UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 28, 2023
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
(612 ) 605-6625
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Item 2.02. Results of Operations and Financial Condition.
On February 28, 2023, Jamf Holding Corp. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2022. In the press release, the Company also announced that it will hold a conference call on February 28, 2023 to discuss its financial results for the quarter and year ended December 31, 2022. The full text of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description of Exhibit | ||||
| 99.1 | |||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| JAMF HOLDING CORP. | ||||||||
Date: February 28, 2023 | By: | /s/ Jeff Lendino | ||||||
| Name: | Jeff Lendino | |||||||
| Title: | Chief Legal Officer | |||||||
Exhibit 99.1
Jamf Announces Fourth Quarter and Fiscal Year 2022 Financial Results
•Q4 total revenue year-over-year growth of 26% to $130.3 million; fiscal year total revenue growth of 31% to $478.8 million
•ARR year-over-year growth of 24% to $512.5 million as of December 31, 2022
•Cash flow provided by operations of $90.0 million for the fiscal year ended December 31, 2022, or 19% of total revenue; unlevered free cash flow of $87.5 million, or 18% of total revenue
MINNEAPOLIS – February 28, 2023 – Jamf (NASDAQ: JAMF), the standard in managing and securing Apple at work, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.
“The fourth quarter capped off a year of milestones for Jamf, one of which was exceeding expectations for the eleventh consecutive quarter with year-over-year revenue growth of 26%, resulting in 2022 total revenue growth of 31%. This is a testament to Jamf’s strong underlying business fundamentals and exceptional execution by our team,” said Dean Hager, CEO of Jamf. “As we continue to navigate a challenging economic environment, we will remain prudent with our investments to ensure financial flexibility while preparing to meet future demand as macroeconomic conditions ease.”
Fourth Quarter 2022 Financial Highlights
•ARR: ARR of $512.5 million as of December 31, 2022, an increase of 24% year-over-year.
•Revenue: Total revenue of $130.3 million, an increase of 26% year-over-year.
•Gross Profit: GAAP gross profit of $99.9 million, or 77% of total revenue, compared to $76.5 million in the fourth quarter of 2021. Non-GAAP gross profit of $107.0 million, or 82% of total revenue, compared to $83.4 million in the fourth quarter of 2021.
•Operating Loss/Income: GAAP operating loss of $24.7 million, or (19)% of total revenue, compared to $26.1 million in the fourth quarter of 2021. Non-GAAP operating income of $8.7 million, or 7% of total revenue, compared to $2.9 million in the fourth quarter of 2021.
Fiscal Year 2022 Financial Highlights
•Revenue: Total revenue of $478.8 million, an increase of 31% year-over-year.
•Gross Profit: GAAP gross profit of $359.5 million, or 75% of total revenue, compared to $276.0 million in fiscal year 2021. Non-GAAP gross profit of $390.0 million, or 81% of total revenue, compared to $296.6 million in fiscal year 2021.
•Operating Loss/Income: GAAP operating loss of $138.9 million, or (29)% of total revenue, compared to GAAP operating loss of $76.2 million in fiscal year 2021. Non-GAAP operating income of $25.9 million, or 5% of total revenue, compared to $20.5 million for fiscal year 2021.
•Cash Flow: Cash flow provided by operations of $90.0 million for fiscal year 2022, or 19% of total revenue, compared to $65.2 million for fiscal year 2021. Unlevered free cash flow of $87.5 million for fiscal year 2022, or 18% of total revenue, compared to $66.4 million for fiscal year 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.
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Recent Business Highlights
•Ended the fourth quarter serving more than 71,000 customers with 30.0 million total devices on our platform.
•Achieved the largest year-over-year Mac device growth in Jamf’s history, adding over one million Mac under management in 2022.
•Completed the 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.
•Announced a new ZTNA integration with Amazon Web Services, AWS Verified Access, allowing shared AWS and Jamf customers to verify that their devices are managed and meet an acceptable risk threshold before providing access to sensitive or critical internal services.
•Released the latest version of Jamf’s ZTNA integration with Microsoft, Device Compliance, for macOS and iOS.
•Launched Jamf Safe Internet for Chromebook, helping students safely learn online from anywhere, whether they are using Apple devices or Chromebooks. Jamf Safe Internet for Chromebook is the latest in security innovations brought to market by the Jamf-Google partnership.
•Enhanced Jamf Protect to address requirements outlined in the new “Executive Order 14028, Improving the Nation’s Cybersecurity,” making Jamf Protect a more powerful macOS security solution for organizations with high compliance requirements, such as government agencies.
