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Jamf Announces Fourth Quarter and Fiscal Year 2022 Financial Results

February 28, 2023 4:05 PM

MINNEAPOLIS, Feb. 28, 2023 (GLOBE NEWSWIRE) -- Jamf (NASDAQ: JAMF), the standard in managing and securing Apple at work, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

“The fourth quarter capped off a year of milestones for Jamf, one of which was exceeding expectations for the eleventh consecutive quarter with year-over-year revenue growth of 26%, resulting in 2022 total revenue growth of 31%. This is a testament to Jamf’s strong underlying business fundamentals and exceptional execution by our team,” said Dean Hager, CEO of Jamf. “As we continue to navigate a challenging economic environment, we will remain prudent with our investments to ensure financial flexibility while preparing to meet future demand as macroeconomic conditions ease.”

Fourth Quarter 2022 Financial Highlights

Fiscal Year 2022 Financial Highlights

A reconciliation between historical GAAP and non-GAAP information is contained in the tables below and the section titled “Non-GAAP Financial Measures” below contains descriptions of these reconciliations.

Recent Business Highlights

Financial Outlook

For the first quarter of 2023, Jamf currently expects:

For the full year 2023, Jamf currently expects:

To assist with modeling, for the first quarter of 2023 and full year 2023, amortization is expected to be approximately $10.6 million and $42.2 million, respectively. In addition, for the first quarter of 2023 and full year 2023, stock-based compensation and related payroll taxes are expected to be approximately $21.3 million and $101.6 million, respectively.

Jamf is unable to provide a quantitative reconciliation of forward-looking guidance of non-GAAP operating income to GAAP operating income (loss) because certain items are out of Jamf’s control or cannot be reasonably predicted. Historically, these items have included, but are not limited to, acquisition-related expenses and acquisition-related earn-out, offering costs, amortization, and stock-based compensation and related payroll taxes. Accordingly, a reconciliation for forward-looking non-GAAP operating income is not available without unreasonable effort. These items are uncertain, depend on various factors, and could result in projected GAAP operating income (loss) being materially less than is indicated by currently estimated non-GAAP operating income.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Webcast and Conference Call Information

Jamf will host a conference call and live webcast for analysts and investors at 3:30 p.m. Central Time (4:30 p.m. Eastern Time) on February 28, 2023.

The conference call will be webcast live on Jamf’s Investor Relations website at https://ir.jamf.com, along with the earnings press release, financial tables, earnings presentation, and investor presentation. Those parties interested in participating via telephone may register on Jamf’s Investor Relations website.

A replay of the call will be available on the Investor Relations website beginning on February 28, 2023, at approximately 6:00 p.m. Central Time (7:00 p.m. Eastern Time).

Please note that Jamf uses its https://ir.jamf.com website as a means of disclosing material non-public information, announcing upcoming investor conferences and for complying with its disclosure obligations under Regulation FD. Accordingly, you should monitor our investor relations website in addition to following our press releases, SEC filings, and public conference calls and webcasts.

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), we believe the non-GAAP measures of non-GAAP operating expenses, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income (loss), non-GAAP operating income (loss) margin, non-GAAP income before income taxes, non-GAAP provision for income taxes as it relates to the calculation of non-GAAP net income, non-GAAP net income, free cash flow, free cash flow margin, unlevered free cash flow, and unlevered free cash flow margin are useful in evaluating our operating performance. Certain of these non-GAAP measures exclude stock-based compensation, amortization expense, acquisition-related expenses, acquisition-related earnout, offering costs, foreign currency transaction loss, payroll taxes related to stock-based compensation, legal settlement, loss on extinguishment of debt, and amortization of debt issuance costs. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses that are required by GAAP to be recorded in our financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by our management about which expenses are excluded or included in determining these non-GAAP financial measures. Reconciliation tables of the most comparable GAAP financial measures to the non-GAAP financial measures used in this press release are included with the financial tables at the end of this press release. We strongly encourage investors to review our consolidated financial statements included in our publicly filed reports in their entirety and not rely solely on any single financial measurement or communication.

