Jamf Holding Corp’s Earnings Call Highlights Strong Growth and Positive Outlook

Jamf Holding Corp ((JAMF)) has held its Q4 earnings call. Read on for the main highlights of the call.

Jamf Holding Corp’s recent earnings call paints a generally positive picture, highlighting strong revenue growth, particularly in the security and international markets. Despite facing some challenges such as a slight decline in net retention rate and delayed collections, the company remains optimistic about its future prospects, driven by new partnerships and an improved financial outlook for 2025.

Strong Revenue Growth

Jamf reported an impressive year-over-year revenue growth of 8% in Q4 and 12% for the full fiscal year 2024. The company also exceeded expectations with a non-GAAP operating income margin of 18% for Q4 and 16% for the full year, surpassing the high end of their outlook.

Security Segment Expansion

The security segment of Jamf saw a significant expansion, with Annual Recurring Revenue (ARR) growing 17% year-over-year to $156 million. This growth underscores the continued demand for Jamf’s Apple-first security platform, which now accounts for 24% of the company’s total ARR.

International Revenue Growth

Jamf’s international markets have shown robust growth, with revenue from geographies outside the U.S. increasing by 17% in 2024. This growth now represents over a third of the company’s total revenue, highlighting the strength of Jamf’s global presence.

Positive Outlook for 2025

Looking ahead to 2025, Jamf expects total revenue growth of 8.1% for the full year, with a significant improvement in non-GAAP operating income margin by 500 basis points. This optimistic forecast is supported by the company’s strategic initiatives and market demand.

New Partnerships and Channel Success

Jamf’s launch of a new partner program has been met with success, as evidenced by increased partner-led deal registrations. This development suggests a strong potential for future growth, leveraging partnerships to expand market reach.

Net Retention Rate Decline

The earnings call revealed a slight decline in Jamf’s net retention rate, which decreased to 104% in Q4 from 105% in Q3. This indicates a lower upsell and expansion within existing customers, a challenge the company aims to address.

Delayed Billings and Collections

Jamf experienced lower than expected unlevered free cash flow margin due to delayed billings and collections, which were associated with a comprehensive systems update. The company is working to resolve these issues to improve cash flow.

Forward-Looking Guidance

During the earnings call, Jamf provided forward-looking guidance with an expectation of 8.1% revenue growth for 2025, projecting total revenues to reach between $675.5 million and $680.5 million. The company also aims to achieve a non-GAAP operating income margin of 21% and reach a Rule of 40 run rate by the end of 2026, combining revenue growth with improved free cash flow margins.

In summary, Jamf Holding Corp’s earnings call reflects a positive sentiment, driven by strong revenue growth and strategic initiatives in security and international markets. While challenges such as a slight decline in net retention rate and delayed collections exist, the company’s forward-looking guidance and new partnerships suggest a promising future.