Jamf (NASDAQ: JAMF), the standard in managing and securing Apple at
work, today announced financial results for its third quarter ended
September 30, 2022.
“We again delivered strong results for the third
quarter, due to our diverse business model, market leadership
position, continued innovation at the pace of Apple, increased
demand for enterprise security solutions and our philosophy and
proven capability of delivering balanced growth and profitability,”
said Dean Hager, CEO of Jamf. “These factors, along with our
commitment to simplify work by helping organizations manage and
secure an Apple experience that end users love and organizations
trust, will help us remain resilient as we navigate continued
economic uncertainties.”
Third Quarter 2022 Financial
Highlights
-
ARR: ARR of $490.5 million as of
September 30, 2022, an increase of 27% year-over-year.
- Revenue: Total
revenue of $124.6 million, an increase of 30% year-over-year.
- Gross Profit: GAAP
gross profit of $93.4 million, or 75% of total revenue, compared to
$69.2 million in the third quarter of 2021. Non-GAAP gross profit
of $101.6 million, or 82% of total revenue, compared to $76.4
million in the third quarter of 2021.
- Operating
Loss/Income: GAAP operating loss of $28.6 million, or
(23)% of total revenue, compared to $29.9 million in the third
quarter of 2021. Non-GAAP operating income of $6.9 million, or 6%
of total revenue, compared to $2.0 million in the third quarter of
2021.
- Cash Flow: Cash
flow provided by operations of $63.2 million for the TTM ended
September 30, 2022, or 14% of TTM total revenue, compared to
$84.5 million for the TTM ended September 30, 2021. Unlevered
free cash flow of $64.0 million for the TTM ended
September 30, 2022, or 14% of TTM total revenue, compared to
$81.5 million for the TTM ended September 30, 2021.
A reconciliation between historical GAAP and
non-GAAP information is contained in the tables below and the
section titled “Non-GAAP Financial Measures” below contains
descriptions of these reconciliations.
Recent Business Highlights
- Ended the third quarter serving
more than 69,000 customers with more than 29.3 million total
devices on our platform.
- Announced the pending acquisition
of ZecOps, a leader in mobile detection and response, uniquely
positioning Jamf to help IT and security teams strengthen their
organization’s mobile security posture. The acquisition is expected
to close in Q4 2022.
- Showcased Jamf’s new and upcoming
product innovations that help organizations simplify and secure
work at the 13th annual Jamf Nation User Conference.
- Announced same-day support for all
of Apple’s fall operating system releases, including macOS Ventura,
iOS 16 and iPadOS 16. macOS Ventura delivers powerful features that
will help organizations with enhanced device management and
institutional security enhancements including Declarative Device
Management, Platform Single Sign-On and Rapid Security
Response.
- Joined Amazon Web Services
Independent Software Vendor Accelerate Program, enabling us to
offer its Apple device management platform, security, threat
prevention and custom workflows, like its recently announced
collaboration on EC2 Mac management, to address AWS customers’
specific business needs.
- Jamf Protect named “Endpoint
Security Solution of the Year” in the 2022 CyberSecurity
Breakthrough Awards. The CyberSecurity Breakthrough Awards aim to
perform the most comprehensive evaluation of cybersecurity
companies and solutions on the market today.
- Jamf Threat Defense and Jamf
Protect named Mobile Security Solution of the Year and Security
Software Solution of the Year in the 2022 Computing Security
Awards. The Computing Security Awards aim to recognize the best
security solutions in the market.
- Ranked #14 on the Fortune Best
Workplaces in TechnologyTM 2022 list, up from #22 in 2021.
- Published Jamf’s inaugural Purpose
and Impact Report, detailing Jamf is empowering its employees,
customers and communities.
- Recognized by TrustRadius for
Jamf’s social responsibility program with a 2022 Tech Cares Award.
This third-annual award celebrates companies that have gone above
and beyond to provide impactful corporate social responsibility
(CSR) programs for their employees and surrounding
communities.
Financial Outlook
For the fourth quarter of 2022, Jamf currently
expects:
- Total revenue of $128.5 to $129.5
million
- Non-GAAP operating income of $6.5 to $7.5 million
For the full year 2022, Jamf currently
expects:
- Total revenue of $477.0 to $478.0
million
- Non-GAAP operating income of $23.5 to $24.5 million
To assist with modeling, for the fourth quarter
of 2022 and full year 2022, amortization is expected to be
approximately $11.1 million and $47.9 million, respectively. In
addition, for the fourth quarter of 2022 and full year 2022,
stock-based compensation and related payroll taxes is expected to
be approximately $22.5 million and $113.2 million,
respectively.
Jamf is unable to provide a quantitative
reconciliation of forward-looking guidance of non-GAAP operating
income to GAAP operating income (loss) because certain items are
out of Jamf’s control or cannot be reasonably predicted.
Historically, these items have included, but are not limited to,
acquisition-related expenses and acquisition-related earn-out,
offering costs, amortization and stock-based compensation and
related payroll taxes. Accordingly, a reconciliation for
forward-looking non-GAAP operating income is not available without
unreasonable effort. These items are uncertain, depend on various
factors, and could result in projected GAAP operating income (loss)
being materially less than is indicated by currently estimated
non-GAAP operating income.
