jamf(US:JAMF)2021-08-19 16:00Financial Performance - Annual Recurring Revenue (ARR) increased to $333.0 million as of June 30, 2021, up 38% year-over-year from $241.0 million in 2020[196]. - Total revenue for Q2 2021 was $86,238,000, up 38.5% from $62,264,000 in Q2 2020[237]. - Subscription revenue increased to $80,718,000 in Q2 2021, a 37.7% rise from $58,600,000 in Q2 2020[237]. - Total revenue increased by $24.0 million, or 39%, for the three months ended June 30, 2021, compared to the same period in 2020, driven by higher subscription revenue, services revenue, and license revenue[241]. - Total revenue increased by $44.6 million, or 37%, for the six months ended June 30, 2021, compared to the same period in 2020[242]. - The company reported a net loss of $16,467,000 for the three months ended June 30, 2021, compared to a net loss of $834,000 for the same period in 2020[215]. - The company reported a net loss of $21.1 million for the six months ended June 30, 2021, adjusted for non-cash charges of $39.0 million[272]. - Adjusted EBITDA for Q2 2021 was $8,972,000, compared to $11,981,000 in Q2 2020, reflecting a decrease of approximately 25%[220]. - Non-GAAP Gross Profit for the three months ended June 30, 2021, was $70,175,000, compared to $51,352,000 for the same period in 2020, reflecting a growth of 36.7%[206]. - Non-GAAP Net Income for the three months ended June 30, 2021, was $7,496,000, compared to $4,813,000 for the same period in 2020, representing an increase of 55.5%[215]. Customer Metrics - The number of devices on the software platform grew to 23.2 million as of June 30, 2021, representing a 35% year-over-year growth rate from 17.2 million in 2020[193]. - The dollar-based net retention rates were 119% and 117% for the trailing twelve months ended June 30, 2021 and 2020, respectively, indicating strong customer expansion[199]. - Customer retention rate improved to 85%, up from 80% in the previous quarter[295]. - The increase in subscription revenue was attributed to device expansion, new customer additions, and cross-selling efforts[242]. Operational Strategy - The company plans to continue investing in its sales team to target expansion within midmarket and enterprise customers, as well as to attract new customers[187]. - The company intends to continue international expansion by investing in sales and marketing channels to capitalize on market opportunities[188]. - The company plans to enhance internal controls and commissions processes, including hiring a third-party consultant for standardization and automation[293]. - The company plans to enter two new international markets by the end of 2024[295]. Acquisitions and Investments - The acquisition of Wandera, completed on July 1, 2021, enhances the company's position in Apple Enterprise Management and strengthens its security offerings[177]. - The company completed the acquisition of Wandera for total consideration of $409.2 million on July 1, 2021, financed with cash on hand and proceeds from a new term loan facility[267]. - The company completed a strategic acquisition of a tech startup for $200 million to bolster its product offerings[295]. - The company is investing $500 million in R&D for new technologies aimed at enhancing user experience[295]. Market Performance - User base grew to 10 million active users, a 20% increase compared to the previous quarter[295]. - Market expansion efforts have led to a 25% increase in market share in the Asia-Pacific region[295]. - The company provided guidance for Q4 2023, expecting revenue to be between $2.7 billion and $2.9 billion, indicating a growth of 8% to 16%[295]. Expenses and Losses - Operating expenses for Q2 2021 totaled $82,951,000, compared to $44,892,000 in Q2 2020, reflecting an increase of 84.6%[237]. - General and administrative expenses for Q2 2021 were $27,508,000, significantly higher than $6,528,000 in Q2 2020, indicating a rise of 320.5%[237]. - Sales and marketing expenses rose by $11.8 million, or 57%, for the three months ended June 30, 2021, primarily due to increased employee compensation costs and marketing initiatives[247]. - Research and development expenses rose to $17,203,000 in Q2 2021, up from $11,949,000 in Q2 2020, marking a 43.5% increase[237]. - The company reported a net loss of 19% for the three months ended June 30, 2021, compared to a net loss of 1% in the same period in 2020[239]. Cash Flow and Financial Position - As of June 30, 2021, the company had cash and cash equivalents totaling $226.5 million, which are expected to support ongoing investments and operational needs[264]. - Deferred revenue as of June 30, 2021, amounted to $238.5 million, with $180.7 million expected to be recognized as revenue in the next 12 months[266]. - Net cash provided by operating activities was $38.0 million, a significant increase from $9.5 million in the same period of 2020[270][272]. - Cash and cash equivalents at the end of the period were $226.5 million, up from $194.9 million at the beginning of the period[270]. Internal Controls and Compliance - The company identified a material weakness in internal control over financial reporting related to the misstatement of commissions, leading to revisions of previously issued financial statements[291][292]. - The company has not entered into any hedging arrangements regarding foreign currency risk, and a hypothetical 10% change in foreign currency exchange rates would not have had a material impact on its consolidated financial statements[288].