Jamf Q1 2025 Earnings Call Transcript

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May 6, 2025
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Operator

Thank you for standing by, and welcome to JAMP's First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in listen only mode. After the speakers' presentation, there will be a question and answer session. If your question has been answered and you'd like to remove yourself from the queue, simply press 11 again. As a reminder, today's program is being recorded.

Operator

And now I'd like to introduce your host for today's program, Jennifer Gumann, Vice President, Investor Relations. Please go ahead.

Jennifer Gaumond
Jennifer Gaumond
Vice President, Investor Relations at Jamf

Good afternoon, and thank you for joining today's call to discuss Jamf's first quarter twenty twenty five financial results. Joining me on today's call are John Strozl, CEO and David Ruto, CFO. Before we begin, a reminder that shortly after the market closed today, we issued a press release announcing our first quarter financial results. We also published our Q1 investor and earnings presentation along with an Excel file containing quarterly financial statements to assist with modeling. You may access this information on the Investor Relations section of jamf.com.

Jennifer Gaumond
Jennifer Gaumond
Vice President, Investor Relations at Jamf

Today's discussion includes forward looking statements, which involve risks and uncertainties that could cause actual results and trends to differ materially from our forecast. For more details, please refer to the risk factors and other information discussed in our most recent SEC reports, including our most recent annual report on Form 10 ks. Jamf assumes no obligation to update forward looking statements, which speak only as of the date they are made. We will also reference some non GAAP measures related to Jamf's performance. Reconciliations to the nearest comparable GAAP measures are available in our earnings release.

Jennifer Gaumond
Jennifer Gaumond
Vice President, Investor Relations at Jamf

To facilitate a full Q and A, please limit yourself to one initial question and one follow-up. Now I'll turn it over to John.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Thanks, Tian. CAF achieved solid results in Q1 with year over year revenue growth of 10% and non GAAP operating income margin of 22%, exceeding the high end of our outlook for both metrics. Total ARR grew 9% year over year to $658,000,000. Our net new commercial ARR saw year over year growth. And excluding FX, total net new ARR growth accelerated for the first time since q two of twenty twenty two.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Additionally, we saw strong new logo bookings in both commercial and education driven by higher ARR per customer. Security bookings were also strong, driving 17% year over year growth in security ARR to a hundred and $62,000,000. Contributing to this performance was the successful launch of two new platform solutions in early March, Jamf for Mac and Jamf for k three twelve. These device based offerings represent the next evolution of Jamf's platform capabilities, helping remove barriers to Apple adoption by providing customers with everything they need for security and management in a single SKU. These solutions are tailored to specific buyer personas and leverage Jamf's strong relationships with the IT admin.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

This enables Jamf to deliver across our four key growth factors, security, mobile, international, and channel. Jamf for Mac empowers customers to easily embrace Mac in their operations, including multilayered security that integrates with existing tooling while reducing the organization's security risk footprint. A global education publishing group recently expanded and converted to Jamf for Mac. The solution provided the IT admin the ability to enhance the company's device security posture with the IT and not the InfoSec budget. Jamf for k through 12 is an enhanced education solution that provides IT admins with a powerful yet simple security and management solution combining Jamf Pro or Jamf School with Jamf Safe Internet.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

With this platform solution, we're transforming classrooms, supporting student success, and ensuring equitable opportunities for every learner, whether an individual school, district, or an entire nation. A large school district in Louisiana recently converted for k through 12. The district's previous security product did not meet their growing security needs and required too many IT hours to manage. Jamf for k through 12 provided the perfect solution at an attractive price, meeting the district's requirements, and making the IT team more efficient. Deals like this have helped drive strong education performance in q one, typically a seasonally light quarter for education.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

On the heels of this performance and leading into the traditional education buying season, we closed the acquisition of Identity Automation, a dynamic identity and access management platform solution. Security remains a key growth driver contributing to continued demand for Jamf's Apple first security platform, especially in the mobile space. By acquiring identity automation, Jamf gained almost 90 employees as well as a key product differentiator, which is dynamic identity management for mobile. In k through 12 education and other mobile centric industries, roles and accesses constantly shift. Identity automation's platform dynamically adjusts access, device, and security policies in real time based on schedules, locations, and role changes.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Identity Automation has a strong foothold in education with more than 500 customers, primarily in The US. Identity Automation has been a long standing Jamf partner with over 250 shared customers, including five of the top 10 school districts. Combining forces will continue to deliver a solution to benefit schools and other industries that rely on mobile centric and deskless workflows, especially where Jamf has a strong presence such as health care, retail, aviation, and field services. Additionally, a significant opportunity exists for leveraging our 40,000 existing Jamf education customers, international footprint, and established Jamf channel relationships. While Jamf is known for its Apple best platform, identity automation offers solutions across multiple endpoints.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

