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Jamf Announces Second Quarter 2022 Financial Results

·24 min read
Jamf
Jamf
  • Q2 total revenue year-over-year growth of 34% to $115.6 million

  • ARR year-over-year growth of 40% to $466.0 million as of June 30, 2022

  • Cash flow provided by operations of $43.5 million for the TTM ended June 30, 2022, or 10% of TTM total revenue; unlevered free cash flow of $48.1 million, or 11% of TTM total revenue

MINNEAPOLIS, Aug. 04, 2022 (GLOBE NEWSWIRE) -- Jamf (NASDAQ: JAMF), the standard in Apple Enterprise Management, today announced financial results for its second quarter ended June 30, 2022.

“Our strong performance in the second quarter is another testament to the resiliency and diversity of Jamf’s business model,” said Dean Hager, CEO of Jamf. “Increasing demand for Jamf’s broad line of security solutions combined with a strengthening replacement market for core management solutions show that Jamf’s unique approach to support and extend Apple innovations the same day they are made available is proving to be more valuable than ever to existing and new customers.”

Second Quarter 2022 Financial Highlights

  • ARR: ARR increase of 40% year-over-year to $466.0 million as of June 30, 2022.

  • Revenue: Total revenue of $115.6 million, an increase of 34% year-over-year.

  • Gross Profit: GAAP gross profit of $86.2 million, or 75% of total revenue, compared to $66.9 million in the second quarter of 2021. Non-GAAP gross profit of $93.9 million, or 81% of total revenue, compared to $70.2 million in the second quarter of 2021.

  • Operating Loss/Income: GAAP operating loss of $61.8 million, or (53)% of total revenue, compared to $16.1 million in the second quarter of 2021. Non-GAAP operating income of $4.5 million, or 4% of total revenue, compared to $7.7 million in the second quarter of 2021.

  • Cash Flow: Cash flow provided by operations of $43.5 million for the TTM ended June 30, 2022, or 10% of TTM total revenue, compared to $81.3 million for the TTM ended June 30, 2021. Unlevered free cash flow of $48.1 million for the TTM ended June 30, 2022, or 11% of TTM total revenue, compared to $81.2 million for the TTM ended June 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.

Jamf Appoints Ian Goodkind as CFO and Announces Retirement of Current CFO Jill Putman

Jamf today also announced the appointment of Ian Goodkind as Chief Financial Officer to succeed current CFO Jill Putman, effective September 1, 2022.

Mr. Goodkind, who currently serves as Jamf’s CAO, has been with the company since 2019, leading the financial accounting, internal audit, tax and treasury functions. Mr. Goodkind has been instrumental in scaling the company for growth and building out Jamf’s public company infrastructure, along with playing a pivotal role in recent Jamf acquisitions.

Ms. Putman is retiring from her role as CFO and is expected to continue with the company in a non-executive capacity through March 2023, to ensure a successful transition.

Recent Business Highlights

  • Ended the second quarter serving more than 67,000 customers with more than 28.4 million devices on our platform.

  • Released Jamf Trust application to power workflows associated with Jamf’s security platform of products across iOS, iPadOS, macOS, Android and Windows devices.

  • Launched Jamf Safe Internet, a comprehensive content filtering solution optimized for education that is integrated with Jamf’s management and security platform, to deliver a safe online experience to students while offering effortless management for admins.

  • Recognized as a leader in the IDC MarketScape: Worldwide Unified Endpoint Management Software for Apple Devices 2022 Vendor Assessment.

  • Achieved both ISO 27001 and ISO 27701 certifications, signifying implementation of industry best practices for handling and securing customer personal data.

  • Hosted four Jamf Nation Live events across Western Europe, bringing together Jamf customers and prospects to discover new and better ways to manage and secure Apple devices to empower people, transform business processes and make IT life easier.

Financial Outlook

For the third quarter of 2022, Jamf currently expects:

  • Total revenue of $121.5 to $122.5 million

  • Non-GAAP operating income of $4 to $5 million

For the full year 2022, Jamf currently expects:

  • Total revenue of $475 to $477 million

  • Non-GAAP operating income of $21 to $23 million

To assist with modeling, for the third quarter of 2022 and full year 2022, amortization is expected to be approximately $12.3 million and $47.9 million, respectively. In addition, for the third quarter of 2022 and full year 2022, stock-based compensation and related payroll taxes is expected to be approximately $23.2 million and $116.9 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 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 August 4, 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 or by clicking here.

