Summary
Jamf's second quarter of fiscal 2024 produced $153.0 million in revenue, up 13.3% from the prior-year quarter. Gross profit rose 13.2% to $118.0 million, and gross margin was 77.1%, flat with the prior-year quarter. The company still reported a GAAP operating loss, but it narrowed 46.9% to $20.0 million. Operating margin improved 14.8 percentage points to -13.0%. Net loss narrowed 46.8% to $19.3 million, and diluted EPS loss narrowed 48.3% to $0.15. On a non-GAAP basis, operating income was $23.5 million, or 15% of revenue, and non-GAAP gross profit was $124.9 million, or 82% of revenue. The gap between GAAP and non-GAAP results stays wide because of stock-based compensation, amortization, acquisition-related expense, offering costs, payroll taxes, system transformation costs, restructuring charges, and legal costs.
For the first half of fiscal 2024, revenue rose 14.2% to $305.1 million. Gross profit rose 13.7% to $235.0 million. Operating loss narrowed 34.9% to $41.1 million. Net loss narrowed 34.1% to $39.8 million. Diluted EPS loss narrowed 36.7% to $0.31. Year-to-date gross margin was 77.0%, down 0.3 percentage points. Year-to-date operating margin improved 10.1 percentage points to -13.5%. Operating cash flow for the quarter was $14.3 million, up 23.7%. Capital expenditures rose 47.1% to $1.0 million. Year-to-date operating cash flow was negative $1.6 million, an 88.0% improvement from the prior-year period. Deferred revenue rose 4.3% to $370.2 million. Remaining performance obligations rose 11.5% to $506.7 million. Free cash flow for the quarter was $13.3 million, and unlevered free cash flow was $23.2 million.
The operating story rests on recurring revenue and Apple device management. ARR reached $621.7 million as of June 30, 2024, up 13% year over year. Security ARR grew 27% to $145.1 million and represented 23% of total ARR. ARR from management solutions was 77% of total ARR, while ARR from security solutions was 23%. ARR from commercial customers was 74%, and ARR from education customers was 26%. Jamf served more than 76,600 customers with 33.6 million devices on its platform. Dollar-based net retention was 106%, down from 109% a year earlier. The company launched Jamf Insights and the Jamf Service Provider plan for managed service providers. It was named a Leader in the IDC MarketScape Worldwide UEM Software for Apple Devices 2024 Vendor Assessment. Jamf also became a CVE Numbering Authority and hosted over 1,400 customers at Jamf Nation Live events in Amsterdam, Berlin, and London.
Management guided third-quarter non-GAAP operating income to $25.5 million to $26.5 million and full-year non-GAAP operating income to $96.0 million to $98.0 million. The company also issued a revenue outlook for the third quarter and for the full year. It said it cannot provide a quantitative reconciliation of forward-looking non-GAAP operating income to GAAP operating income because certain items are out of its control or cannot be reasonably predicted. The outlook assumes the current demand environment holds. Risks include macroeconomic uncertainty, high inflation, elevated interest rates, financial instability, and volatility in credit, equity, and foreign exchange markets. Some customers have taken a more moderate view on hiring and device growth. Jamf also faces competition, international expansion challenges, data transfer and privacy rules, and geopolitical issues. The company completed a workforce reduction plan that affected approximately 6% of full-time employees, with execution substantially complete by the end of the second quarter.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $153.0M | $152.1M | +0.6% | $135.1M | +13.3% |
| Gross profit | $118.0M | $117.0M | +0.8% | $104.2M | +13.2% |
| Gross margin | 77.1% | 76.9% | +0.2 pp | 77.1% | -0.0 pp |
| Research & development | $34.8M | $34.3M | +1.4% | $34.7M | +0.1% |
| Sales & marketing | $61.9M | $64.8M | -4.4% | $63.9M | -3.1% |
| General & administrative | $34.4M | $32.2M | +6.9% | $36.0M | -4.3% |
| Total operating expenses | $138.0M | $138.1M | -0.1% | $141.8M | -2.7% |
| Operating income (loss) | -$20.0M | -$21.1M | +5.4% | -$37.6M | +46.9% |
| Operating margin | -13.1% | -13.9% | +0.8 pp | -27.9% | +14.8 pp |
| Net income (loss) | -$19.3M | -$20.5M | +6.1% | -$36.2M | +46.8% |
| Net margin | -12.6% | -13.5% | +0.9 pp | -26.8% | +14.2 pp |
| Diluted EPS | -$0.15 | -$0.16 | +$0.01 | -$0.29 | +$0.14 |
| Net retention rate | 106.0% | 107.0% | -1.0 pp | 109.0% | -3.0 pp |
Risks
MD&A states the U.S. and other key international economies continue to be impacted by high inflation, elevated interest rates, financial instability, and overall uncertainty, and some customers have taken a more moderate outlook when planning future hiring and device growth needs. The company expects these conditions to continue through the remainder of 2024.