•Jamf Threat Labs, Jamf’s team of experienced threat researchers, cybersecurity experts, and data scientists, identified and reported on a highly sophisticated malware that had been operating undetected by security applications, showcasing Jamf’s continued commitment to delivering a top-of-market secure experience to customers.
•Recognized by G2 in their 2023 Top Global Software Companies and 2023 Top IT Management Software lists.
Financial Outlook
For the first quarter of 2023, Jamf currently expects:
•Total revenue of $128.5 to $130.5 million
•Non-GAAP operating income of $3.0 to $4.0 million
For the full year 2023, Jamf currently expects:
•Total revenue of $559.0 to $563.0 million
•Non-GAAP operating income of $37.5 to $40.5 million
To assist with modeling, for the first quarter of 2023 and full year 2023, amortization is expected to be approximately $10.6 million and $42.2 million, respectively. In addition, for the first quarter of 2023 and full year 2023, stock-based compensation and related payroll taxes are expected to be approximately $21.3 million and $101.6 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.
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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 February 28, 2023.
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 February 28, 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 loss, payroll taxes related to stock-based compensation, legal settlement, 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, 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
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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 Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022. Additional information will also be set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, 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
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Jamf Holding Corp.
Consolidated Balance Sheets
(in thousands)
(unaudited)
| December 31, 2022 | December 31, 2021 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 224,338 | $ | 177,150 | |||||||
Trade accounts receivable, net of allowances of $445 and $391 | 88,163 | 79,143 | |||||||||
| Income taxes receivable | 465 | 608 | |||||||||
| Deferred contract costs | 17,652 | 12,904 | |||||||||
| Prepaid expenses | 14,331 | 17,581 | |||||||||
| Other current assets | 6,097 | 4,212 | |||||||||
| Total current assets | 351,046 | 291,598 | |||||||||
| Equipment and leasehold improvements, net | 19,421 | 18,045 | |||||||||
| Goodwill | 856,925 | 845,734 | |||||||||
| Other intangible assets, net | 218,744 | 264,593 | |||||||||
| Deferred contract costs, non-current | 39,643 | 29,842 | |||||||||
| Other assets | 43,763 | 30,608 | |||||||||
| Total assets | $ | 1,529,542 | $ | 1,480,420 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 15,393 | $ | 9,306 | |||||||
| Accrued liabilities | 67,051 | 54,022 | |||||||||
| Income taxes payable | 486 | 167 | |||||||||
| Deferred revenues | 278,038 | 223,031 | |||||||||
| Total current liabilities | 360,968 | 286,526 | |||||||||
| Deferred revenues, non-current | 68,112 | 59,097 | |||||||||
| Deferred tax liability, net | 5,505 | 8,700 | |||||||||
| Convertible senior notes, net | 364,505 | 362,031 | |||||||||
| Other liabilities | 29,114 | 25,640 | |||||||||
| Total liabilities | 828,204 | 741,994 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
| Preferred stock | — | — | |||||||||
| Common stock | 123 | 119 | |||||||||
| Additional paid-in capital | 1,049,875 | 913,581 | |||||||||
| Accumulated other comprehensive loss | (39,951) | (7,866) | |||||||||
| Accumulated deficit | (308,709) | (167,408) | |||||||||
| Total stockholders’ equity | 701,338 | 738,426 | |||||||||
| Total liabilities and stockholders’ equity | $ | 1,529,542 | $ | 1,480,420 | |||||||
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Jamf Holding Corp.