By unifying Jamf's endpoint management and security expertise with identity automation's adaptive identity technology, organizations can streamline and enhance overall user experience all within a single platform. We're excited to have the identity automation team on board and looking forward to bringing the power of Jamf and identity automation to our customers. David will review the financial impact of the acquisition later. Now there's one key growth factor that I haven't touched on yet, which is our channel. With respect to the channel, as you recall, we launched our new global partner program in August of twenty twenty four to accelerate the growth of Jamf's channel partners and managed service providers.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

In just six months, the program is delivering measurable results. Since the launch, Jamf has streamlined partner led deal registrations, allowing for real time visibility of the status, progress, and upcoming renewals, helping Jamf's partners engage more effectively with customers. This has resulted in deal registration growth of nearly 50% year over year and more than 25% growth in new partners added since the program launched, expanding Jamf's global reach. We continue to be a strong channel first business with partner driven ARR representing over 60% of Jamf's total ARR. Outside of The US, partner driven ARR accounts for over 80%.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

In recognition of our channel efforts, Jamf recently received the five star rating in the 2025 CRN partner program guide. The five star award is an elite recognition given the companies that have built their partner programs on the key elements needed to nurture lasting profitable and successful channel partnerships. The Jamf Global Partner Program reaches partners in over 70 countries worldwide. The program leverages a point based system that rewards partners and equips them with the necessary resources they need to grow their business while helping organizations of all sizes succeed with Apple. Jamf's Partner Hub is the one stop shop for Jamf's partner community, offering them the ability to monitor deal registration status, check on upcoming customer renewals, complete training certifications, and a host of other co selling functionality.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Now before I hand it over to David, I wanna discuss how we are operating given the current geopolitical climate. We continue to see demand for Jamf's solutions and expect it to continue given Jamf's industry leading Apple first solutions. We're closely monitoring customer sentiment and buying cycles. The cost of Jamf is a relatively small portion of an overall IT or security budget, and we believe Jamf's mission critical status for many organizations allows Jamf to be insulated from efficiency efforts. With respect to our federal government exposure, outside of education, government related ARR makes up approximately 2% of our total ARR.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

This amount includes state, local, and federal, with federal being the smallest portion. In k through 12 education, the vast majority of comes from the state and local level with only a small portion coming from federal funds. As such, we haven't seen an impact to our k through 12 budget. It should be noted that q two and q three are typically our strongest k through 12 education quarters, we'll be watching this space closely over the next coming months. In summary, considering the fluid situation, we're continually monitoring and adjusting as needed.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

