Jamf (NASDAQ:JAMF) Q4 Sales Beat Estimates, Provides Optimistic Full Year Guidance

Kayode Omotosho /
2022/03/01 4:24 pm EST

Apple device management company, Jamf (NASDAQ:JAMF) announced better-than-expected results in the Q4 FY2021 quarter, with revenue up 35.8% year on year to $103.8 million. The company expects that next quarter's revenue would be around $105.5 million, which is the midpoint of the guidance range. That was in roughly line with analyst expectations. Jamf made a GAAP loss of $23.7 million, down on its loss of $8.96 million, in the same quarter last year.

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Jamf (JAMF) Q4 FY2021 Highlights:

  • Revenue: $103.8 million vs analyst estimates of $100.4 million (3.37% beat)
  • EPS (non-GAAP): $0.02 vs analyst estimates of $0.01 ($0.01 beat)
  • Revenue guidance for Q1 2022 is $105.5 million at the midpoint, above analyst estimates of $104.9 million
  • Management's revenue guidance for upcoming financial year 2022 is $469 million at the midpoint, beating analyst estimates by 3.17% and predicting 27.8% growth (vs 36.1% in FY2021)
  • Gross Margin (GAAP): 73.7%, down from 77.8% same quarter last year

“2021 represented a pivotal year for Jamf as we expanded and strengthened our platform, completed our largest acquisition to date, closed the three largest customer contracts in our history, and added a record number of devices to our platform, all while completing our first full fiscal year as a public company and consistently delivering strong financial results,” 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.

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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 $76.4 million, to $103.8 million.

Jamf Total Revenue

And unsurprisingly, this was another great quarter for Jamf with revenue up 35.8% year on year. But the growth did slow down a little compared to last quarter, as Jamf increased revenue by $8.18 million in Q4, compared to $9.38 million revenue add in Q3 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 29.9% year on year to $105.5 million, slowing down from the 34.4% year-over-year increase in revenue the company had recorded in the same quarter last year. For the upcoming financial year management expects revenue to be $469 million at the midpoint, growing 27.8% compared to 36.1% increase in FY2021.

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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 73.7% in Q4.

Jamf Gross Margin (GAAP)

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. Significantly up from the last quarter, this is around the average of what we typically see in SaaS businesses. Gross margin has a major impact on a company’s ability to invest in developing new products and sales & marketing, which may ultimately determine the winner in a competitive market, so it is important to track.

Key Takeaways from Jamf's Q4 Results

With a market capitalization of $4.07 billion Jamf is among smaller companies, but its more than $177.1 million in cash and positive free cash flow over the last twelve months give us confidence that Jamf has the resources it needs to pursue a high growth business strategy.

We enjoyed Jamf's revenue forecast for the full year. And we were also excited to see the really strong revenue growth. On the other hand, the while revenue guidance for next year beat analyst estimates, it does indicate a slight slow down. Overall, this quarter's results seemed pretty positive and shareholders can feel optimistic. The company is flat on the results and currently trades at $33.14 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.