Summary
Jamf reported fiscal 2021 second quarter revenue of $86.2 million, up 38.5% from $62.3 million in the prior-year quarter. Subscription revenue accounted for 94% of the total in both periods. Gross profit rose 37.5% to $66.9 million. Deferred revenue stood at $238.5 million, up 51.6% from a year earlier, and remaining performance obligations were $270.6 million. Management credited the top-line gain to device expansion, new customer additions and cross-selling into the installed base.
Profitability went the other way. The quarter produced a GAAP operating loss of $16.1 million, compared with operating income of $3.7 million a year earlier, and the operating margin fell to -18.6% from 6.0%. Net loss widened to $16.5 million from $0.8 million, and diluted EPS came in at -$0.14 versus -$0.01. Gross margin slipped to 77.6% from 78.1%. The swing came from operating expenses, which grew far faster than revenue. General and administrative expense carried a $4.2 million legal reserve and a $7.6 million increase in acquisition-related earnout. Sales and marketing rose 57% and research and development 44%, both driven by headcount growth. On a non-GAAP basis, operating income was $7.7 million, down from $10.8 million, and non-GAAP gross profit was $70.2 million, or 81% of revenue.
Cash generation was the bright spot. Operating cash flow was $34.0 million for the quarter, up from $16.9 million a year earlier, while capital expenditures were $1.9 million against $0.3 million. Unlevered free cash flow, a non-GAAP measure, was $33.1 million, or 38% of total revenue, compared with $21.0 million, or 34%, in the prior-year quarter. Year to date, operating cash flow reached $38.0 million versus $9.5 million. Cash and cash equivalents totaled $226.5 million at June 30, 2021.
Operating metrics held up. ARR was $333.0 million as of June 30, 2021, up 38% year over year. Devices on the platform reached 23.2 million, up 35%, and the customer count passed 53,000, with roughly 3,000 added during the quarter. Dollar-based net retention was 119% for the trailing twelve months, up from 117%.
Guidance points to more growth but thin non-GAAP profitability. For the third quarter of fiscal 2021, Jamf expects non-GAAP operating income of $0.5 million to $1.5 million, including an anticipated Wandera non-GAAP operating loss of about $5 million. For the full fiscal year 2021, the company guides to non-GAAP operating income of $18 million to $20 million, including a Wandera non-GAAP operating loss of about $10.5 million. Both the third quarter and full year revenue outlooks include an anticipated Wandera contribution. Management said the Wandera purchase price allocation is preliminary and subject to change.
Two items deserve attention. Jamf closed the Wandera acquisition on July 1, 2021 for total consideration of $409.2 million, funded with cash on hand and a $250.0 million term loan facility, which adds integration work and debt service. The company also disclosed an immaterial error tied to commissions that were incorrectly capitalized instead of expensed, and it will revise prior-period financial statements for fiscal years 2018, 2019 and 2020, quarters of 2019 and 2020, and the first quarter of 2021. Management estimates the adjustment at roughly 1% or less of total GAAP expenses in any affected period and says it has no impact on key business metrics. Because the error surfaced late, the second quarter figures are preliminary and subject to the completion of the audit process.
One more disclosure matters for the reporting burden ahead. On June 30, 2021, the market value of common stock held by non-affiliates exceeded $700.0 million, so Jamf will be a large accelerated filer as of December 31, 2021 and will no longer qualify as an emerging growth company or use the extended transition period for new accounting standards. Management also said the pandemic has not had an adverse effect on the business to date, while flagging continued uncertainty around variants such as the Delta variant.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2021 | Q1 FY2021 | QoQ | Q2 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $86.2M | $81.2M | +6.2% | $62.2M | +38.6% |
| Gross profit | $66.9M | $63.9M | +4.7% | $48.6M | +37.7% |
| Gross margin | 77.6% | 78.7% | -1.2 pp | 78.1% | -0.5 pp |
| Research & development | $17.2M | $15.6M | +10.1% | $11.9M | +44.2% |
| Sales & marketing | $32.6M | $29.3M | +11.2% | $20.2M | +61.5% |
| General & administrative | $27.5M | $16.1M | +70.8% | $6.6M | +316.6% |
| Total operating expenses | $83.0M | $66.7M | +24.4% | $44.4M | +87.0% |
| Operating income (loss) | -$16.1M | -$2.8M | -477.9% | $4.2M | -480.8% |
| Operating margin | -18.6% | -3.4% | -15.2 pp | 6.8% | -25.4 pp |
| Net income (loss) | -$16.5M | -$3.1M | -436.6% | -$423.0K | -3792.9% |
| Net margin | -19.1% | -3.8% | -15.3 pp | -0.7% | -18.4 pp |
| Diluted EPS | -$0.14 | — | — | — | — |
| Customers | 53,000 | 50,000 | +6.0% | — | — |
| Net retention rate | 119.0% | 117.0% | +2.0 pp | 117.0% | +2.0 pp |
Risks
Jamf completed its acquisition of Wandera on July 1, 2021, and the filing details integration risks including difficulties combining personnel, operations, technologies and systems, potential loss of Wandera key employees, challenges selling Wandera products through Jamf's channel, and increased exposure to foreign operations. Failure to realize expected synergies could materially and adversely affect results.
The company funded $250.0 million of the $409.2 million Wandera consideration with a New Term Loan Facility maturing May 4, 2022, materially increasing leverage and debt service requirements versus limited prior indebtedness. The filing notes this could make Jamf more vulnerable to adverse economic and competitive conditions and limit flexibility and access to additional borrowing.
Jamf identified a material weakness in internal control over financial reporting tied to commissions that were incorrectly capitalized rather than expensed, understating sales and marketing expenses and overstating deferred contract costs. This resulted in the revision of previously issued consolidated financial statements for the years ended December 31, 2020, 2019 and 2018 and for each quarter in 2020 and 2019 and the quarter ended March 31, 2021, and remediation is not yet complete.
Because the market value of common stock held by non-affiliates exceeded $700.0 million as of June 30, 2021, Jamf will be deemed a large accelerated filer as of December 31, 2021 and will lose emerging growth company status. Its independent registered public accounting firm will then be required to attest to internal control effectiveness under Section 404 of SOX and may issue an adverse opinion if the existing material weakness is not remediated and tested.
General and administrative expenses for the three and six months ended June 30, 2021 included a $4.2 million legal reserve, contributing to the $21.0 million increase in general and administrative expenses for the quarter. The filing does not quantify the underlying matter, leaving potential for further legal costs.
The MD&A states that a continued and prolonged public health crisis such as the COVID-19 pandemic, including uncertainty around variants such as the Delta variant, could have a material negative impact on Jamf's business, operating results and financial condition, even though the company has not suffered an adverse effect to date.
SaaS KPIs
All quarters →ARR
Non-GAAP Gross Profit Margin
Non-GAAP Operating Income
Non-GAAP Operating Income Margin
Unlevered Free Cash Flow Margin
Unlevered Free Cash Flow
Total Customers
Number of Devices
Summary, forecast, risks and KPIs are extracted from Jamf Holding Corp.'s SEC filings for Q2 FY2021 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.