improving? I ago? your characterize And pipeline internal we just the guidance wanted get as entering to the here your quarters kind then you think would you commercial of the it's that same quarter X a visibility How view you business? kind into

John Strosahl

Yes. It's we're with to stabilization. I good seeing to customers as gotten look again Josh, pretty We've said, Ian -- Yes, conversations alike prospective expand. it's similar existing we're some they and been. John here. what mean some as customers

been it's about and it's to what So before stable. pretty similar

Operator

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

Matthew Hedberg

to also which its words, July this linearity sort does loaded that you quarters, the environment. what of bunch you that good pretty back-end what you was would think curious I I'm kind stable typically macro In similar stability whole the kind expect like of we QX? to other really in into I word into made consistent a June. QX? in hear said to things recognizing have of have way guess, John, of And in is times, trended saw

John Strosahl

Thanks, Matt. Yes.

to we've Customers, up the said quarter. more that's and it the this years. times of seeing. few back-end that's loaded, They We it's way, of to some because end buy until see happened seen And we're bunch learn negotiate how last typically stabilization. tend been right? the they quarters have for then a We what

We're difference of been this that's seeing in seen in the as that pretty year first a past. not significant the in similar we've quarters pattern. So X

Matthew Hedberg

could and But part the then a as importance Got also back the is of story? it. ramping partner the your about channel how you into made it's the contribution talk in [indiscernible] good hear And on again. we meaningful of into that haven't topic partner this about the acceleration, are finally big as of that I Analyst PCs partners, And year? guess to -- sort accelerating Day, which be could broader that half growing guidance. of distribution think

John Strosahl

we organization particularly Yes, at A significant. leverage I the we more and that outside of to And lot mean Day about leveraging now the this our into the that we've and leaned efficiency heavily Investor we've tended this, well. our we've really have, in how we're go-to-market from and is really more into in on getting productivity. our through talked that sales the partners partners U.S. leaning as U.S., U.S. focused

well, a We can the well will we quotes provide for before own into Partners implementing us their have technology don't come spoke advancements actually that generate partners person Some about infrastructure partner touch to we're those, portals, as have in. which independently. of example, with that. can Jamf

that will All out us a the partner that to partners of that go partner along on new with bit compensation these side leverage in the a things addition rolling will the help and program quite to partner heavily portal that.

Matthew Hedberg

to good of Really luck. Best hear.

Operator

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

Gregg Moskowitz

Okay.

to to seen on would period. overall, we're anything ask were growth little from net if security very least any it of perspective, the nuances ARR dollars than were we've that So new see there wanted what continuing out? couple else net that And at I new the prior be a just like QX, for a nice to added the looks bit security although call of QX or were lower in you aware side,

Ian Goodkind

take that It's one. Ian, I'll

a run year, to similar approximately they let's clock, that periods. rewind lapping in We you last last QX other we $X about to, So were enterprise QX you rate the deal did year yes, million add if shy that and compare talked a when to quarter, here and say, which has we of within significant the QX. been had

quarter. deals. security actually our it of XX component in good saw So a We top really was XX a

there, So good lot traction traction and we a will do of we do see continue. believe that

mobile make to is side, commentary we've seen too. on interesting other on one the the think it I that

had too. deals with our iOS those XX security I have top an it think X of component,

seeing impact in commercial Investor cross-sell traction to that Those that And those mobile an go and just the with as growth forward. where areas said we to at have mentioned are we security, start Day and education so security. we we're drive start will

Gregg Moskowitz

that, That's previously that the part any back of your quarter had And you about pricing then aggressive to in spoken QX. competitors Ian. helpful, for earlier I'm of assuming last the one really thinking particularly John, from has sort QX, activity early overall know on ceased. I fairly period. throughout the it's I but love in hear on pricing of would to QX environment commentary stopped the

John Strosahl

Yes, and the in of really -- way. question. Gregg, continue or see changed an significantly. into rest of in QX, and didn't see for we pressure, thanks that QX competitive It did didn't sorry, through did We all nothing it and that QX January we And has didn't in acute persist particularly the months.

we so that that competitor And driven relating that. for things there factors were funding that and know to may other needing some like that, have

customers and we for our So beneficial which that us. seen for persist, but is -- haven't

Operator

from the And comes our BofA Ikeda of question line Koji next from Securities.

