Q3 2024 Earnings Summary
- Robust Security Growth: The company has seen strong traction in its security segment with security ARR surpassing $150 million and achieving 26% year-over-year growth, while bundling management and security has led to lower churn and enhanced upsell opportunities.
- Expanding Mobile & Deskless Opportunity: Jamf’s mobile initiatives are gaining traction as evidenced by significant deals—such as a 30,000-device win and the successful launch of a mobile security SKU—which underscore growth in both mobile and deskless markets.
- Strategic Partnerships and Enhanced Go-to-Market Initiatives: Strengthened collaborations with partners like Microsoft and inclusion in programs such as the Okta Elevate Partner Program are streamlining their channel sales, supporting a multi-cloud approach, and fostering efficient market expansion.
- Delayed Apple Refresh Cycle: Management indicated that the market is still waiting for a full force refresh across major industries, with mixed signals on device refresh trends leading to uncertainty about organic growth momentum .
- Headwinds in Education and New Logo Acquisition: Q&A responses highlighted that the education segment and new logo/device expansion faced challenges, suggesting potential revenue headwinds in these areas .
- Dependence on Replacement Market and ARR Uncertainty: A significant portion of large deals has come from the replacement market rather than net new customer acquisition, and uncertainty remains around next year's ARR growth guidance .
-
ARR Growth
Q: What are full year ARR expectations?
A: Ian noted that while some headwinds like education persist, commercial segments and security performed strongly with the launch of a new mobile security SKU, suggesting that ARR will likely grow at a rate similar to revenue growth. -
Apple Refresh
Q: How is the Apple refresh cycle evolving?
A: John explained that the refresh cycle is still in its early stages, with mixed reports on Apple device trends and expected future upticks as new, more powerful devices emerge. -
Microsoft Partnership
Q: How is Jamf working with Microsoft?
A: John highlighted that Jamf’s relationship with Microsoft is symbiotic—employing a multi-cloud strategy that includes hosting on Azure and co-selling via an ISV program, demonstrating a collaborative approach rather than competition. -
CFO & 3-Year Model
Q: What attracted the new CFO, and is the model sound?
A: David underscored Jamf’s market leadership in the Apple ecosystem with solid international and security growth, noting that he finds the three-year model reasonable and plans to update guidance next quarter. -
Customer Count Adjustments
Q: Were customer count changes one-off?
A: Ian clarified that the adjustments, such as counting MSPs as one customer and updating education license revenue recognition, were largely one-time measures built into the quarter's numbers. -
Business Plan Growth
Q: Why did the Business Plan see a customer surge?
A: John attributed the largest-ever customer increase in the Business Plan to a strong synergy between management and security offerings, coupled with improved go-to-market execution. -
Mobile Opportunities
Q: Is mobile growth ramping post-acquisition?
A: John mentioned that opportunities in the mobile replacement market remain robust and steady, without an extraordinary surge specifically tied to the Workspace ONE acquisition. -
JNUC Feedback
Q: What was customer feedback at JNUC?
A: John recounted a very positive response at the annual Jamf Nation User Conference, with customers applauding new product enhancements that integrate management and security, reinforcing confidence in the company’s direction.