Jamf (NASDAQ: JAMF), the standard in Apple Enterprise Management, today announced financial results for its fourth quarter and fiscal year ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights:

  • ARR: ARR increased 37% year-over-year to $285.3 million as of December 31, 2020.
  • Revenue: Total revenue was $76.4 million, an increase of 34% year-over-year. Recurring revenue was $70.0 million, an increase of 40% year-over-year.
  • Gross Profit: GAAP gross profit was $59.5 million, or 78% of total revenue, compared to $41.6 million, or 73% of total revenue, in the fourth quarter of 2019. Non-GAAP Gross Profit was $62.7 million, or 82% of total revenue, compared to $44.3 million, or 78% of total revenue, in the fourth quarter of 2019. 
  • Operating Loss/Income: GAAP operating loss was $11.9 million, compared to $9.9 million in the fourth quarter of 2019. Non-GAAP Operating Income was $3.0 million, or 4% of total revenue, compared to Non-GAAP Operating Loss of $0.8 million in the fourth quarter of 2019.
  • Cash Flow: Cash flow provided by operations was $19.7 million, compared to $6.5 million in the fourth quarter of 2019. Unlevered free cash flow was $19.1 million, or 25% of total revenue, compared to $10.4 million, or 18% of total revenue in the fourth quarter of 2019.

Fiscal Year 2020 Financial Highlights:

  • Revenue: Total revenue was $269.5 million, an increase of 32% year-over-year. Recurring revenue was $249.2 million, an increase of 42% year-over-year.
  • Gross Profit: GAAP gross profit was $208.7 million, or 77% of total revenue, compared to $148.0 million, or 73% of total revenue, in fiscal year 2019. Non-GAAP Gross Profit was $220.3 million, or 82% of total revenue, compared to $158.5 million, or 78% of total revenue, in fiscal year 2019. 
  • Operating Loss/Income: GAAP operating loss was $14.5 million, compared to $20.3 million in fiscal year 2019. Non-GAAP Operating Income was $30.4 million, or 11% of total revenue, compared to $16.5 million, or 8% of total revenue in fiscal year 2019.
  • Cash Flow: Cash flow provided by operations was $52.7 million, compared to $11.9 million in fiscal year 2019. Unlevered free cash flow was $66.2 million, or 25% of total revenue, compared to $26.8 million, or 13% of total revenue in fiscal year 2019.

A reconciliation between historical GAAP and non-GAAP information is contained in the tables below and the section titled “Non-GAAP Financial Measures” below contains reconciliations of these non-GAAP financial measures.

“We finished 2020 with high growth across every product, geography, and the top 10 industries we serve, demonstrating the strength and diversity of our platform,” said Dean Hager, CEO of Jamf. “As we look to 2021, we’ll continue to expand the breadth and depth of our Apple Enterprise Management platform to enhance our value to customers and accelerate further penetration of Apple in the enterprise.”

Recent Business Highlights:

  • Achieved our goal of powering 20 million Apple devices by the end of 2020, a goal we set in 2015.  We ended the year with 20.4 million Apple devices on our platform across more than 47,000 customers.
  • Awarded two U.S. patents for innovative workflow solutions, Jamf Setup and Jamf Reset, and Virtual Visits.
  • Expanded education offering with several new capabilities in Jamf School, including an enhanced Jamf Teacher app allowing teachers to use a Mac to manage student iPads, as well as enhanced student connectivity with batch activation capabilities for cellular-enabled student iPad devices, ensuring student equity is improved from the moment the iPad is activated.
  • Enhanced security offerings via Jamf Protect with new audit logging capabilities and a customer-facing API, allowing customers to access Jamf Protect data on-demand and to make changes right within the app.
  • Completed the acquisition of the assets of cmdSecurity, a suite of security and compliance tools purpose-built for macOS, extending the security capabilities of our platform.
  • Expanded the availability of Jamf business plan, originally launched in Q4 to new customers, to current customers in February 2021.
  • Received certification as a “Great Place to Work®,” with employee experience statistics well ahead of the averages for U.S.-based companies, including 96% of employees indicating they are proud to work at Jamf.

