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JH

Jamf Holding Corp. (JAMF)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered a revenue beat and margin expansion: total revenue was $167.6M (+10% YoY) and non-GAAP operating income was $37.6M (22% margin), both above the high end of Q1 guidance; non-GAAP diluted EPS was $0.22, and GAAP diluted EPS was $0.00 . Versus S&P Global consensus, revenue modestly beat ($167.6M vs $166.2M*) and EPS was slightly above ($0.22 vs $0.212*). Values retrieved from S&P Global.
  • Guidance raised post-acquisition of Identity Automation: FY 2025 revenue from $675.5–$680.5M to $691.0–$695.0M and non-GAAP operating income from $142.5–$146.5M to $144.5–$147.5M; Q2 2025 guided to $167.5–$169.5M revenue and $29.5–$30.5M non-GAAP operating income, with ~$2–$3M FX headwind contemplated .
  • Strategic execution underpins growth: Security ARR grew 17% to $162M (25% of total ARR) and International revenue grew 16% YoY; new platform solutions (Jamf for Mac, Jamf for K‑12) and the completed Identity Automation acquisition strengthen mobile/security adoption vectors .
  • Cash collections timing weighed on Q1 operating cash flow ($4.1M), but DSOs are expected to normalize over the next few quarters; trailing twelve-month unlevered free cash flow margin remained healthy at ~12% .
  • Near-term catalysts: education buying season (seasonally strongest in Q2–Q3), Azure/AWS marketplace traction, and initial Identity Automation revenue contribution (H2 weighted) .

What Went Well and What Went Wrong

What Went Well

  • Revenue and profitability outperformed: “Jamf achieved solid results in Q1, exceeding the high end of our outlook for both revenue and profitability,” with non-GAAP operating margin at 22% (up ~800 bps YoY) .
  • Security momentum: Security ARR reached $162M (+17% YoY), aided by strong security bookings and new logo wins; Security is a key growth vector alongside mobile, international, and channel .
  • Product and go-to-market innovation: Launches of Jamf for Mac and Jamf for K‑12 simplified buying and drove higher ARR per customer; education performed strongly despite seasonal headwinds .

What Went Wrong

  • FX headwinds and cautious macro: Management maintained FY revenue guidance while embedding ~$2–$3M FX impact on operating income; tone characterized as prudent given “noise” in the environment .
  • Non-subscription revenue softness: Services and license continued to decline YoY, consistent with deemphasis of less strategic revenue sources (license $0 vs $64K in Q1’24; services down YoY) .
  • Cash collections timing: Q1 operating cash flow of $4.1M reflected back-end loaded March billings and DSOs ~20 days over normal; normalization expected across Q2–Q3 .

Financial Results

Headline Financials and Margins (GAAP and Non-GAAP)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$159.286 $162.974 $167.621
YoY Revenue Growth (%)12% 8% 10%
GAAP Diluted EPS ($)$(0.10) $(0.13) $0.00
Non-GAAP Diluted EPS ($)$0.16 $0.17 $0.22
Gross Profit Margin (GAAP)77% 78% 78%
Gross Profit Margin (Non-GAAP)82% 82% 82%
Operating Margin (GAAP)(10)% (7)% (2)%
Operating Margin (Non-GAAP)17% 18% 22%
Adjusted EBITDA ($USD Millions)$29.506 $31.298 $39.447
Adjusted EBITDA Margin (%)——24%

Revenue Mix

Revenue Component ($USD Millions)Q3 2024Q4 2024Q1 2025
Subscription$156.070 $159.740 $164.224
Services$3.192 $3.167 $3.397
License$0.024 $0.067 $0.000
Total Revenue$159.286 $162.974 $167.621

Key Performance Indicators (KPIs)

KPIQ3 2024Q4 2024Q1 2025
ARR ($USD Millions)$635.0 $646.0 $657.9
Security ARR ($USD Millions)$151.5 $156.0 $162.0
Dollar-Based Net Retention Rate (%)106% 104% 104%
International Revenue Growth YoY (%)—17% 16%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q1 2025$165.5–$167.5 Actual: $167.621 Beat high end
Non-GAAP Operating Income ($USD Millions)Q1 2025$35.5–$37.5 Actual: $37.642 Beat high end
Revenue ($USD Millions)Q2 2025—$167.5–$169.5 New
Non-GAAP Operating Income ($USD Millions)Q2 2025—$29.5–$30.5 New
Revenue ($USD Millions)FY 2025$675.5–$680.5 $691.0–$695.0 Raised (post-acquisition)
Non-GAAP Operating Income ($USD Millions)FY 2025$142.5–$146.5 $144.5–$147.5 Raised (midpoint higher; FX headwind embedded)
Unlevered FCF Growth (YoY)FY 2025≥75% ≥75% Maintained
Amortization ($USD Millions)Q2 2025 / FY 2025—~$9.8 / ~$38.3 Provided
SBC + Payroll Taxes ($USD Millions)Q2 2025 / FY 2025—~$30.1 / ~$111.3 Provided

