Apple device management company, Jamf (NASDAQ:JAMF) reported Q1 FY2022 results beating Wall St's expectations, with revenue up 33.3% year on year to $108.2 million. Guidance for next quarter's revenue was $113 million at the midpoint, which is 1.59% above the analyst consensus. Jamf made a GAAP loss of $25.6 million, down on its loss of $3.06 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) Q1 FY2022 Highlights:
- Revenue: $108.2 million vs analyst estimates of $105.7 million (2.35% beat)
- EPS (non-GAAP): $0.03 vs analyst estimates of $0.01 ($0.02 beat)
- Revenue guidance for Q2 2022 is $113 million at the midpoint, above analyst estimates of $111.2 million
- The company lifted revenue guidance for the full year, from $469 million to $474.5 million at the midpoint, a 1.17% increase
- Free cash flow was negative $3.7 million, compared to negative free cash flow of $2.15 million in previous quarter
- Gross Margin (GAAP): 73.9%, down from 78.7% same quarter last year
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.
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Sales Growth
As you can see below, Jamf's revenue growth has been very strong over the last year, growing from quarterly revenue of $81.1 million, to $108.2 million.
And unsurprisingly, this was another great quarter for Jamf with revenue up 33.3% year on year. But the growth did slow down compared to last quarter, as the revenue increased by just $4.45 million in Q1, compared to $8.18 million in Q4 2021. We'd like to see revenue increase by a greater amount each quarter, but a one-off fluctuation is usually not concerning.
Guidance for the next quarter indicates Jamf is expecting revenue to grow 31% year on year to $113 million, slowing down from the 38.5% 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 26.4% 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 73.9% in Q1.
That means that for every $1 in revenue the company had $0.73 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 Q1 Results
With a market capitalization of $2.87 billion Jamf is among smaller companies, but its more than $164.5 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 glad that the revenue guidance for the next quarter exceeded analysts' expectations. Overall, this quarter's results seemed pretty positive and shareholders can feel optimistic. The company is flat on the results and currently trades at $23.87 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.