JAMF - Earnings call transcript Q3 2024

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Operator

Thank you for standing by, and welcome to Jamf's Third Quarter 2024 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.

Jennifer Gaumond

Good afternoon, and thank you for joining today's call to discuss Jamf's Third Quarter 2024 Financial Results.

Joining on -- me on today's call are John Strosahl, CEO; Ian Goodkind, Outgoing CFO; and David Rudow, Incoming CFO.

Before we begin, a reminder that shortly after the market closed today, we issued a press release announcing our third quarter financial results.

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

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

annual XX-K. SEC risk discussed in information assumes more For reports, our to statements, and including factors update details, Form date please as which refer other are report most obligation no speak recent most made. Jamf of to recent on they the forward-looking our the only

We comparable a please limit will Jamf's nearest GAAP to measures question related yourself to are full Q&A, one our some one also facilitate non-GAAP initial follow-up. available measures release. To the performance. Reconciliations and to in reference earnings

John. Now, I'll over the call turn to

John Strosahl

of QX with the our operating operating high exceeding was operating business the another reached Jen. income for total. security revenue Thanks, ARR margin to was million, performance solutions. million, year-over-year year-over-year quarter non-GAAP and XX% with of income revenue representing QX growth of revenue end Non-GAAP strong outlook. grew non-GAAP our year subscription points income the demand a representing XXX-basis XX% of XX%, period. by driven $XXX and improvement from continued $XX.X commercial an prior our XX%,

each. reset onetime The updating customers. a to and counts. customer platform a items to like our our Due our Our adjustment comprehensive count devices MSPs recent update, supports XX,XXX XX.X as includes made now systems we device single adjustment million to customer both and

usage the the that mirrors device product. certain we addition, or expected the licenses In life revenue for of of expected recognize

these devices revenue licenses and we as the licenses, customer device usage period. past for counts. have longer no customers with Therefore, are recognizing them removed our extending revenues Some from the these we are recognition of

surpassing we by industries: customers reached demand milestone, quarter run customer device increase solution, XX% the and similar QX. and approval management both customer X and services; our security adjustments, ARR XX% representing $XXX QX. Security looking the at fluctuations in XX% shipment our ] the late the history adds was especially showed recent X primarily of for customer strong in Jamf's growth industry due a showing to with more similar milestone support shipment of muted of for reports for saw shipments XX% extensive and QX. ]. Demand impact QX. that in ARR up from drive be largest the mobile Windows given AI up market, enhance the ended of overall This another adds strong data shipments, true experience. in tight fueled encouraged large We Gartner ARR performance Despite of million, and business despite future XXXX. Shipment When our represented proud to K-XX. PC industry these not services; XX%. $XXX by This of unmanaged growth end of with go-live would set are be of a [ year-to-date Security efficiency again and of of for devices demand business in retail; a plan, security Jamf expect and of and Jamf Excluding a driven growth IDC XX Mac the initiatives decline financial would QX, see across the and quarterly This expansion. growth in from space growth. of is professional to growth QX even slowness directly budgets growth barometer in its to will showing health is overall this total and million mixed which the are top QX. number by remains customer scalability following QX market the currently undermanaged. I'm our QX ARR in tech which in Apple PCs key diverse more both X bundle margin industries PC slightly comprehensive quarters in system was analysts We're flat. industry. of in while continue do a the partner in processes. our declines and or therein remained [ recovery to a in and update, our of of data the

business increasing We and our process. In Partner leader ecosystem growth We sales for drive agreements more a entered execute Program, with from will efficiency also brought partners, through Partner partners recently value our which drive our QX, removing of channel on to into organization. new and customers. the new launched strategy, our channel focusing X Hub help the Jamf on key friction additional strategic go-to-market we to

of Microsoft be on Microsoft Program, by Partner expanding XXXX. Microsoft with will marketplace our the our new hosted innovative part collaboration existing First, solutions and and Cloud and late purchase available AI-powered for customers. Azure with a the as solutions Jamf ISV X-year Azure for agreement joint on

User the making innovations, achieving included enhancements at the Jamf Day. We Investor with for go for the progress teams. as companies. joined Apple-driven these JNUC. Okta initiatives go-to-market our cloud for customers. excited our This theme toward to solutions continue Apple announcements partnership a seamless between see management Key features, highlighted QX product assistant the the and drive compliance Program new Apple. providing from Rule a Nation customer of innovation we partners we off and experience business Annual Under our event, our to further, our outlined as premier login Elevate or We're goal busy benefits Second, further simpler shared Partner and security we insights identity will secure to like to our our AI alignment of to capped accelerate Conference, XX, XXth devices, X enhance of our