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 & Q4 2024)Current Period (Q1 2025)Trend
Identity Automation / Dynamic IdentityIntent to acquire; ecosystem alliances (Okta); Azure partnership Acquisition closed; ~90 employees added; >500 education customers; dynamic identity for mobile-centric workflows Accretive integration; H2 seasonality
Platform Solutions (Jamf for Mac, K‑12)JNUC feature launches; partner program rollout Launched in March; higher ARR per customer; strong education wins Positive traction
Channel Program & ReachGlobal Partner Program launched; channel-first motion Partner-driven ARR >60% total; >80% OUS; 5-star CRN rating Scaling partners
Marketplaces (AWS/Azure)Azure IP co-sell; Azure Marketplace availability Early Azure marketplace pipeline with closed deals; continued AWS momentum Building pipeline
International & FXInternational revenue +17% YoY (Q4) International revenue +16% YoY; FX headwind $2–$3M in FY OI outlook Growth with FX pressure
Education SeasonalityEducation lighter in Q1; Q2–Q3 strongest Strong Q1 education performance; pipeline building for peak season Improving setup
Macro/Geopolitics & TariffsStandard caution language Prudent stance; monitoring demand; potential device pull-forward on tariffs noted but not directly impactful near term Prudent outlook
Rule of 40 TargetStrategic plan execution Aim to exit FY’26 at Rule of 40 run rate using adjusted EBITDA margin Long-term focus

Management Commentary

  • “We continue to execute our growth and profitability initiatives and remain committed to our goal of achieving the Rule of 40.” — John Strosahl, CEO .
  • “Security remains a key growth driver… By acquiring Identity Automation, Jamf gains almost 90 employees as well as a key product differentiator, which is dynamic identity management for mobile.” — John Strosahl .
  • “Non-GAAP operating income… $37.6 million, or a 22% margin, an 800-basis point improvement over Q1 2024… driven by disciplined investment and efficiency efforts.” — David Rudow, CFO .
  • “We maintained our previously provided revenue outlook [for FY 2025]… and are including ~$2–$3M FX headwind in the operating income outlook.” — David Rudow .

Q&A Highlights

  • Identity Automation expansion beyond education: management sees application to deskless workflows in healthcare, retail, aviation; partnerships with traditional identity providers remain additive (federated) .
  • Guidance prudence and FX: maintained FY revenue guide despite solid demand; FX headwind on expenses offsetting limited top-line currency benefits as local currency billing ramps gradually .
  • Marketplaces traction: early Azure marketplace deals with building pipeline; continued AWS momentum and close coordination with Microsoft sales .
  • Education pipeline and seasonality: K‑12 pipeline building, optimistic outlook into peak Q2–Q3 season, bolstered by Identity Automation and Jamf K‑12 offering .
  • Free cash flow and DSOs: DSOs ~20 days above normal due to back-end loaded March billings and system updates; collections expected to normalize, improving FCF through the year .

Estimates Context

Results versus S&P Global Wall Street consensus and guidance.

Q1 2025 Actuals vs Consensus

MetricConsensusActualBeat/Miss
Revenue ($USD Millions)$166.223*$167.621 Beat
Primary EPS ($)$0.2119*$0.2154 (≈$0.22 non-GAAP diluted) Beat

Values retrieved from S&P Global.

Q2 2025 and FY 2025 Consensus vs Company Guidance

MetricPeriodConsensusCompany Guidance Midpoint
Revenue ($USD Millions)Q2 2025$168.969*$168.5
Primary EPS ($)Q2 2025$0.1775*—
Revenue ($USD Millions)FY 2025$711.461*$693.0

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Q1 beat on revenue and EPS with notable margin expansion; non-GAAP operating margin reached 22% as efficiency efforts compound .
  • FY 2025 guidance raised post-Identity Automation despite FX headwinds; expect H2 revenue seasonality from Identity Automation and education .
  • Security remains the core growth engine (Security ARR +17% YoY to $162M), reinforcing the differentiated Apple-first security posture .
  • Platform simplification (Jamf for Mac/K‑12) is improving conversion and ARR per customer, creating cross-sell and retention benefits .
  • Marketplace channels (Azure and AWS) are emerging as incremental demand vectors with closed deals and pipeline visibility .
  • Watch DSOs and cash collections in Q2–Q3; as systems normalize, FCF should improve through the year, supporting ≥75% YoY unlevered FCF growth target .
  • Trading lens: near-term positive setup into education season and integration synergies; monitor FX drag and macro caution noted by management .
Notes:
- Asterisks (*) denote values retrieved from S&P Global.