jamf(US:JAMF)2020-11-13 03:49Financial Data and Key Metrics Changes - Total revenue in Q3 2020 grew 29% year-over-year to $70.4 million, driven by recurring revenue growth of 40% year-over-year to $65.8 million, now representing 93% of total revenues [10][48] - Annual recurring revenue (ARR) was $261.5 million, growing 37% year-over-year [10][48] - Non-GAAP operating income was $12 million, or 17% of revenue, a 0.5 point decrease from Q3 2019 [10][58] - Unlevered free cash flow totaled $28.2 million, representing a margin of 40%, up from 33% in Q3 2019 [10][59] Business Line Data and Key Metrics Changes - Strong growth in the education market, largely driven by distance-learning requirements due to COVID-19 [19][20] - Jamf Pro and Jamf School products performed extremely well in the education sector [70] - Jamf Connect and Jamf Protect saw approximately 700 and 200 new customers respectively, indicating strong demand for these products [30][121] Market Data and Key Metrics Changes - Jamf onboarded 56 school districts in Japan, including over 1,000 schools in Q3 alone [20] - The company serves 12 of the 15 largest school districts in the U.S., with eight schools increasing their seat count since the COVID-19 outbreak [20] - The dollar-based net retention rate remained strong at 117% for the trailing 12 months ended September 30, 2020 [52] Company Strategy and Development Direction - Jamf is focused on supporting remote work, distance learning, and telehealth solutions, which have become increasingly important during the pandemic [11][42] - The company is committed to innovating at the pace of Apple, supporting new operating systems and hardware as they are released [43][44] - Jamf is expanding its offerings with a new user base pricing bundle called Jamf Business Plan, which includes Jamf Pro, Jamf Protect, and Jamf Connect [32][121] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, but trends in telehealth, distance learning, and remote work have driven strong sales growth [9][11] - The company anticipates continued demand for its solutions as organizations adapt to new technology needs [42][88] - Management expressed confidence in the pipeline coverage, indicating it is similar to pre-pandemic expectations [74] Other Important Information - Jamf hosted approximately 20,000 attendees at its virtual Jamf Nation User Conference (JNUC), significantly higher than typical in-person attendance [33][34] - The company announced the acquisition of Mondada, enhancing its patch management capabilities for the Apple platform [40][41] Q&A Session Summary Question: Can you provide insights on the education vertical and product demand? - Management indicated that Jamf Pro and Jamf School products performed extremely well, with education revenue split being approximately 60% commercial and 40% education [70] Question: How do you view the impact of 5G on enterprise adoption? - Management believes 5G will be transformative, especially in education, enhancing connectivity for students learning from home [71] Question: What is the current demand trajectory and pipeline status? - Management reported a strong pipeline coverage similar to pre-pandemic levels, with notable strength in education [74] Question: When can we expect Jamf Connect and Jamf Protect for iOS? - Management confirmed plans to eventually extend these capabilities to iOS and iPadOS but did not provide a specific timeline [79] Question: How is the commercial device expansion looking? - Management noted a slight improvement in commercial device expansion, with confidence returning to IT budgets [107] Question: What are the expectations for education buying trends? - Management anticipates unusual education buying patterns extending into Q4, driven by global deployments and increased technology adoption [111] Question: How is the interest in new vertical solutions tracking? - Management reported strong interest in virtual visits and assessments, with virtual visits seeing rapid adoption [100][102]