Delaware | 001-39399 | 82-3031543 | ||||||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
||||||
100 Washington Ave S, Suite 1100
Minneapolis, MN
|
55401 | |||||||
(Address of principal executive offices) | (Zip Code) |
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) |
Name of each exchange on which
registered
|
||||||
Common Stock, $0.001 par value | JAMF | The NASDAQ Stock Market LLC |
Exhibit No. | Description of Exhibit | ||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
JAMF HOLDING CORP. | ||||||||
Date: May 8, 2024 |
By: | /s/ Jeff Lendino | ||||||
Name: | Jeff Lendino | |||||||
Title: | Chief Legal Officer |
March 31, 2024 |
December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 224,497 | $ | 243,576 | |||||||
Trade accounts receivable, net of allowances of $387 and $444 |
95,484 | 108,240 | |||||||||
Deferred contract costs | 24,514 | 23,508 | |||||||||
Prepaid expenses | 21,314 | 14,255 | |||||||||
Other current assets | 20,913 | 13,055 | |||||||||
Total current assets | 386,722 | 402,634 | |||||||||
Equipment and leasehold improvements, net | 14,858 | 15,184 | |||||||||
Goodwill | 885,041 | 887,121 | |||||||||
Other intangible assets, net | 177,253 | 187,891 | |||||||||
Deferred contract costs, non-current | 54,040 | 53,070 | |||||||||
Other assets | 45,838 | 43,752 | |||||||||
Total assets | $ | 1,563,752 | $ | 1,589,652 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 20,388 | $ | 25,909 | |||||||
Accrued liabilities | 70,533 | 77,447 | |||||||||
Income taxes payable | 1,346 | 1,248 | |||||||||
Deferred revenue |
311,698 | 317,546 | |||||||||
Total current liabilities | 403,965 | 422,150 | |||||||||
Deferred revenue, non-current |
52,805 | 55,886 | |||||||||
Deferred tax liability, net | 5,515 | 5,952 | |||||||||
Convertible senior notes, net | 367,626 | 366,999 | |||||||||
Other liabilities | 17,771 | 21,118 | |||||||||
Total liabilities | 847,682 | 872,105 | |||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 126 | 126 | |||||||||
Additional paid-in capital | 1,183,852 | 1,162,993 | |||||||||
Accumulated other comprehensive loss | (28,589) | (26,777) | |||||||||
Accumulated deficit | (439,319) | (418,795) | |||||||||
Total stockholders’ equity | 716,070 | 717,547 | |||||||||
Total liabilities and stockholders’ equity | $ | 1,563,752 | $ | 1,589,652 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue: | |||||||||||
Subscription | $ | 148,353 | $ | 127,230 | |||||||
Services | 3,706 | 4,384 | |||||||||
License | 64 | 598 | |||||||||
Total revenue | 152,123 | 132,212 | |||||||||
Cost of revenue: | |||||||||||
Cost of subscription(1)(2)(3)(5)(6) (exclusive of amortization expense shown below) |
28,010 | 23,159 | |||||||||
Cost of services(1)(2)(3)(4) (exclusive of amortization expense shown below) |
3,770 | 3,292 | |||||||||
Amortization expense | 3,312 | 3,296 | |||||||||
Total cost of revenue | 35,092 | 29,747 | |||||||||
Gross profit | 117,031 | 102,465 | |||||||||
Operating expenses: | |||||||||||
Sales and marketing(1)(2)(3)(5)(6) |
64,782 | 60,208 | |||||||||
Research and development(1)(2)(3)(4)(6) |
34,262 | 32,072 | |||||||||
General and administrative(1)(2)(3)(4)(5)(6)(7) |
32,198 | 28,436 | |||||||||
Amortization expense | 6,898 | 7,241 | |||||||||
Total operating expenses | 138,140 | 127,957 | |||||||||
Loss from operations | (21,109) | (25,492) | |||||||||
Interest income, net | 2,040 | 1,285 | |||||||||
Foreign currency transaction (loss) gain | (412) | 604 | |||||||||
Loss before income tax provision | (19,481) | (23,603) | |||||||||
Income tax provision | (1,043) | (597) | |||||||||
Net loss | $ | (20,524) | $ | (24,200) | |||||||
Net loss per share, basic and diluted | $ | (0.16) | $ | (0.20) | |||||||
Weighted‑average shares used to compute net loss per share, basic and diluted | 127,292,097 | 123,422,066 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue: | |||||||||||
Subscription | $ | 2,628 | $ | 2,267 | |||||||
Services | 412 | 309 | |||||||||
Sales and marketing | 6,389 | 7,499 | |||||||||