Forward-Looking Statements

This press release and the accompanying conference call contain “forward-looking statements” within the meaning of federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “can,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “forecasts,” “potential” or “continue,” or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements may involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include, but are not limited to, statements regarding our future financial and operating performance (including our outlook and guidance), the demand for our platform, anticipated impacts of macroeconomic conditions on our business, our expectations regarding business benefits and financial impacts from our acquisitions, partnerships and investments, and our ability to deliver on our long-term strategy.

The forward-looking statements contained in this press release and the accompanying conference call are also subject to additional risks, uncertainties, and factors, including those more fully described in our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2022. Additional information will also be set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as well as the subsequent periodic and current reports and other filings that we make with the Securities and Exchange Commission from time to time. Moreover, we operate in a very competitive and rapidly changing environment, and new risks and uncertainties may emerge that could have an impact on the forward-looking statements contained in this press release and the accompanying conference call.

Given these factors, as well as other variables that may affect our operating results, you should not rely on forward-looking statements, assume that past financial performance will be a reliable indicator of future performance, or use historical trends to anticipate results or trends in future periods. The forward-looking statements included in this press release and the accompanying conference call relate only to events as of the date hereof. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

About Jamf

Jamf’s purpose is to simplify work by helping organizations manage and secure an Apple experience that end users love and organizations trust. Jamf is the only company in the world that provides a complete management and security solution for an Apple-first environment designed to be enterprise secure, consumer simple and protect personal privacy. To learn more, visit www.jamf.com.

Investor ContactsJennifer GaumondMichael Thomas

[email protected]

Media ContactRachel Nauen[email protected]

Jamf Holding Corp.Consolidated Balance Sheets(in thousands)(unaudited)

December 31,2022 December 31, 2021
Assets
Current assets:
Cash and cash equivalents$224,338 $177,150
Trade accounts receivable, net of allowances of $445 and $391 88,163 79,143
Income taxes receivable 465 608
Deferred contract costs 17,652 12,904
Prepaid expenses 14,331 17,581
Other current assets 6,097 4,212
Total current assets 351,046 291,598
Equipment and leasehold improvements, net 19,421 18,045
Goodwill 856,925 845,734
Other intangible assets, net 218,744 264,593
Deferred contract costs, non-current 39,643 29,842
Other assets 43,763 30,608
Total assets$1,529,542 $1,480,420
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$15,393 $9,306
Accrued liabilities 67,051 54,022
Income taxes payable 486 167
Deferred revenues 278,038 223,031
Total current liabilities 360,968 286,526
Deferred revenues, non-current 68,112 59,097
Deferred tax liability, net 5,505 8,700
Convertible senior notes, net 364,505 362,031
Other liabilities 29,114 25,640
Total liabilities 828,204 741,994
Commitments and contingencies
Stockholders’ equity:
Preferred stock — —
Common stock 123 119
Additional paid-in capital 1,049,875 913,581
Accumulated other comprehensive loss (39,951) (7,866)
Accumulated deficit (308,709) (167,408)
Total stockholders’ equity 701,338 738,426
Total liabilities and stockholders’ equity$1,529,542 $1,480,420

Jamf Holding Corp.Consolidated Statements of Operations(in thousands, except share and per share amounts)(unaudited)

​Three Months Ended December 31, Years Ended December 31,
​ 2022 2021 2022 2021
Revenue:
Subscription$124,875 $98,343 $455,007 $344,243
Services 4,838 4,107 19,025 16,122
License 610 1,352 4,744 6,023
Total revenue 130,323 103,802 478,776 366,388
Cost of revenue:
Cost of subscription(1)(2)(3)(4) (exclusive of amortization expense shown below) 22,609 19,235 85,479 63,441
Cost of services(1)(2)(3) (exclusive of amortization expense shown below) 3,632 2,871 13,816 10,898
Amortization expense 4,172 5,183 19,932 16,018
Total cost of revenue 30,413 27,289 119,227 90,357
Gross profit 99,910 76,513 359,549 276,031
Operating expenses:
Sales and marketing(1)(2)(3)(4) 58,557 44,552 217,728 148,192
Research and development(1)(2)(3)(4) 30,322 24,104 119,906 82,541
General and administrative(1)(2)(3)(4) 28,568 26,918 132,562 96,206
Amortization expense 7,124 7,019 28,227 25,294
Total operating expenses 124,571 102,593 498,423 352,233
Loss from operations (24,661) (26,080) (138,874) (76,202)
Interest income (expense), net 917 (870) (538) (2,478)
Loss on extinguishment of debt — — — (449)
Foreign currency transaction gain (loss) 1,279 (54) (2,802) (849)
Loss before income tax benefit (22,465) (27,004) (142,214) (79,978)
Income tax benefit 1,234 3,254 913 4,789
Net loss$(21,231) $(23,750) $(141,301) $(75,189)
Net loss per share, basic and diluted$(0.17) $(0.20) $(1.17) $(0.64)
Weighted‑average shares used to compute net loss per share, basic and diluted 122,300,221 119,145,856 120,720,972 118,276,462