Financial Outlook:For the first quarter of fiscal year 2021, the company currently expects:

  • Total revenue of $76 to $77 million
  • Non-GAAP Operating Income of $6 to $7 million

For the full year 2021, the company currently expects:

  • Total revenue of $330 to $336 million
  • Non-GAAP Operating Income of $27 to $31 million

Conference Call Information:Jamf will host a conference call and live webcast for analysts and investors at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) on March 4, 2021. The news release with the financial results will be accessible from the company’s website prior to the conference call. Parties in the United States and Canada can access the call by dialing +1 (833) 519-1319, and international parties can access the call by dialing +1 (914) 800-3885.

The webcast will be accessible on Jamf’s investor relations website at https://ir.jamf.com. A telephonic replay of the conference call will be available through Thursday, March 11, 2021. To access the replay, parties should dial (855) 859-2056, or (404) 537-3406 and enter the passcode 7943058#.

Non-GAAP Financial Measures:In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we believe the non‑GAAP measures of Non-GAAP Operating Expenses, Non-GAAP Gross Profit, Non-GAAP Gross Profit Margin, Non‑GAAP Operating Income, Non‑GAAP Operating Income Margin, Unlevered Free Cash Flow and Unlevered Free Cash Flow Margin are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude stock-based compensation, depreciation and amortization expense, acquisition-related expenses, acquisition‑related earnout, costs associated with our secondary offering, foreign currency transaction loss and discrete tax items. We believe that non‑GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non‑GAAP information to supplement their GAAP results. The non‑GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly‑titled non‑GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in the company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by the company's management about which expenses are excluded or included in determining these non-GAAP financial measures. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this release. Jamf strongly encourages investors review our consolidated financial statements included in publicly filed reports in their entirety and not rely solely on any single financial measurement or communication.

Jamf is not providing a quantitative reconciliation of forward-looking guidance of Non-GAAP Operating Income to GAAP operating income (loss) because certain items are out of Jamf’s control or cannot be reasonably predicted. Historically, these items have included, but are not limited to, acquisition-related expenses and acquisition-related earn-out, costs associated with our secondary offering, amortization and stock-based compensation. Accordingly, a reconciliation for forward-looking Non-GAAP Operating Income is not available without unreasonable effort. These items are uncertain, depend on various factors, and could result in projected GAAP operating income (loss) being materially less than is indicated by currently estimated Non-GAAP Operating Income. However, for the first quarter of 2021 and full year 2021 amortization is expected to be approximately $8.4 million and $33.8 million, respectively. In addition, for the first quarter of 2021 and full year 2021 stock-based compensation is expected to be approximately $3 million and $54 million, respectively.

