jamf(JAMF)2024-02-26 16:00Customer Base and Market Presence - Jamf has over 75,300 customers deploying 32.3 million devices across more than 100 countries and territories as of December 31, 2023[24] - Jamf had over 75,300 customers as of December 31, 2023, with 28,000 new customers added in the last three years[80] - Jamf's international presence grew, with 35% of new subscriptions originating outside North America in 2023[75] - Jamf's global Total Addressable Market was estimated to be approximately $35 billion in 2022, based on Frost & Sullivan data[66] Customer Satisfaction and Retention - Jamf's Net Promoter Score (NPS) is 55 as of November 2023, significantly exceeding industry averages[25] - The company maintained a high customer satisfaction score of 9.24 out of 10 in 2023 based on surveys[84] - Jamf's dollar-based net retention rate was 108% as of December 31, 2023, with 30,700 customers using both management and security products[75] - Approximately 57% of Jamf's bookings for the year ended December 31, 2023, were facilitated via channel partners[73] Product Offerings and Innovation - Jamf Pro, the company's flagship product, has been serving customers since 2002 and supports SMBs, enterprises, and educational institutions[46] - Jamf Now offers pay-as-you-go Apple device management and security for SMBs, enabling remote configuration and inventory management[49] - Jamf School provides educators with tools to manage classroom devices, deploy lessons, and control access to content for students[50] - Jamf Connect allows IT admins to provision devices with business-critical applications based on cloud identity, ensuring seamless remote access[51] - Jamf's Jamf Protect solution provides endpoint security for Mac, iOS, Android, and Windows devices, including mobile threat detection and zero-day phishing prevention[53] - Jamf's Jamf Business Plan offers a bundled solution for Apple device lifecycle management, including deployment, identity, access, management, and security[54] - Jamf's Jamf Executive Threat Protection, acquired from ZecOps in 2022, provides advanced device telemetry analysis to identify and remediate targeted attacks[56] - Approximately 24% of the company's global employee base is dedicated to research and development[89] - The company's research and development teams are organized into small, agile teams focused on product innovation and same-day support for Apple releases[89] Financial Performance - Total revenue for the year ended December 31, 2023 was $560.6 million[425] - Subscription revenue grew to $543.019 million in 2023, a 19.3% increase from $455.007 million in 2022[440] - Net loss for 2023 was $110.086 million, an improvement from $141.301 million in 2022[440] - Cash and cash equivalents increased to $243.576 million in 2023, up from $224.338 million in 2022[438] - Total assets grew to $1.589 billion in 2023, compared to $1.529 billion in 2022[438] - Sales and marketing expenses rose to $250.757 million in 2023, a 15.2% increase from $217.728 million in 2022[440] - Research and development expenses increased to $134.422 million in 2023, up 12.1% from $119.906 million in 2022[440] - Net cash provided by operating activities in 2023 was $36.0 million, down from $90.0 million in 2022 and $65.2 million in 2021[448] - Acquisitions, net of cash acquired, in 2023 totaled $18.8 million, compared to $23.8 million in 2022 and $352.7 million in 2021[448] Employee and Workforce Metrics - The company's voluntary retention rate for employees was 93% as of December 31, 2023[101] - In the annual employee engagement survey conducted in September 2023, 86% of over 2,400 participating employees agreed they would recommend the company as a great place to work[101] - Women made up approximately 37% of the company's management team as of December 31, 2023[102] - As of December 31, 2023, the company had 2,767 employees, with 1,665 employed in the U.S. and 1,102 employed outside the U.S.[103] - The company announced a workforce reduction plan in January 2024, impacting approximately 6% of full-time employees[155] Regulatory and Compliance Risks - The company is subject to data privacy regulations such as GDPR, UK-GDPR, CPRA, and CCPA, which impose significant penalties for non-compliance[107] - The company is subject to global data protection laws such as GDPR, CCPA, and CPRA, which may impact demand for its platform and increase compliance costs[196] - European data transfers outside the European Economic Area are highly regulated, with mechanisms like Standard Contractual Clauses facing legal challenges[197] - Compliance with privacy laws and contractual obligations may result in substantial costs, fines, or reputational damage[200] - Increased regulatory scrutiny from the SEC on cybersecurity disclosures poses additional risks for the company[189] Cybersecurity and Data Protection - Cybersecurity risks are increasing, with potential for significant liabilities and reputational damage if a breach occurs[185] - The company relies on third-party software vendors, limiting its ability to monitor data security and ensure integrity[186] - A security breach could result in litigation, regulatory investigations, fines, and significant costs for remediation and mitigation[187] - The company's cybersecurity products may fail to detect