Jamf Holding Corp. Q3 FY2024 earnings

Jamf reported FY2024 Q3 revenue of $159.3 million, up 12% from $142.6 million in FY2023 Q3. Gross profit rose to $123.3 million from $110.4 million, and gross margin was 77.4%, flat versus the prior-year quarter. The company still posted a GAAP operating loss of $15.9 million, much smaller than the $31.9 million operating loss in FY2023 Q3. Operating margin improved to -10.0% from -22.3%. Net loss was $12.2 million, or -$0.10 per diluted share, compared with a net loss of $32.3 million, or -$0.26 per diluted share, in the prior-year quarter. Revenue growth and cost discipline narrowed losses, even as the company remained unprofitable on a GAAP basis.

Cash generation was mixed. Operating cash flow in FY2024 Q3 was $23.1 million, down from $33.3 million in FY2023 Q3. For the first nine months of FY2024, operating cash flow was $21.5 million, up from $20.0 million in the first nine months of FY2023. Capital expenditures rose to $3.9 million in the quarter from $0.7 million a year earlier. Deferred revenue stood at $378.2 million at September 30, 2024, up from $369.8 million a year earlier. Remaining performance obligations were $525.2 million, up from $477.4 million. The quarterly operating cash flow decline contrasts with the year-to-date improvement, and the higher capital spending reflects continued investment in the business.

Operational metrics showed steady expansion. ARR reached $635.0 million as of September 30, 2024, up 12% year over year. Security ARR was $151.5 million, up 26% and equal to 24% of total ARR. Commercial customers represented 75% of ARR, while education was 25%. Jamf ended the quarter with more than 76,000 customers and 33.9 million devices on its platform. Dollar-based net retention was 106% for the trailing twelve months ended September 30, 2024, compared with 108% a year earlier. Non-GAAP operating income was $27.7 million, or 17% of revenue, compared with $12.4 million, or 9% of revenue, in FY2023 Q3. Non-GAAP gross profit was $129.9 million, or 82% of revenue, compared with $117.0 million, or 82% of revenue. The company announced David Rudow as CFO effective November 28, 2024, launched a Global Partner Program, entered a five-year agreement with Microsoft to join the Microsoft ISV Partner Program, joined Okta's Elevate Partner Program, and highlighted Blueprints, Self Service+, Compliance Benchmarks, and AI Assistant at its Jamf Nation User Conference. Jamf announced same-day support for Apple operating systems including macOS Sequoia, iOS 18, iPadOS 18, tvOS 18, visionOS 2, and watchOS 11. It was named Mobile Security Solution of the Year at the Computing Security Awards 2024 and featured in the 2024 Verizon Mobile Security Index.

Guidance points to continued growth but also to cost pressure. For the fourth quarter of 2024, Jamf guided to non-GAAP operating income of $25.5 million to $26.5 million. For the full year 2024, the company guided to non-GAAP operating income of $98.8 million to $99.8 million. Management also provided modeling assumptions for amortization and stock-based compensation. Risks include macroeconomic uncertainty, reductions in IT spending, customers taking a more moderate outlook on hiring and device growth, competitive pressure, challenges in international expansion, and data transfer and privacy rules. Jamf also noted a workforce reduction plan that affected approximately 6% of full-time employees, with most charges incurred in the first quarter of 2024 and the plan substantially complete by the end of the second quarter. Customer and device counts were adjusted after a systems update and expired licenses, though the company said customer additions would have been similar to Q1 2024 and device additions similar to Q2 2024 absent those adjustments. Management expects macroeconomic conditions to continue through the remainder of 2024.