These statements are forward-looking and actual
results may differ materially. Refer to the Forward-Looking
Statements safe harbor below for information on the factors that
could cause our actual results to differ materially from these
forward-looking statements.
Webcast and Conference Call
Information
Jamf will host a conference call and live
webcast for analysts and investors at 3:30 p.m. Central Time (4:30
p.m. Eastern Time) on November 9, 2022.
The conference call will be webcast live on
Jamf’s Investor Relations website at https://ir.jamf.com, along
with the earnings press release, financial tables, earnings
presentation and investor presentation. Those parties interested in
participating via telephone may register on Jamf’s Investor
Relations website.
A replay of the call will be available on the Investor Relations
website beginning on November 9, 2022, at approximately 6:00
p.m. Central Time (7:00 p.m. Eastern Time).
Please note that Jamf uses its
https://ir.jamf.com website as a means of disclosing material
non-public information, announcing upcoming investor conferences
and for complying with its disclosure obligations under Regulation
FD. Accordingly, you should monitor our investor relations website
in addition to following our press releases, SEC filings and public
conference calls and webcasts.
Non-GAAP Financial Measures
In addition to our results determined in
accordance with generally accepted accounting principles in the
United States (“GAAP”), we believe the non-GAAP measures of
non-GAAP operating expenses, non-GAAP gross profit, non-GAAP gross
profit margin, non-GAAP operating income (loss), non-GAAP operating
income (loss) margin, non-GAAP income before income taxes, non-GAAP
provision for income taxes as it relates to the calculation of
non-GAAP net income, non-GAAP net income, free cash flow, free cash
flow margin, unlevered free cash flow, and unlevered free cash flow
margin are useful in evaluating our operating performance. Certain
of these non-GAAP measures exclude stock-based compensation,
amortization expense, acquisition-related expenses,
acquisition-related earnout, offering costs, foreign currency
transaction loss, payroll taxes related to stock-based
compensation, legal reserve, loss on extinguishment of debt, and
amortization of debt issuance costs. We believe that non-GAAP
financial information, when taken collectively, may be helpful to
investors because it provides consistency and comparability with
past financial performance and assists in comparisons with other
companies, some of which use similar non-GAAP information to
supplement their GAAP results. The non-GAAP financial information
is presented for supplemental informational purposes only, and
should not be considered a substitute for financial information
presented in accordance with GAAP, and may be different from
similarly-titled non-GAAP measures used by other companies. The
principal limitation of these non-GAAP financial measures is that
they exclude significant expenses that are required by GAAP to be
recorded in our financial statements. In addition, they are subject
to inherent limitations as they reflect the exercise of judgment by
our management about which expenses are excluded or included in
determining these non-GAAP financial measures. Reconciliation
tables of the most comparable GAAP financial measures to the
non-GAAP financial measures used in this press release are included
with the financial tables at the end of this release. We strongly
encourage investors to review our consolidated financial statements
included in our publicly filed reports in their entirety and not
rely solely on any single financial measurement or
communication.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995, including but
not limited to, statements regarding our financial outlook and
market positioning. Forward-looking statements give our current
expectations and projections relating to our financial condition,
results of operations, plans, objectives, future performance and
business and include statements regarding our future financial and
operating performance (including our financial outlook for future
reporting periods). You can identify forward-looking statements by
the fact that they do not relate strictly to historical or current
facts. These statements may include words such as “anticipate,”
“estimate,” “expect,” “project,” “plan,” “intend,” “believe,”
“may,” “will,” “should,” “can have,” “likely,” and other words and
terms of similar meaning in connection with any discussion of the
timing or nature of future operating or financial performance or
other events. All forward-looking statements are subject to risks
and uncertainties that may cause actual results to differ
materially from those that we expected, including, among others:
the impact on our operations from macroeconomic and market
conditions, including heightened inflation, slower growth or
recession, changes to fiscal and monetary policy, higher interest
rates, currency fluctuations, challenges in the supply chain and
the effects of the ongoing COVID-19 pandemic; the potential impact
of customer dissatisfaction with Apple or other negative events
affecting Apple services and devices, and failure of enterprises to
adopt Apple products; the potentially adverse impact of changes in
features and functionality by Apple on our engineering focus or
product development efforts; changes in our continued relationship
with Apple; the fact that we are not party to any exclusive
agreements or arrangements with Apple; our reliance, in part, on
channel partners for the sale and distribution of our products; our
ability to successfully develop new products or materially enhance
current products through our research and development efforts; our
ability to continue to attract new customers; our ability to retain
our current customers; our ability to sell additional functionality
to our current customers; our ability to correctly estimate market
opportunity and forecast market growth; risks associated with
failing to continue our recent growth rates; our dependence on one
of our products for a substantial portion of our revenue; our
ability to scale our business and manage our expenses; our ability
to change our pricing models, if necessary to compete successfully;
the impact of delays or outages of our cloud services from any
disruptions, capacity limitations or interferences of third-party
data centers that host our cloud services, including Amazon Web
Services; our ability to meet service-level commitments under our
subscription agreements; our ability to maintain, enhance and
protect our brand; our ability to maintain our corporate culture;
the ability of Jamf Nation to thrive and grow as we expand our
business; the potential impact of inaccurate, incomplete or
misleading content that is posted on Jamf Nation; our ability to
offer high-quality support; risks and uncertainties associated with
acquisitions and divestitures (such as our acquisition of ZecOps);
our ability to predict and respond to rapidly evolving
technological trends and our customers' changing needs; our ability
to compete with existing and new companies; the impact of adverse
general and industry-specific economic and market conditions; the
impact of reductions in IT spending; our ability to attract and
retain highly qualified personnel; risks associated with
competitive challenges faced by our customers; the impact of our
often long and unpredictable sales cycle; the risks associated with
sales to new and existing enterprise customers; our ability to
develop and expand our marketing and sales capabilities; the risks
associated with free trials and other inbound, lead-generation
sales strategies; the risks associated with indemnity provisions in
our contracts; our management team’s limited experience managing a
public company; risks associated with cyber-security events; the
impact of real or perceived errors, failures or bugs in our
products; the impact of general disruptions to data transmission;
risks associated with stringent and changing privacy laws,
regulations and standards, and information security policies and
contractual obligations related to data privacy and security; the
risks associated with intellectual property infringement claims;
our reliance on third-party software and intellectual property
licenses; our ability to protect our intellectual property and
proprietary rights; the risks associated with our use of open
source software in our products; risks associated with our
indebtedness; and risks associated with global events (such as
Russia’s invasion of Ukraine and related sanctions).
