jamf(JAMF) - 2021 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q2 2021 was $86.2 million, representing a year-over-year growth of 39% [37] - Total Annual Recurring Revenue (ARR) as of June 30, 2021, was $333 million, an increase of 38% year-over-year [38] - Gross profit margin was 81%, compared to 82% in the prior year quarter [41] - Unlevered free cash flow was $33 million in Q2, reflecting approximately 38% unlevered free cash flow margins [42] Business Line Data and Key Metrics Changes - All Jamf products saw year-over-year ARR growth of at least 25% [10] - Jamf Connect and Jamf Protect delivered a combined ARR year-over-year growth of over 250% [10] - The company ended the quarter with 23.2 million devices on its platform, representing 35% year-over-year growth [39] Market Data and Key Metrics Changes - Bookings growth rates returned to pre-pandemic levels, with 75% of Q2 bookings coming from commercial markets [11] - All three major geographies (Americas, EMEA, APAC) experienced similar bookings growth [11] - The education market showed continued strength, with significant growth in new logo acquisition [13] Company Strategy and Development Direction - The company aims to create an enterprise secure environment that protects personal privacy while being consumer simple [59] - The acquisition of Wandera is expected to enhance Jamf's offerings in mobile security and expand its leadership in Apple Enterprise Management [26] - The company plans to support all new Apple operating systems and devices on the same day they become available [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance due to momentum in both education and commercial markets [44] - The company anticipates a revenue range of $92.5 million to $94.5 million for Q3 2021, representing growth of 31% to 34% year-over-year [48] - Management noted that the education market remains strong, with potential upside from unspent federal funding [82] Other Important Information - The company identified an immaterial error related to commission accounting, which will be corrected in future financial statements [5] - The company expects to provide final financial results for Q2 and file related reports as soon as possible [34] Q&A Session Summary Question: Strategic expansion beyond devices - Management views itself as a solution provider for connecting users, protecting data, and managing workflows, focusing on simplifying enterprise solutions [58] Question: Expanding carrier relationships post-Wandera acquisition - Management plans to enhance relationships with carriers to offer additional solutions for Macs and iOS devices [61] Question: Pricing structure considerations - Management is exploring various pricing models but has not disclosed any changes yet [66] Question: Trends in new logo adoption - Management confirmed that initial sales are taking a larger portion of the product portfolio, with upselling opportunities increasing [68] Question: Expansion in existing accounts - The dollar-based net retention rate increased to 119%, driven by the strength of add-on products [72] Question: Education market dynamics - Management noted that commercial growth is outpacing education growth, but both remain strong [74] Question: Federal initiatives in education - Management believes there is still unspent funding from initiatives like the CARES Act that could benefit future growth [82] Question: Wandera's incremental ARR - Management indicated that Wandera had an ARR of approximately $25 million at the end of Q1, which is expected to grow [84] Question: Economics behind Wandera products - Wandera's pricing model is similar to Jamf's, with a higher average price point expected to be accretive to overall ASP [88]