(1) Includes stock-based compensation as follows:

Three Months Ended December 31, Years Ended December 31,
2022 2021 2022 2021
(in thousands)
Cost of revenue:
Subscription$2,359 $1,371 $8,854 $3,755
Services 338 213 1,299 594
Sales and marketing 6,934 4,175 33,559 10,938
Research and development 4,772 3,436 24,392 10,512
General and administrative 5,243 3,836 41,066 10,006
$19,646 $13,031 $109,170 $35,805

(2) Includes payroll taxes related to stock-based compensation as follows:​

​Three Months Ended December 31, Years Ended December 31,
​ 2022 2021 2022 2021
(in thousands)
Cost of revenue:
Subscription$160 $10 $293 $122
Services 30 2 54 24
Sales and marketing 367 15 810 431
Research and development 183 44 429 335
General and administrative 153 114 428 615
​$893 $185 $2,014 $1,527

(3) Includes depreciation expense as follows:

​Three Months Ended December 31, Years Ended December 31,
​ 2022 2021 2022 2021
(in thousands)
Cost of revenue: ​
Subscription$310 $320 $1,201 $1,134
Services 44 45 170 169
Sales and marketing 739 636 2,725 2,342
Research and development 445 354 1,610 1,277
General and administrative 258 263 965 835
​$1,796 $1,618 $6,671 $5,757

(4) Includes acquisition-related expense as follows:​

​Three Months Ended December 31, Years Ended December 31,
​ 2022 2021 2022 2021
(in thousands)
Cost of revenue:
Subscription$— $71 $61 $88
Sales and marketing — 146 7 180
Research and development 120 498 912 1,088
General and administrative 1,092 889 3,663 5,032
$1,212 $1,604 $4,643 $6,388

General and administrative also includes acquisition-related earnout of $0.3 million and $1.2 million for the three months ended December 31, 2022 and 2021, respectively, and $0.7 million and $6.0 million for the years ended December 31, 2022 and 2021, respectively. The acquisition-related earnout was an expense for the years ended December 31, 2022 and 2021 reflecting the increase in fair value of the Digita acquisition contingent liability due to growth in sales of our Jamf Protect product. General and administrative also includes the full settlement of a $5.0 million legal-related matter for the year ended December 31, 2021.

Jamf Holding Corp.Consolidated Statements of Cash Flows(in thousands)(unaudited)

​Years Ended December 31,
​ 2022 2021
Operating activities​ ​
Net loss$(141,301) $(75,189)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization expense 54,830 47,069
Amortization of deferred contract costs 16,563 12,534
Amortization of debt issuance costs 2,722 1,251
Non-cash lease expense 5,869 4,994
Provision for credit losses and returns 328 37
Loss on extinguishment of debt — 449
Share‑based compensation 109,170 35,805
Deferred tax benefit (2,955) (5,644)
Adjustment to contingent consideration 694 6,037
Other 3,333 1,419
Changes in operating assets and liabilities:
Trade accounts receivable (9,487) (6,521)
Income tax receivable/payable 266 (611)
Prepaid expenses and other assets 1,773 (9,265)
Deferred contract costs (31,134) (24,795)
Accounts payable 5,891 2,069
Accrued liabilities 10,017 4,345
Deferred revenue 63,426 71,216
Other liabilities — (35)
Net cash provided by operating activities 90,005 65,165
Investing activities
Acquisitions, net of cash acquired (23,816) (352,711)
Payment of deferred consideration — (25,000)
Purchases of equipment and leasehold improvements (7,727) (9,755)
Purchase of investments (3,100) —
Other (139) 48
Net cash used in investing activities (34,782) (387,418)
Financing activities
Proceeds from convertible senior notes — 373,750
Proceeds from bank borrowings — 250,000
Payment of bank borrowings — (250,000)
Payment for purchase of capped calls — (36,030)
Debt issuance costs (50) (13,134)
Cash paid for offering costs (104) (543)
Cash paid for contingent consideration (4,588) (4,206)
Payment of deferred consideration — (25,000)
Payment of acquisition-related holdback (200) —
Proceeds from the exercise of stock options 5,203 10,691
Net cash provided by financing activities 261 305,528
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (713) (993)
Net increase (decrease) in cash, cash equivalents, and restricted cash 54,771 (17,718)
Cash, cash equivalents, and restricted cash, beginning of period 177,150 194,868
Cash, cash equivalents, and restricted cash, end of period$231,921 $177,150