Forward-Looking Statements:This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. Forward-looking statements give our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. All forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those that we expected, including: the impact on our operations and financial condition from the effects of the current COVID-19 pandemic; the potential impact of customer dissatisfaction with Apple or other negative events affecting Apple services and devices, and failure of enterprises to adopt Apple products; the potentially adverse impact of changes in features and functionality by Apple on our engineering focus or product development efforts; changes in our continued relationship with Apple; the fact that we are not party to any exclusive agreements or arrangements with Apple; our reliance, in part, on channel partners for the sale and distribution of our products; the impact of reputational harm if users perceive our products as the cause of device failure; our ability to successfully develop new products or materially enhance current products through our research and development efforts; our ability to continue to attract new customers; our ability to retain our current customers; our ability to sell additional functionality to our current customers; our ability to meet service-level commitments under our subscription agreements; our ability to correctly estimate market opportunity and forecast market growth; risks associated with failing to continue our recent growth rates; our dependence on one of our products for a substantial portion of our revenue; our ability to scale our business and manage our expenses; our ability to change our pricing models, if necessary to compete successfully; the impact of delays or outages of our cloud services from any disruptions, capacity limitations or interferences of third-party data centers that host our cloud services, including Amazon Web Services; our ability to maintain, enhance and protect our brand; our ability to maintain our corporate culture; the ability of Jamf Nation to thrive and grow as we expand our business; the potential impact of inaccurate, incomplete or misleading content that is posted on Jamf Nation; our ability to offer high-quality support; risks and uncertainties associated with potential acquisitions and divestitures, including, but not limited to, disruptions to ongoing operations; diversions of management from day-to-day responsibilities; adverse impacts on our financial condition; failure of an acquired business to further our strategy; uncertainty of synergies; personnel issues; resulting lawsuits and issues unidentified in diligence processes; our ability to predict and respond to rapidly evolving technological trends and our customers' changing needs; our ability to compete with existing and new companies; the impact of adverse general and industry-specific economic and market conditions; the impact of reductions in IT spending; our ability to attract and retain highly qualified personnel; risks associated with competitive challenges faced by our customers; the impact of our often long and unpredictable sales cycle; our ability to develop and expand our marketing and sales capabilities; the risks associated with sales to new and existing enterprise customers; the risks associated with free trials and other inbound, lead-generation sales strategies; the risks associated with indemnity provisions in our contracts; our management team’s limited experience managing a public company; the impact of any catastrophic events; the impact of global economic conditions; risks associated with cyber-security events; the impact of real or perceived errors, failures or bugs in our products; the impact of interruptions or performance problems associated with our technology or infrastructure; the impact of general disruptions to data transmission; risks associated with stringent and changing privacy laws, regulations and standards, and information security policies and contractual obligations related to data privacy and security; the risks associated with intellectual property infringement claims; our reliance on third-party software and intellectual property licenses; our ability to protect our intellectual property and proprietary rights; and the risks associated with our use of open source software in our products.

Additional information concerning these and other factors can be found in the company's filings with the Securities and Exchange Commission. Given these factors, as well as other variables that may affect Jamf’s operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods. The forward-looking statements included in this press release and on the related teleconference call relate only to events as of the date hereof. Jamf undertakes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

About JamfJamf, the standard in Apple Enterprise Management, extends the legendary Apple experience people love to businesses, schools and government organizations through its software and the world’s largest online community of IT admins focused exclusively on Apple, Jamf Nation. To learn more, visit: www.jamf.com.

Investor Contact:Jennifer Gaumondir@jamf.com 

Media Contact:Aleena Kaleemmedia@jamf.com

Jamf Holding Corp.  
Consolidated Balance Sheets  
(In thousands)  
(unaudited)  
               
        December 31,   December 31,  
          2020       2019    
Assets            
               
Current assets:          
  Cash and cash equivalents   $ 194,868     $ 32,433    
  Trade accounts receivable, net of allowances of $530 and $200     69,056       46,513    
  Income taxes receivable     632       14    
  Deferred contract costs     9,959       5,553    
  Prepaid expenses     13,283       10,935    
  Other current assets     1,113       3,133    
    Total current assets     288,911       98,581    
               
Equipment and leasehold improvements, net     12,755       12,477    
Goodwill     541,480       539,818    
Other intangible assets, net     202,878       235,099    
Deferred contract costs     26,770       16,234    
Other assets     5,359       2,599    
               
    Total assets   $ 1,078,153     $ 904,808    
               
Liabilities and stockholders' equity          
               
Current liabilities:          
  Accounts payable   $ 6,967     $ 3,684    
  Accrued liabilities     31,574       26,927    
  Income taxes payable     713       819    
  Deferred revenues     160,443       120,089    
    Total current liabilities     199,697       151,519    
               
Deferred revenues, noncurrent     45,507       20,621    
Deferred tax liability, net     6,422       18,133    
Debt     -       201,319    
Other liabilities     11,046       9,338    
    Total liabilities     262,672       400,930    
               