Research and development | 5,431 | 5,033 | |||||||||
General and administrative | 5,719 | 4,442 | |||||||||
$ | 20,579 | $ | 19,550 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue: | |||||||||||
Subscription | $ | 137 | $ | 12 | |||||||
Services | 24 | — | |||||||||
Sales and marketing | 560 | 104 | |||||||||
Research and development | 302 | 71 | |||||||||
General and administrative | 265 | 76 | |||||||||
$ | 1,288 | $ | 263 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue: | |||||||||||
Subscription | $ | 298 | $ | 315 | |||||||
Services | 47 | 39 | |||||||||
Sales and marketing | 733 | 805 | |||||||||
Research and development | 444 | 467 | |||||||||
General and administrative | 258 | 261 | |||||||||
$ | 1,780 | $ | 1,887 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue: | |||||||||||
Services | $ | 79 | $ | 1 | |||||||
Research and development | 183 | 51 | |||||||||
General and administrative | 2,126 | 706 | |||||||||
$ | 2,388 | $ | 758 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue: | |||||||||||
Subscription | $ | 32 | $ | — | |||||||
Sales and marketing | 51 | — | |||||||||
General and administrative | 1,786 | 441 | |||||||||
$ | 1,869 | $ | 441 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Cost of revenue: | |||||||||||
Subscription | $ | 10 | $ | — | |||||||
Sales and marketing | 5,571 | — | |||||||||
Research and development | 734 | — | |||||||||
General and administrative | 789 | — | |||||||||
$ | 7,104 | $ | — |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
(in thousands) | |||||||||||
Legal settlements and non-recurring litigation costs | $ | (197) | $ | — |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating activities | |||||||||||
Net loss | $ | (20,524) | $ | (24,200) | |||||||
Adjustments to reconcile net loss to cash used in operating activities: | |||||||||||
Depreciation and amortization expense | 11,990 | 12,424 | |||||||||
Amortization of deferred contract costs | 6,325 | 4,774 | |||||||||
Amortization of debt issuance costs | 689 | 684 | |||||||||
Non-cash lease expense | 1,450 | 1,493 | |||||||||
Provision for credit losses and returns | (24) | 14 | |||||||||
Stock-based compensation | 20,579 | 19,550 | |||||||||
Deferred tax benefit | (267) | (27) | |||||||||
Other | (26) | (677) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade accounts receivable | 12,696 | 3,915 | |||||||||
Prepaid expenses and other assets | (15,472) | (8,936) | |||||||||
Deferred contract costs | (8,334) | (8,145) | |||||||||
Accounts payable | (5,677) | (575) | |||||||||
Accrued liabilities | (10,602) | (19,765) | |||||||||
Income taxes payable | 119 | 65 | |||||||||
Deferred revenue | (8,885) | (5,394) | |||||||||
Other liabilities | 59 | — | |||||||||
Net cash used in operating activities | (15,904) | (24,800) | |||||||||
Investing activities | |||||||||||
Purchases of equipment and leasehold improvements | (1,755) | (1,121) | |||||||||
Purchase of investments | (1,500) | (750) | |||||||||
Other | 25 | 14 | |||||||||
Net cash used in investing activities | (3,230) | (1,857) | |||||||||
Financing activities | |||||||||||
Cash paid for contingent consideration | — | (206) | |||||||||
Proceeds from the exercise of stock options | 280 | 2,723 | |||||||||
Net cash provided by financing activities | 280 | 2,517 | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (184) | 42 | |||||||||
Net decrease in cash, cash equivalents, and restricted cash | (19,038) | (24,098) | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 250,809 | 231,921 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 231,771 | $ | 207,823 | |||||||
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||||||||||
Cash and cash equivalents | $ | 224,497 | $ | 200,340 | |||||||
Restricted cash included in other current assets | 7,274 | 283 | |||||||||
Restricted cash included in other assets | — | 7,200 | |||||||||
Total cash, cash equivalents, and restricted cash | $ | 231,771 | $ | 207,823 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
