jamf(US:JAMF)2020-09-02 03:57Financial Data and Key Metrics Changes - Total revenue in Q2 2020 grew 29% year-over-year to a record $62.2 million, driven by recurring revenue growth of 42% year-over-year to $58.8 million, which now comprises over 94% of total revenues [9][34] - Annual recurring revenue (ARR) as of June 30, 2020, was $241 million, growing 36% year-over-year [9][35] - Non-GAAP operating income was $11.2 million in Q2, representing 18% of revenue, a 9-point improvement over the same period in 2019 [10][40] - Unlevered free cash flow totaled $21 million in Q2, representing a margin of 34%, up from 4% in Q2 of the previous year [10][41] Business Line Data and Key Metrics Changes - The company serves over 40,000 active customers across various industries, with no single customer accounting for over 1% of annual revenue, indicating a diversified customer base [17] - Device count on the platform reached 17.2 million, representing a 19% year-over-year growth rate, with notable strength in healthcare and education sectors [36] Market Data and Key Metrics Changes - The global total addressable market (TAM) for Apple Enterprise Management is estimated at $10.3 billion in 2019, expected to grow at a compound annual growth rate of 17.8% to $23.4 billion by 2024 [26][27] - The company has seen increased activity in sectors like healthcare and education due to the demand for remote management and support solutions during COVID-19 [20][56] Company Strategy and Development Direction - The company aims to extend its technology leadership through R&D investment and new product development, focusing on customer success and innovation [29][30] - Plans to invest in targeted sales and marketing to grow the customer base and expand global presence [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledges macroeconomic challenges, including budget cuts and staff reductions, but sees strong demand driven by trends in remote work, telehealth, and distance learning [20][63] - The company believes that the shift towards remote work and digital transformation will have lasting effects, creating a more permanent demand for its solutions [19][63] Other Important Information - The annual Jamf Nation User Conference will be held virtually, expecting a large turnout with thousands of attendees [16] - The company has delayed some planned spending due to COVID-19 but intends to invest a portion of those savings in the second half of the year [40] Q&A Session Summary Question: Demand trajectory and pipeline outlook - Management noted that the pipeline coverage remains similar to pre-COVID levels, with some deals taking longer to close but offset by fast-moving opportunities in education and remote work [49][50] Question: Education sector buying season - The buying season for education is extending closer to the school year due to COVID-19, with K-12 making up about 85% of the education business [53][54] Question: Staff reductions and device renewals - Staff reductions are primarily seen in hard-hit industries like hospitality, but sectors like education and healthcare are experiencing increased activity [56] Question: Device growth and future expectations - Device growth of 19% is influenced by cautious purchasing behavior in the commercial sector and seasonal trends in education [61][65] Question: Cross-selling and upselling demand - Demand for newer products like Jamf Connect and Jamf Protect is strong, with expectations for continued growth as solutions are integrated [68][70] Question: Impact of Apple's silicon transition - Management views Apple's transition to its own silicon as a positive development that will enhance the appeal of Macs in the workplace [78][80]