• Q3 total revenue year-over-year growth of 15% to $142.6 million
• ARR year-over-year growth of 15% to $566.3 million as of September 30, 2023
• Cash flow provided by operations of $47.2 million for the TTM ended September 30, 2023, or 9% of TTM total revenue; unlevered free cash flow of $60.6 million for the TTM ended September 30, 2023, or 11% of TTM total revenue
  

MINNEAPOLIS, Nov. 08, 2023 (GLOBE NEWSWIRE) -- Jamf (NASDAQ: JAMF), the standard in managing and securing Apple at work, today announced financial results for its third quarter ended September 30, 2023.

“Jamf’s industry-leading Apple management and security solutions, delivered as an integrated platform, help IT and security teams deliver an experience that is loved by users and trusted by organizations,” said John Strosahl, CEO. “Our robust platform, commitment to innovation, relentless focus on our customers, combined with growing adoption of Apple in the enterprise, helped Jamf outperform expectations for the 14th consecutive quarter.”

Third Quarter 2023 Financial Highlights

• ARR: ARR of $566.3 million as of September 30, 2023, an increase of 15% year-over-year.
• Revenue: Total revenue of $142.6 million, an increase of 15% year-over-year.
• Gross Profit: GAAP gross profit of $110.4 million, or 77% of total revenue, compared to $93.4 million in the third quarter of 2022. Non-GAAP gross profit of $117.0 million, or 82% of total revenue, compared to $101.6 million in the third quarter of 2022.
• Operating Loss/Income: GAAP operating loss of $31.9 million, or (22)% of total revenue, compared to $28.6 million in the third quarter of 2022. Non-GAAP operating income of $12.4 million, or 9% of total revenue, compared to $6.9 million in the third quarter of 2022.
• Cash Flow: Cash flow provided by operations of $47.2 million for the TTM ended September 30, 2023, or 9% of TTM total revenue, compared to $63.2 million for the TTM ended September 30, 2022. Unlevered free cash flow of $60.6 million for the TTM ended September 30, 2023, or 11% of TTM total revenue, compared to $64.0 million for the TTM ended September 30, 2022.
  

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 74,400 customers with 31.8 million total devices on our platform.
• Achieved 31% year-over-year growth in security ARR, to $119.9 million as of September 30, 2023, representing 21% of Jamf’s total ARR.
• Named a leading endpoint security vendor by Frost & Sullivan in their Frost Radar Endpoint Security 2023 report.
• Gathered Apple IT and security experts along with key partners like Apple at the 14th annual, largest ever, Jamf Nation User Conference to share how Jamf is continuing to innovate to bring together management and security into one integrated platform.
• Announced support for Apple’s new identity technology, Platform Single Sign-In (SSO), with Okta, offering fast, secure and streamlined authentication for Mac.
• Achieved StateRAMP Ready status for Jamf Pro and Jamf School, giving U.S. state government agencies, including public education institutions, the confidence they need to comply with industry standards.
• Released Jamf Pro 11 with a more modern, accessible UI, simplified onboarding and continued support for Declarative Device Management.
• Announced new AI-powered functionality for Jamf Protect that takes detailed raw telemetry and security alert data, applies the MITRE attack framework and summarizes a friendly explanation along with recommendations for Jamf admins on how to remedy security issues.
• Announced same-day support for recently released Apple operating systems including macOS Sonoma, iOS 17, iPadOS 17 and tvOS 17.
• Named as one of 2023’s Best Workplaces for Women™ by Fortune Media and Great Place to Work^®.

Financial Outlook

For the fourth quarter of 2023, Jamf currently expects:

• Total revenue of $148.0 to $149.0 million
• Non-GAAP operating income of $19.5 to $20.5 million

For the full year 2023, Jamf currently expects:

• Total revenue of $557.9 to $558.9 million
• Non-GAAP operating income of $43.8 to $44.8 million

To assist with modeling, for the fourth quarter of 2023 and full year 2023, amortization is expected to be approximately $10.9 million and $42.9 million, respectively. In addition, for the fourth quarter of 2023 and full year 2023, stock-based compensation and related payroll taxes are expected to be approximately $25.2 million and $104.9 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, stock-based compensation and related payroll taxes, and system transformation costs. 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 8, 2023.

The conference call will be webcast live on Jamf’s Investor Relations website at https://ir.jamf.com. Those parties interested in participating via telephone may register on Jamf’s Investor Relations website. The financial tables, earnings presentation, and investor presentation provided in connection with this press release and the accompanying conference call will also be available on Jamf’s Investor Relations website.

A replay of the call will be available on the Investor Relations website beginning on November 8, 2023, 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 (gain) loss, payroll taxes related to stock-based compensation, legal settlements and other non-recurring litigation costs, loss on extinguishment of debt, amortization of debt issuance costs, and system transformation 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, 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 press 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 and the accompanying conference call contain “forward-looking statements” within the meaning of federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential,” or “continue,” or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance (including our outlook and guidance), the demand for our platform, anticipated impacts of macroeconomic conditions on our business, our expectations regarding business benefits and financial impacts from our acquisitions, partnerships, and investments, and our ability to deliver on our long-term strategy.

The forward-looking statements contained in this press release and the accompanying conference call are also subject to additional risks, uncertainties, and factors, including those more fully described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2023, as well as the subsequent periodic and current reports and other filings that we make with the Securities and Exchange Commission from time to time. Moreover, we operate in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release and the accompanying conference call.

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 and the accompanying conference call 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 designed to be enterprise secure, consumer simple and protect personal privacy. To learn more, visit www.jamf.com.

Investor Contacts
Jennifer Gaumond
Michael Thomas
ir@jamf.com 

Media Contact
Rachel Nauen
media@jamf.com 

Jamf Holding Corp.
Consolidated Balance Sheets
(in thousands)
(unaudited)

Jamf Holding Corp.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)

⁽¹⁾ Includes stock-based compensation as follows:

⁽²⁾ Includes payroll taxes related to stock-based compensation as follows:​

⁽³⁾ Includes depreciation expense as follows:

⁽⁴⁾ Includes acquisition-related expense as follows:​

⁽⁵⁾ Includes system transformation costs as follows:​

General and administrative also includes acquisition-related earnout of $0.2 million and $0.4 million for the three and nine months ended September 30, 2022, respectively. The acquisition-related earnout was an expense for the three and nine months ended September 30, 2022 reflecting the increase in fair value of the Digita acquisition contingent liability due to growth in sales of our Jamf Protect product.

Jamf Holding Corp.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)

Jamf Holding Corp.
Supplemental Financial Information
Disaggregated Revenues
(in thousands)
(unaudited)

Jamf Holding Corp.
Supplemental Information
Key Business Metrics
(in millions, except number of customers and percentages)
(unaudited)

⁽¹⁾ The dollar-based net retention rate for March 31, 2022 was based on our Jamf legacy business and does not include Wandera since it had not been a part of our business for the full trailing twelve months.

Jamf Holding Corp.
Supplemental Financial Information
Reconciliation of GAAP to non-GAAP Financial Data
(in thousands, except share and per share amounts)
(unaudited)

⁽¹⁾ In accordance with the SEC’s Non-GAAP Financial Measures Compliance and Disclosure Interpretation, the Company’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.