Financial Data and Key Metrics Changes - Total revenue in Q3 2020 grew 29% year-over-year to $70.4 million, driven by recurring revenue growth of 40% year-over-year to $65.8 million, now representing 93% of total revenues [10][48] - Annual recurring revenue (ARR) was $261.5 million, growing 37% year-over-year [10][48] - Non-GAAP operating income was $12 million, or 17% of revenue, a 0.5 point decrease from Q3 2019 [10][58] - Unlevered free cash flow totaled $28.2 million, representing a margin of 40%, up from 33% in Q3 2019 [10][59] Business Line Data and Key Metrics Changes - Strong growth in the education market, largely driven by distance-learning requirements due to COVID-19 [19][20] - Jamf Pro and Jamf School products performed extremely well in the education sector [70] - Jamf Connect and Jamf Protect saw approximately 700 and 200 new customers respectively, indicating strong demand for these products [30][121] Market Data and Key Metrics Changes - Jamf onboarded 56 school districts in Japan, including over 1,000 schools in Q3 alone [20] - The company serves 12 of the 15 largest school districts in the U.S., with eight schools increasing their seat count since the COVID-19 outbreak [20] - The dollar-based net retention rate remained strong at 117% for the trailing 12 months ended September 30, 2020 [52] Company Strategy and Development Direction - Jamf is focused on supporting remote work, distance learning, and telehealth solutions, which have become increasingly important during the pandemic [11][42] - The company is committed to innovating at the pace of Apple, supporting new operating systems and hardware as they are released [43][44] - Jamf is expanding its offerings with a new user base pricing bundle called Jamf Business Plan, which includes Jamf Pro, Jamf Protect, and Jamf Connect [32][121] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, but trends in telehealth, distance learning, and remote work have driven strong sales growth [9][11] - The company anticipates continued demand for its solutions as organizations adapt to new technology needs [42][88] - Management expressed confidence in the pipeline coverage, indicating it is similar to pre-pandemic expectations [74] Other Important Information - Jamf hosted approximately 20,000 attendees at its virtual Jamf Nation User Conference (JNUC), significantly higher than typical in-person attendance [33][34] - The company announced the acquisition of Mondada, enhancing its patch management capabilities for the Apple platform [40][41] Q&A Session Summary Question: Can you provide insights on the education vertical and product demand? - Management indicated that Jamf Pro and Jamf School products performed extremely well, with education revenue split being approximately 60% commercial and 40% education [70] Question: How do you view the impact of 5G on enterprise adoption? - Management believes 5G will be transformative, especially in education, enhancing connectivity for students learning from home [71] Question: What is the current demand trajectory and pipeline status? - Management reported a strong pipeline coverage similar to pre-pandemic levels, with notable strength in education [74] Question: When can we expect Jamf Connect and Jamf Protect for iOS? - Management confirmed plans to eventually extend these capabilities to iOS and iPadOS but did not provide a specific timeline [79] Question: How is the commercial device expansion looking? - Management noted a slight improvement in commercial device expansion, with confidence returning to IT budgets [107] Question: What are the expectations for education buying trends? - Management anticipates unusual education buying patterns extending into Q4, driven by global deployments and increased technology adoption [111] Question: How is the interest in new vertical solutions tracking? - Management reported strong interest in virtual visits and assessments, with virtual visits seeing rapid adoption [100][102]

Device Growth and Customer Metrics - The number of devices on the software platform increased to 18.6 million as of September 30, 2020, up from 15.0 million in 2019, reflecting a strong growth rate driven by the demand for remote management of Apple devices due to COVID-19 [133]. - Annual Recurring Revenue (ARR) reached $261.5 million as of September 30, 2020, representing a 37% year-over-year increase from $191.1 million in 2019, primarily driven by high device expansion rates and new customer acquisitions [136]. - The dollar-based net retention rate was 117% for the trailing twelve months ended September 30, 2020, slightly down from 118% in 2019, indicating strong customer retention and expansion within the existing customer base [139]. - Recurring revenue accounted for 93% of total revenue for the