We believe that we are well positioned given Jamf's ability to meet both the security and the management needs for Mac and mobile devices with the most robust Apple first platform. In closing, I wanna thank our customers, our partners, employees, and shareholders for all of your ongoing support. Next, I'll turn it over to David to review our Q1 results and provide our Q2 and full year 2025 outlook.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Thanks, John. As a reminder, all non revenue metrics I'll be discussing will be on a non GAAP basis. We achieved solid results again in Q1, exceeding the high end of our revenue outlook. Year over year, total revenue growth was 10. Recurring revenue grew at 11%, representing 98% of total revenues.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Less strategic sources of revenue, such as services and license, continued to experience year over year declines. Our Q1 net retention rate remained flat from Q4 at 104%, and gross retention rates remained consistent with historical levels. Non GAAP operating income exceeded the high end of our Q1 outlook at $37,600,000 or a 22% margin, an 800 basis point improvement over Q1 twenty twenty four. This was driven by our continued commitment to disciplined investment and efficiency efforts. Sales and marketing as a percent of total revenue improved approximately 400 basis points compared to the prior year period, and G and A improved approximately 200 basis points.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Our trailing twelve month unlevered free cash flow margin decreased slightly to 12.3 compared to 12.5% in the prior year. Unlevered free cash flow margin continues to be impacted by the timing of billings and collections associated with our comprehensive systems update. In the quarter, we made good progress on collections and expect DSOs to return to normal levels over the next few quarters. From a cash perspective, we ended Q1 with $222,000,000 On April 1, we closed the Identity Automation acquisition. Under the terms of the agreement, the $215,000,000 purchase price is payable in two installments, dollars 175,000,000 paid at the close and $40,000,000 payable on October 1.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Given Jamf's growth and improving profitability, we remain in a healthy liquidity position. Now turning to our outlook for the second quarter and full year 2025. We remain committed to being a profitable growth company and will build on the progress we've made improving efficiencies while strategically investing for growth. We believe in creating an achievable model. This outlook reflects current market conditions, and we will continue to monitor potential risks as they pertain to the current macro environment.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Our outlook is based on current FX rates, and any future currency fluctuations are not factored in. We've taken a prudent approach to the remainder of 2025 by maintaining our previously provided revenue outlook. With the U. S. Dollar weakening relative to other currencies and our growing international expense base, we are seeing headwinds of about 2,000,000 to $3,000,000 for the remainder of the year and in turn are including this in our operating income outlook.

David Rudow
David Rudow
Chief Financial Officer at Jamf

The Q2 and FY 'twenty five guidance also includes the revenue and operating income from the recently closed Identity Automation acquisition. It should be noted that Identity Automation has seasonality with respect to ARR and revenue, with the second half of the year generating higher levels than the first half. For the second quarter of twenty twenty five, we expect total revenue of 167,500,000.0 to $169,500,000 representing year over year growth of 10% at the midpoint. Non GAAP operating income of $29,500,000 to $30,500,000 representing a non GAAP operating margin of 18% at the midpoint. This includes some additional go to market investment in identity automation, as well as the previously mentioned impact of FX.

David Rudow
David Rudow
Chief Financial Officer at Jamf

For the full year of 2025, we expect total revenue of $691,000,000 to $695,000,000 representing year over year growth of 10.5% at the midpoint. Non GAAP operating income of $144,500,000 to $147,500,000 representing a non GAAP operating margin of 21% at the midpoint, and approximately 500 basis point improvement over fiscal year twenty twenty four. These amounts include the contribution from identity and automation of approximately $15,000,000 of revenue for the remaining three quarters of the year, while being margin accretive for the balance of the year. This also embeds the previously mentioned impact of FX. As you model the seasonal impact of identity automation, remember that its revenue contribution is highest in Q3.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Additionally, given our strong margin profile, we continue to expect to generate unleveraged free cash flow growth of at least 75% for the year. In closing, we are committed to growth while driving incremental operating margin improvement regardless of the environment. Our objective is to exit fiscal twenty twenty six at a rule of 40 run rate, as defined as the sum of the year over year growth plus adjusted EBITDA margin. To be more in line with our comparable group and for ease of calculation, we have made the decision to move to adjusted EBITDA margin for calculating the Rule of 40. I look forward to sharing our progress against this objective as we move through the year.

David Rudow
David Rudow
Chief Financial Officer at Jamf

I also want to thank the entire JAM team for another great quarter and for expertly serving our customers. Now we will take your questions. Operator?

Operator

Certainly. And our first question comes from the line of Joshua Riley from Needham. Your question please.

Joshua Reilly
Senior Analyst at Needham & Company

Awesome. Thanks for taking my questions and nice job on the quarter here. As you highlighted in the press release, the Identity Automation acquisition is set to enhance your mobile and security adoption. It seems the solutions initially target at the education market. How do you think about moving the solution more to commercial markets over time as well, including kind of the go to market strategy on that front as well?