Additional information concerning these and
other factors can be found in our filings with the Securities and
Exchange Commission. Given these factors, as well as other
variables that may affect our operating results, you should not
rely on forward-looking statements, assume that past financial
performance will be a reliable indicator of future performance, or
use historical trends to anticipate results or trends in future
periods. The forward-looking statements included in this press
release relate only to events as of the date hereof. We undertake
no obligation to update or revise any forward-looking statement as
a result of new information, future events or otherwise, except as
otherwise required by law.
About Jamf
Jamf’s purpose is to simplify work by helping
organizations manage and secure an Apple experience that end users
love and organizations trust. Jamf is the only company in the world
that provides a complete management and security solution for an
Apple-first environment that is enterprise secure, consumer simple
and protects personal privacy. To learn more, visit
www.jamf.com.
Investor ContactJennifer
Gaumondir@jamf.com
Media ContactRachel
Nauenmedia@jamf.com
Jamf Holding
Corp.Consolidated Balance Sheets(in
thousands)(unaudited)
|
September 30,2022 |
|
December 31, 2021 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
225,480 |
|
|
$ |
177,150 |
|
Trade accounts receivable, net of allowances of $462 and $391 |
|
92,882 |
|
|
|
79,143 |
|
Income taxes receivable |
|
406 |
|
|
|
608 |
|
Deferred contract costs |
|
16,472 |
|
|
|
12,904 |
|
Prepaid expenses |
|
16,186 |
|
|
|
17,581 |
|
Other current assets |
|
6,224 |
|
|
|
4,212 |
|
Total current assets |
|
357,650 |
|
|
|
291,598 |
|
Equipment and leasehold
improvements, net |
|
19,116 |
|
|
|
18,045 |
|
Goodwill |
|
800,524 |
|
|
|
845,734 |
|
Other intangible assets, net |
|
215,064 |
|
|
|
264,593 |
|
Deferred contract costs,
non-current |
|
36,960 |
|
|
|
29,842 |
|
Other assets |
|
38,128 |
|
|
|
30,608 |
|
Total assets |
$ |
1,467,442 |
|
|
$ |
1,480,420 |
|
|
|
|
|
Liabilities and
stockholders’ equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
16,870 |
|
|
$ |
9,306 |
|
Accrued liabilities |
|
57,351 |
|
|
|
54,022 |
|
Income taxes payable |
|
752 |
|
|
|
167 |
|
Deferred revenues |
|
271,721 |
|
|
|
223,031 |
|
Total current liabilities |
|
346,694 |
|
|
|
286,526 |
|
Deferred revenues,
non-current |
|
69,509 |
|
|
|
59,097 |
|
Deferred tax liability, net |
|
5,418 |
|
|
|
8,700 |
|
Convertible senior notes,
net |
|
363,885 |
|
|
|
362,031 |
|
Other liabilities |
|
22,173 |
|
|
|
25,640 |
|
Total liabilities |
|
807,679 |
|
|
|
741,994 |
|
Commitments and
contingencies |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
120 |
|
|
|
119 |
|
Additional paid-in capital |
|
1,011,205 |
|
|
|
913,581 |
|
Accumulated other comprehensive loss |
|
(64,084 |
) |
|
|
(7,866 |
) |
Accumulated deficit |
|
(287,478 |
) |
|
|
(167,408 |
) |
Total stockholders’ equity |
|
659,763 |
|
|
|
738,426 |
|
Total liabilities and stockholders’ equity |
$ |
1,467,442 |
|
|
$ |
1,480,420 |
|
|
|
|
|
|
|
|
|
Jamf Holding
Corp.Consolidated Statements of
Operations(in thousands, except share and per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
Subscription |
$ |
118,524 |
|
|
$ |
90,700 |
|
|
$ |
330,132 |
|
|
$ |
245,900 |
|
Services |
|
5,216 |
|
|
|
4,083 |
|
|
|
14,187 |
|
|
|
12,015 |
|
License |
|
817 |
|
|
|
838 |
|
|
|
4,134 |
|
|
|
4,671 |
|
Total revenue |
|
124,557 |
|
|
|
95,621 |
|
|
|
348,453 |
|
|
|
262,586 |
|
Cost of revenue: |
|
|