advanced attacks, leading to potential claims and reputational harm[188] - Customers are responsible for their own data security, but breaches on their systems could still harm the company's reputation and finances[190] Intellectual Property and Legal Risks - As of December 31, 2023, the company owned 13 issued U.S. patents and 28 issued patents in foreign jurisdictions[91] - The company's issued U.S. patents will expire between 2034 and 2042, excluding any patent term adjustments or extensions[91] - The company may face intellectual property disputes, potentially leading to significant expenses, damages, or product redesigns[201] - The company relies on third-party software and intellectual property licenses, which may not always be available on commercially reasonable terms[204] - The company's limited patent portfolio may hinder its ability to deter patent infringement claims[203] Operational and Market Risks - Rapid technological changes and failure to respond to evolving customer needs could render existing products obsolete and unmarketable[165] - Sales expansion depends on factors like customer awareness, product enhancements, and effective marketing programs[166] - Development of new technology is complex and uncertain, with risks including failure to predict market demands and defects in new products[167][168] - Intense competition from companies with greater resources could result in reduced sales and margins[170] - Incorporation of AI/ML technologies may expose the company to reputation harm, liability, and regulatory challenges[171] - Competitive pressures from existing and new companies may harm the company's business, revenue, and market share[172] - Customer dissatisfaction with Apple devices could negatively impact the company's results of operations[124] - Sales cycles are lengthy and unpredictable, particularly for large enterprises and government entities[177] - The company relies on free trials and inbound lead-generation strategies, which may not consistently convert to paying customers[182] - Real or perceived errors, failures, or bugs in the company's products could lead to negative publicity, loss of customers, and liability claims[191][192] - Service outages or performance problems could harm the company's reputation and financial condition, especially during peak usage times[193] - Apple service outages could negatively impact customer perception of the company's products and lead to reputational damage[194] Financial and Accounting Details - The company had $243.6 million in cash and cash equivalents as of December 31, 2023[413] - The company issued $373.8 million in 0.125% 2026 Notes in September 2021[414] - The company's cash and cash equivalents are held in money market deposit accounts and funds with original maturities of three months or less[413] - The company's revenue recognition process involves significant effort due to the high volume of transactions[425] - The company may incur debt or issue equity securities for transactions, potentially diluting shareholders and increasing fixed obligations[162] - The company maintained effective internal control over financial reporting as of December 31, 2023[428] - Internal controls of dataJar were not included in the company's assessment of internal control over financial reporting[429] - Stockholders' equity as of December 31, 2023, was $717.5 million, down from $738.4 million at the end of 2022[445] - The company issued 711,111 shares of common stock in connection with a business combination in 2022, valued at $15.1 million[445] - Cash, cash equivalents, and restricted cash totaled $1.9 million in other current assets and $10.9 million in other assets as of December 31, 2023[465] - The company capitalized $1.9 million in implementation costs for cloud computing arrangements in other current assets and $10.9 million in other assets[465] - No material impairment losses were recognized for equipment and leasehold improvements during 2021, 2022, and 2023[464] - The company's service arrangements may include the right to control the use of an asset, subject to ASC 842 lease accounting standards[470] Geographic and Regional Performance - Revenue by geographic region for 2023 was $560.6 million, with $377.9 million from the Americas, $140.2 million from Europe, the Middle East, India, and Africa, and $42.5 million from Asia Pacific[458] - Long-lived assets as of December 31, 2023, totaled $32.8 million, with $21.5 million in the Americas, $3.2 million in Europe, the Middle East, India, and Africa, and $8.2 million in Asia Pacific[459] - The U.S. accounted for 65% of the company's total long-lived assets as of both December 31, 2023, and 2022[459] Industry Trends and Market Dynamics - Apple operating systems accounted for 24% of global web traffic in December 2023, up from 4% in January 2009[35] - In the U.S., Apple operating systems represented 41% of web traffic in December 2023, compared to 35% for Microsoft and 20% for Google[35] - IDC predicts a 20% increase in Mac sales to business users worldwide between 2023 and 2024[35] - 80% of remote-capable employed Americans worked exclusively or partially remote in 2023, according to a Gallup study[39] - The company faces competitive pressures from potential mergers and acquisitions in the cloud-based technology industry[173]