A replay of the call will be available on the Investor Relations website beginning on August 4, 2022, at approximately 7:00 p.m. ET.

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. Jamf strongly encourages investors to review its consolidated financial statements included in 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 Wandera); 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, the standard in Apple Enterprise Management, extends the legendary Apple experience people love to businesses, schools and government organizations through its software and the world’s largest online community of IT admins focused exclusively on Apple, Jamf Nation. To learn more, visit: www.jamf.com.

Investor Contact
Jennifer Gaumond
ir@jamf.com

Media Contact
Rachel Nauen
media@jamf.com

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

 

June 30,
2022

 

December 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

182,349

 

 

$

177,150

 

Trade accounts receivable, net of allowances of $479 and $391

 

96,450

 

 

 

79,143

 

Income taxes receivable

 

450

 

 

 

608

 

Deferred contract costs

 

15,460

 

 

 

12,904

 

Prepaid expenses

 

17,513

 

 

 

17,581

 

Other current assets

 

4,953

 

 

 

4,212

 

Total current assets

 

317,175

 

 

 

291,598

 

Equipment and leasehold improvements, net

 

17,334

 

 

 

18,045

 

Goodwill

 

823,671

 

 

 

845,734

 

Other intangible assets, net

 

233,557

 

 

 

264,593

 

Deferred contract costs, non-current

 

34,823

 

 

 

29,842

 

Other assets

 

39,530

 

 

 

30,608

 

Total assets

$

1,466,090

 

 

$

1,480,420

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

9,506

 

 

$

9,306

 

Accrued liabilities

 

50,761

 

 

 

54,022

 

Income taxes payable

 

203

 

 

 

167

 

Deferred revenues

 

249,374

 

 

 

223,031

 

Total current liabilities

 

309,844

 

 

 

286,526

 

Deferred revenues, non-current

 

67,578

 

 

 

59,097

 

Deferred tax liability, net

 

7,596

 

 

 

8,700

 

Convertible senior notes, net

 

363,265

 

 

 

362,031

 

Other liabilities

 

23,861

 

 

 

25,640

 

Total liabilities

 

772,144

 

 

 

741,994

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

120

 

 

 

119

 

Additional paid-in capital

 

987,576

 

 

 

913,581

 

Accumulated other comprehensive loss

 

(37,574

)

 

 

(7,866

)

Accumulated deficit

 

(256,176

)

 

 

(167,408

)

Total stockholders’ equity

 

693,946

 

 

 

738,426

 

Total liabilities and stockholders’ equity

$

1,466,090

 

 

$

1,480,420

 

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

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

Subscription

$

109,407

 

 

$

80,718

 

 

$

211,608

 

 

$

155,200

 

Services

 

5,027

 

 

 

3,929

 

 

 

8,971

 

 

 

7,932

 

License

 

1,204

 

 

 

1,591

 

 

 

3,317

 

 

 

3,833

 

Total revenue

 

115,638

 

 

 

86,238

 

 

 

223,896

 

 

 

166,965

 

Cost of revenue:

 

 

 

 

 

 

 

Cost of subscription(1)(2)(3)(4)(exclusive of amortization expense shown below)

 

20,634

 

 

 

13,875

 

 

 

40,536

 

 

 

25,889

 

Cost of services(1)(2)(3)(exclusive of amortization expense shown below)

 

3,493

 

 

 

2,607

 

 

 

6,600

 

 

 

5,072

 

Amortization expense

 

5,265

 

 

 

2,860

 

 

 

10,483

 

 

 

5,637

 

Total cost of revenue

 

29,392

 

 

 

19,342

 

 

 

57,619

 

 

 

36,598

 

Gross profit

 

86,246

 

 

 

66,896

 

 

 

166,277

 

 

 

130,367

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing(1)(2)(3)(4)

 

58,750

 

 

 

32,617

 

 

 

105,075

 

 

 

62,784

 

Research and development(1)(2)(3)(4)

 

33,983

 

 

 

17,203

 

 

 

58,785

 

 

 

32,829

 

General and administrative(1)(2)(3)(4)

 

48,321

 

 

 

27,508

 

 

 

73,933

 

 

 

43,752

 

Amortization expense

 

7,034

 

 

 

5,623

 

 

 

14,063

 

 

 

11,250

 

Total operating expenses

 

148,088

 