|
|
|
|
|
Cost of subscription(1)(2)(3)(4) (exclusive of amortization expense
shown below) |
|
22,334 |
|
|
|
18,317 |
|
|
|
62,870 |
|
|
|
44,206 |
|
Cost of services(1)(2)(3) (exclusive of amortization expense shown
below) |
|
3,584 |
|
|
|
2,955 |
|
|
|
10,184 |
|
|
|
8,027 |
|
Amortization expense |
|
5,277 |
|
|
|
5,198 |
|
|
|
15,760 |
|
|
|
10,835 |
|
Total cost of revenue |
|
31,195 |
|
|
|
26,470 |
|
|
|
88,814 |
|
|
|
63,068 |
|
Gross profit |
|
93,362 |
|
|
|
69,151 |
|
|
|
259,639 |
|
|
|
199,518 |
|
Operating expenses: |
|
|
|
|
|
|
|
Sales and marketing(1)(2)(3)(4) |
|
54,096 |
|
|
|
40,856 |
|
|
|
159,171 |
|
|
|
103,640 |
|
Research and development(1)(2)(3)(4) |
|
30,799 |
|
|
|
25,608 |
|
|
|
89,584 |
|
|
|
58,437 |
|
General and administrative(1)(2)(3)(4) |
|
30,061 |
|
|
|
25,536 |
|
|
|
103,994 |
|
|
|
69,288 |
|
Amortization expense |
|
7,040 |
|
|
|
7,025 |
|
|
|
21,103 |
|
|
|
18,275 |
|
Total operating expenses |
|
121,996 |
|
|
|
99,025 |
|
|
|
373,852 |
|
|
|
249,640 |
|
Loss from operations |
|
(28,634 |
) |
|
|
(29,874 |
) |
|
|
(114,213 |
) |
|
|
(50,122 |
) |
Interest income (expense),
net |
|
45 |
|
|
|
(1,386 |
) |
|
|
(1,455 |
) |
|
|
(1,608 |
) |
Loss on extinguishment of
debt |
|
— |
|
|
|
(449 |
) |
|
|
— |
|
|
|
(449 |
) |
Foreign currency transaction
loss |
|
(2,624 |
) |
|
|
(269 |
) |
|
|
(4,081 |
) |
|
|
(795 |
) |
Loss before income tax (provision) benefit |
|
(31,213 |
) |
|
|
(31,978 |
) |
|
|
(119,749 |
) |
|
|
(52,974 |
) |
Income tax (provision)
benefit |
|
(89 |
) |
|
|
1,595 |
|
|
|
(321 |
) |
|
|
1,535 |
|
Net loss |
$ |
(31,302 |
) |
|
$ |
(30,383 |
) |
|
$ |
(120,070 |
) |
|
$ |
(51,439 |
) |
Net loss per share, basic and
diluted |
$ |
(0.26 |
) |
|
$ |
(0.26 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.44 |
) |
Weighted‑average shares used
to compute net loss per share, basic and diluted |
|
121,014,325 |
|
|
|
118,640,565 |
|
|
|
120,188,587 |
|
|
|
117,983,463 |
|
(1) Includes stock-based compensation as follows:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(in thousands) |
Cost of revenue: |
|
|
|
|
|
|
|
Subscription |
$ |
2,479 |
|
$ |
1,716 |
|
$ |
6,495 |
|
$ |
2,384 |
Services |
|
344 |
|
|
229 |
|
|
961 |
|
|
381 |
Sales and marketing |
|
6,955 |
|
|
4,833 |
|
|
26,625 |
|
|
6,763 |
Research and development |
|
5,130 |
|
|
5,145 |
|
|
19,620 |
|
|
7,076 |
General and
administrative |
|
5,582 |
|
|
3,913 |
|
|
35,823 |
|
|
6,170 |
|
$ |
20,490 |
|
$ |
15,836 |
|
$ |
89,524 |
|
$ |
22,774 |
(2) Includes payroll taxes related to stock-based compensation
as follows:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(in thousands) |
Cost of revenue: |
|
|
|
|
|
|
|
Subscription |
$ |
109 |
|
$ |
112 |
|
$ |
133 |
|
$ |
112 |
Services |
|
23 |
|
|
22 |
|
|
24 |
|
|
22 |
Sales and marketing |
|
366 |
|
|
270 |
|
|
443 |
|
|
416 |
Research and development |
|
142 |
|
|
174 |
|
|
246 |
|
|
291 |
General and
administrative |
|
92 |
|
|
148 |
|
|
275 |
|
|
501 |
|
$ |
732 |
|
$ |
726 |
|
$ |
1,121 |
|
$ |
1,342 |
(3) Includes depreciation expense as follows:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(in thousands) |
Cost of revenue: |
|
|
|
|
|
|
|
Subscription |
$ |
285 |
|
$ |
302 |
|
$ |
891 |
|
$ |
814 |
Services |
|
40 |
|
|
43 |
|
|
126 |
|
|
124 |
Sales and marketing |
|
669 |
|
|
608 |
|
|
1,986 |
|
|
1,706 |
Research and development |
|
409 |
|
|
341 |
|
|
1,165 |
|
|
923 |
General and
administrative |
|
234 |
|
|
194 |
|
|
707 |
|
|
572 |
|
$ |
1,637 |
|
$ |
1,488 |
|
$ |
4,875 |
|
$ |
4,139 |
(4) Includes acquisition-related expense as follows:
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
(in thousands) |
Cost of revenue: |
|
|
|
|
|
|
|
Subscription |
$ |
— |
|
$ |
17 |
|
$ |
61 |
|
$ |
17 |
Sales and marketing |
|
— |
|
|
34 |
|
|
7 |
|
|
34 |
Research and development |
|
246 |
|
|
549 |
|
|
792 |
|
|
590 |
General and
administrative |
|
1,536 |
|
|
1,859 |
|
|
2,571 |
|
|
4,143 |
|
$ |
1,782 |
|
$ |
2,459 |
|
$ |
3,431 |
|
$ |
4,784 |
General and administrative also includes acquisition-related
earnout of $0.2 million and $0.6 million for the three months ended
September 30, 2022 and 2021, respectively, and $0.4 million
and $4.8 million for the nine months ended September 30, 2022
and 2021, respectively. The acquisition-related earnout was an
expense for both the three and nine months ended September 30,
2022 and 2021 reflecting the increase in fair value of the Digita
acquisition contingent liability due to growth in sales of our Jamf
Protect product. General and administrative also includes legal
reserve of $4.2 million for the nine months ended
September 30, 2021.
Jamf Holding
Corp.Consolidated Statements of Cash
Flows(in thousands)(unaudited)
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
Operating
activities |
|
|
|
Net loss |
$ |
(120,070 |
) |
|
$ |
(51,439 |
) |
Adjustments to reconcile net loss to cash provided by operating
activities: |
|
|
|
Depreciation and amortization expense |
|
41,738 |
|
|
|
33,249 |
|
Amortization of deferred contract costs |
|
12,091 |
|
|
|
9,034 |
|
Amortization of debt issuance costs |
|
2,040 |
|
|
|
573 |
|
Non-cash lease expense |
|
4,373 |
|
|
|
3,705 |
|
Provision for credit losses and returns |
|
310 |
|
|
|
(7 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
449 |
|
Share‑based compensation |
|
89,524 |
|
|
|
22,774 |
|
Deferred tax benefit |
|
(2,019 |
) |
|
|
(2,568 |
) |
Adjustment to contingent consideration |
|
388 |
|
|
|
4,837 |
|
Other |
|
4,603 |
|
|
|
1,144 |
|
Changes in operating assets and liabilities: |
|
|
|
Trade accounts receivable |
|
(15,125 |
) |
|
|
3,184 |
|
Income tax receivable/payable |
|
688 |
|
|
|
(107 |
) |
Prepaid expenses and other assets |
|
(3,351 |
) |
|
|
(8,129 |
) |
Deferred contract costs |
|
(22,919 |
) |
|
|
(18,052 |
) |
Accounts payable |
|
7,766 |
|
|
|
5,020 |
|
Accrued liabilities |
|
2,872 |
|
|
|
1,644 |
|
Deferred revenue |
|
59,922 |
|
|
|
59,464 |
|
Other liabilities |
|
— |
|
|
|
52 |
|
Net cash provided by operating activities |
|
62,831 |
|
|
|
64,827 |
|
Investing
activities |
|
|
|
Acquisitions, net of cash acquired |
|
(4,023 |
) |
|
|
(352,711 |
) |
Purchases of equipment and leasehold improvements |
|
(5,645 |
) |
|
|
(7,261 |
) |
Purchase of investments |
|
(3,100 |
) |
|
|
— |
|
Other |
|
(151 |
) |
|
|
35 |
|
Net cash used in investing activities |
|
(12,919 |
) |
|
|
(359,937 |
) |
Financing
activities |
|
|
|
Proceeds from convertible senior notes |
|
— |
|
|
|
373,750 |
|
Proceeds from bank borrowings |
|
— |
|
|
|
250,000 |
|
Payment of bank borrowings |
|
— |
|
|
|
(250,000 |
) |
Payment for purchase of capped calls |
|
— |
|
|
|
(36,030 |
) |
Debt issuance costs |
|
(50 |
) |
|
|
(12,636 |
) |
Cash paid for offering costs |
|
(104 |
) |
|
|
(543 |
) |
Cash paid for contingent consideration |
|
(4,588 |
) |
|
|
(4,206 |
) |
Payment of acquisition-related holdback |
|
(200 |
) |
|
|
— |
|
Proceeds from the exercise of stock options |
|
4,682 |
|
|
|
8,570 |
|
Net cash (used in) provided by financing activities |
|
(260 |
) |
|
|
328,905 |
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(1,322 |
) |