Consolidated Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||
| Subscription | $ | 124,875 | $ | 98,343 | $ | 455,007 | $ | 344,243 | |||||||||||||||
| Services | 4,838 | 4,107 | 19,025 | 16,122 | |||||||||||||||||||
| License | 610 | 1,352 | 4,744 | 6,023 | |||||||||||||||||||
| Total revenue | 130,323 | 103,802 | 478,776 | 366,388 | |||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
Cost of subscription(1)(2)(3)(4) (exclusive of amortization expense shown below) | 22,609 | 19,235 | 85,479 | 63,441 | |||||||||||||||||||
Cost of services(1)(2)(3) (exclusive of amortization expense shown below) | 3,632 | 2,871 | 13,816 | 10,898 | |||||||||||||||||||
| Amortization expense | 4,172 | 5,183 | 19,932 | 16,018 | |||||||||||||||||||
| Total cost of revenue | 30,413 | 27,289 | 119,227 | 90,357 | |||||||||||||||||||
| Gross profit | 99,910 | 76,513 | 359,549 | 276,031 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
Sales and marketing(1)(2)(3)(4) | 58,557 | 44,552 | 217,728 | 148,192 | |||||||||||||||||||
Research and development(1)(2)(3)(4) | 30,322 | 24,104 | 119,906 | 82,541 | |||||||||||||||||||
General and administrative(1)(2)(3)(4) | 28,568 | 26,918 | 132,562 | 96,206 | |||||||||||||||||||
| Amortization expense | 7,124 | 7,019 | 28,227 | 25,294 | |||||||||||||||||||
| Total operating expenses | 124,571 | 102,593 | 498,423 | 352,233 | |||||||||||||||||||
| Loss from operations | (24,661) | (26,080) | (138,874) | (76,202) | |||||||||||||||||||
| Interest income (expense), net | 917 | (870) | (538) | (2,478) | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | (449) | |||||||||||||||||||
| Foreign currency transaction gain (loss) | 1,279 | (54) | (2,802) | (849) | |||||||||||||||||||
| Loss before income tax benefit | (22,465) | (27,004) | (142,214) | (79,978) | |||||||||||||||||||
| Income tax benefit | 1,234 | 3,254 | 913 | 4,789 | |||||||||||||||||||
| Net loss | $ | (21,231) | $ | (23,750) | $ | (141,301) | $ | (75,189) | |||||||||||||||
| Net loss per share, basic and diluted | $ | (0.17) | $ | (0.20) | $ | (1.17) | $ | (0.64) | |||||||||||||||
| Weighted‑average shares used to compute net loss per share, basic and diluted | 122,300,221 | 119,145,856 | 120,720,972 | 118,276,462 | |||||||||||||||||||
(1) Includes stock-based compensation as follows:
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription | $ | 2,359 | $ | 1,371 | $ | 8,854 | $ | 3,755 | |||||||||||||||
| Services | 338 | 213 | 1,299 | 594 | |||||||||||||||||||
| Sales and marketing | 6,934 | 4,175 | 33,559 | 10,938 | |||||||||||||||||||
| Research and development | 4,772 | 3,436 | 24,392 | 10,512 | |||||||||||||||||||
| General and administrative | 5,243 | 3,836 | 41,066 | 10,006 | |||||||||||||||||||
| $ | 19,646 | $ | 13,031 | $ | 109,170 | $ | 35,805 | ||||||||||||||||
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(2) Includes payroll taxes related to stock-based compensation as follows:
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription | $ | 160 | $ | 10 | $ | 293 | $ | 122 | |||||||||||||||
| Services | 30 | 2 | 54 | 24 | |||||||||||||||||||
| Sales and marketing | 367 | 15 | 810 | 431 | |||||||||||||||||||
| Research and development | 183 | 44 | 429 | 335 | |||||||||||||||||||
| General and administrative | 153 | 114 | 428 | 615 | |||||||||||||||||||
| $ | 893 | $ | 185 | $ | 2,014 | $ | 1,527 | ||||||||||||||||
(3) Includes depreciation expense as follows:
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription | $ | 310 | $ | 320 | $ | 1,201 | $ | 1,134 | |||||||||||||||
| Services | 44 | 45 | 170 | 169 | |||||||||||||||||||
| Sales and marketing | 739 | 636 | 2,725 | 2,342 | |||||||||||||||||||
| Research and development | 445 | 354 | 1,610 | 1,277 | |||||||||||||||||||
| General and administrative | 258 | 263 | 965 | 835 | |||||||||||||||||||
| $ | 1,796 | $ | 1,618 | $ | 6,671 | $ | 5,757 | ||||||||||||||||
(4) Includes acquisition-related expense as follows:
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
| Cost of revenue: | |||||||||||||||||||||||
| Subscription | $ | — | $ | 71 | $ | 61 | $ | 88 | |||||||||||||||
| Sales and marketing | — | 146 | 7 | 180 | |||||||||||||||||||
| Research and development | 120 | 498 | 912 | 1,088 | |||||||||||||||||||
| General and administrative | 1,092 | 889 | 3,663 | 5,032 | |||||||||||||||||||
| $ | 1,212 | $ | 1,604 | $ | 4,643 | $ | 6,388 | ||||||||||||||||
General and administrative also includes acquisition-related earnout of $0.3 million and $1.2 million for the three months ended December 31, 2022 and 2021, respectively, and $0.7 million and $6.0 million for the years ended December 31, 2022 and 2021, respectively. The acquisition-related earnout was an expense for the years ended December 31, 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 the full settlement of a $5.0 million legal-related matter for the year ended December 31, 2021.