K-XX. Wudi, innovations and led SMB; hosted Chief Officer, product also how Enterprise; an Jason and our value Mac latest drives each which personas, buyer session our We key investor Enterprise Innovation for showcasing by our Mobile; are:

personas will on we as refine these buyer go-to-market approach. focusing forward, our be Moving we

the company of an our I'd our leverages QX. In in strategic expansion, plus remarks, use Day: leadership; The highlight international now in-house. leadership, moved journey platform during the customer we A of and Pro ability Mac user business to Investor expansion; demonstrate experience a Key to the this to Jamf from win Mac setting. drivers the security is For but Mac and IT some support a to Pro Business remainder we consolidation. management in to any X,XXX was like adding access clinical discussed for we automate demonstrate that mobile to expanded my saw who MSP, AI successes healthcare Jamf to to their has continue patient of ability vendor our entirely growth trusted nearly recently utilized Jamf devices. seamless through company long-time Jamf value Plan, our previously

QX mobile Second, large top expansion saw a component. of including with of mobile X the in number XX deals the

power accessed this for management these pain great we customers in upcoming updating with fleet security growing customers one component. service Currently, security their adoption Apple continues iPads Our of but air deskless up a our U.S.-based only with look An solutions Jamf providing mobile our and industries. Internet and security saw all mobile QX, provider we with a see points. opportunities. Investments our In continues their significant world's iOS perfect believe of the United issues launch companies resonate well and This opportunities youth a on to delivered care expanding with key for seats after continue location. In ] largest unique network. Germany space. struggling outside refresh heighten largest cost-effective of their vendor manage service ambulance We've over many serving protection cases solution. opportunity XXX Jamf's devices pipeline their emergency when security with area workers, in device is with deskless showcase given saw a [ management platform, website the one in We as Jamf a not regardless health approximately the to number as both with case to SKU. XX traction choose was the is student look XX% SKU IT was QX, deal grow Jamf overall leading workflows solution use is new other will was of Jamf's a and for the seamlessly decreased our commercial with team public biotech Pro strategic its way of safety new and to continue for slow August. The growth posture along solution, from are space opportunity of our XX,XXX to since seen a that QX, of deskless of to the mid-flight, reliability of as in reduce geographies in component of a and facing of including Safe to across gave a home schools the deskbound focus as devices. Customers the with we States. made to in also secure deals and introduce overall their in Jamf. number purchased solve companies provide expanded transportation, violent XX,XXX the spend. security performance A The creating top security deals provider ways they XX care grow

Executive to a administrative long-term solution posture their to reduce in customer's able military immediate potentially executives covered solution equipped across and QX, set. In deploy and not provide the purchased a to VIPs Jamf them were that for teams issue, their customer a with Our its only an workload. but improve effort organization security Protection Threat entire

to a is JETP privacy-centric threats and that up with cements well Jamf looks organizations use, for indicators for and analysis high-profile of global attacks as Jamf JETP opens a additional solution that's opportunities compromise leader easy deep devices. as further on in of mobile indicators for mobile reminder, a provides security as it scalable security. one-of-a-kind and As

his also will X end the thank as years, say our the it Before Rudow of to our contributions the Ian, a at last few words like remarks. welcome I'd to him hand for CFO. and wish like I'd David over I to David new over him prepared best.

Ian Goodkind

Thanks, ARR on-premise be was profitability John. Net on Jamf's expense of representing ARR remarks a license, XXX% and year-over-year revenue SaaS items growth growth when of revenue services to remainder was flat recurring revenue the outlook. QX revenues at $XXX experience of total with a continued growing compared ARR strategic QX. The and Jamf's in margins, total. ended exceeding year-over-year and XX% QX commercial QX, like will end XX%, declines. on basis. strong ARR sources million, revenue security XX% our the remained of of XX%. non-GAAP of my total to year-over-year We XX%. Less high remained was retention

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

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

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

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

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

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

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

operating to cross-sell efficiency new We expect factors, respect to we income a of on see in representing benefits margin of profitability, of $XX.X for income to cost total revenue of continue expect the the representing device the driving non-GAAP to million, Based through $XXX.X X%. $XX.X at XXXX, million remainder we fourth With in million growth year-over-year upsell these $XXX.X while softness John of midpoint. quarter million, continue of areas Non-GAAP growth operating and X% our to XX% the savings of the highlighted. XXXX, logo to efforts.