|
|
(865 |
) |
Net increase in cash, cash equivalents, and restricted cash |
|
48,330 |
|
|
|
32,930 |
|
Cash, cash equivalents, and
restricted cash, beginning of period |
|
177,150 |
|
|
|
194,868 |
|
Cash, cash equivalents, and
restricted cash, end of period |
$ |
225,480 |
|
|
$ |
227,798 |
|
|
|
|
|
|
|
|
|
Jamf Holding
Corp.Consolidated Statements of Cash Flows
(continued)(in thousands)(unaudited)
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
Reconciliation of
cash, cash equivalents, and restricted cash within the consolidated
balance sheets to the amounts shown in the consolidated statements
of cash flows above: |
|
|
|
Cash and cash equivalents |
$ |
225,480 |
|
$ |
227,148 |
Restricted cash included in other current assets |
|
— |
|
|
650 |
Total cash, cash equivalents,
and restricted cash |
$ |
225,480 |
|
$ |
227,798 |
|
|
|
|
|
|
Jamf Holding
Corp.Supplemental Financial
InformationDisaggregated Revenues(in
thousands)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
SaaS subscription and support
and maintenance |
$ |
112,351 |
|
$ |
83,775 |
|
$ |
312,992 |
|
$ |
222,672 |
On‑premise subscription |
|
6,173 |
|
|
6,925 |
|
|
17,140 |
|
|
23,228 |
Subscription revenue |
|
118,524 |
|
|
90,700 |
|
|
330,132 |
|
|
245,900 |
Professional services |
|
5,216 |
|
|
4,083 |
|
|
14,187 |
|
|
12,015 |
Perpetual licenses |
|
817 |
|
|
838 |
|
|
4,134 |
|
|
4,671 |
Non‑subscription revenue |
|
6,033 |
|
|
4,921 |
|
|
18,321 |
|
|
16,686 |
Total revenue |
$ |
124,557 |
|
$ |
95,621 |
|
$ |
348,453 |
|
$ |
262,586 |
|
|
|
|
|
|
|
|
|
|
|
|
Jamf Holding
Corp.Supplemental InformationKey
Business Metrics(in millions, except number of customers
and percentages)(unaudited)
|
September 30,2022 |
|
June 30,2022 |
|
March 31,2022 |
|
December 31,2021 |
|
September 30,2021 |
|
June 30,2021 |
|
March 31,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARR |
$ |
490.5 |
|
|
$ |
466.0 |
|
|
$ |
436.5 |
|
|
$ |
412.5 |
|
|
$ |
384.8 |
|
|
$ |
333.0 |
|
|
$ |
308.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARR from management solutions as a percent of total ARR |
|
82 |
% |
|
|
82 |
% |
|
|
83 |
% |
|
|
84 |
% |
|
|
84 |
% |
|
|
91 |
% |
|
|
93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARR
from security solutions as a percent of total ARR |
|
18 |
% |
|
|
18 |
% |
|
|
17 |
% |
|
|
16 |
% |
|
|
16 |
% |
|
|
9 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARR from commercial customers as a percent of total ARR |
|
71 |
% |
|
|
71 |
% |
|
|
70 |
% |
|
|
69 |
% |
|
|
68 |
% |
|
|
64 |
% |
|
|
63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARR
from education customers as a percent of total ARR |
|
29 |
% |
|
|
29 |
% |
|
|
30 |
% |
|
|
31 |
% |
|
|
32 |
% |
|
|
36 |
% |
|
|
37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dollar-based net retention
rate (1) |
|
115 |
% |
|
|
117 |
% |
|
|
120 |
% |
|
|
120 |
% |
|
|
119 |
% |
|
|
119 |
% |
|
|
117 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Devices |
|
29.3 |
|
|
|
28.4 |
|
|
|
26.8 |
|
|
|
26.1 |
|
|
|
25.0 |
|
|
|
23.2 |
|
|
|
21.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customers |
|
69,000 |
|
|
|
67,000 |
|
|
|
62,000 |
|
|
|
60,000 |
|
|
|
57,000 |
|
|
|
53,000 |
|
|
|
50,000 |
|
(1) The dollar-based net retention rates for the TTM ended
September 30, 2022 and June 30, 2022 include Wandera. The
dollar-based net retention rates for periods prior to June 30, 2022
were based on our Jamf legacy business and did not include Wandera
since it had not been a part of our business for the full trailing
twelve months.