Commitments and contingencies          
               
Stockholders' equity:          
  Preferred stock     -       -    
  Common stock     117       103    
  Additional paid‑in capital     903,116       568,756    
  Accumulated deficit     (87,752 )     (64,981 )  
    Total stockholders' equity     815,481       503,878    
               
    Total liabilities and stockholders' equity   $ 1,078,153     $ 904,808    
               

 

Jamf Holding Corp.  
Consolidated Statements of Operations  
(In thousands, except share and per share amounts)  
(unaudited)  
                       
        Three Months Ended December 31,   Years Ended December 31,  
          2020       2019       2020       2019    
                               
Revenue:                    
  Subscription   $ 70,044     $ 50,093     $ 249,192     $ 175,189    
  Services     4,459       4,479       14,525       19,008    
  License     1,923       2,449       5,734       9,830    
    Total revenue     76,426       57,021       269,451       204,027    
                       
Cost of revenue:                  
  Cost of subscription(1) (exclusive of amortization expense shown below)     11,196       9,114       39,323       31,539    
  Cost of services(1) (exclusive of amortization expense shown below)     2,976       3,635       10,712       14,224    
  Amortization expense     2,719       2,678       10,753       10,266    
    Total cost of revenue     16,891       15,427       60,788       56,029    
                       
    Gross profit     59,535       41,594       208,663       147,998    
                       
Operating expenses:                  
  Sales and marketing(1)     30,516       22,156       96,251       71,006    
  Research and development(1)     15,149       13,376       52,431       42,829    
  General and administrative(1)     20,091       10,427       51,904       32,003    
  Amortization expense     5,634       5,530       22,575       22,416    
    Total operating expenses     71,390       51,489       223,161       168,254    
                       
    Loss from operations     (11,855 )     (9,895 )     (14,498 )     (20,256 )  
                       
Interest expense, net     (66 )     (4,998 )     (10,741 )     (21,423 )  
Loss on extinguishment of debt     -       -       (5,213 )     -    
Foreign currency transaction gain (loss)     (251 )     59       (722 )     (1,252 )  
Other income, net     -       55       91       220    
    Loss before income tax benefit     (12,172 )     (14,779 )     (31,083 )     (42,711 )  
                       
Income tax benefit     3,207       3,530       8,312       10,111    
                       
    Net loss   $ (8,965 )   $ (11,249 )   $ (22,771 )   $ (32,600 )  
                       
Net loss per share, basic and diluted   $ (0.08 )   $ (0.11 )   $ (0.21 )   $ (0.32 )  
                       
Weighted-average shares used to compute net loss per share, basic and diluted   116,647,340       102,825,965       108,908,597       102,752,092    
                       
(1) Includes stock-based compensation as follows:                  
        Three Months Ended December 31,   Years Ended December 31,  
          2020       2019       2020       2019    
Cost of revenue:                  
Subscription   $ 342     $ 38     $ 732     $ 194    
Services     77       -       139       -    
Sales and marketing     851       112       1,748       460    
Research and development     712       110       1,533       394    
General and administrative     858       385       2,591       1,413    
        $ 2,840     $ 645     $ 6,743     $ 2,461    
                       

 

Jamf Holding Corp.
Consolidated Statements of Cash Flows
(In thousands)
(unaudited)  
                 