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah, Josh. This is John. I'll I'll take the question. And then we actually have Henry Patel in the room as well, our chief strategy officer. He can he can add some color to certainly part of this acquisition.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

You know, we really saw this benefit the education market. We've gone to market with identity automation for quite a while, as mentioned in the prepared remarks. Have a lot of joint customers, and so we already have some traction there. We really like the fact that it provides the identity to the person, whether it's a shared device or a device that they have, it's based on context. And by extending that security out, improving it out in an education setting, you can imagine all of the different areas that the deskless workflow would benefit from that similar type of model.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

So if you are a a shift worker, if you are a traveling nurse, if you are you know, name your name your your retail manager. All of those things require, the the provisioning and the the, identity based on where that person is, and it could be time based as well. So we we really believe that we can extend this out beyond education. But, again, we have a lot of room to grow in the education. We have over 40,000 education customers worldwide, and identity automation sold little to none outside The US.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

So we're really looking to double down on that. I don't know. Henry,

Henry Patel
Henry Patel
Chief Strategy Officer at Jamf

Sure, John. Yeah. I'll just make a quick comment here. I think John has kind of outlined all the different opportunities we have within education and outside of education. And really, what we're looking for is how do we actually, tie ourselves to workflows that we can serve our customers.

Henry Patel
Henry Patel
Chief Strategy Officer at Jamf

And if we look at some of the retail aviation, the benefit here is really tying that identity to that device, and how do we make that workflow better. Obviously, we're focused on the Apple devices, and we wanna make that whole experience much better.

Joshua Reilly
Senior Analyst at Needham & Company

Got it. That's helpful. And then just one quick follow-up for me. Now that you have the Jamf for Mac, how do you think about the marketing of that relative to Jamf business plan going forward? And I guess in terms of like what will you be pushing in terms of customers to adopt?

Joshua Reilly
Senior Analyst at Needham & Company

And what's the right scenario where you wanna use Jamf for Mac versus the Jamf business plan? Thanks.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah, Josh. This is this is John. It's, really the the Jamf business plan really, was oriented more towards the smaller business customer, And Mac for Enterprise is really designed for the enterprise and how we have, our our go to market and the the the buying motion, all of those things are oriented around that enterprise buyer, and including the solution. So really kind of differentiation there is the smaller customers are gonna are gonna be more business plan, and and the enterprise customers are gonna be more on the the enterprise for Mac. And, you know, after releasing that, we've really seen some some good traction there just given the fact that you can talk to an IT buyer who's trusted, you know, a customer of ours and has been for years, and they can help extend the security within their environment without having to go through a separate buying motion.

Joshua Reilly
Senior Analyst at Needham & Company

Understood. Helpful. Thank you, guys.

Operator

Thank you. And our next question comes from the line of Koji Ikeda from Bank of America. Your question, please.

Koji Ikeda
Koji Ikeda
Analyst at Bank of America

Yeah. Hey, guys. Thanks so much for taking the questions. A couple from me today. So, when I listened to the prepared remarks and specifically on the commentary on demand, it sounds like demand is very good out there.

Koji Ikeda
Koji Ikeda
Analyst at Bank of America

And so, with you guys keeping the guide, it feels kind of interesting. And so, where I'm going with this is, is the guidance and the keeping of the guide a reflection of the good demand as coming in as expected and you're pulling it forward, therefore keeping the guide? Or could you have potentially kept or raised the guide, meaning has the demand improved, but you're maintaining the guide because of an uncertain macro environment?

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yes. Thanks, Koji. This is David. Yes. When as we thought about the guidance for the balance for Q2 and the guidance of the year, I think you have to keep in the back of your mind of kind of the noise that's out there.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Q1, I think there was like little things that we saw, like nothing big. April seems more or less in line. I mean, it's its first month of the quarter. And so I think to be prudent, I think it was reasonable for us to just kind of maintain our guidance for the year. I think we feel comfortable doing that.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Obviously, we're going keep our eyes open, watch for any changes in the marketplace and we can react accordingly. But I think it's just prudent right now to provide and just maintain the guidance for the year.

Koji Ikeda
Koji Ikeda
Analyst at Bank of America

Got it. Thank you. And appreciate all the color on FX and the impacts there on operating expenses. But I wanted to ask maybe FX as the potential of FX as being an international demand driver, just thinking about a weakening USD. Could you remind us how is JAMP priced internationally?

Koji Ikeda
Koji Ikeda
Analyst at Bank of America

Is it all in USD or is it translated to local currency? And is a weakening dollar potentially better for you guys from a demand perspective for international customers? Thank you.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yes. So we went live with our new system. We did a system update in August of last year. And part of the reason for that is because we solely, billed and collected in US dollars. Now that the system is live and up and running, we have the flexibility and the ability to bill in local currency.