million XXXX, million, For improvement ] increasing $X.X our million, revenue performance $X.X an income strong given operating Non-GAAP $XXX.X from the the outlook. million at year operating reflects growth follows, previous approximate our XXX over another are $XXX.X XX% a fiscal reflecting previous XX.X% we [ income beat-and-raise to year of $XX.X midpoint. expectations basis margin full This in $XX.X continued the increase This reflects also of midpoint, our outlook. non-GAAP QX, million midpoint of representing our Total a point representing to year-over-year XXXX. as of of quarter. a midpoint increase million at from of

assist part modeling over words. posted to amortization, estimates provide as on our and say to compensation David of to Relations for also website. I'll and earnings metrics now also the hand Investor few related We taxes other the in it a presentation payroll webcast stock-based with and

David Rudow

Thanks, at opportunity has market financial honored talented The entire to Ian. a coming the on leadership clear significant I'm team you the with and attractive connecting with to excited all look success, Jamf's join and delighted forward strategy to Jamf. the to of of expand I work market and and a the success. I'm map. in team weeks. road proven company continue position,

Now take we your Operator? will questions.

Operator

from of first And today our from for Joshua question the comes line Reilly Needham.

Joshua Reilly

the any considering year on ARR puts Nice out influence some and guess thoughts here, on we're And as kind swing growth? have the I you here. looking year ARR the of be could to are takes maybe full updated growth? exit what close job do quarter year should we of the or maybe, that the

Ian Goodkind

that Ian It's I'll question. take here.

successful for maybe you guide our us, there. [ [ in sledding then roll and As education, during headwinds about and we've rate puts the sledding tough quarter, SKU we've the education believe which -- one a for for a are to what perspective those takes the to things which doing But the ] a actually there, be for about on I'll the I'm mobile little little And was and just we we bit -- don't launches the revenue for though, did ]. it, gets What of security them talk rates rates about our some looking the with as future. And quarter, seen us QX be you The education expansion and factored strong side, we we saw year. ARR, more the we how tough suggested. QX were similar growth excited to most the that general. like pretty then, really this things that was a you thought in growth going ARR from but QX. released was bundle a we in darn are And product. that give commercial [ the device good on security We great quarter, We headwind. forward commercial side saw to security. we continue saw new logos, on successful on know, [ growth will in during see a of ] we they ] very to saw was

Joshua Reilly

I I to their at products in more XXXX? like expansion a from helpful. the of And curious, in a broadly, the and positive talked broadly, to device customers more confidence JNUC. the That's maybe just there. It I get number you pretty the like customers. was event what's more the was strong guess cadence versus it back terms it. prior year. seemed was then, at attendance more just Got of little a maybe seemed to dynamic feedback I'm heard buy

John Strosahl

Strosahl Josh, call I'll Yes, were your your John here. take there. or And you -- question.

common the really ] both for, that with this a things keynote really really of feel. the excited them. And it's halls, compliance the was that we've Self-service capability forward. just was walking there about [ about the year ] good a new [ people some other us walking carry step and of and started -- really heard applause of even it's that been You gives enhancements, talking our dashboard security, certainly, and resonated our for Very during delivered, using product a we they've benchmarks, our customers around. Plus, But about -- always PEP our the to how for benefit some we and of to going which there excited scale Blueprint, the us management got and example, we're asked that

Operator

Stanley. the from comes of Morgan Hamza Fodderwala line question next And from

Jonathan Eisenson

Hamza. Jon [ on This ] for is Eisenson

of more John, follow-up, you points can a for all ARR puts top know for have at expectations Ian, takes bit there's devices? and can you help don't across Analyst year's this you can Apple for Day data So on looked just guidance refresh the little given any you line, this if the the next then how frame talk the if prior can provide change -- kind And for from call. us a about earlier And growth? on I there's year? any

John Strosahl

Yes, John, especially that. second But yet. education haven't we've talk mentioned before, one in both certainly, that, bits first been I'll tech And see to come we market rest starting that of in largest we're refresh, of muted outside the the has seen we're have as the but the little our force CFOs industries. U.S., answer the we room hiring our still still anticipating the well We're can in couple that. refresh as about of full in a awaiting a of part and part, of

years have with and overall slight in showing year, last this agency devices, have of increase first slightly we've the quarter a quarters were declines. will the you decline bag down, increases this If at One a couple the year-over-year had mixed of then on slightly Apple. up. X there Apple will look them And the of reports, a other

come not full seeing in that we're back So force yet.