 

 

82,951

 

 

 

251,856

 

 

 

150,615

 

Loss from operations

 

(61,842

)

 

 

(16,055

)

 

 

(85,579

)

 

 

(20,248

)

Interest expense, net

 

(641

)

 

 

(167

)

 

 

(1,500

)

 

 

(222

)

Foreign currency transaction loss

 

(676

)

 

 

(308

)

 

 

(1,457

)

 

 

(526

)

Loss before income tax benefit (provision)

 

(63,159

)

 

 

(16,530

)

 

 

(88,536

)

 

 

(20,996

)

Income tax benefit (provision)

 

20

 

 

 

63

 

 

 

(232

)

 

 

(60

)

Net loss

$

(63,139

)

 

$

(16,467

)

 

$

(88,768

)

 

$

(21,056

)

Net loss per share, basic and diluted

$

(0.53

)

 

$

(0.14

)

 

$

(0.74

)

 

$

(0.18

)

Weighted‑average shares used to compute net loss per share, basic and diluted

 

119,941,482

 

 

 

117,909,720

 

 

 

119,768,871

 

 

 

117,649,467

 

(1) Includes stock-based compensation as follows:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

Cost of revenue:

 

 

 

 

 

 

 

Subscription

$

2,061

 

$

344

 

$

4,016

 

$

668

Services

 

313

 

 

75

 

 

617

 

 

152

Sales and marketing

 

13,811

 

 

1,088

 

 

19,670

 

 

1,930

Research and development

 

10,631

 

 

1,153

 

 

14,490

 

 

1,931

General and administrative

 

26,208

 

 

1,446

 

 

30,241

 

 

2,257

 

$

53,024

 

$

4,106

 

$

69,034

 

$

6,938

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

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

Cost of revenue:

 

 

 

 

 

 

 

Subscription

$

24

 

$

 

$

24

 

$

Services

 

1

 

 

 

 

1

 

 

Sales and marketing

 

65

 

 

59

 

 

77

 

 

146

Research and development

 

77

 

 

24

 

 

104

 

 

117

General and administrative

 

86

 

 

138

 

 

183

 

 

353

$

253

 

$

221

 

$

389

 

$

616

(3) Includes depreciation expense as follows:

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

Cost of revenue:

 

 

 

 

 

 

Subscription

$

286

 

$

249

 

$

606

 

$

512

Services

 

41

 

 

38

 

 

86

 

 

81

Sales and marketing

 

633

 

 

524

 

 

1,317

 

 

1,098

Research and development

 

397

 

 

277

 

 

756

 

 

582

General and administrative

 

235

 

 

183

 

 

473

 

 

378

$

1,592

 

$

1,271

 

$

3,238

 

$

2,651

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

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

Cost of revenue:

 

 

 

 

 

 

 

Subscription

$

23

 

$

 

$

61

 

$

Sales and marketing

 

 

 

 

 

7

 

 

Research and development

 

283

 

 

41

 

 

546

 

 

41

General and administrative

 

242

 

 

2,174

 

 

1,035

 

 

2,284

 

$

548

 

$

2,215

 

$

1,649

 

$

2,325

General and administrative also includes acquisition-related earnout of $0.1 million and $3.9 million for the three months ended June 30, 2022 and 2021, respectively, and $0.2 million and $4.2 million for the six months ended June 30, 2022 and 2021, respectively. The acquisition-related earnout was an expense for both the three and six months ended June 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 three and six months ended June 30, 2021.

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

Six Months Ended June 30,

 

2022

 

 

 

2021

 

Cash flows from operating activities

 

Net loss

$

(88,768

)

 

$

(21,056

)

Adjustments to reconcile net loss to cash provided by operating activities:

 

 

 

Depreciation and amortization expense

 

27,784

 

 

 

19,538

 

Amortization of deferred contract costs

 

7,859

 

 

 

5,861

 

Amortization of debt issuance costs

 

1,358

 

 

 

249

 

Non-cash lease expense

 

2,943

 

 

 

2,398

 

Provision for credit losses and returns

 

274

 

 

 

(41

)

Share‑based compensation

 

69,034

 

 

 

6,938

 

Deferred tax benefit

 

(1,199

)

 

 

(669

)

Adjustment to contingent consideration

 

188

 

 

 

4,237

 

Other

 

1,438

 

 

 

454

 

Changes in operating assets and liabilities:

 

 

 

