Jamf Holding Corp at RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference (Virtual) Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : I want to start, Dean, with you. You guys are coming off a very strong quarter, 37% ARR growth, which I believe you've basically grown that same level in the 6 quarters you've been a public company. It was a beat and raise quarter. Your stock is down quite a bit in the past week. What -- I just want to start out, what's your initial reaction to the stock move following a very strong quarter?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : So that's a great lead in, Dean. Yes, your stock is down. It's shed about $2 billion in market cap which to me is just ridiculous, given, I think, your opportunity, your momentum and the success that you've had on a very consistent basis. So this news originally came out 18 months ago. And I remember an e-mail from both you and Jill talking about your initial reaction to Apple buying Fleetsmith 18 months ago. And you talked about this on the call, and your answers 18 months later were very consistent with that view 18 months ago. So for those that maybe are less familiar with what's going on, could you give us a little bit of history lesson on what Apple is trying to do. And although the market sees it as a big negative, how you and we see it as a positive for you guys, really enabling a richer Apple ecosystem?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : That is about as compelling a pitch as I've heard in a long time. And Dean, you said something to me that I'm going to file it away. The day after you react, the stock moved down, you sent me an e-mail and you said it's a bad day for the unwise, but it's a great day for the wise. And I think we'll all look back on this as unfortunate, but ultimately, we see it as just as you outlined. We see there's an ultimate tailwind to Apple products being embraced in the enterprise. And that is a huge, huge opportunity, we feel. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 16, 2021 / 1:00PM, JAMF.OQ - Jamf Holding Corp at RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference (Virtual) So we see it as opportunistic, and I think you laid out a compelling case for that as well. I'm going to come back to maybe some of the ways that you're diversifying away from basic MDM in a second here, but I want to get Jill involved here. Jill, just stepping back from the Apple news. You guys had a very strong quarter, and I think there was a lot of consistency in your message. And what I wanted to ask you was about your 2 different business segments. Commercial was particularly strong and seeing building momentum despite the Apple risk. And -- but you also talked about education, kind of starting to see some leveled off growth following a COVID boost. Can you just talk about the 2 mixes of the business there? I think most recently, I believe the commercial was 75% of your Q3 bookings. How should we think about these 2 businesses mix shifting over time, given we think there's big opportunities in both sides of your business?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : That's great. I'm going to get back to you about kind of how we think about kind of a layer-cake approach to your ARR growth. But I want to flip back to now Dean, maybe had a glass of water, a couple of coffee, let's talk about this broader market for a second here. Obviously, you guys are the largest Apple focused enterprise device management company on the planet. Obviously, Apple uses you internally for their own provisioning. While there's a lot of concern about the competitive dynamic, could you just level set for us what's out there competitively? I have to imagine a lot of it is greenfield, but I think there's probably a lot of lower end products that are maybe trying to be competitive on pricing with a product here or a product there. But just talk about why you win? What is it that makes you the biggest player in this, we think, growing market opportunity?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : Yes. Well, and I'm going to get back to the device growth here and Jill, kind of thinking about the kind of the ARR layer cake. But before we get to that, just 1 more question for you, Dean, before I flip to Jill. You guys have been spending a lot of money diversifying away from MDM, most recently with Wandera. Could you talk about why enterprise security within the Apple ecosystem is so important? And I'll caveat this with I remember one of the last user conferences you guys held, when you announced your first security products, the crowd literally stood up and clapped, right? It was almost like an Apple experience of them announcing a new device. These Apple administrators are hungry for security. And you guys have really consistently delivered both organically and inorganically, a lot of capabilities. So maybe talk to us about why security and why Wandera is so important to your strategy here, both from a security perspective as well as growing internationally, which is another interesting caveat.

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : And I think just 1 last question here because I get it all the time. And you alluded to it in your -- the first part of your answer here was that I'll hear people say, well, like, geez, like because Jamf thinks that they're going to beat out CrowdStrike or Zscaler. And it's really the contrary. It's really much more of a partnership symbiotic thing. Maybe just double-click on that piece, because I think there's some investors that still struggle with how this whole security ecosystem works.

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : And I think just to put my spin on it, too, the importance of this from my perspective, too, is I'll hear from investors as well, Jamf's just an MDM player. And my answer is no, they're not. And this is another concrete example on how the -- we're talking about Jamf Protect here, but there's Jamf Connect, there's monitoring solutions, there's a single pane of -- like, to me, it's so much more comprehensive, and I hope that's clear for those listening to Dean here. Jill...