the out, an in devices Just devices coming really some of that powerful to processing. of more with customers, things there we've some of AI Apple to anticipation is some heard that more onboard speaking with help address that Silicon

commercial certainly, believe waiting of cycle machines tight waiting out. the that's of times these us. we some some along of front see for more powerful these refresh we side, the come to going especially happens, But budgets, in so, that still of but -- are on And as in are that's something some

David Rudow

-- incoming then is answer ARR. And David Yes. this question John, on I'll Rudow, the CFO. your

are We of in next the process plan for out our building year.

hold tight. So

will details point. probably disclose We February QX when report will numbers, be we our some at which

Operator

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

Jacob Roberge

the Great to helped its the product? selling the Jamf that that there anything on more largest uptick? history. go-to-market motion drive hear had was front Business just and maturity of comfortable specific increase of in more becoming team the product a that customer that Was Plan Or that

John Strosahl

Yes, take honestly, those one. or the data with the Jake, that both. less upsell with we've has actually that resonated known, really security buy that through our quite And we together The plan. customer seen churn and I'll more management we've business fact, in it's It's base. and -- have we have customers

they're in as talked the And lean that's work about it that at really something becoming arms at before, has -- know that and selling business put in, fact together in fact And the that's how around in solution, heavily that lean And mobile solutions into done get Ian really also helped we as how The us into the security really our to security So well. really that security mentioned, to can their security. that's teams better those getting that, are we multiple that they one well. so they same SKU our us go-to-market plan. products really, fact that's work the the doing helped time, as into benefit X seamlessly, well.

Jacob Roberge

it by mobile. deals up? execution up just seeing maybe hear during being changes those then, if kind top ramp acquisition of frustrated great of And the is Or ramp opportunities X those you're opportunities quarter customers Helpful. of control? Workspace just of following Curious of steady include to the starting see versus XX to the mobile those that ONE,

John Strosahl

base. that market, with The couple have execute and of replacement us, confidence mentioned market customer it, on that. has been the hesitance us. opportunity as fast or then next that And going innovating that to and to their decades our come not pace opportunity for leveraged presents of quarters in last be of really as working an some innovated Apple, that any of gone we've we've we unnoticed the solution Apple in good spent by replacement -- from your isn't Apple have there's largest obviously, customers' at deals The we lack going in our do Apple is minds very X that along the -- as well. to that with And if continue and for fact has

Jacob Roberge

results. the on Congrats

Operator

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

Raimo Lenschow

ecosystem. you Can bit? hand, different obviously the Like on like little partnering relationship Microsoft up, a but the like one address you're it's a

other a the think have they're Like we it? what's degree. about On how And some the competitor also there? opportunity hand, to to like do

John Strosahl

today of fact Raimo, relationship now for just and that is go-to-market question. Jamf and, have is Thanks, already is help And more continue we with we John. the even several the integrations that Microsoft, until an or. motion. into up an much really, progress This it to than Microsoft the

that well, have selling into going we and to with and -- area. do to that Microsoft our product also worked we've that We that marketplace, footprint, have we're and AWS. our really option gone AWS a historically as well as lean offer to to or has wanted well an the opportunity really, in and customers an continue AWS But

that ] that, the a and Microsoft And of our program, working to we're in products Azure deployed the well. with as us part allowed of hosted multi-cloud have cloud we've in actually [ has to So strategy going ISV because market.

launch and about. companies actually benefit. And with here November this great Microsoft officially really in of can along mutual that's We're with at some we've and area, amount our have customers. both been do, that lot something going that but working sales their very can wild slight quarter. overlap in got that we're sales team we a of we excited a that co-sell team. And plans Ignite So to There's there's can really collaboration

Raimo Lenschow

-- the one total customer saw is later, are you and bit I Or can the that then in But know only did do I customer the one-off that that I it it footnote, count, you And for so you And was follow-up. a changes little what there's -- apologize -- and coming? you about a addressed that. like what kind thing? there? you more still looking through of talk