David Rudow
David Rudow
Chief Financial Officer at Jamf

So we are in fact doing that now. It's going to be a slow transition as we sign new deals and as customers renew, we will switch them to local currency billings. So we saw very minimal benefit with the dollar weakening on the top line, but we do have over 25% of our cost in international locations. We are seeing a negative impact on the cost side.

Koji Ikeda
Koji Ikeda
Analyst at Bank of America

Thank you so much.

Operator

Thank you. Our next question comes from the line of Jake Roberge from William Blair. Your question please.

Jake Roberge
Equity Research Analyst at William Blair & Company, L.L.C

Yeah. Thanks for taking the questions. Can you talk a little bit more about the Identity Automation acquisition? I know it's still early, but would love to hear what the initial reception has been like from customers and partners. And then I know you've historically had some partnerships with some of the more traditional identity vendors in the space.

Jake Roberge
Equity Research Analyst at William Blair & Company, L.L.C

So curious if you see those changing at all moving forward.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah. I'll I'll take the first part of the question, and and I'd like Henry to add some color as well. I mean, as I mentioned before, we've we've been selling with identity automation for some time now, so it's not a new go to market motion with us. And I think I think on day two, we closed our first deal. So it's it's been it's gotten you know, it it continued, and and we've been been, you know, very happy with with the results and and how that's going with the integration and and the traction that the go to market teams are going.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Again, we're using our go to market team to support theirs so that we can really expand it certainly internationally and then and then think about how to do, other other industries outside of education. But, Henry, why don't you why don't you add a little as well?

Henry Patel
Henry Patel
Chief Strategy Officer at Jamf

Yeah. Absolutely. You know, Jamf's posture is always that we're trying to integrate into existing customer environments. How do we fit in? How do we stand out?

Henry Patel
Henry Patel
Chief Strategy Officer at Jamf

We have great partnerships in the identity market. We continue to have those partnerships, and we will strengthen those as well. What identity automation brings to the table is that dynamic identity. How do we actually build on that workflow, for those customers in those specific seg segments and population of customers that we wanna actually try to drive more solutions? It is an additive to the existing identity enterprise providers, so we're actually federating.

Henry Patel
Henry Patel
Chief Strategy Officer at Jamf

So we don't lose the ability to partner. In fact, we're enhancing the partnership here.

Jake Roberge
Equity Research Analyst at William Blair & Company, L.L.C

Okay. That's helpful. And then great to hear that net new accelerated during the quarter. Can you talk about some of the drivers of that and whether anything stood out between security, mobile or or maybe even some of the key industries within tech or education that that helped drive that?

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah, Jake. This is John. Really, the the the Mac, for the enterprise and the mobile for enterprise, both of them saw some good traction, as as we released those, and it really simplifies our go to market motion there as well. So that that certainly was helpful. You know, we sit we continue to see demand as as David mentioned.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

There's there's caution out there, and it's it's the same across the industry. I've spoken with other CEOs, and they're seeing similar things. There's caution, but there's still there's still demand. And, with the mobility and the increase of mobility and the need for mobile security, all of those things play really, really well into our into our commercial performance since last quarter.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yeah. And and, Jake, just to add on, in terms of vertical performance, I think we saw strength in health care, financial services, education. And on the regional side, we had a good APAC quarter. And then in Europe, Central, Southern and UK, Ireland also performed well.

Jake Roberge
Equity Research Analyst at William Blair & Company, L.L.C

Very helpful. Thanks for taking the questions.

Operator

Thank you. And our next question comes from the line of DJ Hines from Canaccord Genuity. Your question, please.

Luke Morison
Vice President, Equity Research at Canaccord Genuity - Global Capital Markets

Hey, guys. This is Luke on for DJ. Thanks for for taking the question. So, we've seen reports out there of customers pulling forward Apple device purchases, trying to get ahead of potential tariffs. I I understand the impact to you there isn't going to be direct, but wondering if you have any thoughts about how that might play out for your business, if there is any change in sort of pull forward in that those device counts at your customers?

