Summary
Jamf closed FY2021 Q3 with revenue of $95.6 million, up 35.5% from the prior-year quarter. Gross profit was $69.2 million, up 24.8%, while gross margin fell to 72.3%, down 6.2 percentage points. The operating loss widened to $29.9 million, and operating margin was -31.2%, down 30.4 percentage points. Net loss widened to $30.4 million, and diluted EPS was -$0.26. The top line still grew quickly, but profitability moved sharply lower as costs rose.
Annual recurring revenue reached $384.8 million as of September 30, 2021, up 47% year over year. Organic ARR growth was 37%. Jamf ended the quarter with more than 57,000 customers and 25.0 million devices on its platform, up 34% year over year. Dollar-based net retention was 119% for the trailing twelve months ended September 30, 2021. The company completed the Wandera acquisition on July 1, 2021. Management said commercial markets accelerated and made up nearly 75% of total bookings, while the education market leveled off after a strong prior-year quarter. At the Jamf Nation User Conference, the company showcased Jamf Private Access, Jamf Threat Defense, and Jamf Safe Internet, along with data loss prevention capabilities with Jamf Protect and a Google Cloud BeyondCorp Enterprise integration. Jamf also announced same-day support for macOS Monterey and iOS 15. The conference drew nearly 8,000 attendees, who viewed about 57,000 sessions across 140 sessions and 9 tracks. Management also addressed Apple Business Essentials, saying the offering is aimed at small businesses and that Jamf estimates only low single digits of current ARR are addressable by it.
Cash generation remained positive. Operating cash flow was $26.8 million, up 13.7% from the prior-year quarter. Capital expenditures were $2.05 million, up 336.2%. Deferred revenue was $270.4 million, up 44.1%. Remaining performance obligations stood at $310.3 million. Unlevered free cash flow was $28.5 million, or 30% of total revenue. On a year-to-date basis, revenue was $262.6 million, up 36.2%, and operating cash flow was $64.8 million, up 95.9%. Year-to-date net loss was $51.4 million, and the loss widened from the prior-year period. The company said the Jamf Connect revenue recognition change shifted some revenue into future quarters while costs to support the product remained.
Guidance points to continued growth but lower profitability. For the fourth quarter of fiscal year 2021, Jamf expects total revenue growth of 30% to 32% year over year and non-GAAP operating income of $1.5 million to $2.5 million. For the full year 2021, the company expects total revenue growth of 34% to 35% year over year and non-GAAP operating income of $19.0 million to $20.0 million. Amortization is expected to be about $12.2 million in the fourth quarter and $41.3 million for the full year. Stock-based compensation and related payroll taxes are expected to be about $47.6 million in the fourth quarter and $70.4 million for the full year. The Jamf Connect revenue recognition change will defer revenue into future quarters and affect the full year revenue growth percentage. Management said non-GAAP operating income reflects the Wandera acquisition, including purchase price accounting adjustments, Wandera run rate operating losses, and about $5 million of planned investments in go-to-market headcount. Management also flagged risks around the Wandera integration, Apple Business Essentials, education spending timing, competition, and macro conditions such as supply and labor shortages and inflation. Other risks include reliance on Apple, potential changes in Apple features, cybersecurity events, privacy laws, and the company's indebtedness.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2021 | Q2 FY2021 | QoQ | Q3 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $95.6M | $86.2M | +10.9% | $70.4M | +35.8% |
| Gross profit | $69.2M | $66.9M | +3.4% | $55.2M | +25.4% |
| Gross margin | 72.3% | 77.6% | -5.3 pp | 78.3% | -6.0 pp |
| Research & development | $25.6M | $17.2M | +48.9% | $12.7M | +101.1% |
| Sales & marketing | $40.9M | $32.6M | +25.3% | $23.3M | +75.7% |
| General & administrative | $25.5M | $27.5M | -7.2% | $13.9M | +83.4% |
| Total operating expenses | $99.0M | $83.0M | +19.4% | $55.5M | +78.3% |
| Operating income (loss) | -$29.9M | -$16.1M | -86.1% | -$376.0K | -7845.2% |
| Operating margin | -31.2% | -18.6% | -12.6 pp | -0.5% | -30.7 pp |
| Net income (loss) | -$30.4M | -$16.5M | -84.5% | -$5.1M | -496.6% |
| Net margin | -31.8% | -19.1% | -12.7 pp | -7.2% | -24.5 pp |
| Diluted EPS | -$0.26 | -$0.14 | -$0.12 | — | — |
| Net retention rate | 119.0% | 119.0% | ±0.0 pp | 117.0% | +2.0 pp |
Risks
The company identified a material weakness in internal control over financial reporting related to commissions incorrectly capitalized, resulting in revision of previously issued consolidated financial statements for 2020, 2019, 2018 and certain quarters. Remediation is ongoing and the company cannot estimate how long it will take.
As of September 30, 2021, total current and long-term indebtedness was $374.8 million, including $373.8 million of 2026 Notes. The debt could divert funds, limit flexibility, and require refinancing or asset sales if cash flow is insufficient.
The 2026 Notes have conditional conversion features, fundamental change repurchase obligations, and potential cash settlement requirements that could adversely affect liquidity and net working capital. Conversion may dilute shareholders or depress the stock price.
Early adoption of ASU 2020-06 changes accounting for the 2026 Notes and requires the if-converted method for diluted EPS, which could adversely affect diluted earnings per share. To qualify for alternative treatment, the company would have to fix settlement in cash at least equal to principal, impairing flexibility.
The company is subject to counterparty risk with respect to capped call transactions entered into with financial institutions. If an option counterparty defaults or enters insolvency, the company may suffer more dilution than anticipated and become an unsecured creditor.
The COVID-19 pandemic continues to create uncertainty, including virus variants, vaccine effectiveness, supply and labor shortages, and inflationary pressures. A prolonged public health crisis could materially negatively impact business, operating results, and financial condition.
The company completed the Wandera acquisition on July 1, 2021 for total consideration of $409.3 million, financed initially with cash and a $250.0 million term loan. The acquisition increased costs, amortization, and stock-based compensation, and integration may require significant management attention.
Beginning in the third quarter of 2021, the company updated how it delivers Jamf Connect, resulting in less revenue recognized upfront and more ratable recognition. This change contributed to a decline in total gross margin to 72% for the three months ended September 30, 2021 from 79% in the prior year period.
SaaS KPIs
All quarters →ARR
Non-GAAP Gross Profit Margin
Non-GAAP Operating Income
Non-GAAP Operating Income Margin
Unlevered Free Cash Flow Margin
Non-GAAP Gross Profit
Unlevered Free Cash Flow
Total Customers
Number of Devices
Summary, forecast, risks and KPIs are extracted from Jamf Holding Corp.'s SEC filings for Q3 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.