Summary
Jamf closed fiscal 2022 with a fourth quarter that showed solid top-line growth but a full year with a much wider operating loss. Fourth-quarter revenue was $130.3 million, up 25.5% from the prior-year quarter. Full-year revenue was $478.8 million, up 30.7%. Gross profit in the quarter was $99.9 million, up 30.6%, and the quarterly gross margin was 76.7%, up 3.0 percentage points. For the full year, gross profit was $359.5 million, up 30.3%, while the full-year gross margin was 75.1%, down 0.2 percentage points. The fourth-quarter operating loss was $24.7 million, and the loss narrowed from the prior-year quarter. The full-year operating loss was $138.9 million, and the loss widened from the prior year. Net loss in the quarter was $21.2 million, and the loss narrowed from the prior-year quarter. The full-year net loss was $141.3 million, and the loss widened from the prior year. Diluted EPS for the full year was -$1.17, down from the prior year. The quarterly operating margin was -18.9%, up 6.2 percentage points, while the full-year operating margin was -29.0%, down 8.2 percentage points.
Cash generation improved sharply. Operating cash flow was $27.2 million in the fourth quarter, up from the prior-year quarter, and $90.0 million for the full year, up from the prior year. Capital expenditures were $7.7 million for the full year, down from the prior year. Deferred revenue stood at $346.2 million at December 31, 2022, up 22.7% from the prior-year quarter. Remaining performance obligations were $427.3 million, up 28.1%. Annual recurring revenue reached $512.5 million as of December 31, 2022, up 24% year over year. The company ended the quarter with more than 71,000 customers and 30.0 million devices on its platform. Dollar-based net retention was 113% for the trailing twelve months ended December 31, 2022, compared with 120% for the prior-year period. ARR from security solutions rose to 20% of total ARR from 16% a year earlier, while ARR from commercial customers reached 72% of total ARR from 69%. On a non-GAAP basis, fourth-quarter gross profit was $107.0 million, non-GAAP operating income was $8.7 million, and full-year non-GAAP operating income was $25.9 million. Unlevered free cash flow was $87.5 million for the full year.
Operational momentum centered on Apple device management and security. Jamf completed the acquisition of ZecOps, a mobile detection and response company, and announced a ZTNA integration with Amazon Web Services called AWS Verified Access. It released the latest version of its ZTNA integration with Microsoft, Device Compliance, for macOS and iOS. The company launched Jamf Safe Internet for Chromebook and enhanced Jamf Protect to address requirements in Executive Order 14028. Jamf Threat Labs identified and reported on sophisticated malware that had been operating undetected by security applications. The company also reported the largest year-over-year Mac device growth in its history, adding over one million Mac under management in 2022. It was recognized by G2 in its 2023 Top Global Software Companies and 2023 Top IT Management Software lists.