SaaS subscription and support and maintenance | $ | 142,406 | $ | 120,762 | |||||||
On‑premise subscription | 5,947 | 6,468 | |||||||||
Subscription revenue | 148,353 | 127,230 | |||||||||
Professional services | 3,706 | 4,384 | |||||||||
Perpetual licenses | 64 | 598 | |||||||||
Non‑subscription revenue | 3,770 | 4,982 | |||||||||
Total revenue | $ | 152,123 | $ | 132,212 |
March 31, 2024 |
December 31, 2023 |
September 30, 2023 |
June 30, 2023 |
March 31, 2023 |
|||||||||||||||||||||||||
ARR | $ | 602.4 | $ | 588.6 | $ | 566.3 | $ | 547.8 | $ | 526.6 | |||||||||||||||||||
ARR from management solutions as a percent of total ARR | 77 | % | 77 | % | 79 | % | 79 | % | 80 | % | |||||||||||||||||||
ARR from security solutions as a percent of total ARR | 23 | % | 23 | % | 21 | % | 21 | % | 20 | % | |||||||||||||||||||
ARR from commercial customers as a percent of total ARR | 74 | % | 74 | % | 73 | % | 73 | % | 72 | % | |||||||||||||||||||
ARR from education customers as a percent of total ARR | 26 | % | 26 | % | 27 | % | 27 | % | 28 | % | |||||||||||||||||||
Dollar-based net retention rate | 107 | % | 108 | % | 108 | % | 109 | % | 111 | % | |||||||||||||||||||
Devices | 32.8 | 32.3 | 31.8 | 31.3 | 30.8 | ||||||||||||||||||||||||
Customers | 75,900 | 75,300 | 74,400 | 73,500 | 72,500 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating expenses | $ | 138,140 | $ | 127,957 | |||||||
Amortization expense | (6,898) | (7,241) | |||||||||
Stock-based compensation | (17,539) | (16,974) | |||||||||
Acquisition-related expense | (2,309) | (757) | |||||||||
Payroll taxes related to stock-based compensation | (1,127) | (251) | |||||||||
System transformation costs | (1,837) | (441) | |||||||||
Restructuring charges | (7,094) | — | |||||||||
Legal settlements and non-recurring litigation costs |
197 | — | |||||||||
Non-GAAP operating expenses | $ | 101,533 | $ | 102,293 | |||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Gross profit | $ | 117,031 | $ | 102,465 | |||||||
Amortization expense | 3,312 | 3,296 | |||||||||
Stock-based compensation | 3,040 | 2,576 | |||||||||
Acquisition-related expense | 79 | 1 | |||||||||
Payroll taxes related to stock-based compensation | 161 | 12 | |||||||||
System transformation costs | 32 | — | |||||||||
Restructuring charges | 10 | — | |||||||||
Non-GAAP gross profit | $ | 123,665 | $ | 108,350 | |||||||
Gross profit margin | 77% | 78% | |||||||||
Non-GAAP gross profit margin | 81% | 82% | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Operating loss | $ | (21,109) | $ | (25,492) | |||||||
Amortization expense | 10,210 | 10,537 | |||||||||
Stock-based compensation | 20,579 | 19,550 | |||||||||
Acquisition-related expense | 2,388 | 758 | |||||||||
Payroll taxes related to stock-based compensation | 1,288 | 263 | |||||||||
System transformation costs | 1,869 | 441 | |||||||||
Restructuring charges | 7,104 | — | |||||||||
Legal settlements and non-recurring litigation costs |
(197) | — | |||||||||
Non-GAAP operating income | $ | 22,132 | $ | 6,057 | |||||||
Operating loss margin | (14)% | (19)% | |||||||||
Non-GAAP operating income margin | 15% | 5% |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | (20,524) | $ | (24,200) | |||||||
Exclude: income tax provision | (1,043) | (597) | |||||||||
Loss before income tax provision | (19,481) | (23,603) | |||||||||
Amortization expense | 10,210 | 10,537 | |||||||||
Stock-based compensation | 20,579 | 19,550 | |||||||||
Foreign currency transaction loss (gain) | 412 | (604) | |||||||||
Amortization of debt issuance costs | 689 | 684 | |||||||||
Acquisition-related expense | 2,388 | 758 | |||||||||
Payroll taxes related to stock-based compensation | 1,288 | 263 | |||||||||
System transformation costs | 1,869 | 441 | |||||||||
Restructuring charges | 7,104 | — | |||||||||
Legal settlements and non-recurring litigation costs |
(197) | — | |||||||||
Non-GAAP income before income taxes | 24,861 | 8,026 | |||||||||
Non-GAAP provision for income taxes (1) |
(5,967) | (1,926) | |||||||||
