News Release Details

Jamf Announces Second Quarter 2020 Financial Results

Sep 1, 2020
  • Q2 total revenue grew 29% year-over-year to $62.2 million
  • Recurring revenue grew 42% year-over-year to $58.7 million
  • ARR grew 36% year-over-year to $241 million

MINNEAPOLIS, Sept. 01, 2020 (GLOBE NEWSWIRE) -- Jamf (NASDAQ: JAMF), the standard in Apple Enterprise Management, today announced financial results for its second quarter ended June 30, 2020.

Financial Highlights for the Second Quarter 2020:

  • ARR: ARR increased 36% year-over-year to $241 million as of June 30, 2020.
  • Revenue: Total revenue was $62.2 million, an increase of 29% year-over-year. Recurring revenue was $58.7 million, an increase of 42% year-over-year.
  • Gross Profit: GAAP gross profit was $48.6 million, or 78% of total revenue, compared to $34.8 million, or 72% of total revenue, in the second quarter of 2019. Non-GAAP gross profit was $51.3 million, or 82% of total revenue, compared to $37.4 million, or 77% of total revenue, in the second quarter of 2019. 
  • Operating Loss/Income: GAAP operating income was $4.2 million, or 6.8% of total revenue, compared to GAAP operating loss of $4.4 million in the second quarter of 2019. Non-GAAP operating income was $11.2 million, or 18.0% of total revenue, compared to $4.4 million in the second quarter of 2019, or 9.0% of total revenue.
  • Cash Flow: Cash flow provided by operations was $16.8 million, compared to negative $1.9 million used in the second quarter of 2019. Unlevered free cash flow was $21.0 million, or 33.8% of total revenue, compared to $1.8 million in the second quarter of 2019, or 3.8% of total revenue.

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 reconciliations of these non-GAAP financial measures.

“We delivered strong second quarter results driven by the essential role we play in deploying, managing and securing Apple in the enterprise, education and healthcare,” said Dean Hager, CEO of Jamf. “We experienced strength across our key metrics, including ARR which grew 36% year-over-year, and which we believe provides the best representation of the underlying growth of our business. The extraordinary challenges resulting from COVID-19 have accelerated remote work, distance learning and telehealth trends, and have continued demand for our platform which enables businesses, hospitals and schools to connect, manage and protect their Apple devices remotely. We are excited about the multiple growth drivers for the business and the large and growing market opportunity ahead of us. We look forward to continuing to help organizations successfully deploy Apple devices seamlessly and securely across their organizations.”

Recent Business Highlights:

  • Completed its initial public offering and began trading on Nasdaq on July 22, 2020. Net proceeds from the IPO were approximately $319 million, after underwriting discounts and estimated offering expenses. On July 27th, we paid down debt and related interest and penalties of approximately $210.4 million.
  • Grew the number of devices running Jamf to 17.2 million in the second quarter, representing 19% growth over the same period last year.
  • Introduced macOS malware prevention and unified log forwarding to help organizations keep users, devices and company data secure and compliant. These new capabilities added to Jamf Protect give enterprise security teams extended visibility into their macOS fleet and the ability to prevent, respond and block identified threats. 
  • Introduced Virtual Visits, a new, patent pending telehealth workflow to protect healthcare providers while still enabling quality care and providing connectivity to patients. With Virtual Visits powered by Jamf, healthcare organizations can configure and instantly deploy third-party conferencing platforms like Cisco Webex, Zoom and Microsoft Teams to iPad or iPhone. Providers are able to easily virtually round to their patients, and patients can simply connect with loved ones outside the hospital - without IT ever having to touch the device.
  • Announced Learn Anywhere, a complete Apple education solution for schools, teachers and students looking to communicate, use engaging resources and assess learning objectives from any environment.

Financial Outlook:

For the third quarter of 2020, the company currently expects:

  • Total revenue of $65 to $66 million
  • Non-GAAP operating income of $5 to $7 million

For the full year 2020, the company currently expects:

  • Total revenue of $255 to $257 million
  • Non-GAAP operating income of $20 to $23 million

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 September 1, 2020. The news release with the financial results will be accessible from the company’s website prior to the conference call.  Parties in the United States and Canada can access the call by dialing +1 (833) 519-1319, and international parties can access the call by dialing +1 (914) 800-3885.

