jamf(US:JAMF)2021-11-12 03:09Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $95.6 million, representing a 36% year-over-year growth, exceeding expectations due to outperformance across all revenue categories [29] - Total ARR as of September 30 was $384.8 million, an increase of 47% year-over-year, with organic ARR growth of 37% [29] - Gross profit margin was 80%, compared to 83% in the prior year quarter, while operating margin was 2% [31] Business Line Data and Key Metrics Changes - ARR growth was driven by over 25% growth across every Jamf product, with all three major geographies and top commercial industries experiencing ARR growth of over 30% [29] - The company ended the quarter with 25 million devices on its platform, reflecting a 34% year-over-year growth [29] - The dollar-based net retention rate remained strong at 119% for the trailing 12 months ended September 30 [30] Market Data and Key Metrics Changes - Jamf's commercial markets made up nearly 75% of total bookings, with substantial strength in the Americas and EMEA markets [10] - The education market saw a leveling off in growth rates compared to the previous year, while commercial markets accelerated [10] - Apple shipped more Macs than in any quarter in history, with a growth rate double that of the industry [13] Company Strategy and Development Direction - The company aims to continue leading and innovating in Apple Enterprise Management, with a focus on expanding its product offerings and addressing customer needs [36] - Jamf's partnership with Apple remains strong, and the introduction of Apple Business Essentials is seen as an opportunity to grow the market for Apple devices in small businesses [42] - The company is focused on improving operational efficiency while balancing investments for growth, particularly in sales and R&D [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance due to momentum in the business and the expected growth in 2022 [32][36] - The company anticipates a strong finish to the year, driven by new products and increasing strength in the commercial business [36] - Management noted that the education market's growth rate is not cooling but rather normalizing after a significant increase in the previous year [61] Other Important Information - The company completed the acquisition of Wandera at the beginning of Q3, contributing $5.1 million in revenue for the quarter [29] - Jamf's new student safety offering, announced at JNUC, aims to address the growing need for cybersecurity in education [19] - The company highlighted its partnerships with Cybereason and Red Canary to enhance its security solutions [23] Q&A Session Summary Question: Changes in relationship with Apple due to Business Essentials - Management confirmed no change in the relationship with Apple as a customer or channel partner [46] Question: Impact of Wandera on ARR - Management clarified that purchase accounting does not impact ARR, and Wandera is expected to grow at the same pace as Jamf's ARR [48] Question: Education market cooling - Management explained that the education market is not cooling but normalizing after a significant growth period [61] Question: Confidence in commercial strength - Management cited consumerization of IT and strong Apple adoption as key drivers for continued strength in the commercial market [63] Question: Attach rates for Connect and Protect - Management reported approximately 700 new customers for Connect and 400 for Protect, with expectations of 50% attachment over time [51]