Non-GAAP net income | $ | 18,894 | $ | 6,100 | |||||||
Net loss per share: | |||||||||||
Basic | $ | (0.16) | $ | (0.20) | |||||||
Diluted | $ | (0.16) | $ | (0.20) | |||||||
Weighted‑average shares used in computing net loss per share: | |||||||||||
Basic | 127,292,097 | 123,422,066 | |||||||||
Diluted | 127,292,097 | 123,422,066 | |||||||||
Non-GAAP net income per share: | |||||||||||
Basic | $ | 0.15 | $ | 0.05 | |||||||
Diluted | $ | 0.14 | $ | 0.05 | |||||||
Weighted-average shares used in computing non-GAAP net income per share: | |||||||||||
Basic | 127,292,097 | 123,422,066 | |||||||||
Diluted | 138,624,237 | 133,959,253 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | (20,524) | $ | (24,200) | |||||||
Interest income, net | (2,040) | (1,285) | |||||||||
Provision for income taxes | 1,043 | 597 | |||||||||
Depreciation expense | 1,780 | 1,887 | |||||||||
Amortization expense | 10,210 | 10,537 | |||||||||
Stock-based compensation | 20,579 | 19,550 | |||||||||
Foreign currency transaction loss (gain) | 412 | (604) | |||||||||
Acquisition-related expense | 2,388 | 758 | |||||||||
Payroll taxes related to stock-based compensation | 1,288 | 263 | |||||||||
System transformation costs | 1,869 | 441 | |||||||||
Restructuring charges | 7,104 | — | |||||||||
Legal settlements and non-recurring litigation costs | (197) | — | |||||||||
Adjusted EBITDA | $ | 23,912 | $ | 7,944 |
Three Months Ended March 31, | Years Ended December 31, | ||||||||||||||||||||||||||||
2024 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (15,904) | $ | (24,800) | $ | (2,990) | $ | 35,964 | $ | 90,005 | |||||||||||||||||||
Less: | |||||||||||||||||||||||||||||
Purchases of equipment and leasehold improvements | (1,755) | (1,121) | (1,964) | (2,934) | (7,727) | ||||||||||||||||||||||||
Free cash flow | (17,659) | (25,921) | (4,954) | 33,030 | 82,278 | ||||||||||||||||||||||||
Add: | |||||||||||||||||||||||||||||
Cash paid for interest | 314 | 313 | 293 | 784 | 763 | ||||||||||||||||||||||||
Cash paid for acquisition-related expense | 1,422 | 403 | 960 | 2,975 | 4,480 | ||||||||||||||||||||||||
Cash paid for system transformation costs | 8,224 | 773 | — | 12,493 | — | ||||||||||||||||||||||||
Cash paid for restructuring charges | 6,279 | — | — | — | — | ||||||||||||||||||||||||
Cash paid for contingent consideration | — | 6,000 | — | 6,000 | — | ||||||||||||||||||||||||
Cash paid for legal settlements and non-recurring litigation costs | 135 | — | — | 132 | — | ||||||||||||||||||||||||
Unlevered free cash flow | $ | (1,285) | $ | (18,432) | $ | (3,701) | $ | 55,414 | $ | 87,521 | |||||||||||||||||||
Total revenue | $ | 152,123 | $ | 132,212 | $ | 108,258 | $ | 560,571 | $ | 478,776 | |||||||||||||||||||
Net cash (used in) provided by operating activities as a percentage of total revenue | (10)% | (19)% | (3)% | 6% | 19% | ||||||||||||||||||||||||
Free cash flow margin | (12)% | (20)% | (5)% | 6% | 17% | ||||||||||||||||||||||||
Unlevered free cash flow margin | (1)% | (14)% | (3)% | 10% | 18% |
Trailing Twelve Months Ended
March 31,
|
|||||||||||
2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ | 44,860 | $ | 68,195 | |||||||
Less: | |||||||||||
Purchases of equipment and leasehold improvements | (3,568) | (6,884) | |||||||||
Free cash flow | 41,292 | 61,311 | |||||||||
Add: | |||||||||||
Cash paid for interest | 785 | 783 | |||||||||
Cash paid for acquisition-related expense | 3,994 | 3,923 | |||||||||
Cash paid for system transformation costs | 19,944 | 773 | |||||||||
Cash paid for restructuring charges | 6,279 | — | |||||||||
Cash paid for contingent consideration | — | 6,000 | |||||||||
Cash paid for legal settlements and non-recurring litigation costs | 267 | — | |||||||||
Unlevered free cash flow | $ | 72,561 | $ | 72,790 | |||||||
Total revenue | $ | 580,482 | $ | 502,730 | |||||||
Net cash provided by operating activities as a percentage of total revenue | 8% | 14% | |||||||||
Free cash flow margin | 7% | 12% | |||||||||
Unlevered free cash flow margin | 13% | 14% |