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah. Luke, I can I can try to answer that question? Of course, I can't speak for Apple. You know, we we have seen we haven't seen necessarily the pull forward. I don't doubt that that would happen if if companies are trying to buy ahead of of, you know, potential tariffs and things like that down the road.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

And you're right. It doesn't have a direct or an immediate correlation to our business. But longer term, obviously, as Apple expands, that gives us a bigger footprint. You know, I guess the only thing from from the Apple side is that they've they've tend to navigate these types of things really, really well in the past, and and they're a healthy company. So, I think that, you know, if if a company, a hardware company is gonna be able to navigate it well, it's it's certainly Apple.

Luke Morison
Vice President, Equity Research at Canaccord Genuity - Global Capital Markets

Yeah. That's great and helpful. Thank you. And and then maybe a follow-up. Just on your cloud marketplace momentum.

Luke Morison
Vice President, Equity Research at Canaccord Genuity - Global Capital Markets

The AWS marketplace has been a strong channel for you guys in the past. I think Azure just went online in Q4. Just wondering if you're seeing any early signs of pipeline build in that channel for that marketplace, and and how do you see that evolving over time?

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah. We do, actually. It's it's it's nice to see. As I mentioned in past calls, we were very pleasantly surprised on the AWS marketplace, and now extending that into the Azure marketplace, we're seeing, you know, we're seeing similar traction. It's early days, but we have we have closed deals through it, and we know that there's pipeline building.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

We speak, very regularly with our Microsoft sales partners, and and they're, you know, they're to trudge ahead along with our teams, and so I'm I'm, optimistic about how Azure will do, in a similar way that AWS did.

Operator

Does that answer your question?

Luke Morison
Vice President, Equity Research at Canaccord Genuity - Global Capital Markets

Yes, that's great. Thank you.

Operator

Thank you. And our next question comes from the line of Raimo Lenschow from Barclays. Your question please.

Isaac Piliavin
Assistant Vice President - Equity Research at Barclays Investment Bank

Hey everyone, this is Isaac on for Raimo. Thanks for taking the question. Maybe on the education side, great to hear the strong performance in the quarter and how Jamf k through 12 has already started to pick up a little bit. As we think about you moving into the seasonally more weighted education portion of the year, how are you feeling from a pipeline perspective, and has Jamf k through 12 augmented your your visibility at all to to any degree?

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yes. It it it certainly has. You know, we we know you know, we've been talking about this education refresh coming for for quite a while, and we know that some jurisdictions have paused on that just out of, you know, out of caution and out of expense pressure, but we are seeing some of that. We we talked about it last quarter on the call. We're certainly seeing some pipeline build.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

We're in discussions with, renewals and expansion of a lot of our international customers, particularly in the APAC region. So, you know, we're, again, we're about, about the the k through 12 upcoming season, and certainly with identity automation, that really gives us an extra push, not only an experienced sales team that that we're used to working with education, but we have a more holistic solution we can go to market with together. So we're excited along with our k through 12 offering. I'm I'm optimistic about our upcoming season.

Isaac Piliavin
Assistant Vice President - Equity Research at Barclays Investment Bank

Great. That's that's super helpful. And then maybe one for David on the free cash flow side. It was nice to see the improvement year over year in Q1 as well as the reiteration of the full year guide for that 75% growth. As we think about the shape of that through the remainder of the year, should that seasonality mirror what we saw in fiscal twenty four, or is that gonna be a bit more back end weighted as that collections component starts to to normalize again?

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yeah. Think what what we'll end up seeing is it will improve it should improve throughout the year. If you look at DSOs for q one, we're about twenty days over. And the reason for that is with the systems update we did last year, there were some, billing corrections that we needed to make in the system. So what happened was we ended up having a back end loaded quarter from a billings perspective.

David Rudow
David Rudow
Chief Financial Officer at Jamf

We had a very large amount of billings in March. And so those should start being collected looking out in May mid May, late May, early June, sometime around that period. And so we would expect DSOs to return to a more normal range as we move out to the year, and in turn, the free cash flow margins will improve as well throughout the year.

Isaac Piliavin
Assistant Vice President - Equity Research at Barclays Investment Bank

Great. Thank you.

Operator

Thank you. And our next question comes from the line of Patrick Walravens from Citi Citizens. Your question,

Nicholas Jones
MD - Internet Equity Research at Citizens JMP

Hi, guys. Thank you very much for taking my question. This is Nick on for Pat. Just one for me. David, it's been a little over six months since you started working at Jamf.

