What Happened:
Shares of apple device management company, Jamf (NASDAQ:JAMF) fell 13.8% in the morning session after company reported second quarter sales roughly in line with analysts' expectations. Billings missed. Revenue retention rate declined and was attributed to "muted customer hiring that affects device growth at renewal primarily driven by the difficult macro environment." The weaker topline growth was also affected by a faster decline in the less strategic sources of revenue (license, services and on-premise revenues )which represent roughly 6% of overall revenue and are expected to go to zero.
As a result, revenue guidance for the next quarter missed Wall Street's expectations. Also, the full year revenue guidance was lowered from total revenue of $559 to $563 million down to $555 to $558 million. Overall, the market has struggled to digest the implications of the external and internal factors impeding revenue growth mainly due to a weaker macro environment.
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What is the market telling us:
Jamf's shares are quite volatile and over the last year have had 23 moves greater than 5%. But moves this big are very rare even for Jamf and that is indicating to us that this news had a significant impact on the market's perception of the business.
Jamf is down 14.8% since the beginning of the year, and at $17.52 per share it is trading 35.5% below its 52-week high of $27.17 from August 2022. Investors who bought $1,000 worth of Jamf's shares at the IPO in July 2020 would now be looking at an investment worth $446.68.
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