Jamf Holding
Corp.Supplemental Financial
InformationReconciliation of GAAP to non-GAAP
Financial Data(in thousands, except share and per share
amounts)(unaudited)
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating expenses |
$ |
121,996 |
|
|
$ |
99,025 |
|
|
$ |
373,852 |
|
|
$ |
249,640 |
|
Amortization expense |
|
(7,040 |
) |
|
|
(7,025 |
) |
|
|
(21,103 |
) |
|
|
(18,275 |
) |
Stock-based compensation |
|
(17,667 |
) |
|
|
(13,891 |
) |
|
|
(82,068 |
) |
|
|
(20,009 |
) |
Acquisition-related expense |
|
(1,782 |
) |
|
|
(2,442 |
) |
|
|
(3,370 |
) |
|
|
(4,767 |
) |
Acquisition-related earnout |
|
(200 |
) |
|
|
(600 |
) |
|
|
(388 |
) |
|
|
(4,837 |
) |
Offering costs |
|
— |
|
|
|
— |
|
|
|
(124 |
) |
|
|
(594 |
) |
Payroll taxes related to
stock-based compensation |
|
(600 |
) |
|
|
(592 |
) |
|
|
(964 |
) |
|
|
(1,208 |
) |
Legal reserve |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,200 |
) |
Non-GAAP operating expenses |
$ |
94,707 |
|
|
$ |
74,475 |
|
|
$ |
265,835 |
|
|
$ |
195,750 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Gross profit |
$ |
93,362 |
|
|
$ |
69,151 |
|
|
$ |
259,639 |
|
|
$ |
199,518 |
|
Amortization expense |
|
5,277 |
|
|
|
5,198 |
|
|
|
15,760 |
|
|
|
10,835 |
|
Stock-based compensation |
|
2,823 |
|
|
|
1,945 |
|
|
|
7,456 |
|
|
|
2,765 |
|
Acquisition-related
expense |
|
— |
|
|
|
17 |
|
|
|
61 |
|
|
|
17 |
|
Payroll taxes related to
stock-based compensation |
|
132 |
|
|
|
134 |
|
|
|
157 |
|
|
|
134 |
|
Non-GAAP gross profit |
$ |
101,594 |
|
|
$ |
76,445 |
|
|
$ |
283,073 |
|
|
$ |
213,269 |
|
Gross profit margin |
|
75 |
% |
|
|
72 |
% |
|
|
75 |
% |
|
|
76 |
% |
Non-GAAP gross profit
margin |
|
82 |
% |
|
|
80 |
% |
|
|
81 |
% |
|
|
81 |
% |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating loss |
$ |
(28,634 |
) |
|
$ |
(29,874 |
) |
|
$ |
(114,213 |
) |
|
$ |
(50,122 |
) |
Amortization expense |
|
12,317 |
|
|
|
12,223 |
|
|
|
36,863 |
|
|
|
29,110 |
|
Stock-based compensation |
|
20,490 |
|
|
|
15,836 |
|
|
|
89,524 |
|
|
|
22,774 |
|
Acquisition-related
expense |
|
1,782 |
|
|
|
2,459 |
|
|
|
3,431 |
|
|
|
4,784 |
|
Acquisition-related
earnout |
|
200 |
|
|
|
600 |
|
|
|
388 |
|
|
|
4,837 |
|
Offering costs |
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
594 |
|
Payroll taxes related to
stock-based compensation |
|
732 |
|
|
|
726 |
|
|
|
1,121 |
|
|
|
1,342 |
|
Legal reserve |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,200 |
|
Non-GAAP operating income |
$ |
6,887 |
|
|
$ |
1,970 |
|
|
$ |
17,238 |
|
|
$ |
17,519 |
|
Operating loss margin |
(23 |
)% |
|
(31 |
)% |
|
(33 |
)% |
|
(19 |
)% |
Non-GAAP operating income
margin |
|
6 |
% |
|
|
2 |
% |
|
|
5 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net loss |
$ |
(31,302 |
) |
|
$ |
(30,383 |
) |
|
$ |
(120,070 |
) |
|
$ |
(51,439 |
) |
Exclude: Income tax
(provision) benefit |
|
(89 |
) |
|
|
1,595 |
|
|
|
(321 |
) |
|
|
1,535 |
|
Loss before income tax
(provision) benefit |
|
(31,213 |
) |
|
|
(31,978 |
) |
|
|
(119,749 |
) |
|
|
(52,974 |
) |
Amortization expense |
|
12,317 |
|
|
|
12,223 |
|
|
|
36,863 |
|
|
|
29,110 |
|
Stock-based compensation |
|
20,490 |
|
|
|
15,836 |
|
|
|
89,524 |
|
|
|
22,774 |
|
Foreign currency transaction
loss |
|
2,624 |
|
|
|
269 |
|
|
|
4,081 |
|
|
|
795 |
|
Loss on extinguishment of
debt |
|
— |
|
|
|
449 |
|
|
|
— |
|
|
|
449 |
|
Amortization of debt issuance
costs |
|
682 |
|
|
|
324 |
|
|
|
2,040 |
|
|
|
324 |
|
Acquisition-related
expense |
|
1,782 |
|
|
|
2,459 |
|
|
|
3,431 |
|
|
|
4,784 |
|
Acquisition-related
earnout |
|
200 |
|
|
|
600 |
|
|
|
388 |
|
|
|
4,837 |
|
Offering costs |
|
— |
|
|
|
— |
|
|
|
124 |
|
|
|
594 |
|
Payroll taxes related to
stock-based compensation |
|
732 |
|
|
|
726 |
|
|
|
1,121 |
|
|
|
1,342 |
|
Legal reserve |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,200 |
|
Non-GAAP income before income
taxes |
|
7,614 |
|
|
|
908 |
|
|
|
17,823 |
|
|
|
16,235 |
|
Non-GAAP provision for income
taxes (1) |
|
(1,828 |
) |
|
|