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Jamf Holding Corp.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Years Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Operating activities | |||||||||||
| Net loss | $ | (141,301) | $ | (75,189) | |||||||
| Adjustments to reconcile net loss to cash provided by operating activities: | |||||||||||
| Depreciation and amortization expense | 54,830 | 47,069 | |||||||||
| Amortization of deferred contract costs | 16,563 | 12,534 | |||||||||
| Amortization of debt issuance costs | 2,722 | 1,251 | |||||||||
| Non-cash lease expense | 5,869 | 4,994 | |||||||||
| Provision for credit losses and returns | 328 | 37 | |||||||||
| Loss on extinguishment of debt | — | 449 | |||||||||
| Share‑based compensation | 109,170 | 35,805 | |||||||||
| Deferred tax benefit | (2,955) | (5,644) | |||||||||
| Adjustment to contingent consideration | 694 | 6,037 | |||||||||
| Other | 3,333 | 1,419 | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Trade accounts receivable | (9,487) | (6,521) | |||||||||
| Income tax receivable/payable | 266 | (611) | |||||||||
| Prepaid expenses and other assets | 1,773 | (9,265) | |||||||||
| Deferred contract costs | (31,134) | (24,795) | |||||||||
| Accounts payable | 5,891 | 2,069 | |||||||||
| Accrued liabilities | 10,017 | 4,345 | |||||||||
| Deferred revenue | 63,426 | 71,216 | |||||||||
| Other liabilities | — | (35) | |||||||||
| Net cash provided by operating activities | 90,005 | 65,165 | |||||||||
| Investing activities | |||||||||||
| Acquisitions, net of cash acquired | (23,816) | (352,711) | |||||||||
| Payment of deferred consideration | — | (25,000) | |||||||||
| Purchases of equipment and leasehold improvements | (7,727) | (9,755) | |||||||||
| Purchase of investments | (3,100) | — | |||||||||
| Other | (139) | 48 | |||||||||
| Net cash used in investing activities | (34,782) | (387,418) | |||||||||
| 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) | (13,134) | |||||||||
| Cash paid for offering costs | (104) | (543) | |||||||||
| Cash paid for contingent consideration | (4,588) | (4,206) | |||||||||
| Payment of deferred consideration | — | (25,000) | |||||||||
| Payment of acquisition-related holdback | (200) | — | |||||||||
| Proceeds from the exercise of stock options | 5,203 | 10,691 | |||||||||
| Net cash provided by financing activities | 261 | 305,528 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (713) | (993) | |||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 54,771 | (17,718) | |||||||||
| Cash, cash equivalents, and restricted cash, beginning of period | 177,150 | 194,868 | |||||||||
| Cash, cash equivalents, and restricted cash, end of period | $ | 231,921 | $ | 177,150 | |||||||
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Jamf Holding Corp.
Consolidated Statements of Cash Flows (continued)
(in thousands)
(unaudited)
| Years Ended December 31, | |||||||||||
| 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 | $ | 224,338 | $ | 177,150 | |||||||
| Restricted cash included in other current assets | 383 | — | |||||||||
| Restricted cash included in other assets | 7,200 | — | |||||||||
| Total cash, cash equivalents, and restricted cash | $ | 231,921 | $ | 177,150 | |||||||
9
Jamf Holding Corp.
Supplemental Financial Information
Disaggregated Revenues
(in thousands)
(unaudited)
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| SaaS subscription and support and maintenance | $ | 117,621 | $ | 91,278 | $ | 430,613 | $ | 313,950 | |||||||||||||||
| On‑premise subscription | 7,254 | 7,065 | 24,394 | 30,293 | |||||||||||||||||||
| Subscription revenue | 124,875 | 98,343 | 455,007 | 344,243 | |||||||||||||||||||
| Professional services | 4,838 | 4,107 | 19,025 | 16,122 | |||||||||||||||||||
| Perpetual licenses | 610 | 1,352 | 4,744 | 6,023 | |||||||||||||||||||
| Non‑subscription revenue | 5,448 | 5,459 | 23,769 | 22,145 | |||||||||||||||||||
| Total revenue | $ | 130,323 | $ | 103,802 | $ | 478,776 | $ | 366,388 | |||||||||||||||
10
Jamf Holding Corp.
