Jamf Holding Corp Q4 2024 Earnings Call Transcript

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

Question: Jake Roberge - William Blair & Company - Analyst : John, can you just talk about the recent trends you're seeing in the tech and education sectors? I know those spaces have seen some headwinds over the past few years, but it sounds like you started to see some signs of stability in the quarter. So, I'd love to just dig into those comments a little deeper and then what exactly you're expecting from those industries in 2025.

Question: Jake Roberge - William Blair & Company - Analyst : And then security growth ticked below 20%. Can you help us understand how much of that growth was impacted by the data reclassification that you went through this quarter? And then could you just talk about how demand and pipeline are trending for that suite as we've gotten into the New Year?

Question: Jake Roberge - William Blair & Company - Analyst : The second question was just around how the demand for that solution and pipeline is trending in the new year.

Question: Koji Ikeda - BofA Global Research - Analyst : I just have one. And so, when I look at the commentary, or I'm sorry, the guidance, it does imply you're going to reach somewhere around a Rule of 30 for 2025 with revenue growth and unlevered free cash flow margins, somewhere around there with the back of the envelope math. But I REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 9:30PM, JAMF.OQ - Q4 2024 Jamf Holding Corp Earnings Call think I just heard, David, I think you said in your prepared remarks that you're trying to get to a Rule of 40 in 2026, and so that does imply some sort of either revenue excel or more unlevered free cash flow unlock. And so I know you're not guiding 2026, but how do we think about the kind of the levers to get to that Rule of 40 in 2026?

Question: Koji Ikeda - BofA Global Research - Analyst : Actually, maybe I could squeeze in one here. Maybe a follow-up to the prior question about the slowdown in security growth and fully understand the reclass of the ARR. But what is your confidence today of security being one of the stronger growth drivers of ARPU growth in 2025 and beyond?

Question: Matthew Hedberg - RBC Capital Markets - Analyst : John, at the top of the call, you mentioned some share shift, presumably VMware Broadcom. I'm wondering if you could maybe double-click on a little bit of that. Is that actually improved now? I mean, we've heard of some pretty significant price increases in the channel. Maybe just a little bit more commentary on some of the competitive dynamics you're seeing there.

Question: Matthew Hedberg - RBC Capital Markets - Analyst : And then, David, for you on the guide for this year, I know you don't guide to ARR. Should we think that ARR grow roughly in line? I think revenue was guided. If I looked at it, it was about 8% growth, if I looked at that right. Should we think about ARR kind of growing in line with revenue? And maybe just some of the underlying conservatism that you embedded in your full-year outlook from a revenue perspective would be helpful.

Question: David Hynes - Canaccord Genuity - Analyst : Maybe I could pick up on the thread that David just mentioned, which is the Azure channel now live. Look, you have experience of already adding AWS as a channel partner and seeing how that's progressed, realizing it's still super early with Azure. But how has that looked relative to what you saw in the early days of the AWS relationship? And I guess more interestingly, like any learnings from working with that first hyperscaler relationship that you can apply to what you're doing with Microsoft?

Question: David Hynes - Canaccord Genuity - Analyst : And then, John, look, I know you guys went through a period of kind of downsell pressures. But I'm curious, like how much shelfware or unused license capacity do you think is still out there in the base? And the reason I ask, if we start to see an improvement in hiring at some point, does Jamf immediately start to benefit from that or is there unused capacity that still needs to be soaked up first? Just help me think through those dynamics.

Question: Raimo Lenschow - Barclays - Analyst : Going back, like you saw this quarter like strength in mobile. And obviously, that's coming at a lower price point, as you said, but it's kind of a bigger market. Do you think that's the beginning of a trend, what's driving that? Can you kind of talk to that a little bit more because, obviously, the opportunity there would be exciting?

Question: Raimo Lenschow - Barclays - Analyst : And then, David, it's kind of like your guidance now. How do you think about the level of conservatism you kind of built in here? How does macro play into your guidance outlook? Just kind of talk a little bit about your philosophy here. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 9:30PM, JAMF.OQ - Q4 2024 Jamf Holding Corp Earnings Call

Question: Joshua Reilly - Needham & Company Inc. - Analyst : So with NRR declining at 2 points sequentially, I believe it was spot on with the guidance that you gave for NRR. I believe it was at the beginning of last year. I'm just curious, how did you have such strong visibility into the direction of the NRR throughout the course of the year? And should we expect that maybe this is a bottom? Or could it decline again sequentially into 2025? Or maybe just how are you thinking about trends around NRR moving throughout the course of this year?

Question: Joshua Reilly - Needham & Company Inc. - Analyst : And then as we're looking at the guidance for the year with the pretty significant ramp in free cash flow, can you just talk to the line of sight that you have right now to that cash flow ramp? And could billings or collections disrupt that potentially? Is that something we should be considering? And how do you consider using excess cash throughout the course of the year, given that there is convertible debt that's due, I believe, in the fall of 2026?