The webcast will be accessible on Jamf’s investor relations website at A telephonic replay of the conference call will be available through Tuesday, September 8, 2020. To access the replay, parties should dial (855) 859-2056, or (404) 537-3406 and enter the passcode 9599614#.

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, Non‑GAAP Operating Income 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, depreciation and amortization expense, acquisition-related expenses, acquisition‑related earnout, foreign currency transaction loss and discrete tax items. 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. 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 is not providing a quantitative reconciliation of forward-looking guidance of non-GAAP operating income to its most directly comparable GAAP measure 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. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. Accordingly, a reconciliation for forward-looking non-GAAP operating income is not available without unreasonable effort. However, for the third quarter of 2020 and full year 2020 amortization is expected to be $8.3 million and $33.3 million, respectively. In addition, for the third quarter of 2020 and full year 2020 stock-based compensation is expected to be $2.3 million and $6.7 million, respectively.

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. 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: the impact on our operations and financial condition from the effects of the current 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; risks associated with cyber-security events; the impact of reputational harm if users perceive our products as the cause of device failure; 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 meet service-level commitments under our subscription agreements; 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 AWS; 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 potential acquisitions and divestitures, including, but not limited to, disruptions to ongoing operations; diversions of management from day-to-day responsibilities; adverse impacts on our financial condition; failure of an acquired business to further our strategy; uncertainty of synergies; personnel issues; resulting lawsuits and issues unidentified in diligence processes; 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; the impact of real or perceived errors, failures or bugs in our products; the impact of interruptions or performance problems associated with our technology or infrastructure; our ability to attract and retain highly qualified personnel; risks associated with competitive challenges faced by our customers; the impact of statutory and regulatory determinations on our offerings to governmental entities; 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 impact of any catastrophic events; and, risks associated with our financial results or difficulty in predicting our financial results due to our revenue recognition. Given these factors, as well as other variables that may affect Jamf’s 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 on the related teleconference call relate only to events as of the date hereof. Jamf undertakes 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 that users have come to expect to businesses, hospitals, schools and government agencies through its software and the world’s largest online community of IT administrators exclusively focused on Apple, Jamf Nation.

Investor Contact:
Lisa Laukkanen & Lana Adair

Media Contact:
Rachel Nauen

Jamf Holding Corp.
Consolidated Balance Sheets
(In thousands, except share and per share data)
    June 30, December 31,
     2020   2019 
Assets  (unaudited)  
Current assets:    
 Cash and cash equivalents $38,424  $32,433 
 Trade accounts receivable, net  53,275   46,513 
 Income taxes receivable  554   14 
 Deferred contract costs  7,270   5,553 
 Prepaid expenses  10,880   10,935 
 Other current assets  6,314   3,133 
  Total current assets  116,717   98,581 
Equipment and leasehold improvements, net  11,494   12,477 
Goodwill   539,818   539,818 
Other intangible assets, net  218,430   235,099 
Deferred contract costs  20,334   16,234 
Other assets  2,557   2,599 
  Total assets $909,350  $904,808 
Liabilities and stockholders' equity        
Current liabilities:        
 Accounts payable $3,909  $3,684 
 Accrued liabilities  26,099   26,927 
 Income taxes payable  1,081   819 
 Deferred revenues  130,309   120,089 
  Total current liabilities  161,398   151,519 
Deferred revenues, noncurrent  27,429   20,621 
Deferred tax liability  14,913   18,133 
Debt   201,891   201,319 
Other liabilities  6,876   9,338 
  Total liabilities  412,507   400,930 
Commitments and contingencies    
Stockholders' equity:    
 Common stock, $0.001 par value, 132,000,000 shares authorized, 102,862,404 and    
 102,843,612 shares issued and outstanding at June 30, 2020 and December 31, 2019,    
 respectively  103   103 
 Additional paid-in capital  570,434   568,756 
 Accumulated deficit  (73,694)  (64,981)
  Total stockholders' equity  496,843   503,878 
  Total liabilities and stockholders' equity $909,350  $904,808 