Supplemental Information
Key Business Metrics
(in millions, except number of customers and percentages)
(unaudited)
| December 31, 2022 | September 30, 2022 | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
| ARR | $ | 512.5 | $ | 490.5 | $ | 466.0 | $ | 436.5 | $ | 412.5 | $ | 384.8 | $ | 333.0 | $ | 308.0 | ||||||||||||||||||||||||||||||||||
| ARR from management solutions as a percent of total ARR | 80 | % | 82 | % | 82 | % | 83 | % | 84 | % | 84 | % | 91 | % | 93 | % | ||||||||||||||||||||||||||||||||||
| ARR from security solutions as a percent of total ARR | 20 | % | 18 | % | 18 | % | 17 | % | 16 | % | 16 | % | 9 | % | 7 | % | ||||||||||||||||||||||||||||||||||
| ARR from commercial customers as a percent of total ARR | 72 | % | 71 | % | 71 | % | 70 | % | 69 | % | 68 | % | 64 | % | 63 | % | ||||||||||||||||||||||||||||||||||
| ARR from education customers as a percent of total ARR | 28 | % | 29 | % | 29 | % | 30 | % | 31 | % | 32 | % | 36 | % | 37 | % | ||||||||||||||||||||||||||||||||||
Dollar-based net retention rate (1) | 113 | % | 115 | % | 117 | % | 120 | % | 120 | % | 119 | % | 119 | % | 117 | % | ||||||||||||||||||||||||||||||||||
| Devices | 30.0 | 29.3 | 28.4 | 26.8 | 26.1 | 25.0 | 23.2 | 21.8 | ||||||||||||||||||||||||||||||||||||||||||
| Customers | 71,000 | 69,000 | 67,000 | 62,000 | 60,000 | 57,000 | 53,000 | 50,000 | ||||||||||||||||||||||||||||||||||||||||||
(1) 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.
11
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 December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Operating expenses | $ | 124,571 | $ | 102,593 | $ | 498,423 | $ | 352,233 | |||||||||||||||
| Amortization expense | (7,124) | (7,019) | (28,227) | (25,294) | |||||||||||||||||||
| Stock-based compensation | (16,949) | (11,447) | (99,017) | (31,456) | |||||||||||||||||||
| Acquisition-related expense | (1,212) | (1,533) | (4,582) | (6,300) | |||||||||||||||||||
| Acquisition-related earnout | (306) | (1,200) | (694) | (6,037) | |||||||||||||||||||
| Offering costs | — | — | (124) | (594) | |||||||||||||||||||
| Payroll taxes related to stock-based compensation | (703) | (173) | (1,667) | (1,381) | |||||||||||||||||||
| Legal settlement | — | (800) | — | (5,000) | |||||||||||||||||||
| Non-GAAP operating expenses | $ | 98,277 | $ | 80,421 | $ | 364,112 | $ | 276,171 | |||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Gross profit | $ | 99,910 | $ | 76,513 | $ | 359,549 | $ | 276,031 | |||||||||||||||
| Amortization expense | 4,172 | 5,183 | 19,932 | 16,018 | |||||||||||||||||||
| Stock-based compensation | 2,697 | 1,584 | 10,153 | 4,349 | |||||||||||||||||||
| Acquisition-related expense | — | 71 | 61 | 88 | |||||||||||||||||||
| Payroll taxes related to stock-based compensation | 190 | 12 | 347 | 146 | |||||||||||||||||||
| Non-GAAP gross profit | $ | 106,969 | $ | 83,363 | $ | 390,042 | $ | 296,632 | |||||||||||||||
| Gross profit margin | 77% | 74% | 75% | 75% | |||||||||||||||||||
| Non-GAAP gross profit margin | 82% | 80% | 81% | 81% | |||||||||||||||||||
| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Operating loss | $ | (24,661) | $ | (26,080) | $ | (138,874) | $ | (76,202) | |||||||||||||||
| Amortization expense | 11,296 | 12,202 | 48,159 | 41,312 | |||||||||||||||||||
| Stock-based compensation | 19,646 | 13,031 | 109,170 | 35,805 | |||||||||||||||||||
| Acquisition-related expense | 1,212 | 1,604 | 4,643 | 6,388 | |||||||||||||||||||
| Acquisition-related earnout | 306 | 1,200 | 694 | 6,037 | |||||||||||||||||||
| Offering costs | — | — | 124 | 594 | |||||||||||||||||||
| Payroll taxes related to stock-based compensation | 893 | 185 | 2,014 | 1,527 | |||||||||||||||||||
