Summary
Jamf reported fiscal 2023 second quarter revenue of $135.09 million, up 16.8% from $115.64 million in the prior-year quarter. Year-to-date revenue was $267.30 million, up 19.4% from $223.90 million. Subscription revenue drove the increase, while perpetual license revenue declined as customers moved to on-premise subscriptions. ARR rose 18% year over year to $547.8 million as of June 30, 2023. Security ARR grew 37% to $114.6 million, which was 21% of total ARR. The company served more than 73,500 customers with 31.3 million devices on its platform at quarter end, up from 28.4 million devices a year earlier.
Gross profit was $104.21 million, up 20.8%, and gross margin rose to 77.1% from 74.6%, a gain of 2.6 percentage points. For the six months, gross profit was $206.67 million, up 24.3%, and gross margin was 77.3% versus 74.3%. The GAAP operating loss narrowed to $37.62 million from $61.84 million, an improvement of 39.2%. Operating margin went from negative 53.5% to negative 27.8%, up 25.6 percentage points. Net loss narrowed 42.7% to $36.20 million from $63.14 million. Diluted loss per share was $0.29, compared with $0.53 in the prior-year quarter. For the six months, the operating loss narrowed to $63.11 million from $85.58 million and the net loss narrowed to $60.40 million from $88.77 million. Diluted loss per share for the six months was $0.49, compared with $0.74. Lower stock-based compensation and related payroll taxes, following the modification of return target options in the second quarter of 2022, helped hold down operating expenses. Non-GAAP operating income was $5.8 million, or 4% of revenue.
Cash generation weakened. Operating cash flow for the quarter was $11.57 million, down 40.2% from $19.33 million a year earlier. For the six months ended June 30, 2023, operating cash flow was negative $13.23 million, compared with positive $16.34 million in the prior-year period, a decline of 181.0%. Capital expenditures were $0.66 million in the quarter, down 27.1% from $0.91 million. The year-to-date outflow reflected higher deferred contract costs and a larger trade accounts receivable balance, partly offset by growth in deferred revenue.
Deferred revenue was $355.05 million as of June 30, 2023, up 12.0% year over year. Remaining performance obligations were $454.50 million, up 22.2%. Dollar-based net retention was 109%, down from 117% for the trailing twelve months ended June 30, 2022. Management tied the retention level to device expansion and cross-selling into the installed base.
Jamf issued guidance for the third quarter of 2023 and for the full year 2023. For the third quarter, the company guided to non-GAAP operating income of $10.0 million to $11.0 million. For the full year 2023, it guided to non-GAAP operating income of $41.0 million to $43.0 million. The company also guided to amortization of approximately $10.5 million for the third quarter and $42.0 million for the full year, with stock-based compensation and related payroll taxes of approximately $30.2 million and $107.1 million, respectively. Jamf said it cannot provide a quantitative reconciliation of forward-looking non-GAAP operating income to GAAP operating income without unreasonable effort.
The macro backdrop remains the main risk. The 10-Q cites record inflation, elevated interest rates, supply chain challenges, financial instability and concerns about banking liquidity, and overall economic uncertainty, including the possibility of a recession. Some customers have taken a more moderate outlook when planning hiring and device growth, and management expects those conditions to continue through 2023. Jamf also completed the acquisition of dataJAR for total consideration of £18.9 million, or approximately $24.6 million, of which £16.2 million was paid at closing.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2023 | Q1 FY2023 | QoQ | Q2 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $135.1M | $132.2M | +2.2% | $115.6M | +16.8% |
| Gross profit | $104.2M | $102.5M | +1.7% | $86.2M | +20.8% |
| Gross margin | 77.1% | 77.5% | -0.4 pp | 74.6% | +2.6 pp |
| Research & development | $34.7M | $32.1M | +8.3% | $34.0M | +2.2% |
| Sales & marketing | $63.9M | $60.2M | +6.1% | $58.8M | +8.7% |
| General & administrative | $36.0M | $28.4M | +26.5% | $48.3M | -25.6% |
| Total operating expenses | $141.8M | $128.0M | +10.8% | $148.1M | -4.2% |
| Operating income (loss) | -$37.6M | -$25.5M | -47.6% | -$61.8M | +39.2% |
| Operating margin | -27.9% | -19.3% | -8.6 pp | -53.5% | +25.6 pp |
| Net income (loss) | -$36.2M | -$24.2M | -49.6% | -$63.1M | +42.7% |
| Net margin | -26.8% | -18.3% | -8.5 pp | -54.6% | +27.8 pp |
| Diluted EPS | -$0.29 | -$0.20 | -$0.09 | -$0.53 | +$0.24 |
| Net retention rate | 109.0% | 111.0% | -2.0 pp | 117.0% | -8.0 pp |
Risks
MD&A states that record inflation, elevated interest rates, supply chain challenges, banking liquidity concerns and possible recession could drive reductions in IT spending, contract renegotiations, payment defaults or non-renewals. As a result of this uncertainty, some customers have taken a more moderate outlook on future hiring and device growth needs, and the company expects these conditions to continue throughout 2023.
The business is built around being the leading management and security solution for Apple in the enterprise, and MD&A states that global demand and international growth depend on the rate of market adoption of Apple products. Success also depends on channel partners, including Apple, continuing to gain share in the enterprise.
Dollar-based net retention rate was 109% for the trailing twelve months ended June 30, 2023, down from 117% for the trailing twelve months ended June 30, 2022, indicating reduced expansion and higher contraction or attrition within the installed customer base.
Net cash used in operating activities was $13.2 million for the six months ended June 30, 2023, down from $16.3 million provided by operating activities in the prior-year period, driven by the net loss of $60.4 million and outflows from deferred contract costs, receivables and payables.
MD&A notes that international growth requires considerable management attention and is subject to multiple languages, cultures, legal and regulatory systems including data transfer and privacy rules, alternative dispute systems and geopolitical challenges, and depends on Apple adoption rates in international markets.
The company plans to continue growing headcount across sales, marketing and research and development, and MD&A identifies its ability to maintain corporate culture as headcount expands, and to spend its research and development budget efficiently, as factors affecting its ability to invest for growth.
SaaS KPIs
All quarters →ARR
Non-GAAP Gross Profit Margin
Non-GAAP Operating Income
Non-GAAP Operating Income Margin
Customers
Devices
Security ARR
Non-GAAP Gross Profit
ARR from security solutions as % of total ARR
ARR from commercial customers as % of total ARR
ARR from education customers as % of total ARR
ARR from management solutions as % of total ARR
Summary, forecast, risks and KPIs are extracted from Jamf Holding Corp.'s SEC filings for Q2 FY2023 (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.