jamf(US:JAMF)2020-11-12 22:15Device 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].