Koji Ikeda

it's one demand guys we've seen but have good are out today. the wide demand you're amongst software lot are and a frankly, not of beating range there, and really so out you only very good companies around I a Yes. of from to, guys you there, And seeing executing that raising. environment

guide. what's about and Jamf bit for enabling unique results different talk maybe and so or about cycle upcoming these a current demand And what's that good the little is

John Strosahl

one. John. that This take I'll is Koji, Yes.

we them coming companies very couple mentioned again, certainly to And companies And Deskless more these and ways traction side mobile endpoint, Apple as things seen the on for our innovative the and to beneficial as see in our the all security on all about need mobile it to really or the play the I here. more of how of as side, to or one devices of really and on with see the more of to all are together, things, the management, around up security the was protection be but in those And Again, and it that's are longer in we've that demand workflow management use a environments well. into top thing had at those managed us customer. we iOS talk recently. because side And lot deals, resonates bags tracking how and X continued we retail of side, that's also corporate lean use said. and Ian the for think the continue environment. with or drivers they secured within they a

So I think we're that's and demand, there, expect seeing push some only the we continue. and to helping that traction

Operator

next question Blair. from William Jake Roberge And our line from the of comes

Jacob Roberge

device lag John, shipment congrats shipments you Yes. aren't know your and those on effect that your questions [indiscernible]? straight the business quarter-to-quarter and we've lot Thanks But and of results by device solid from on us basis. that impacted taking a directly correlation firms. for the could shipment just remind the kind between the growth seen of great results. a X of quarters device research market I

Ian Goodkind

the we that that, when it those increase maybe doesn't can't X leading I or Jake, just or road. X us correlate quarters on opportunity my we'll of X opportunity. certainly quarter be. down or what but X even exactly see quarter Yes, know could put the not the impacts timing year-over-year sales, potential bigger see the It's thumb device device it's road, because we that exactly indicator down to us when continued whether we in growth that start a gives on but see a continued to X,

us license address in trying And our that for quarter's but to create the those best one of market to we next aware there's the in environment not sales, we're obviously, that we're So does -- bigger quarter a can. But things. increase directly sell into. to correlates

Jacob Roberge

that there And has the at XX representing top helpful. great the deals any quarter. of those pipeline, about of that's the XX XX% included the security When security been then in in now to change Yes, with seeing looking together. hear you're win and Or still base of where better about are security rates rest with and win much management Xx talked management together? of rates security you've kind than the the healthier

Ian Goodkind

do that's about and been rate. a Yes, higher security we When consistent. together, win management talk we have

We we rate customers. a those greater upsell higher a rate and have have within retention

And resonating is and about with the talk so that's customer -- really, reasons again, one base that's our management of and of we the security indicators. one

Operator

And Citizens our Walravens JMP. Patrick of next line from comes question the from

Patrick Walravens

my And guys. Great. me add let congratulations,

I script comments Jamf Jamf and I security. Intelligence, how harness about the does wondering in help And there? So by maintaining and particularly So was was expertise does that in the necessary privacy intrigued provide advancement. fit how tools to Apple

John Strosahl

question. Great Pat. Thanks, Yes.

really One posture and of privacy, a good Intelligence, other when continue they may which companies do to our allows on other platforms not share. than around might, us specificity and the their things that maintain have that, that us to that thing for somewhat create security is about they Apple Apple tools and because capabilities it talks differently

so companies with we've which around it along decades. edge really gives again, do, over at competitive that. And that rigor a done to to Apple, for us And X for Apple the that's we've and cadence of that, innovate difficult pace got but

Patrick Walravens

right. stuff for Is that to it? want you that save leaning All conference? into Are the we

John Strosahl

our in upcoming but it. I a Fine at we thought to are was October in follow-up going Nashville. I JNUC get it, there I highlight get this for that,

as forward to others well that look and So please share come with having story you. really to you

Operator

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

now day. Good disconnect. may You

Jamf Holding (JAMF) 7 Aug 242024 Q2 Earnings call transcript