Nicholas Jones
MD - Internet Equity Research at Citizens JMP

What is one thing that's been more challenging than you expected? And what is one thing that's been easier than you expected?

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yes. I would say probably the challenging piece would be the systems, right? Any time you move to a new system, we move to a new ERP that went live in August. We have 76,000 plus customers we sell in 100 different countries. We're seeing huge benefit from the system as well as we're getting it optimized and performance is improving.

David Rudow
David Rudow
Chief Financial Officer at Jamf

But I would say, like anybody that moves to a new system while you're operating a public company, a big company, that will happen. We feel great with where we're at. We're getting better visibility on numbers. We're getting better we can bill in different currencies now. We have the partner portal set up.

David Rudow
David Rudow
Chief Financial Officer at Jamf

So there's a lot of good things that are coming out of it. So challenges, but I think in the long run, this will be a complete asset for us. On the good side, I would say it's our product and our customers. We have a rich set of blue chip customers around the world that we sell into all verticals. This is a horizontal solution.

David Rudow
David Rudow
Chief Financial Officer at Jamf

It's not verticalized in any way. We can sell it any vertical. And our international reach as well, there's quite a bit of opportunity internationally still. I mean, I think it's very early days international. So challenges system, of course, but then also the customer base and the product, the strength of the product is a pleasant surprise.

Nicholas Jones
MD - Internet Equity Research at Citizens JMP

Great. Thank you very much.

Operator

Thank you. And our next question comes from the line of Samik Chatterjee from JPMorgan. Your question, please.

Priyanka Thapa
Priyanka Thapa
Equity Research Associate at J.P. Morgan

Hi. This is Priyanka on for Samik. How are guys doing?

David Rudow
David Rudow
Chief Financial Officer at Jamf

Great. How are you?

Priyanka Thapa
Priyanka Thapa
Equity Research Associate at J.P. Morgan

Good. Good. So, you know, one question. I see from identity automation that you kind of have a fifth if we're doing back of the math back of the paper math right here, we got $15,000,000 uplift in the full year guide and then for revenue and then 1,500,000.0 for operating profit for, you know, 21% operating margin. Is this basically just to kind of keep it at 21%?

Priyanka Thapa
Priyanka Thapa
Equity Research Associate at J.P. Morgan

What do what does identity automated automation's operating margins look like typically? And can it be improved once you kind of move away well, move into commercial from the education heavy portion that you see right here? And I have a follow-up.

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yep. No. That's a great question. Yeah. Identity automation has a similar shape to revenues throughout the year as we do on the education side, so the second half is stronger than the first half.

David Rudow
David Rudow
Chief Financial Officer at Jamf

In turn, you know, they do have large customers. It's U. S.-based, so naturally, they're more profitable, and we expect that profitability to continue. We anticipate it well, we said from the beginning, was accretive on the top and the bottom line, and we still think that holds true. In Q2, we did add some additional expenses, for go to market.

David Rudow
David Rudow
Chief Financial Officer at Jamf

We're seeing good demand out there. We're seeing some international demand as well, and we're preparing for the Southern Hemisphere school season. And then also, as a side note, have FX too in Q2 and throughout the year. But we expect that, the identity automation margins will improve in the second half of the year from, the second quarter.

Priyanka Thapa
Priyanka Thapa
Equity Research Associate at J.P. Morgan

Alright. Fantastic. And on the product line, you have Jamf for Mac and a few other things that you've launched. What makes it very differentiated from your offerings? You know, there there could be, like, some sort of risk of seeing a a bunch of different offerings that may not may or may not be differentiated.

Priyanka Thapa
Priyanka Thapa
Equity Research Associate at J.P. Morgan

And will it drive cannibalization of bundling solutions where, you know, where customers are choosing, you know, I want this x, y, and z? So I would love to get into those parts.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah. I can I can take that first part of it at least? You know, we're not we we really oriented the product, certainly between the Mac for enterprise and the mobile for enterprise. There's different products in there. Some of them some of them are similar, but many of them are are very different oriented toward the the mobile piece of that, for example.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

So there's a differentiation there. As I mentioned earlier, the with business plan and Mac for enterprise, the differentiation there is those products in the business plan are more oriented toward the smaller customers and what we've included in that. And, you know, we don't anticipate any cannibalization in that those if if we're if we have to go through two buying motions to get that same product into that customer, you know, we've noted that with our with our, platform solutions, not only do we have a higher conversion rate at a higher ASP, but we also have better retention. So those are all things that play into the fact that that providing those those, platform solutions is the right thing for our customer. And, again, we listen to our customers and how they wanna buy, and this is what we've we've been in discussions with them about.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

So that's that's why we're providing them.