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : Yes. I know. That's great color. This is going fast, guys. We have 9 minutes left, but I think this is very, very helpful. Jill, you grew 37% this last quarter, and the consistency has been remarkable on an organic basis of what are challenging comps, right? You obviously haven't guided to next year. But given what you talked about earlier about kind of the opportunity in commercial. And by the way, I neglected to say, you guys manage, I think, about 25 million-devices these days, which I think was up almost 34% year-on-year. And for those listening, think about that number relative to even what Apple ships on a quarterly basis, like it's just staggering, we think the amount of greenfield opportunity Jamf has to manage devices. But Jill, the question is, without -- obviously, not going to guide to next year, but how would you, if you were us, go about thinking about sort of like a long-term layer cake on ARR build given the drivers that you guys have? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 16, 2021 / 1:00PM, JAMF.OQ - Jamf Holding Corp at RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference (Virtual)

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : And maybe just 1 last point on that, the invest side, I think a question would be like if you guys are growing sort of organically in the mid to high 30s is the temptation to maybe invest a bit more. So when you think about that balance between obviously being a very high growth company, but also an extremely profitable company, as Dean alluded to, a rule of 60-plus. How do you sort of think about that? And I guess I have 1 quick follow up after that. But how do you balance that internally that sort of that investment level? And are you tempted to maybe invest even a bit more?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : So basically...

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : So you're saying -- what I'm hearing is you're investing at a level that's responsible for the growth that you aspire to, because there -- I think there's always a risk of maybe over gearing the growth side of it and then you might run off a treadmill at some point. It feels like that's very cognizant in how you invest for this long-term durable growth. Okay. That's helpful. Dean, I'm wondering, you guys are such a unique company in that you really -- you're in this rich huge ecosystem that now in a hybrid world where employees have choice and especially like when you think about millennials and generational shifts into the workforce that want to work on any device that they feel comfortable with, right? There could be this groundswell of, hey, I want to Mac or I want an Apple device as I enter the workforce. How do you think -- what's your sort of view on hybrid work? And I guess maybe just philosophically, but also as it relates to Jamf, how is Jamf approaching this new sort of post-COVID world when you think about sort of work in the future?

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : Yes. That's -- I was going to say, what's the single biggest thing that you -- that excites you about Jamf, but I think you've sort of just preempted the question with that answer. I mean, and listen, I mean my kids like I have -- what is this, a ThinkPad here. And they want to touch the screen and like it just doesn't even compete with them. And by the way, they're happy kids that use Jamf unbeknownst to them in their school district. And so they're sort of -- like you're sort of feeding this next generation with Jamf in the education side that ultimately can bleed over into the commercial side. We are just about out of time. This is -- I can't believe that, that was 30 minutes. I guess, -- maybe 1 -- this is -- I didn't ask you this on the call, and we'll see if we can squeeze it in a minute. And it relates to that last question. Do you think, as your sales force maybe starts to get out on the road a little bit more, do you think that could have a positive impact on your ability to grow pipeline? Even though I think you probably would say that probably your pipeline is still probably at near record levels at this point. Do you think that's an incremental benefit when sales people start getting out a little bit more? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 16, 2021 / 1:00PM, JAMF.OQ - Jamf Holding Corp at RBC Capital Markets Global Technology, Internet, Media and Telecommunications Conference (Virtual)

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : Yes. Well, that's -- this has been extremely helpful for me just to kind of hear you guys talk about the opportunity, which, to me, in sort of summarizing it, it feels like you guys have geared this for durable growth and profitable growth, mind you, which is sort of a bit of a unicorn these days with a big and expanding market, and this reaction that we've seen, you called it 18 months ago in terms of the -- how Apple would sort of go through this. And I guess what I tell people is that although Apple is a bit of a walled garden, you guys have a pretty good perspective on what their intentions are, and we feel like -- and especially in the large enterprise and on the ed side, your opportunity is vast and far reaching. So we see it as a huge opportunity to buy the stock at these levels because we ultimately think this is -- it's just -- if you look at the P&L, you look at the valuation, it's a unique situation right now. So we don't always get these, and this seems like a big overaction. So hopefully, that was clear to everybody listening. If anybody has any follow-up questions, obviously, Jennifer is on the line here as well, please reach out to me or my team or these guys. And so for all of us of RBC guys, we really appreciate your time. And for Minnesota tech, let's roll, right? Let's go, baby.

Question: Matthew George Hedberg - RBC Capital Markets, Research Division - Analyst : That's right. Thanks, guys.