Trade accounts receivable

 

(17,870

)

 

 

2,249

 

Income tax receivable/payable

 

165

 

 

 

(238

)

Prepaid expenses and other assets

 

(3,851

)

 

 

(2,986

)

Deferred contract costs

 

(15,438

)

 

 

(11,848

)

Accounts payable

 

292

 

 

 

2,284

 

Accrued liabilities

 

(3,100

)

 

 

(1,889

)

Deferred revenue

 

35,233

 

 

 

32,627

 

Other liabilities

 

 

 

 

(86

)

Net cash provided by operating activities

 

16,342

 

 

 

38,022

 

Cash flows from investing activities

 

 

 

Acquisitions, net of cash acquired

 

(4,023

)

 

 

(3,041

)

Purchases of equipment and leasehold improvements

 

(2,876

)

 

 

(5,211

)

Other

 

(79

)

 

 

22

 

Net cash used in investing activities

 

(6,978

)

 

 

(8,230

)

Cash flows from financing activities

 

 

 

Debt issuance costs

 

(50

)

 

 

(530

)

Cash paid for offering costs

 

(80

)

 

 

(243

)

Cash paid for contingent consideration

 

(4,588

)

 

 

(4,206

)

Payment of acquisition-related holdback

 

(200

)

 

 

 

Proceeds from the exercise of stock options

 

1,543

 

 

 

7,063

 

Net cash (used in) provided by financing activities

 

(3,375

)

 

 

2,084

 

Effect of exchange rate changes on cash and cash equivalents

 

(790

)

 

 

(259

)

Net increase in cash and cash equivalents

 

5,199

 

 

 

31,617

 

Cash and cash equivalents, beginning of period

 

177,150

 

 

 

194,868

 

Cash and cash equivalents, end of period

$

182,349

 

 

$

226,485

 

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

SaaS subscription and support and maintenance

$

104,291

 

$

72,121

 

$

200,641

 

$

138,897

On‑premise subscription

 

5,116

 

 

8,597

 

 

10,967

 

 

16,303

Subscription revenue

 

109,407

 

 

80,718

 

 

211,608

 

 

155,200

Professional services

 

5,027

 

 

3,929

 

 

8,971

 

 

7,932

Perpetual licenses

 

1,204

 

 

1,591

 

 

3,317

 

 

3,833

Non‑subscription revenue

 

6,231

 

 

5,520

 

 

12,288

 

 

11,765

Total revenue

$

115,638

 

$

86,238

 

$

223,896

 

$

166,965

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

 

June 30,
2022

 

March 31,
2022

 

December 31,
2021

 

September 30,
2021

 

June 30,
2021

 

March 31,
2021

 

 

 

 

 

 

 

 

 

 

 

 

ARR

$

466.0

 

 

$

436.5

 

 

$

412.5

 

 

$

384.8

 

 

$

333.0

 

 

$

308.0

 

 

 

 

 

 

 

 

 

 

 

 

 

ARR from management solutions as a percent of total ARR

 

82

%

 

 

83

%

 

 

84

%

 

 

84

%

 

 

91

%

 

 

93

%

 

 

 

 

 

 

 

 

 

 

 

 

ARR from security solutions as a percent of total ARR

 

18

%

 

 

17

%

 

 

16

%

 

 

16

%

 

 

9

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

ARR from commercial customers as a percent of total ARR

 

71

%

 

 

70

%

 

 

69

%

 

 

68

%

 

 

64

%

 

 

63

%

 

 

 

 

 

 

 

 

 

 

 

 

ARR from education customers as a percent of total ARR

 

29

%

 

 

30

%

 

 

31

%

 

 

32

%

 

 

36

%

 

 

37

%

 

 

 

 

 

 

 

 

 

 

 

 

Dollar-based net retention rate(1)

 

117

%

 

 

120

%

 

 

120

%

 

 

119

%

 

 

119

%

 

 

117

%

 

 

 

 

 

 

 

 

 

 

 

 

Devices(2)

 

28.4

 

 

 

26.8

 

 

 

26.1

 

 

 

25.0

 

 

 

23.2

 

 

 

21.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Customers

 

67,000

 

 

 

62,000

 

 

 

60,000

 

 

 

57,000

 

 

 

53,000

 

 

 

50,000

 

(1) The dollar-based net retention rate for the TTM ended June 30, 2022 includes 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.