David Rudow
David Rudow
Chief Financial Officer at Jamf

And, Priya, one one additional comment on, identity automation revenues. We go to market with a cloud based solution, but, the company does have some legacy term based, that result in immediate recognition of a portion, a good portion of the revenues, and then there's maintenance that's pro rata over time. And so you'll see that increase in Q3 and Q4, but it'll end up being a little lumpy between Q3 and Q4 because of that.

Priyanka Thapa
Priyanka Thapa
Equity Research Associate at J.P. Morgan

All right. Thank you so much.

Operator

Thank you. And our next question comes from the line of Aiden Perry from Piper Sandler. Your question please.

Aidan Perry
Aidan Perry
Equity Research Associate at Piper Sandler Companies

Hi, this is Aiden on for Bravo and thank you for taking my question. With the latest acquisition of Identity Automation, how should we think about R and D spend going forward and the product roadmap for security?

David Rudow
David Rudow
Chief Financial Officer at Jamf

Yeah. On the r and d spend, I don't it's we're integrating the company together from a product perspective and go to market perspective, and that will happen. And we are committing a little more, money upfront because we see the need. And I think it it the addition of r and d to our total, it shouldn't throw the percentages off too much because it's part I mean, it's a smaller company, and it probably won't be, that, noticeable as you look out as to the consolidated R and D as a percent of revenues in the coming periods.

Aidan Perry
Aidan Perry
Equity Research Associate at Piper Sandler Companies

Right. Thank you. And any more thoughts on how to think about the security product road map going forward?

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah. As far as the security road map, again, it it enhances. We listen to our customers. We we actually got into security because our customers asked us to. And this is just one more step in that continued direction, you know, allowing especially as we have had a lot of success, as we've mentioned before, in the deskless workflow, we saw a great opportunity for this, not only for our 40,000 education customers, but as we look to the deskless workflows, all of those things outside outside of education on the security standpoint.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Again, this is an all security place, so it's gonna help enhance our security footprint. Very helpful. Thank you.

Operator

Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to John Strussel for any further remarks.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

Yeah. Thanks, Jonathan. And thanks, everyone, for your time today. We're pleased with our solid performance this quarter. We continue to monitor potential risks as they pertain to the current geo geopolitical environment and will adjust as needed.

John Strosahl
John Strosahl
Chief Executive Officer at Jamf

For now, we continue to execute on our growth and profitability initiatives and remain committed to our goal of achieving the rule of 40. We hope to see some as we participate in the conferences over the next month. And thank you again for joining us, and have a great evening.

Operator

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Executives
    • Jennifer Gaumond
      Jennifer Gaumond
      Vice President, Investor Relations
    • John Strosahl
      John Strosahl
      Chief Executive Officer
    • David Rudow
      David Rudow
      Chief Financial Officer
    • Henry Patel
      Henry Patel
      Chief Strategy Officer
Analysts
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Key Takeaways

  • Jamf delivered 10% year-over-year revenue growth in Q1 with a non-GAAP operating margin of 22%, while total ARR rose 9% to $658 million.
  • The successful launch of two new platform solutions—Jamf for Mac and Jamf for K-12—drove security ARR up 17% to $162 million and boosted commercial and education bookings.
  • Jamf closed the $215 million acquisition of Identity Automation, gaining dynamic identity and access management capabilities, nearly 90 employees, and a stronger foothold in education and mobile-centric industries.
  • The new Global Partner Program, launched in August 2024, grew deal registrations by nearly 50% year-over-year and added over 25% more partners, with partner-driven ARR now over 60% of total ARR.
  • Jamf maintained its Q2 and full-year 2025 guidance—forecasting ~10% revenue growth and ~18%-21% non-GAAP operating margins—while incorporating Identity Automation contributions and FX headwinds.
AI Generated. May Contain Errors.
Earnings Conference Call
Jamf Q1 2025
00:00 / 00:00

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