| Legal settlement | — | 800 | — | 5,000 | |||||||||||||||||||
| Non-GAAP operating income | $ | 8,692 | $ | 2,942 | $ | 25,930 | $ | 20,461 | |||||||||||||||
| Operating loss margin | (19)% | (25)% | (29)% | (21)% | |||||||||||||||||||
| Non-GAAP operating income margin | 7% | 3% | 5% | 6% | |||||||||||||||||||
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| Three Months Ended December 31, | Years Ended December 31, | ||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
| Net loss | $ | (21,231) | $ | (23,750) | $ | (141,301) | $ | (75,189) | |||||||||||||||
| Exclude: income tax benefit | 1,234 | 3,254 | 913 | 4,789 | |||||||||||||||||||
| Loss before income tax benefit | (22,465) | (27,004) | (142,214) | (79,978) | |||||||||||||||||||
| Amortization expense | 11,296 | 12,202 | 48,159 | 41,312 | |||||||||||||||||||
| Stock-based compensation | 19,646 | 13,031 | 109,170 | 35,805 | |||||||||||||||||||
| Foreign currency transaction (gain) loss | (1,279) | 54 | 2,802 | 849 | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 449 | |||||||||||||||||||
| Amortization of debt issuance costs | 682 | 678 | 2,722 | 1,002 | |||||||||||||||||||
| Acquisition-related expense | 1,212 | 1,604 | 4,643 | 6,388 | |||||||||||||||||||
| Acquisition-related earnout | 306 | 1,200 | 694 | 6,037 | |||||||||||||||||||
| Offering costs | — | — | 124 | 594 | |||||||||||||||||||
| Payroll taxes related to stock-based compensation | 893 | 185 | 2,014 | 1,527 | |||||||||||||||||||
| Legal settlement | — | 800 | — | 5,000 | |||||||||||||||||||
| Non-GAAP income before income taxes | 10,291 | 2,750 | 28,114 | 18,985 | |||||||||||||||||||
Non-GAAP provision for income taxes (1) | (2,469) | (660) | (6,747) | (4,556) | |||||||||||||||||||
| Non-GAAP net income | $ | 7,822 | $ | 2,090 | $ | 21,367 | $ | 14,429 | |||||||||||||||
| Net loss per share: | |||||||||||||||||||||||
| Basic | $ | (0.17) | $ | (0.20) | $ | (1.17) | $ | (0.64) | |||||||||||||||
| Diluted | $ | (0.17) | $ | (0.20) | $ | (1.17) | $ | (0.64) | |||||||||||||||
| Weighted‑average shares used in computing net loss per share: | |||||||||||||||||||||||
| Basic | 122,300,221 | 119,145,856 | 120,720,972 | 118,276,462 | |||||||||||||||||||
| Diluted | 122,300,221 | 119,145,856 | 120,720,972 | 118,276,462 | |||||||||||||||||||
| Non-GAAP net income per share: | |||||||||||||||||||||||
| Basic | $ | 0.06 | $ | 0.02 | $ | 0.18 | $ | 0.12 | |||||||||||||||
| Diluted | $ | 0.06 | $ | 0.02 | $ | 0.16 | $ | 0.12 | |||||||||||||||
| Weighted-average shares used in computing non-GAAP net income per share: | |||||||||||||||||||||||
| Basic | 122,300,221 | 119,145,856 | 120,720,972 | 118,276,462 | |||||||||||||||||||
| Diluted | 133,027,869 | 129,512,412 | 130,965,684 | 123,105,959 | |||||||||||||||||||
(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.
13
| Years Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Net cash provided by operating activities | $ | 90,005 | $ | 65,165 | |||||||
| Less: | |||||||||||
| Purchases of equipment and leasehold improvements | (7,727) | (9,755) | |||||||||
| Free cash flow | 82,278 | 55,410 | |||||||||
| Add: | |||||||||||
| Cash paid for interest | 763 | 967 | |||||||||
| Cash paid for acquisition-related expense | 4,480 | 5,039 | |||||||||
| Cash paid for legal settlement | — | 5,000 | |||||||||
| Unlevered free cash flow | $ | 87,521 | $ | 66,416 | |||||||
| Total revenue | $ | 478,776 | $ | 366,388 | |||||||
| Net cash provided by operating activities as a percentage of total revenue | 19% | 18% | |||||||||
| Free cash flow margin | 17% | 15% | |||||||||
| Unlevered free cash flow margin | 18% | 18% | |||||||||
14