three months ended September 30, 2020, compared to 86% for the same period in 2019 [188]. Financial Performance - Non-GAAP Gross Profit for Q3 2020 was $58,220,000, up from $43,164,000 in Q3 2019, representing a 34.9% increase [146]. - Non-GAAP Gross Profit Margin improved to 83% in Q3 2020 from 79% in Q3 2019 [146]. - Non-GAAP Operating Income for Q3 2020 was $11,956,000, compared to $9,552,000 in Q3 2019, reflecting a 25.1% increase [150]. - Non-GAAP Net Income for Q3 2020 was $8,167,000, significantly higher than $3,086,000 in Q3 2019, marking a 164.5% increase [155]. - Total revenue increased by $15.8 million, or 29%, for the three months ended September 30, 2020, compared to the same period in 2019, driven by higher subscription revenue [188]. - Subscription revenue for the three months ended September 30, 2020, was $57.9 million, a 38% increase from $41.9 million in the same period of 2019 [187]. - Total revenue for the nine months ended September 30, 2020, increased by $46.0 million, or 31%, compared to the same period in 2019 [190]. - Subscription revenue for the nine months ended September 30, 2020, was $161.0 million, a 43% increase from $112.9 million in the same period of 2019 [187]. Cost and Expense Management - Operating expenses for the three months ended September 30, 2020, totaled $55.5 million, compared to $40.3 million in the same period of 2019 [180]. - General and administrative expenses surged by $7.1 million, or 105%, for the three months ended September 30, 2020, largely due to costs associated with operating as a public company [205]. - Sales and marketing expenses rose by $6.3 million, or 37%, for the three months ended September 30, 2020, driven by higher employee compensation and marketing costs [201]. - Research and development expenses increased by $1.8 million, or 17%, for the three months ended September 30, 2020, mainly due to higher employee compensation costs [202]. Strategic Initiatives and Future Outlook - The company plans to continue investing in growth by expanding its sales team and enhancing marketing efforts to drive brand awareness and customer acquisition [126]. - The focus on product innovation includes the introduction of new solutions like Jamf Connect and Jamf Protect, which are expected to support high retention rates and expand usage among existing customers [125]. - The company aims to enhance its offerings through partnerships, particularly with Apple and Microsoft, to deliver integrated solutions that meet enterprise user needs [129]. - Continued international expansion is a priority, with investments planned in sales and marketing channels to adapt to local market dynamics and increase brand awareness globally [128]. - Future financial performance is expected to be influenced by the ability to attract new customers and expand within the existing customer base, alongside maintaining competitive pricing and features [123]. Cash Flow and Capital Structure - As of September 30, 2020, cash and cash equivalents totaled $177.5 million, with positive cash flows from operations enabling continued investments in business growth [217][218]. - The company raised approximately $319.0 million from its IPO by issuing 13,500,000 shares at $26.00 per share, after deducting underwriting discounts and offering expenses [220]. - The company repaid $205.0 million of the principal amount of its Prior Term Loan Facility upon closing of the IPO, incurring a loss on debt extinguishment of $5.2 million [221]. - Net cash provided by operating activities for the nine months ended September 30, 2020 was $33.0 million, reflecting a net loss of $13.8 million adjusted for non-cash charges of $37.3 million [230]. - Net cash provided by financing activities was $113.8 million for the nine months ended September 30, 2020, mainly due to proceeds from the IPO and private placement, offset by debt repayments and costs [234]. Accounting and Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions [239]. - The company has elected to use an extended transition period for complying with new or revised accounting standards applicable to public companies [240]. - The company’s financial statements are prepared in accordance with GAAP, requiring estimates and assumptions that may impact reported results [241]. - Following the IPO, the fair value determination of common stock is no longer applicable, with no material changes to critical accounting policies [242]. - The company has not entered into any hedging arrangements regarding foreign currency risk, and a hypothetical 10% change in exchange rates would not have materially impacted financial statements [247]. - Inflation has not significantly impacted the company's net revenue and costs of revenue to date, but future impacts cannot be assured [248].