(218 |
) |
|
|
(4,278 |
) |
|
|
(3,896 |
) |
Non-GAAP net income |
$ |
5,786 |
|
|
$ |
690 |
|
|
$ |
13,545 |
|
|
$ |
12,339 |
|
Net loss per share: |
|
|
|
|
|
|
|
Basic |
$ |
(0.26 |
) |
|
$ |
(0.26 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.44 |
) |
Diluted |
$ |
(0.26 |
) |
|
$ |
(0.26 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.44 |
) |
Weighted‑average shares used in
computing net loss per share: |
|
|
|
|
|
|
|
Basic |
|
121,014,325 |
|
|
|
118,640,565 |
|
|
|
120,188,587 |
|
|
|
117,983,463 |
|
Diluted |
|
121,014,325 |
|
|
|
118,640,565 |
|
|
|
120,188,587 |
|
|
|
117,983,463 |
|
Non-GAAP net income per
share: |
|
|
|
|
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.01 |
|
|
$ |
0.11 |
|
|
$ |
0.10 |
|
Diluted |
$ |
0.04 |
|
|
$ |
0.01 |
|
|
$ |
0.10 |
|
|
$ |
0.10 |
|
Weighted-average shares used
in computing non-GAAP net income per share: |
|
|
|
|
|
|
|
Basic |
|
121,014,325 |
|
|
|
118,640,565 |
|
|
|
120,188,587 |
|
|
|
117,983,463 |
|
Diluted |
|
132,229,404 |
|
|
|
121,974,161 |
|
|
|
130,399,569 |
|
|
|
121,006,865 |
|
(1) Beginning in the first quarter of 2022, Jamf changed its
method of calculating its non-GAAP provision for income taxes in
accordance with the SEC’s Non-GAAP Financial Measures Compliance
and Disclosure Interpretation on a retroactive basis. Under the new
method, Jamf’s blended U.S. statutory rate of 24% is used as an
estimate for the current and deferred income tax expense associated
with our non-GAAP income before income taxes. Historically, Jamf
had approximated the effective tax rate by taking into account the
sizeable U.S. net operating loss carryforwards and tax credit
carryforwards that have not been recorded where Jamf does not
expect to record or pay tax for the foreseeable future.
|
Nine Months Ended September 30, |
|
Years Ended December 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net cash provided by operating
activities |
$ |
62,831 |
|
|
$ |
64,827 |
|
|
$ |
33,099 |
|
|
$ |
65,165 |
|
|
$ |
52,801 |
|
Less: |
|
|
|
|
|
|
|
|
|
Purchases of equipment and leasehold improvements |
|
(5,645 |
) |
|
|
(7,261 |
) |
|
|
(1,836 |
) |
|
|
(9,755 |
) |
|
|
(4,368 |
) |
Free cash flow |
|
57,186 |
|
|
|
57,566 |
|
|
|
31,263 |
|
|
|
55,410 |
|
|
|
48,433 |
|
Add: |
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
683 |
|
|
|
944 |
|
|
|
12,647 |
|
|
|
967 |
|
|
|
12,649 |
|
Cash paid for acquisition-related expense |
|
2,110 |
|
|
|
3,885 |
|
|
|
3,300 |
|
|
|
5,039 |
|
|
|
5,200 |
|
Cash paid for legal settlement |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
Unlevered free cash flow |
$ |
59,979 |
|
|
$ |
62,395 |
|
|
$ |
47,210 |
|
|
$ |
66,416 |
|
|
$ |
66,282 |
|
Total revenue |
$ |
348,453 |
|
|
$ |
262,586 |
|
|
$ |
192,865 |
|
|
$ |
366,388 |
|
|
$ |
269,132 |
|
Net cash provided by operating
activities as a percentage of total revenue |
|
18 |
% |
|
|
25 |
% |
|
|
17 |
% |
|
|
18 |
% |
|
|
20 |
% |
Free cash flow margin |
|
16 |
% |
|
|
22 |
% |
|
|
16 |
% |
|
|
15 |
% |
|
|
18 |
% |
Unlevered free cash flow
margin |
|
17 |
% |
|
|
24 |
% |
|
|
24 |
% |
|
|
18 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trailing Twelve Months Ended September
30, |
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by operating
activities |
$ |
63,169 |
|
|
$ |
84,529 |
|
Less: |
|
|
|
Purchases of equipment and leasehold improvements |
|
(8,139 |
) |
|
|
(9,793 |
) |
Free cash flow |
|
55,030 |
|
|
|
74,736 |
|
Add: |
|
|
|
Cash paid for interest |
|
706 |
|
|
|
946 |
|
Cash paid for acquisition-related expense |
|
3,264 |
|
|
|
5,785 |
|
Cash paid for legal settlement |
|
5,000 |
|
|
|
— |
|
Unlevered free cash flow |
$ |
64,000 |
|
|
$ |
81,467 |
|
Total revenue |
$ |
452,255 |
|
|
$ |
338,853 |
|
Net cash provided by operating
activities as a percentage of total revenue |
|
14 |
% |
|
|
25 |
% |
Free cash flow margin |
|
12 |
% |
|
|
22 |
% |
Unlevered free cash flow
margin |
|
14 |
% |
|
|
24 |
% |
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