Ian Goodkind

Ian. take I'll question. It's that

customers So comprehensive and of there did of kind update, We one. one is any look as at touched ] example have and now within multiple truly an maybe count before, [ different a you MSP was we you Anytime taking as just a X onetime aspects it's talked you have metrics type you on your about to definitely is that -- that system looking it, there, customer. good and of system. that at

that's more the a revenue in onetime -- of also device the over was for -- over the recognize licenses estimated we life of of certain nature. There So definitely education. an period period

revenue device. educators using the those but didn't of of off. still the came ran some end back refresh the actually But our and And quarter, at they're

could within We else in quarter we the do everything little think revenue we that's off, bit only -- denominator So do that i.e. and too. come took from more our not the contained the the we within guidance. a took that factored is take off numerator,

something we've we've So contemplated that you. provided that within the numbers that is already

Operator

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

Patrick Walravens

job. to to Both David. going be really you David, glad took see this I'm are for of mine

your made stand Jamf? I out? mean, opportunity So why on obviously, investor was But sitting checked role what awkward deck to I want give XX. could X-year thoughts really the into would did So a number X-year question with there. come just at if if model number the question you that, one you role still I And to is, two is then us think the out a appreciate see this it's just, new on it. And Slide model everyone

David Rudow

Yes. and really Great. on I had some again, John and initial team, with the years. did the I and Nice to dominance stood Apple think, speak market you got leader. I to when the on call ecosystem. Yes. out No, the opportunity a it's all management mean I is these Great. Jamf research after meet what Pat, the with I

story. it's a great think I

expansion. We have international

We have expansion And got here. into opportunity from We've awesome a security. is quite the I customer base. impressive think

So came that's the reason here. why I

somewhere studied investor filling going and I Looking excited deck. be coming in of behind. great very the course, years. And here, I But model. think be that on Ian a the shoes X-year leaves forward at to to I'm have the that to it's to big a in I coming going a new. run took model, we're look the X-year

information. of it was great think set a I

We the for plan building year. next are out currently

think everything guidance it to we seems But provide reasonable, as QX. seems model as we is do I'm we now for update everybody reasonable. year report will look fiscal we I that next but seeing the that when 'XX

Operator

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

Matthew Hedberg

a of Bundle to to rank of guide to of And a John, Ian, kind to look congrats year? growth well. be faster as yet. even doing cetera. of about bigger at David, luck some the the important takes not and business. think here and and of drivers becoming base some curious, the how this XXXX next going I part well, your most me become role. seem upside, from bigger you're that the best all, obviously, mean, lot of you sort sources growing of mix maybe is in when than and But et you year a first I'm kind puts it's you of could of channel, deal security next sit would you obviously,

John Strosahl

that back. if believe Matt. got keep going yet. is that thanks, education We just are seen to at we a We point, I Well, only several that need got kidWdos is refresh those -- The come anticipated have. that refresh Those we going several tech security Yes. them. lot also an mean environment, refresh we've devices look -- hiring so some ] believe got the they that to going at haven't are [ We've getting is us. we've iPads cycle for tailwinds to those helping to, We're they before of traction. long

that, is efficient As million with ARR in got quarter. mid-XXs. but surpassed continues see, our this go-to-market ] in $XXX getting grow in as well. And only it's it motion security you a not we customers, over the resonating [ our more to We've lot and

some a of talked to channel the more. this gives us leverage before, system things it partners have portal their capability on And gave spoke to very actually register opposed to having about side. our salesperson, that Jamf we to us come in do And an we about, on very but their deal comprehensive inefficient call as things can opportunity a and where which like partner is our that update, inefficient the own channel side,

releasing just first So of already actually quarter the through we've We've model that of go hundreds it. had that. transactions had in

help quite that's to bit well. So a going us as

the already expansion Apple mentioned the I in of think I marketplace.

and published choice have a choose studies programs X/X companies. seen, the will If companies according different a Mac that choice of been you in more that couple the are that there, look out of have And people to we the at offering program. more

their faster the though as domestic And are even that got as in tremendous. have been that there. we intention, opportunity about about growing continues U.S. great talked in sales deskless believe earnings enterprise, well. So We've which well, there's the mobile. we to as on opportunity at stated to international that Apple to the noted before reason a a have calls has expand our just opportunity a sales international pace their continue will every great they This even grow in expansion, haven't talked than the too, out is well. We've

Just those -- cycle in precursors international especially some and as only, we're that I in working we deals also refresh had there's we're a at education, lot to well. Japan markets when look we've Taiwan. but additional leading earlier, not mentioned of as Apple going education And and getting in into with Germany, happen, of that

the in pipeline. well And so those are really coming

those of together things us give all So confidence.

Operator

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

disconnect. Good now may day. You

Jamf Holding (JAMF) 7 Nov 242024 Q3 Earnings call transcript