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Jamf (NASDAQ:JAMF) Exceeds Q2 Expectations


Radek Strnad /
2022/08/04 4:43 pm EDT
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Apple device management company, Jamf (NASDAQ:JAMF) reported Q2 FY2022 results topping analyst expectations, with revenue up 34% year on year to $115.6 million. Guidance for the full year also exceeded estimates, and guidance for the next quarter came in at $122 million, 0.24% below analyst estimates. Jamf made a GAAP loss of $63.1 million, down on its loss of $16.4 million, in the same quarter last year.

Is now the time to buy Jamf? Access our full analysis of the earnings results here, it's free.

Jamf (JAMF) Q2 FY2022 Highlights:

  • Revenue: $115.6 million vs analyst estimates of $113.1 million (2.18% beat)
  • EPS (non-GAAP): $0.03 vs analyst estimates of $0.01 ($0.01 beat)
  • Revenue guidance for Q3 2022 is $122 million at the midpoint, roughly in line with what analysts were expecting
  • The company reconfirmed revenue guidance for the full year, at $476 million at the midpoint
  • Free cash flow of $17.1 million, up from negative free cash flow of $3.7 million in previous quarter
  • Gross Margin (GAAP): 74.5%, down from 77.5% same quarter last year

“Our strong performance in the second quarter is another testament to the resiliency and diversity of Jamf’s business model,” said Dean Hager, CEO of Jamf.

Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.

The whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.

Sales Growth

As you can see below, Jamf's revenue growth has been very strong over the last year, growing from quarterly revenue of $86.2 million, to $115.6 million.

Jamf Total Revenue

And unsurprisingly, this was another great quarter for Jamf with revenue up 34% year on year. On top of that, revenue increased $7.38 million quarter on quarter, a very strong improvement on the $4.45 million increase in Q1 2022, and a sign of acceleration of growth.

Guidance for the next quarter indicates Jamf is expecting revenue to grow 27.5% year on year to $122 million, slowing down from the 35.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Ahead of the earnings results the analysts covering the company were estimating sales to grow 24.9% over the next twelve months.

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Profitability

What makes the software as a service business so attractive is that once the software is developed, it typically shouldn't cost much to provide it as an ongoing service to customers. Jamf's gross profit margin, an important metric measuring how much money there is left after paying for servers, licenses, technical support and other necessary running expenses was at 74.5% in Q2.

Jamf Gross Margin (GAAP)

That means that for every $1 in revenue the company had $0.74 left to spend on developing new products, marketing & sales and the general administrative overhead. This is around the average of what we typically see in SaaS businesses, but it is good to see that the gross margin is staying stable which indicates that Jamf is doing a good job controlling costs and is not under pressure from competition to lower prices.

Key Takeaways from Jamf's Q2 Results

With a market capitalization of $3.12 billion Jamf is among smaller companies, but its more than $182.3 million in cash and positive free cash flow over the last twelve months put it in a very strong position to invest in growth.

It was good to see Jamf deliver strong revenue growth this quarter. And we were also excited to see the positive free cash flow. Zooming out, we think this was a decent quarter showing the company is staying on target. The company is flat on the results and currently trades at $26.99 per share.

Should you invest in Jamf right now? It is important that you take into account its valuation and business qualities, as well as what happened in the latest quarter. We look at that in our actionable report which you can read here, it's free.

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The author has no position in any of the stocks mentioned.