Guidance for the first quarter of 2023 and the full year 2023 centers on non-GAAP profitability. For the first quarter of 2023, Jamf expects non-GAAP operating income of $3.0 million to $4.0 million. For the full year 2023, the company expects non-GAAP operating income of $37.5 million to $40.5 million. Management also said amortization is expected to be approximately $10.6 million in the first quarter and $42.2 million for the full year. Stock-based compensation and related payroll taxes are expected to be approximately $21.3 million in the first quarter and $101.6 million for the full year. The main risks are macroeconomic. Inflation, elevated interest rates, supply chain challenges, and volatility in credit, equity, and foreign exchange markets could reduce IT spending. In the second half of 2022, some customers took a more moderate outlook on hiring and device growth needs, and Jamf expects those conditions to continue in 2023. Competition and the challenges of international expansion also remain. The company said it will stay prudent with investments to protect financial flexibility while preparing for demand when conditions ease.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2022 | Q3 FY2022 | QoQ | Q4 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $130.3M | $124.6M | +4.6% | $103.8M | +25.5% |
| Gross profit | $99.9M | $93.4M | +7.0% | $76.5M | +30.6% |
| Gross margin | 76.7% | 75.0% | +1.7 pp | 73.7% | +3.0 pp |
| Research & development | $30.3M | $30.8M | -1.5% | $24.1M | +25.8% |
| Sales & marketing | $58.6M | $54.1M | +8.2% | $44.6M | +31.4% |
| General & administrative | $28.6M | $30.1M | -5.0% | $26.9M | +6.1% |
| Total operating expenses | $124.6M | $122.0M | +2.1% | $102.6M | +21.4% |
| Operating income (loss) | -$24.7M | -$28.6M | +13.9% | -$26.1M | +5.4% |
| Operating margin | -18.9% | -23.0% | +4.1 pp | -25.1% | +6.2 pp |
| Net income (loss) | -$21.2M | -$31.3M | +32.2% | -$23.8M | +10.6% |
| Net margin | -16.3% | -25.1% | +8.8 pp | -22.9% | +6.6 pp |
| Diluted EPS | -$0.18 | -$0.26 | +$0.08 | -$0.20 | +$0.02 |
| Customers | 71,000 | — | — | 60,000 | +18.3% |
| Net retention rate | 113.0% | 115.0% | -2.0 pp | 116.0% | -3.0 pp |
Risks
The filing states that record inflation, elevated interest rates, supply chain challenges, and recession uncertainty could reduce IT spending. In the second half of 2022, some customers took a more moderate outlook on future hiring and device growth needs, and Jamf expects these conditions to continue in 2023.
Jamf's products focus primarily on Apple, and Apple is a significant reseller, particularly in education, with contracts terminable by Apple at any time with limited notice. Apple launched ABE in spring 2022, and Jamf notes Apple could later leverage ABE to compete more directly with its enterprise offerings.
Sales of subscriptions to Jamf Pro accounted for approximately 64% of total revenue for the year ended December 31, 2022. A decline in demand for Jamf Pro or failure of other products to gain acceptance could disproportionately harm operating results.
Jamf faces competition from larger and newer entrants, and some competitors offer free or significantly discounted products to win Apple ecosystem customers. The filing also notes Apple could acquire competitors or standardize competing offerings, which could reduce the utility of Jamf products.
Jamf's sales cycle is often long and unpredictable, and its dollar-based net retention rate declined to 113% for the trailing twelve months ended December 31, 2022 from 120% for the trailing twelve months ended December 31, 2021. Customers may renew for shorter terms, reduce device counts, or not renew.
For the year ended December 31, 2022, approximately 60% of bookings were through channel partners. These arrangements are generally non-exclusive, and partners may promote competitors' products or cease reselling Jamf products with limited or no notice.
Jamf depends on key personnel and generally does not have fixed-term employment agreements. The filing notes the FTC issued a proposed rulemaking on January 5, 2023 that would prohibit non-compete agreements, which could make it harder to prevent employees from joining competitors.
Jamf has completed eleven acquisitions since 2019, including ZecOps in November 2022. Integration may divert management attention, require significant resources, and fail to achieve expected benefits, with potential write-offs or accounting charges.
Many subscription agreements include service-level commitments, including uptime of at least 99.9% for cloud services hosted by AWS. Failure to meet these commitments could require service credits, subscription terminations, or refunds, harming revenue and reputation.
Jamf has convertible senior notes due 2026 and may need to raise funds to settle conversions, repurchase notes upon a fundamental change, or repay them in cash at maturity. The 2020 Credit Agreement also contains restrictive covenants and financial condition tests.
Vista beneficially owned approximately 44.1% of Jamf's common stock as of December 31, 2022 and has rights to designate the Board Chair and multiple directors. Its interests may conflict with other shareholders, and it can significantly influence corporate actions.
SaaS KPIs
All quarters →ARR
Non-GAAP Gross Profit Margin
Non-GAAP Operating Income
Customers
Devices
ARR from security solutions as % of total ARR
Non-GAAP Operating Margin
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 Q4 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.