(2) Previously reported devices for March 31, 2022 and Dec. 31, 2021 have been updated to reflect an immaterial adjustment.

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating expenses

$

148,088

 

 

$

82,951

 

 

$

251,856

 

 

$

150,615

 

Amortization expense

 

(7,034

)

 

 

(5,623

)

 

 

(14,063

)

 

 

(11,250

)

Stock-based compensation

 

(50,650

)

 

 

(3,687

)

 

 

(64,401

)

 

 

(6,118

)

Acquisition-related expense

 

(525

)

 

 

(2,215

)

 

 

(1,588

)

 

 

(2,325

)

Acquisition-related earnout

 

(100

)

 

 

(3,937

)

 

 

(188

)

 

 

(4,237

)

Offering costs

 

(124

)

 

 

(594

)

 

 

(124

)

 

 

(594

)

Payroll taxes related to stock-based compensation

 

(228

)

 

 

(221

)

 

 

(364

)

 

 

(616

)

Legal reserve

 

 

 

 

(4,200

)

 

 

 

 

 

(4,200

)

Non-GAAP operating expenses

$

89,427

 

 

$

62,474

 

 

$

171,128

 

 

$

121,275

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Gross profit

$

86,246

 

 

$

66,896

 

 

$

166,277

 

 

$

130,367

 

Amortization expense

 

5,265

 

 

 

2,860

 

 

 

10,483

 

 

 

5,637

 

Stock-based compensation

 

2,374

 

 

 

419

 

 

 

4,633

 

 

 

820

 

Acquisition-related expense

 

23

 

 

 

 

 

 

61

 

 

 

 

Payroll taxes related to stock-based compensation

 

25

 

 

 

 

 

 

25

 

 

 

 

Non-GAAP gross profit

$

93,933

 

 

$

70,175

 

 

$

181,479

 

 

$

136,824

 

Gross profit margin

 

75

%

 

 

78

%

 

 

74

%

 

 

78

%

Non-GAAP gross profit margin

 

81

%

 

 

81

%

 

 

81

%

 

 

82

%

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Operating loss

$

(61,842

)

 

$

(16,055

)

 

$

(85,579

)

 

$

(20,248

)

Amortization expense

 

12,299

 

 

 

8,483

 

 

 

24,546

 

 

 

16,887

 

Stock-based compensation

 

53,024

 

 

 

4,106

 

 

 

69,034

 

 

 

6,938

 

Acquisition-related expense

 

548

 

 

 

2,215

 

 

 

1,649

 

 

 

2,325

 

Acquisition-related earnout

 

100

 

 

 

3,937

 

 

 

188

 

 

 

4,237

 

Offering costs

 

124

 

 

 

594

 

 

 

124

 

 

 

594

 

Payroll taxes related to stock-based compensation

 

253

 

 

 

221

 

 

 

389

 

 

 

616

 

Legal reserve

 

 

 

 

4,200

 

 

 

 

 

 

4,200

 

Non-GAAP operating income

$

4,506

 

 

$

7,701

 

 

$

10,351

 

 

$

15,549

 

Operating loss margin

(53)%

 

(19)%

 

(38)%

 

(12)%

Non-GAAP operating income margin

 

4

%

 

 

9

%

 

 

5

%

 

 

9

%


Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

$

(63,139

)

 

$

(16,467

)

 

$

(88,768

)

 

$

(21,056

)

Exclude: Income tax benefit (provision)

 

20

 

 

 

63

 

 

 

(232

)

 

 

(60

)

Loss before income tax benefit (provision)

 

(63,159

)

 

 

(16,530

)

 

 

(88,536

)

 

 

(20,996

)

Amortization expense

 

12,299

 

 

 

8,483

 

 

 

24,546

 

 

 

16,887

 

Stock-based compensation

 

53,024

 

 

 

4,106

 

 

 

69,034

 

 

 

6,938

 

Foreign currency transaction loss

 

676

 

 

 

308

 

 

 

1,457

 

 

 

526

 

Amortization of debt issuance costs

 

679

 

 

 

 

 

 

1,358

 

 

 

 

Acquisition-related expense

 

548

 

 

 

2,215

 

 

 

1,649

 

 

 

2,325

 

Acquisition-related earnout

 

100

 

 

 

3,937

 

 

 

188

 

 

 

4,237

 

Offering costs

 

124

 

 

 

594

 

 

 

124

 

 

 

594

 

