jamf(US:JAMF)2025-11-10 21:13Financial Performance - Annual Recurring Revenue (ARR) increased by 16% year-over-year, reaching $728.6 million as of September 30, 2025, compared to $629.9 million in 2024[129] - Subscription revenue for Q3 2025 reached $179.61 million, a 15.1% increase from $156.07 million in Q3 2024[151] - Total revenue for the nine months ended September 30, 2025, was $527.62 million, up 13.6% from $464.43 million in the same period of 2024[151] - For the three months ended September 30, 2025, total revenue increased by $24.2 million, or 15%, to $183.5 million compared to $159.3 million in 2024[155] - The company reported a total cost of revenue of $43.98 million for Q3 2025, up from $36.03 million in Q3 2024, driven by increased subscription and service costs[151] - Gross profit for Q3 2025 was $139.52 million, compared to $123.26 million in Q3 2024, reflecting a gross margin improvement[151] - The non-GAAP gross profit for the nine months ended September 30, 2025, was $426,887,000, up from $378,455,000 in 2024, reflecting a growth of 12.8%[184] - The company reported a non-GAAP gross profit margin of 81% for the nine months ended September 30, 2025, consistent with the previous year[184] Expenses and Losses - Operating expenses for Q3 2025 totaled $142.93 million, slightly higher than $139.12 million in Q3 2024, indicating a focus on maintaining operational efficiency[151] - The net loss for Q3 2025 was $4.51 million, an improvement from a net loss of $12.24 million in Q3 2024[151] - Research and development expenses increased to $38.62 million in Q3 2025, up from $35.98 million in Q3 2024, highlighting continued investment in innovation[151] - Sales and marketing expenses were $60.93 million in Q3 2025, compared to $60.06 million in Q3 2024, reflecting ongoing efforts to expand market presence[151] - The company incurred an impairment loss on a strategic investment for the nine months ended September 30, 2025, contributing to the other expense, net of $(850,000)[174] - The company recorded a net loss of $4,513,000 for the three months ended September 30, 2025, compared to a net loss of $12,241,000 in the same period of 2024, indicating an improvement of 63.1%[191] Strategic Initiatives - The company completed the acquisition of Identity Automation on April 1, 2025, enhancing its identity and access management capabilities[110] - The acquisition of Identity Automation is expected to facilitate secure device and application access, particularly in education and healthcare sectors[119] - The company aims to expand its customer base through targeted investments in direct sales and marketing efforts[117] - Continued investment in research and development is planned to enhance product offerings and maintain competitive advantage[120] - The company’s growth strategy includes international expansion and developing partnerships with key technology providers[122] Cash Flow and Financial Position - As of September 30, 2025, the company had cash and cash equivalents totaling $547.2 million, along with an available balance of $173.8 million from the 2024 Revolving Credit Facility[196] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $107.4 million, an increase of $85.9 million compared to the same period in 2024[205] - Net cash used in investing activities was $183.1 million for the nine months ended September 30, 2025, primarily due to the acquisition of Identity Automation[206] - Net cash provided by financing activities was $395.3 million for the nine months ended September 30, 2025, compared to a net cash used of $40.9 million in the same period of 2024[207] - The company expects its cash and cash equivalents, along with cash from software sales, to meet working capital and capital expenditure needs for at least the next 12 months[200] Merger and Acquisition - The company expects to close a pending take-private merger with Francisco Partners in the first quarter of 2026, with shares converting to cash at $13.05 each[113] - The Company entered into a Merger Agreement on October 28, 2025, which will result in its common stock being delisted from NASDAQ and ceasing to be a reporting company[223] - The Merger is subject to customary closing conditions and regulatory approvals, including the affirmative vote of a majority of the outstanding shares[223] - The Company may incur a termination fee of $68.1 million if the Merger Agreement is terminated under certain circumstances, which could adversely affect its financial condition[226] - The Company is restricted from pursuing alternative business combinations under the Merger Agreement, which may limit potential acquisition offers[227] - The Merger's pending status may disrupt ongoing operations and adversely affect relationships with vendors, customers, and employees[224] Management and Workforce - The strategic reinvestment plan announced in July 2025 impacted approximately 6.4% of full-time employees, aimed at reducing operating costs and improving margins[234] - The Company has experienced changes in its senior management team, including the hiring of a new CEO, CFO, and Chief Sales Officer in the last two years[232] - Competition for qualified personnel remains intense, particularly for experienced engineers, which may impact the Company's ability to attract and retain talent[233] Legal and Regulatory - The Company is subject to legal proceedings and claims, but does not believe these will have a material adverse effect on its business[221] - The completion of the Merger may not occur on the expected timeline, which could negatively impact the market price of the Company's shares[225]