          Years Ended December 31,  
            2020       2019    
Cash flows from operating activities        
  Net loss $ (22,771 )   $ (32,600 )  
  Adjustments to reconcile net loss to cash        
  provided by (used in) operating activities:        
    Depreciation and amortization expense   38,168       36,807    
    Amortization of deferred contract costs   9,647       6,250    
    Amortization of debt issuance costs   773       1,120    
    Provision for bad debt expense and returns   1,024       279    
    Loss (gain) on disposal of equipment and leasehold improvements   (29 )     (17 )  
    Loss on extinguishment of debt   5,213       -    
    Share‑based compensation   6,743       2,461    
    Deferred tax benefit   (8,675 )     (11,247 )  
    Adjustment to contingent consideration   (1,000 )     200    
    Other   (263 )     -    
    Changes in operating assets and liabilities:        
      Trade accounts receivable   (23,170 )     (14,741 )  
      Income tax receivable/payable   (766 )     559    
      Prepaid expenses and other assets   (4,119 )     (4,585 )  
      Deferred contract costs   (24,589 )     (17,050 )  
      Deferred taxes   145       -    
      Accounts payable   3,888       1,138    
      Accrued liabilities   5,501       6,390    
      Deferred revenue   65,125       36,998    
      Other liabilities   1,898       (58 )  
        Net cash provided by operating activities   52,743       11,904    
                 
Cash flows from investing activities        
  Acquisition, net of cash acquired   (2,512 )     (40,173 )  
  Purchases of equipment and leasehold improvements   (4,368 )     (7,190 )  
  Proceeds from sale of equipment and leasehold improvements   4       -    
        Net cash used in investing activities   (6,876 )     (47,363 )  
                 
Cash flows from financing activities        
  Proceeds from debt   -       40,000    
  Debt issuance costs   (1,264 )     (1,550 )  
  Payment of debt   (205,000 )     (10,000 )  
  Payment of debt extinguishment costs   (2,050 )     -    
  Proceeds from initial public offering, net of underwriting discounts and commissions   326,316       -    
  Cash paid for offering costs   (7,256 )     (721 )  
  Proceeds from private placement   2,233       -    
  Proceeds from the exercise of stock options   2,985       923    
        Net cash provided by financing activities   115,964       28,652    
                 
        Effect of exchange rate changes on cash and cash equivalents   604       -    
                 
        Net increase (decrease) in cash and cash equivalents   162,435       (6,807 )  
                 
Cash and cash equivalents, beginning of period   32,433       39,240    
                 
Cash and cash equivalents, end of period $ 194,868     $ 32,433    
                 

 

Jamf Holding Corp.  
Supplemental Financial Information  
Disaggregated Revenues  
(In thousands)  
(unaudited)  
                 
  Three Months Ended December 31,   Years Ended December 31,  
    2020     2019     2020     2019  
                     
SaaS subscription and support and maintenance $ 63,525   $ 46,239   $ 224,514   $ 159,111  
On‑premise subscription   6,519     3,854     24,678     16,078  
Subscription revenue   70,044     50,093     249,192     175,189  
                 
Professional services   4,459     4,479     14,525     19,008  
Perpetual licenses   1,923     2,449     5,734     9,830  
Non-subscription revenue   6,382     6,928     20,259     28,838  
Total revenue $ 76,426   $ 57,021   $ 269,451   $ 204,027  
                 

 

Jamf Holding Corp.  
Supplemental Financial Information  
Reconciliation of GAAP to non-GAAP Financial Data  
(In thousands, except share and per share amounts)  
(unaudited)  
                 
  Three Months Ended December 31,   Years Ended December 31,  
    2020       2019       2020       2019    
Operating expenses $ 71,390     $ 51,489     $ 223,161     $ 168,254    
Amortization expense   (5,634 )     (5,530 )     (22,575 )     (22,416 )  
Stock-based compensation   (2,421 )     (607 )     (5,872 )     (2,267 )  
Acquisition-related expense   (872 )     -       (5,200 )     (1,392 )  
Acquisition-related earnout   (2,100 )     (200 )     1,000       (200 )  
Offering costs   (670 )     -       (670 )     -    
Non-GAAP Operating Expenses $ 59,693     $ 45,152     $ 189,844     $ 141,979    
                 
