Jamf Holding Corp (JAMF) Reports Steady Growth in Q3 2023 Financial Results
Annual Recurring Revenue (ARR) and total revenue both grew by 15% year-over-year.
GAAP gross profit increased to $110.4 million, while non-GAAP operating income rose to $12.4 million.
Unlevered free cash flow reached $60.6 million, marking 11% of TTM total revenue.
Company projects continued growth with Q4 revenue expected between $148.0 to $149.0 million.
On November 8, 2023, Jamf Holding Corp (NASDAQ:JAMF), a leader in Apple enterprise management, announced its financial results for the third quarter ended September 30, 2023. The company reported a solid performance with a 15% year-over-year growth in both total revenue, reaching $142.6 million, and Annual Recurring Revenue (ARR), which climbed to $566.3 million.
Financial Performance Overview
Jamf's third-quarter financials reflect a consistent upward trajectory in key areas. The GAAP gross profit stood at $110.4 million, or 77% of total revenue, an improvement from $93.4 million in the same quarter of the previous year. Non-GAAP gross profit was also strong at $117.0 million, or 82% of total revenue. Operating income on a non-GAAP basis increased to $12.4 million, or 9% of total revenue, up from $6.9 million in Q3 2022.
Despite these gains, the company reported a GAAP operating loss of $31.9 million, which is slightly higher than the $28.6 million loss from the third quarter of the previous year. Cash flow from operations was reported at $47.2 million for the trailing twelve months (TTM) ended September 30, 2023, representing 9% of TTM total revenue. Unlevered free cash flow was also notable at $60.6 million, or 11% of TTM total revenue.
Operational Highlights and Future Outlook
Jamf ended the quarter serving over 74,400 customers with 31.8 million devices on its platform. The company also reported a 31% year-over-year growth in security ARR, which now stands at $119.9 million, accounting for 21% of the total ARR. These achievements underscore Jamf's commitment to innovation and customer focus, as well as the growing adoption of Apple in the enterprise sector.
Looking ahead, Jamf provided guidance for the fourth quarter of 2023, with total revenue expected to be between $148.0 to $149.0 million and non-GAAP operating income anticipated to be between $19.5 to $20.5 million. For the full year 2023, the company expects total revenue to be between $557.9 to $558.9 million and non-GAAP operating income to range from $43.8 to $44.8 million.
Balance Sheet and Cash Flow Statements
The balance sheet as of September 30, 2023, shows that Jamf has $227.6 million in cash and cash equivalents. Total assets amounted to $1.55 billion, while total liabilities stood at $852.6 million, resulting in total stockholders' equity of $699.4 million.
The consolidated statements of cash flows highlight the company's ability to generate cash from its operations, which is critical for sustaining growth and pursuing strategic initiatives. The cash flow statement, along with the balance sheet, provides a snapshot of the company's financial health and liquidity.
Conclusion
Jamf Holding Corp (NASDAQ:JAMF) continues to demonstrate a strong financial performance with consistent growth in revenue and ARR. The company's focus on innovation and customer satisfaction, coupled with the increasing adoption of Apple in the enterprise, positions it well for future growth. Investors and stakeholders can look forward to Jamf's sustained momentum as it navigates the dynamic tech landscape.
For a more detailed analysis of Jamf Holding Corp (NASDAQ:JAMF)'s financial results, including reconciliations of GAAP to non-GAAP measures, please visit Jamf's Investor Relations website.
Explore the complete 8-K earnings release (here) from Jamf Holding Corp for further details.
This article first appeared on GuruFocus.
