Jamf (JAMF) 2024 RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference summary

Business performance and market trends

• Q3 saw persistent headwinds, especially in tech and K-12, with elongated device refresh cycles due to economic uncertainty and anticipation of new Apple hardware, impacting both commercial and education sectors.

• Education device refresh cycles are approaching, driven by upsell opportunities and a shift to more durable Apple devices, with little impact expected from the U.S. presidential election on state-level education funding through 2026.

• Professional services, financial services, wholesale, retail, and logistics are showing strong enterprise demand, especially for deskless workflows and mobile device management.

• Apple is gaining share in the enterprise, with more organizations adopting Mac and iOS devices, supported by generational shifts and user preference.

• Chromebook adoption in education is not significantly impacting Apple share, as durability and lifecycle concerns favor Apple devices.

Product strategy and growth opportunities

• Security offerings have grown into a $150 million ARR business, with significant upside if customers adopt bundled solutions, potentially adding $350 million in ARR.

• Customers are requesting deeper app security and data loss prevention (DLP) features tailored to Apple environments.

• Bundling security and management increases average selling prices and reduces churn, while services help customers plan and deploy Apple ecosystems.

• Growth levers include mobility (deskless workflows), security expansion, and international markets, with international revenue growing faster than the U.S.

• Channel partnerships, especially with AWS and Azure, are expected to drive further growth, with over 50% of revenue through channels and 80% internationally.

Financial outlook and execution

• The company is targeting Rule of 40 profitability by 2026, with guidance for 2024 being met or exceeded so far.

• Growth has been impacted by post-COVID overhiring and subsequent seat count reductions, but these headwinds are stabilizing, with contract renewals now flat or slightly up.

• Average contract duration is 21 months, and the company is monitoring for a potential year-end budget flush that could boost Q4 and pipeline for next year.

• The most likely near-term driver of outperformance is a return of upsell activity, supported by product improvements and market tailwinds.

• Competitive landscape is split between subscale Apple-specific SMB competitors and larger UEMs, with the company differentiating through scale and integrated security.