Payroll taxes related to stock-based compensation

 

253

 

 

 

221

 

 

 

389

 

 

 

616

 

Legal reserve

 

 

 

 

4,200

 

 

 

 

 

 

4,200

 

Non-GAAP income before income taxes

 

4,544

 

 

 

7,534

 

 

 

10,209

 

 

 

15,327

 

Non-GAAP provision for income taxes(1)

 

(1,090

)

 

 

(1,808

)

 

 

(2,450

)

 

 

(3,678

)

Non-GAAP net income

$

3,454

 

 

$

5,726

 

 

$

7,759

 

 

$

11,649

 

Net loss per share:

 

 

 

 

 

 

 

Basic

$

(0.53

)

 

$

(0.14

)

 

$

(0.74

)

 

$

(0.18

)

Diluted

$

(0.53

)

 

$

(0.14

)

 

$

(0.74

)

 

$

(0.18

)

Weighted‑average shares used in computing net loss per share:

 

 

 

 

 

 

 

Basic

 

119,941,482

 

 

 

117,909,720

 

 

 

119,768,871

 

 

 

117,649,467

 

Diluted

 

119,941,482

 

 

 

117,909,720

 

 

 

119,768,871

 

 

 

117,649,467

 

Non-GAAP net income per share:

 

 

 

 

 

 

 

Basic

$

0.03

 

 

$

0.05

 

 

$

0.06

 

 

$

0.10

 

Diluted

$

0.03

 

 

$

0.05

 

 

$

0.06

 

 

$

0.10

 

Weighted-average shares used in computing non-GAAP net income per share:

 

 

 

 

 

 

 

Basic

 

119,941,482

 

 

 

117,909,720

 

 

 

119,768,871

 

 

 

117,649,467

 

Diluted

 

129,189,399

 

 

 

120,521,776

 

 

 

129,436,956

 

 

 

120,499,563

 

(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.

 

Six Months Ended June 30,

 

Years Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Net cash provided by operating activities

$

16,342

 

 

$

38,022

 

 

$

9,515

 

 

$

65,165

 

 

$

52,801

 

Less:

 

 

 

 

 

 

 

 

 

Purchases of equipment and leasehold improvements

 

(2,876

)

 

 

(5,211

)

 

 

(1,366

)

 

 

(9,755

)

 

 

(4,368

)

Free cash flow

 

13,466

 

 

 

32,811

 

 

 

8,149

 

 

 

55,410

 

 

 

48,433

 

Add:

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

371

 

 

 

6

 

 

 

9,262

 

 

 

967

 

 

 

12,649

 

Cash paid for acquisition-related expense

 

1,720

 

 

 

1,094

 

 

 

1,600

 

 

 

5,039

 

 

 

5,200

 

Cash paid for legal settlement

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

Unlevered free cash flow

$

15,557

 

 

$

33,911

 

 

$

19,011

 

 

$

66,416

 

 

$

66,282

 

Total revenue

$

223,896

 

 

$

166,965

 

 

$

122,317

 

 

$

366,388

 

 

$

269,132

 

Net cash provided by operating activities as a percentage of total revenue

 

7

%

 

 

23

%

 

 

8

%

 

 

18

%

 

 

20

%

Free cash flow margin

 

6

%

 

 

20

%

 

 

7

%

 

 

15

%

 

 

18

%

Unlevered free cash flow margin

 

7

%

 

 

20

%

 

 

16

%

 

 

18

%

 

 

25

%


 

Trailing Twelve Months Ended
June 30,

 

 

2022

 

 

 

2021

 

Net cash provided by operating activities

$

43,485

 

 

$

81,308

 

Less:

 

 

 

Purchases of equipment and leasehold improvements

 

(7,420

)

 

 

(8,213

)

Free cash flow

 

36,065

 

 

 

73,095

 

Add:

 

 

 

Cash paid for interest

 

1,332

 

 

 

3,393

 

Cash paid for acquisition-related expense

 

5,665

 

 

 

4,694

 

Cash paid for legal settlement

 

5,000

 

 

 

 

Unlevered free cash flow

$

48,062

 

 

$

81,182

 

Total revenue

$

423,319

 

 

$

313,780

 

Net cash provided by operating activities as a percentage of total revenue

 

10

%

 

 

26

%

Free cash flow margin

 

9

%

 

 

23

%

Unlevered free cash flow margin

 

11

%

 

 

26

%