Company Overview - Jamf has over 40,000 active customers[11], with over 17 million Apple devices running Jamf[11] - Jamf Nation has over 100,000 members[11] - Jamf boasts a 92% rate as a great workplace[11] - Jamf's dollar-based net retention is 117%[11] - Jamf's 2019 Net Promoter Score is 55.6[11] Financial Performance (Q2 2020) - ARR reached $241 million, a 36% year-over-year growth[11] - Revenue grew by 29%[11] - Recurring revenue constitutes 94% of the total revenue[11] - Non-GAAP gross margin is 82%[11] - Non-GAAP operating income margin is 18%[11] - Unlevered Free Cash Flow (uFCF) margin is 34%[11] Market Opportunity - The total addressable market is estimated at $10.3 billion in 2019, expected to grow to $23.4 billion by 2024, representing a 17.8% CAGR[27]

Business Growth and Strategy - The number of devices on the software platform increased to 17.2 million as of June 30, 2020, representing a 19% year-over-year growth rate[135]. - Annual Recurring Revenue (ARR) reached $241.0 million as of June 30, 2020, a 36% increase from $177.1 million in the same period of 2019[137]. - The dollar-based net retention rate was 117% for the trailing twelve months ended June 30, 2020, indicating strong customer expansion despite a slight decrease from 120% in 2019[141]. - The company plans to continue investing in growth, targeting expansion within midmarket and enterprise customers, and enhancing brand awareness through marketing efforts[128]. - The company aims to sustain product innovation and technology leadership to maintain its competitive advantage, with a focus on developing new products and features[127]. - The company intends to continue international expansion by investing in sales and marketing channels to adapt to local market dynamics[130]. - The company emphasizes the importance of enhancing offerings via its partner network to drive growth and reach more enterprise customers[131]. - The company’s focus on a "land and expand" business model allows for efficient revenue growth from existing customers through increased usage of software solutions[126]. Financial Performance - Non-GAAP Gross Profit for Q2 2020 was $51,300,000, up from $37,393,000 in Q2 2019, representing a 37% increase[148]. - Non-GAAP Gross Profit Margin improved to 82% in Q2 2020 from 77% in Q2 2019[148]. - Non-GAAP Operating Income for Q2 2020 was $11,228,000, compared to $4,350,000 in Q2 2019, reflecting a 158% increase[152]. - Non-GAAP Operating Income Margin increased to 18% in Q2 2020 from 9% in Q2 2019[152]. - Non-GAAP Net Income for Q2 2020 was $4,994,000, compared to a loss of $876,000 in Q2 2019[157]. - Adjusted EBITDA for Q2 2020 was $12,368,000, significantly higher than $5,404,000 in Q2 2019, marking a 129% increase[162]. - Total revenue increased by $13.9 million, or 29%, for the three months ended June 30, 2020, compared to the same period in 2019, driven by higher subscription revenue[189]. - Subscription revenue for the three months ended June 30, 2020, was $52,978 thousand, a 42% increase from $37,216 thousand in 2019[188]. - Recurring revenue accounted for 94% of total revenue for the three months ended June 30, 2020, compared to 85% for the same period in 2019[189]. - Total revenue increased by $30.2 million, or 33%, for the six months ended June 30, 2020, compared to the same period in 2019[191]. - Subscription revenue for the six months ended June 30, 2020, was $103,056 thousand, a 45% increase from $70,956 thousand in 2019[188]. - Recurring revenue accounted for 92% of total revenue for the six months ended June 30, 2020, compared to 84% for the same period in 2019[191]. - Gross profit for the three months ended June 30, 2020, was $48,584 thousand, compared to $34,825 thousand in 2019[188]. - The company reported a net loss of $423 thousand for the three months ended June 30, 2020, compared to a net loss of $7,671 thousand in 2019[182]. Expenses and Costs - Research and development expenses are expected to increase in absolute dollars to support innovation and new solutions[173]. - General and administrative expenses are projected to rise as the company invests in technology infrastructure and expands operations globally[174]. - Sales and marketing expenses increased by $10.6 million, or 33%, for the six months ended June 30, 2020, primarily due to higher employee compensation costs[200]. - Research and development expenses increased by $6.0 million, or 32%, for the six months ended June 30, 2020, driven by higher headcount and outside services[202]. - General and administrative expenses increased by $3.1 million, or 21%, for the six months ended June 30, 2020, primarily due to higher employee compensation costs and acquisition-related expenses[204]. Revenue Changes - License revenue is anticipated to decrease as new customer sales shift towards cloud-based subscriptions[166]. - Services revenue decreased due to COVID-19 impacting in-person training sessions[189]. - License revenue decreased as customers shifted to the SaaS model instead of on-premise, perpetual licenses[190]. - Subscription gross margin improved to 85% for the three months ended June 30, 2020, compared to 82% for the same period in 2019[194]. - Services gross margin decreased to 37% for the three months ended June 30, 2020, down from 50% for the same period in 2019, primarily due to a larger decrease in services revenues[195]. - Total gross margin was 78% for the three months ended June 30, 2020, compared to 72% for the same period in 2019[196]. Cash Flow and Debt - As of June 30, 2020, the company had cash and cash equivalents of $38.4 million, up from $30.0 million at the end of the previous period[229]. - Net cash provided by operating activities for the six months ended June 30, 2020, was $9.5 million, compared to a net