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Jamf (NASDAQ:JAMF) Reports Strong Q2, Lifts Full Year Guidance


Radek Strnad /
2021/08/10 4:33 pm EDT
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Apple device management company, Jamf (NASDAQ:JAMF) reported strong growth in the Q2 FY2021 earnings announcement, with revenue up 38.5% year on year to $86.2 million. Jamf made a GAAP loss of $16.4 million, down on its loss of $423 thousand, 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 FY2021 Highlights:

  • Revenue: $86.2 million vs analyst estimates of $83 million (3.83% beat)
  • EPS (non-GAAP): $0.06 vs analyst estimates of $0.05 (20.3% beat)
  • Revenue guidance for Q3 2021 is $93.5 million at the midpoint, above analyst estimates of $85.1 million
  • The company lifted revenue guidance for the full year, from $338 million to $359 million at the midpoint, a 6.21% increase
  • Free cash flow of $33.1 million, up from $797 thousand in previous quarter
  • Gross Margin (GAAP): 77.5%, down from 78.7% previous quarter

“Our strong preliminary results demonstrate balanced growth across our products, geographies and top industries, with particular strength in our Commercial business due to the improving operating environment,” 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.

As remote collaboration becomes mainstream due to COVID and enterprise digital transformation, more organizations are expected to depend on remote management software that makes it easy for IT admins to manage the increasing number of hardware devices.

Sales Growth

As you can see below, Jamf's revenue growth has been very strong over the last year, growing from quarterly revenue of $62.2 million, to $86.2 million.

Jamf Total Revenue

And unsurprisingly, this was another great quarter for Jamf with revenue up an absolutely stunning 38.5% year on year. On top of that, revenue increased $5.07 million quarter on quarter, a solid improvement on the $4.74 million increase in Q1 2021, and even a sign of slight acceleration of growth.

Analysts covering the company are expecting the revenues to grow 17.3% over the next twelve months, although we would expect them to review their estimates once they get to read these results.

There are others doing even better. Founded by ex-Google engineers, a small company making software for banks has been growing revenue 90% year on year and is already up more than 400% since the IPO in December. You can find it on our platform for free.

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, licences, technical support and other necessary running expenses was at 77.5% in Q2.

Jamf Gross Margin (GAAP)

That means that for every $1 in revenue the company had $0.77 left to spend on developing new products, marketing & sales and the general administrative overhead. Despite it going down over the last year, this is still a good gross margin that allows companies like Jamf to fund large investments in product and sales during periods of rapid growth and be profitable when they reach maturity.

Key Takeaways from Jamf's Q2 Results

With market capitalisation of $3.78 billion Jamf is among smaller companies, but its more than $226.4 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 were impressed by the very optimistic revenue guidance Jamf provided for the next quarter. And we were also glad that the revenue guidance for the rest of the year was upgraded. On the other hand, there was a deterioration in gross margin. Zooming out, we think this impressive quarter should have shareholders feeling very positive. The company is up 1.84% on the results and currently trades at $32 per share.

Jamf may have had a good quarter, so should you invest 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 full report which you can read here, it's free.

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