jamf(JAMF)2023-11-09 02:23Financial Data and Key Metrics Changes - Jamf achieved a year-over-year revenue growth of 15% in Q3, marking the 14th consecutive quarter of exceeding expectations [8][99] - Non-GAAP operating income was 566.3 million [13][99] - Non-GAAP gross profit margin was 82%, consistent with expectations, and the trailing 12 months unlevered free cash flow margin was 11%, down from 14% the previous year [15][102] Business Line Data and Key Metrics Changes - SaaS recurring revenue remained strong, while less strategic revenue sources like license and services experienced year-over-year declines [99] - The business plan saw an 87% year-over-year increase, indicating strong growth in security solutions [66][106] - Security solutions now comprise 21% of total ARR, with significant growth in the enterprise space [66][93] Market Data and Key Metrics Changes - The broader PC market declined 7.6% year-over-year, with Apple shipments down 23.1%, yet Apple’s market share grew to 10.6% from 8.6% in Q2 [63] - The financial services sector showed strong growth, with significant device additions in Q3 [94][93] - Education sector growth remained muted due to previous investments made during the pandemic [72][75] Company Strategy and Development Direction - The company aims to extend its leadership position by executing its strategy focused on helping organizations succeed with Apple [60][85] - Jamf is investing in diversifying its business beyond Mac management, with strong adoption of mobile and security solutions [101] - The company plans to continue improving operating margins and driving efficiencies through scalability initiatives [78][102] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty impacting customer budgets and elongated sales cycles, but expressed confidence in the company's ability to achieve strong results [14][83] - The outlook for Q4 2023 includes expected total revenue in the range of 149 million, representing growth of 13% to 14% year-over-year [16][77] - Management anticipates that the net retention rate will improve as the economy stabilizes [100][126] Other Important Information - Jamf hosted its largest Jamf Nation User Conference (JNUC) in September, highlighting innovations and growth drivers [61][86] - The company is recognized as a leader in endpoint security by Frost & Sullivan, enhancing its market position [91][66] - The shift from upfront to annual billing for multi-year contracts has impacted cash flow but is not indicative of lost customers [76][102] Q&A Session Summary Question: What are the underlying trends in net retention rate? - The net retention rate declined to 108% in Q3, primarily due to muted customer hiring affecting device growth at renewal [126] Question: How is the company addressing the muted growth in education? - Management acknowledged the muted growth in education but highlighted strengths in security and the business plan [106][111] Question: What is the impact of Apple's device shipments on Jamf's performance? - There is no direct correlation between Apple's quarterly shipments and Jamf's performance, but a trailing 12-month perspective shows influence on the install base [117] Question: How is the company leveraging its channel partners? - Jamf is investing in its channel organization to increase business through partners and has seen year-over-year growth in channel business [143] Question: What are the expectations for cash flow moving forward? - The shift to annual billings is expected to continue, impacting cash flow forecasting [144]