cash used of $9.7 million in 2019[230]. - Deferred revenue as of June 30, 2020, was $157.7 million, with $130.3 million expected to be recognized as revenue in the next 12 months[218]. - The company closed its IPO on July 24, 2020, raising approximately $319.0 million after expenses, and repaid $205.0 million of its Term Loan Facility[215]. - Net cash used in investing activities for the six months ended June 30, 2020, was $1.4 million, significantly lower than $38.6 million in 2019, which included a major acquisition[232]. - The company recorded a loss on debt extinguishment of $5.2 million related to the repayment of debt in the third quarter of 2020[215]. - As of June 30, 2020, the effective interest rate on the Term Loan Facility was 8.70% per annum, higher than the contract rate due to amortization of debt issuance costs[224]. - The company has total outstanding debt of $205.0 million as of June 30, 2020, with no borrowings under its Term Loan Facility[250]. - The contract interest rate on the Term Loan Facility was 8.00% per annum, with an effective interest rate of 8.70% per annum due to amortization of debt issuance costs[249]. Market and Economic Factors - A hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the company's consolidated financial statements during the three and six months ended June 30, 2020[247]. - A 100-basis point increase or decrease in market interest rates would result in a change to interest expense of $2.1 million on an annual basis[250]. - The company has not entered into any hedging arrangements regarding foreign currency risk or other derivative financial instruments[247]. - The company believes the effects of inflation on its results of operations and financial condition have not been significant to date[252]. Compliance and Reporting - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[240]. - The company has elected to use an extended transition period for complying with new or revised accounting standards[241]. - There have been no material changes to the company's critical accounting policies and estimates disclosed in its IPO Prospectus[244].

Financial Data and Key Metrics Changes - Total revenue in Q2 2020 grew 29% year-over-year to a record $62.2 million, driven by recurring revenue growth of 42% year-over-year to $58.8 million, which now comprises over 94% of total revenues [9][34] - Annual recurring revenue (ARR) as of June 30, 2020, was $241 million, growing 36% year-over-year [9][35] - Non-GAAP operating income was $11.2 million in Q2, representing 18% of revenue, a 9-point improvement over the same period in 2019 [10][40] - Unlevered free cash flow totaled $21 million in Q2, representing a margin of 34%, up from 4% in Q2 of the previous year [10][41] Business Line Data and Key Metrics Changes - The company serves over 40,000 active customers across various industries, with no single customer accounting for over 1% of annual revenue, indicating a diversified customer base [17] - Device count on the platform reached 17.2 million, representing a 19% year-over-year growth rate, with notable strength in healthcare and education sectors [36] Market Data and Key Metrics Changes - The global total addressable market (TAM) for Apple Enterprise Management is estimated at $10.3 billion in 2019, expected to grow at a compound annual growth rate of 17.8% to $23.4 billion by 2024 [26][27] - The company has seen increased activity in sectors like healthcare and education due to the demand for remote management and support solutions during COVID-19 [20][56] Company Strategy and Development Direction - The company aims to extend its technology leadership through R&D investment and new product development, focusing on customer success and innovation [29][30] - Plans to invest in targeted sales and marketing to grow the customer base and expand global presence [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic challenges, including budget cuts and staff reductions, but sees strong demand driven by trends in remote work, telehealth, and distance learning [20][63] - The company believes that the shift towards remote work and digital transformation will have lasting effects, creating a more permanent demand for its solutions [19][63] Other Important Information - The annual Jamf Nation User Conference will be held virtually, expecting a large turnout with thousands of attendees [16] - The company has delayed some planned spending due to COVID-19 but intends to invest a portion of those savings in the second half of the year [40] Q&A Session Summary Question: Demand trajectory and pipeline outlook - Management noted that the pipeline coverage remains similar to pre-COVID levels, with some deals taking longer to close but offset by fast-moving opportunities in education and remote work [49][50] Question: Education sector buying season - The buying season for education is extending closer to the school year due to COVID-19, with K-12 making up about 85% of the education business [53][54] Question: Staff reductions and device renewals - Staff reductions are primarily seen in hard-hit industries like hospitality, but sectors like education and healthcare are experiencing increased activity [56] Question: Device growth and future expectations - Device growth of 19% is influenced by cautious purchasing behavior in the commercial sector and seasonal trends in education [61][65] Question: Cross-selling and upselling demand - Demand for newer products like Jamf Connect and Jamf Protect is strong, with expectations for continued growth as solutions are integrated [68][70] Question: Impact of Apple's silicon transition - Management views Apple's transition to its own silicon as a positive development that will enhance the appeal of Macs in the workplace [78][80]