Dollar-based net retention rate was 106% for the trailing twelve months ended June 30, 2024, compared with 109% for the trailing twelve months ended June 30, 2023. A lower rate can pressure future revenue growth if existing customers expand less or fail to renew.
The business is Apple-first and depends on the Apple device ecosystem, with global demand for the platform and international growth tied to the rate of market adoption of Apple products. Any slowdown in Apple enterprise adoption could materially affect growth.
A workforce reduction plan announced January 25, 2024 impacted approximately 6% of full-time employees, with restructuring charges of $8.2 million for the six months ended June 30, 2024. Execution was substantially complete by the end of Q2 2024, but the plan may disrupt operations or fail to achieve intended cost savings.
International growth depends on adapting to multiple languages, cultures, customs, legal and regulatory systems including data transfer and privacy, alternative dispute systems, and geopolitical challenges. It also depends on the rate of Apple product adoption in international markets.
Success depends on partners including Apple, Microsoft, AWS, Google, and Okta continuing to gain share in the enterprise. If these partners do not perform or the relationships weaken, the company may not reach new customers effectively.
Success depends on sustaining product innovation and technology leadership, and future growth depends on developing, marketing, and selling additional products to new and existing customers. Competitors' features and pricing affect new customer growth and retention.
The company plans to continue investing in sales, marketing, and research and development, which may increase operating expenses and adversely affect operating results in the near term. These investments may not contribute to long-term growth as expected.
Acquisition-related expense increased to $4.8 million for the six months ended June 30, 2024 from $1.4 million in the prior-year period, primarily due to deferred compensation related to the dataJAR acquisition. Integration and retention risks could affect future results.
System transformation costs increased to $4.2 million for the six months ended June 30, 2024 from $1.8 million in the prior-year period, associated with implementation of sales software and enterprise resource planning. This transformation includes redesign of quoting, contracting, fulfilling, and invoicing processes and may cause disruption.
As of June 30, 2024, $368.2 million was outstanding on the 2026 Notes and $174.1 million was available under the 2024 Revolving Credit Facility. The 2024 Credit Agreement has a spring maturity on or after June 2, 2026 under certain conditions, which could affect liquidity.
In Q2 2024 the company entered a hosting services agreement with a non-cancelable commitment of $30.4 million over the next five years. Third-party hosting costs increased $5.0 million for the six months ended June 30, 2024 as capacity was added to support growth.
Foreign currency transaction gain decreased 99% to $19 thousand for the six months ended June 30, 2024 from $1.65 million in the prior-year period, primarily due to changes in GBP and EUR exchange rates. Currency volatility can affect reported results.
SaaS KPIs
All quarters →ARR
Non-GAAP Gross Profit Margin
Non-GAAP Operating Income
Non-GAAP Operating Income Margin
Customers
Devices
Security ARR
Unlevered Free Cash Flow Margin
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
Free Cash Flow Margin
Summary, forecast, risks and KPIs are extracted from Jamf Holding Corp.'s SEC filings for Q2 FY2024 (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 2, 2026.