Jamf (JAMF) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 12% year-over-year to $159.3 million, with ARR also up 12% to $635.0 million and security ARR up 26% to $151.5 million, now 24% of total ARR.

• Non-GAAP operating income was $27.7 million (17% margin), exceeding guidance; GAAP operating loss narrowed to $15.9 million from $31.9 million a year ago.

• Served over 76,000 customers and managed 33.9 million devices after a one-time adjustment due to system updates.

• Net loss narrowed to $12.2 million from $32.3 million in Q3 2023, reflecting improved operating leverage.

• Key milestones included new CFO appointment, global partner program launch, major partnerships with Microsoft and Okta, and industry recognition.

Financial highlights

• Q3 non-GAAP operating income was $27.7 million (17% margin), up from $12.4 million a year ago; non-GAAP gross margin was 82%.

• Q3 GAAP gross profit was $123.3 million (77% margin); adjusted EBITDA was $29.5 million, up from $14.3 million a year ago.

• Free cash flow margin for the trailing twelve months was 13%; unlevered free cash flow margin was 23%.

• Net retention rate was 106% for the trailing twelve months.

• Non-GAAP G&A margin was 14%, and S&M margin was 32%, both improved from Q4 2023.

Outlook and guidance

• Q4 2024 revenue expected at $161.9–$162.9 million (7–8% year-over-year growth); non-GAAP operating income of $25.5–$26.5 million.

• Full year 2024 revenue guidance raised to $626.3–$627.3 million (12% growth at midpoint); non-GAAP operating income of $98.8–$99.8 million (16% margin at midpoint).

• Security ARR growth target of at least 25% for FY 2024, already achieved 26% growth by Q3.

• Continued softness expected in device upsell and education sector for the remainder of 2024.

• Amortization and stock-based compensation for Q4 and full year 2024 expected at $9.9 million/$40.3 million and $27.2 million/$101.7 million, respectively.