Jamf Holding Corp.Consolidated Statements of Cash Flows (continued)(in thousands)(unaudited)

Years Ended December 31,
2022 2021
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:
Cash and cash equivalents$224,338 $177,150
Restricted cash included in other current assets 383 —
Restricted cash included in other assets 7,200 —
Total cash, cash equivalents, and restricted cash$231,921 $177,150

Jamf Holding Corp.Supplemental Financial InformationDisaggregated Revenues(in thousands)(unaudited)

Three Months Ended December 31, Years Ended December 31,
2022 2021 2022 2021
SaaS subscription and support and maintenance$117,621 $91,278 $430,613 $313,950
On‑premise subscription 7,254 7,065 24,394 30,293
Subscription revenue 124,875 98,343 455,007 344,243
Professional services 4,838 4,107 19,025 16,122
Perpetual licenses 610 1,352 4,744 6,023
Non‑subscription revenue 5,448 5,459 23,769 22,145
Total revenue$130,323 $103,802 $478,776 $366,388

Jamf Holding Corp.Supplemental InformationKey Business Metrics(in millions, except number of customers and percentages)(unaudited)

December 31,2022 September 30,2022 June 30,2022 March 31,2022 December 31,2021 September 30,2021 June 30,2021 March 31,2021
ARR$512.5 $490.5 $466.0 $436.5 $412.5 $384.8 $333.0 $308.0
ARR from management solutions as a percent of total ARR 80% 82% 82% 83% 84% 84% 91% 93%
ARR from security solutions as a percent of total ARR 20% 18% 18% 17% 16% 16% 9% 7%
ARR from commercial customers as a percent of total ARR 72% 71% 71% 70% 69% 68% 64% 63%
ARR from education customers as a percent of total ARR 28% 29% 29% 30% 31% 32% 36% 37%
Dollar-based net retention rate (1) 113% 115% 117% 120% 120% 119% 119% 117%
Devices 30.0 29.3 28.4 26.8 26.1 25.0 23.2 21.8
Customers 71,000 69,000 67,000 62,000 60,000 57,000 53,000 50,000

(1) The dollar-based net retention rates for periods prior to June 30, 2022 were based on our Jamf legacy business and did not include Wandera since it had not been a part of our business for the full trailing twelve months.

Jamf Holding Corp.Supplemental Financial InformationReconciliation of GAAP to non-GAAP Financial Data(in thousands, except share and per share amounts)(unaudited)