Jamf Holding Corp.
Consolidated Statements of Operations
(In thousands, except share and per share data)
    Three Months Ended June 30, Six Months Ended June 30,
     2020   2019   2020   2019 
 Subscription $52,978  $37,216  $103,056  $70,956 
 Services  2,451   4,794   6,461   9,295 
  6,802   6,300   13,104   12,187 
  Total revenue  62,231   48,310   122,621   92,438 
Cost of revenue:                
 Cost of subscription (exclusive of amortization shown below)  8,762   7,423   18,010   14,380 
 Cost of services (exclusive of amortization shown below)  2,207   3,549   5,293   7,192 
 Amortization expense  2,678   2,513   5,355   4,954 
  Total cost of revenue  13,647   13,485   28,658   26,526 
  Gross profit  48,584   34,825   93,963   65,912 
Operating expenses:                
 Sales and marketing  20,202   16,612   42,484   31,888 
 Research and development  11,929   9,491   24,546   18,534 
 General and administrative  6,603   7,534   17,892   14,797 
 Amortization expense  5,634   5,626   11,308   11,259 
  Total operating expenses  44,368   39,263   96,230   76,478 
  Income (loss) from operations  4,216   (4,438)  (2,267)  (10,566)
Interest expense, net  (4,690)  (5,481)  (9,468)  (10,952)
Foreign currency transaction loss  (13)  (197)  (317)  (450)
Other income, net  36   55   91   110 
  Loss before income tax benefit  (451)  (10,061)  (11,961)  (21,858)
Income tax benefit  28   2,390   3,248   5,177 
  Net loss $(423) $(7,671) $(8,713) $(16,681)
Net loss per share, basic and diluted $(0.00) $(0.07) $(0.08) $(0.16)
Weighted-average shares used to compute net loss per share, basic and diluted 102,862,404   102,709,405   102,861,475   102,694,756 
(1) Includes stock-based compensation as follows:        
    Three Months Ended June 30, Six Months Ended June 30,
     2020   2019   2020   2019 
Cost of revenue:        
Subscription $38  $55  $76  $118 
Services  -   -   -   - 
Sales and marketing  111   143   222   236 
Research and development  141   95   298   185 
General and administrative  474   356   979   679 
    $764  $649  $1,575  $1,218 

Jamf Holding Corp.
Consolidated Statements of Cash Flows
(In thousands)
      Six Months Ended June 30,
       2020   2019 
Cash provided by (used in) operating activities:        
 Net loss
 $(8,713) $(16,681)
 Adjustments to reconcile net loss to cash        
   provided by (used in) operating activities:        
  Depreciation and amortization expense  19,002   18,085 
  Amortization of deferred contract costs  4,218   2,795 
  Amortization of debt issuance costs  571   571 
  Provision for bad debt expense and returns  812   - 
  Loss (gain) on disposal of equipment and leasehold        
   improvements  12   (7)
  Share-based compensation  1,575   1,218 
  Deferred taxes  (3,217)  (5,407)
  Adjustment to contingent consideration  (3,700)  - 
  Changes in operating assets and liabilities:        
   Trade accounts receivable  (7,374)  (10,637)
   Income tax receivable/payable  (278)  (226)
   Prepaid expenses and other assets  429   (2,663)
   Deferred contract costs  (10,035)  (8,701)
   Accounts payable  258   (1,437)
   Accrued liabilities  (2,371)  (828)
   Deferred revenues  17,028   14,207 
   Other liabilities  1,240   (8)
    Net cash provided by (used in) operating activities  9,457   (9,719)
Cash used in investing activities:        
 Acquisition, net of cash acquired  -   (35,306)
 Purchases of equipment and leasehold improvements  (1,366)  (3,319)
    Net cash used in investing activities  (1,366)  (38,625)
Cash used in financing activities:        
 Proceeds from credit agreements  -   40,000 
 Debt issuance costs  -   (1,550)
 Cash paid for offering costs  (2,203)  - 
 Proceeds from the exercise of stock options  103   656 
    Net cash used in financing activities  (2,100)  39,106 
    Net increase (decrease) in cash  5,991   (9,238)
Cash, beginning of period  32,433   39,240 
Cash, end of period $38,424  $30,002 