  Three Months Ended December 31,   Years Ended December 31,  
    2020       2019       2020       2019    
Gross profit $ 59,535     $ 41,594     $ 208,663     $ 147,998    
Amortization expense   2,719       2,678       10,753       10,266    
Stock-based compensation   419       38       871       194    
Non-GAAP Gross Profit $ 62,673     $ 44,310     $ 220,287     $ 158,458    
Non-GAAP Gross Profit Margin   82 %     78 %     82 %     78 %  
                 
  Three Months Ended December 31,   Years Ended December 31,  
    2020       2019       2020       2019    
Operating loss $ (11,855 )   $ (9,895 )   $ (14,498 )   $ (20,256 )  
Amortization expense   8,353       8,208       33,328       32,682    
Stock-based compensation   2,840       645       6,743       2,461    
Acquisition-related expense   872       -       5,200       1,392    
Acquisition-related earnout   2,100       200       (1,000 )     200    
Offering costs   670       -       670       -    
Non-GAAP Operating Income (Loss) $ 2,980     $ (842 )   $ 30,443     $ 16,479    
Non-GAAP Operating Income Margin   4 %     -1 %     11 %     8 %  
                 
  Three Months Ended December 31,   Years Ended December 31,  
    2020       2019       2020       2019    
Net loss $ (8,965 )   $ (11,249 )   $ (22,771 )   $ (32,600 )  
Amortization expense   8,353       8,208       33,328       32,682    
Stock-based compensation   2,840       645       6,743       2,461    
Foreign currency transaction loss (gain)   251       (59 )     722       1,252    
Loss on extinguishment of debt   -       -       5,213       -    
Acquisition-related expense   872       -       5,200       1,392    
Acquisition-related earnout   2,100       200       (1,000 )     200    
Offering costs   670       -       670       -    
Discrete tax items   (1,338 )     (13 )     (2,937 )     53    
Benefit for income taxes(1)   (2,323 )     (2,197 )     (9,793 )     (9,280 )  
Non-GAAP Net Income (Loss) $ 2,460     $ (4,465 )   $ 15,375     $ (3,840 )  
Net loss per share:                
Basic $ (0.08 )   $ (0.11 )   $ (0.21 )   $ (0.32 )  
Diluted $ (0.08 )   $ (0.11 )   $ (0.21 )   $ (0.32 )  
Weighted-average shares used in computing net loss per share:                
Basic   116,647,340       102,825,965       108,908,597       102,752,092    
Diluted   116,647,340       102,825,965       108,908,597       102,752,092    
Non-GAAP Net Income (Loss) per Share:                
Basic $ 0.02     $ (0.04 )   $ 0.14     $ (0.04 )  
Diluted $ 0.02     $ (0.04 )   $ 0.14     $ (0.04 )  
Weighted-average shares used in computing Non-GAAP Net Income (Loss) per Share:                
Basic   116,647,340       102,825,965       108,908,597       102,752,092    
Diluted   120,069,893       102,825,965       111,868,920       102,752,092    
                 
(1) With exception of the fourth quarter of 2020, the related tax effects of the adjustments to Non-GAAP Net Income (Loss) were calculated using the respective statutory tax rates for applicable jurisdictions, which was not materially different from our annual effective tax rate of approximately 25%. In the fourth quarter of 2020, our annual effective tax rate was impacted by changes in valuation allowance and foreign currencies. Therefore, we used the annual effective tax rate of 15.4% in the fourth quarter of 2020 as this was materially different than our statutory rate.  
                 
  Three Months Ended December 31,   Years Ended December 31,  
    2020       2019       2020       2019    
Net cash provided by operating activities $ 19,702     $ 6,537     $ 52,743     $ 11,904    
Add:                
Cash paid for interest   2       4,908       12,649       20,693    
Cash paid for acquisition-related expense   1,900       -       5,200       1,392    
Less:                
Purchases of equipment and leasehold improvements   (2,532 )     (1,026 )     (4,368 )     (7,190 )  
Unlevered free cash flow $ 19,072     $ 10,419     $ 66,224     $ 26,799    
Unlevered free cash flow margin   25 %     18 %     25 %     13 %