Three Months Ended December 31, Years Ended December 31,
2022 2021 2022 2021
Operating expenses$124,571 $102,593 $498,423 $352,233
Amortization expense (7,124) (7,019) (28,227) (25,294)
Stock-based compensation (16,949) (11,447) (99,017) (31,456)
Acquisition-related expense (1,212) (1,533) (4,582) (6,300)
Acquisition-related earnout (306) (1,200) (694) (6,037)
Offering costs — — (124) (594)
Payroll taxes related to stock-based compensation (703) (173) (1,667) (1,381)
Legal settlement — (800) — (5,000)
Non-GAAP operating expenses$98,277 $80,421 $364,112 $276,171
Three Months Ended December 31, Years Ended December 31,
2022 2021 2022 2021
Gross profit$99,910 $76,513 $359,549 $276,031
Amortization expense 4,172 5,183 19,932 16,018
Stock-based compensation 2,697 1,584 10,153 4,349
Acquisition-related expense — 71 61 88
Payroll taxes related to stock-based compensation 190 12 347 146
Non-GAAP gross profit$106,969 $83,363 $390,042 $296,632
Gross profit margin 77% 74% 75% 75%
Non-GAAP gross profit margin 82% 80% 81% 81%
Three Months Ended December 31, Years Ended December 31,
2022 2021 2022 2021
Operating loss$(24,661) $(26,080) $(138,874) $(76,202)
Amortization expense 11,296 12,202 48,159 41,312
Stock-based compensation 19,646 13,031 109,170 35,805
Acquisition-related expense 1,212 1,604 4,643 6,388
Acquisition-related earnout 306 1,200 694 6,037
Offering costs — — 124 594
Payroll taxes related to stock-based compensation 893 185 2,014 1,527
Legal settlement — 800 — 5,000
Non-GAAP operating income$8,692 $2,942 $25,930 $20,461
Operating loss margin(19)% (25)% (29)% (21)%
Non-GAAP operating income margin 7% 3% 5% 6%

​Three Months Ended December 31, Years Ended December 31,
​ 2022 2021 2022 2021
Net loss$(21,231) $(23,750) $(141,301) $(75,189)
Exclude: income tax benefit 1,234 3,254 913 4,789
Loss before income tax benefit (22,465) (27,004) (142,214) (79,978)
Amortization expense 11,296 12,202 48,159 41,312
Stock-based compensation 19,646 13,031 109,170 35,805
Foreign currency transaction (gain) loss (1,279) 54 2,802 849
Loss on extinguishment of debt — — — 449
Amortization of debt issuance costs 682 678 2,722 1,002
Acquisition-related expense 1,212 1,604 4,643 6,388
Acquisition-related earnout 306 1,200 694 6,037
Offering costs — — 124 594
Payroll taxes related to stock-based compensation 893 185 2,014 1,527
Legal settlement — 800 — 5,000
Non-GAAP income before income taxes 10,291 2,750 28,114 18,985
Non-GAAP provision for income taxes (1) (2,469) (660) (6,747) (4,556)
Non-GAAP net income$7,822 $2,090 $21,367 $14,429
Net loss per share:
Basic$(0.17) $(0.20) $(1.17) $(0.64)
Diluted$(0.17) $(0.20) $(1.17) $(0.64)
Weighted‑average shares used in computing net loss per share:
Basic 122,300,221 119,145,856 120,720,972 118,276,462
Diluted 122,300,221 119,145,856 120,720,972 118,276,462
Non-GAAP net income per share:
Basic$0.06 $0.02 $0.18 $0.12
Diluted$0.06 $0.02 $0.16 $0.12
Weighted-average shares used in computing non-GAAP net income per share:
Basic 122,300,221 119,145,856 120,720,972 118,276,462
Diluted 133,027,869 129,512,412 130,965,684 123,105,959

(1) Beginning in the first quarter of 2022, Jamf changed its method of calculating its non-GAAP provision for income taxes in accordance with the SEC’s Non-GAAP Financial Measures Compliance and Disclosure Interpretation on a retroactive basis. Under the new method, Jamf’s blended U.S. statutory rate of 24% is used as an estimate for the current and deferred income tax expense associated with our non-GAAP income before income taxes. Historically, Jamf had approximated the effective tax rate by taking into account the sizeable U.S. net operating loss carryforwards and tax credit carryforwards that have not been recorded where Jamf does not expect to record or pay tax for the foreseeable future.

Years Ended December 31,
2022 2021
Net cash provided by operating activities$90,005 $65,165
Less:
Purchases of equipment and leasehold improvements (7,727) (9,755)
Free cash flow 82,278 55,410
Add:
Cash paid for interest 763 967
Cash paid for acquisition-related expense 4,480 5,039
Cash paid for legal settlement — 5,000
Unlevered free cash flow$87,521 $66,416
Total revenue$478,776 $366,388
Net cash provided by operating activities as a percentage of total revenue 19% 18%
Free cash flow margin 17% 15%
Unlevered free cash flow margin 18% 18%

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