Summary
Jamf reported third-quarter revenue of $124.6 million, up 30.3% from the prior-year quarter. Revenue for the nine months ended September 30, 2022 was $348.5 million, up 32.7% from the prior-year period. Gross profit was $93.4 million, up 35.0%, and gross margin was 75.0%, up 2.6 percentage points. GAAP operating loss was $28.6 million, and operating margin was (23.0)%, up 8.3 percentage points. Net loss widened to $31.3 million, and diluted net loss per share was $0.26, flat with the prior-year quarter. On a non-GAAP basis, gross profit was $101.6 million, or 82% of total revenue, and non-GAAP operating income was $6.9 million, or 6% of total revenue. Non-GAAP net income was $5.8 million, and adjusted EBITDA was $8.5 million.
Cash flow provided by operations was $46.5 million in the quarter, up 73.4% from the prior-year quarter. For the nine months ended September 30, 2022, operating cash flow was $62.8 million, down 3.1% from the prior-year period. Capital expenditures were $2.8 million in the quarter, up 35.1%, and $5.6 million year to date, down 22.3%. Deferred revenue was $341.2 million as of September 30, 2022, up 26.2% from a year earlier. Remaining performance obligations were $407.3 million, up 31.3%. Unlevered free cash flow was $64.0 million for the trailing twelve months ended September 30, 2022, or 14% of TTM total revenue.
Annual recurring revenue was $490.5 million as of September 30, 2022, up 27% year over year. The company ended the quarter with more than 69,000 customers and more than 29.3 million devices on its platform. Dollar-based net retention rate was 115% for the trailing twelve months ended September 30, 2022, compared with 119% for the trailing twelve months ended September 30, 2021. Jamf announced the pending acquisition of ZecOps, a mobile detection and response provider, and expects the deal to close in the fourth quarter of 2022. It also announced same-day support for Apple's fall operating system releases, including macOS Ventura, iOS 16, and iPadOS 16, and joined the Amazon Web Services Independent Software Vendor Accelerate Program. Jamf Protect was named Endpoint Security Solution of the Year in the 2022 CyberSecurity Breakthrough Awards, while Jamf Threat Defense and Jamf Protect were named Mobile Security Solution of the Year and Security Software Solution of the Year in the 2022 Computing Security Awards.
For the fourth quarter of 2022, management guided non-GAAP operating income of $6.5 million to $7.5 million. For the full year 2022, the company guided non-GAAP operating income of $23.5 million to $24.5 million. Management also issued revenue guidance for the fourth quarter and the full year 2022. Jamf 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 company said these items have historically included acquisition-related expenses, acquisition-related earnout, offering costs, amortization, and stock-based compensation and related payroll taxes.
Management pointed to a diverse business model, market leadership, continued innovation at the pace of Apple, and increased demand for enterprise security solutions. The company also flagged risks tied to macroeconomic and market conditions, including heightened inflation, slower growth or recession, changes to fiscal and monetary policy, higher interest rates, currency fluctuations, supply chain challenges, and the ongoing COVID-19 pandemic. Other named risks include customer dissatisfaction with Apple, failure of enterprises to adopt Apple products, changes in features and functionality by Apple, reliance on channel partners, competition, cybersecurity events, privacy laws, and indebtedness. The company also cited risks related to its ability to develop new products, attract new customers, retain current customers, sell additional functionality, correctly estimate market opportunity, and manage expenses. It named risks associated with acquisitions and divestitures, including the ZecOps acquisition, and global events such as Russia's invasion of Ukraine. Jamf also noted a $100.0 million non-cancelable hosting commitment over the next three years.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2022 | Q2 FY2022 | QoQ | Q3 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $124.6M | $115.6M | +7.7% | $95.6M | +30.3% |
| Gross profit | $93.4M | $86.2M | +8.3% | $69.2M | +35.0% |
| Gross margin | 75.0% | 74.6% | +0.4 pp | 72.3% | +2.6 pp |
| Research & development | $30.8M | $34.0M | -9.4% | $25.6M | +20.3% |
| Sales & marketing | $54.1M | $58.8M | -7.9% | $40.9M | +32.4% |
| General & administrative | $30.1M | $48.3M | -37.8% | $25.5M | +17.7% |
| Total operating expenses | $122.0M | $148.1M | -17.6% | $99.0M | +23.2% |
| Operating income (loss) | -$28.6M | -$61.8M | +53.7% | -$29.9M | +4.2% |
| Operating margin | -23.0% | -53.5% | +30.5 pp | -31.2% | +8.3 pp |
| Net income (loss) | -$31.3M | -$63.1M | +50.4% | -$30.4M | -3.0% |
| Net margin | -25.1% | -54.6% | +29.5 pp | -31.8% | +6.6 pp |
| Diluted EPS | -$0.26 | -$0.53 | +$0.27 | -$0.26 | ±$0.00 |
| Net retention rate | 115.0% | 117.0% | -2.0 pp | 119.0% | -4.0 pp |
Risks
Operating loss widened to $114.2 million for the nine months ended September 30, 2022 from $50.1 million in the prior-year period, and net loss widened to $120.1 million from $51.4 million, as total operating expenses grew 50% year to date. The company continues to invest heavily in sales, marketing, and research and development, which it expects to increase operating expenses in the near term.
Foreign currency transaction loss increased by $2.4 million for the quarter and $3.3 million for the nine months ended September 30, 2022, driven by the decline in the GBP and EUR against the dollar on the remeasurement of foreign currency transactions. This exposure is amplified by the Wandera acquisition, which expanded international operations with key offices in London and Brno.
Dollar-based net retention rate declined to 115% for the trailing twelve months ended September 30, 2022 from 119% for the trailing twelve months ended September 30, 2021. A lower rate reduces the expansion revenue the land and expand model generates from the existing customer base.
Stock-based compensation rose to $89.5 million for the nine months ended September 30, 2022 from $22.8 million in the prior-year period, including $19.9 million in general and administrative and $7.4 million in sales and marketing from the modification of return target options in the second quarter of 2022. This materially increases operating expenses and dilutes shareholders.
The business depends on the Apple ecosystem and on channel partners, including Apple, to reach customers, and management states that growth in international operations depends on the rate of market adoption of Apple products in international markets. Any slowdown in Apple enterprise adoption or in partner selling effectiveness would pressure device growth, which was 29.3 million devices as of September 30, 2022, up 17% year over year.
In the second quarter of 2022 the company entered into an amended hosting services agreement with a non-cancelable commitment of $100.0 million over the next three years. This fixed obligation must be funded regardless of revenue levels, and third-party hosting fees already rose $5.9 million year to date.
SaaS KPIs
All quarters →ARR
Non-GAAP Gross Profit Margin
Non-GAAP Operating Income
Non-GAAP Operating Income Margin
Customers
Devices
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 Q3 FY2022 (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.