Jamf Holding Corp. 
Supplemental Financial Information 
Disaggregated Revenues 
(In thousands) 
  Three Months Ended June 30, Six Months Ended June 30, 
   2020  2019  2020  2019 
SaaS subscription and support and maintenance $52,978 $37,216 $103,056 $70,956 
On-premise subscription  5,770  4,048  10,310  7,089 
Recurring revenue  58,748  41,264  113,366  78,045 
Perpetual licenses  1,032  2,252  2,794  5,098 
Professional services  2,451  4,794  6,461  9,295 
Non-recurring revenue  3,483  7,046  9,255  14,393 
Total revenue $62,231 $48,310 $122,621 $92,438 


Jamf Holding Corp.
Supplemental Financial Information
Reconciliation of GAAP to non-GAAP Financial Data
(In thousands)
 Three months ended June 30,  Six months ended June 30,
  2020   2019   2020   2019 
Operating expenses$44,368  $39,263  $96,230  $76,478 
Amortization expense (5,634)  (5,626)  (11,308)  (11,259)
Stock-based compensation (726)  (594)  (1,499)  (1,100)
Acquisition-related expense (1,636)  -   (3,236)  (904)
Acquisition-related earnout 3,700   -   3,700   - 
Non-GAAP Operating Expenses$40,072  $33,043  $83,887  $63,215 
 Three months ended June 30,  Six months ended June 30,
  2020   2019   2020   2019 
Gross profit$48,584  $34,825  $93,963  $65,912 
Amortization expense 2,678   2,513   5,355   4,954 
Stock-based compensation 38   55   76   118 
Non-GAAP Gross Profit$51,300  $37,393  $99,394  $70,984 
Non-GAAP Gross Profit Margin 82%  77%  81%  77%
 Three months ended June 30, Six months ended June 30,
  2020   2019   2020   2019 
Operating income (loss)$4,216  $(4,438) $(2,267) $(10,566)
Stock-based compensation 764   649   1,575   1,218 
Acquisition-related expense 1,636   -   3,236   904 
Amortization expense 8,312   8,139   16,663   16,213 
Acquisition-related earnout (3,700)  -   (3,700)  - 
Non-GAAP Operating Income$11,228  $4,350  $15,507  $7,769 
Non-GAAP Operating Income Margin 18%  9%  13%  8%
 Three Months Ended June 30, Six Months Ended June 30,
  2020   2019   2020   2019 
Net loss$(423) $(7,671) $(8,713) $(16,681)
Stock-based compensation 764   649   1,575   1,218 
Acquisition-related expense 1,636   -   3,236   904 
Amortization expense 8,312   8,139   16,663   16,213 
Acquisition-related earnout (3,700)  -   (3,700)  - 
Foreign currency transaction loss 13   197   317   450 
Discrete tax items 108   5   (210)  24 
Benefit for income taxes (1) (1,716)  (2,195)  (4,420)  (4,589)
Non-GAAP Net Income (Loss)$4,994  $(876) $4,748  $(2,461)
Net loss per share:       
Basic$(0.00) $(0.07) $(0.08) $(0.16)
Diluted$(0.00) $(0.07) $(0.08) $(0.16)
Weighted-average shares used in computing net loss per share:       
Basic 102,862,404   102,709,405   102,861,475   102,694,756 
Diluted 102,862,404   102,709,405   102,861,475   102,694,756 
Non-GAAP Net Income (Loss) per Share:       
Basic$0.05  $(0.01) $0.05  $(0.02)
Diluted$0.05  $(0.01) $0.05  $(0.02)
Weighted-average shares used in computing Non-GAAP Net Income (Loss) per Share:       
Basic 102,862,404   102,709,405   102,861,475   102,694,756 
Diluted 105,348,252   102,709,405   105,326,099   102,694,756 
(1) The related tax effects of the adjustments to Non-GAAP Net Income (Loss) were calculated using the respective statutory tax rates for applicable jurisdictions, which is not materially different from our annual effective tax rate of approximately 25%.
 Three months ended June 30, Six months ended June 30,
  2020   2019   2020   2019 
Net cash provided by (used in) operating activities$16,812  $(1,860) $9,457  $(9,719)
Cash paid for interest 4,528   5,499   9,262   10,568 
Cash paid for acquisition-related expense -   -   1,600   904 
Purchases of equipment and leasehold improvements (327)  (1,815)  (1,366)  (3,319)
Unlevered free cash flow$21,013  $1,824  $18,953  $(1,566)
Unlevered free cash flow margin 34%  4%  15%  -2%