Jamf Holding Corp.

Thank you for standing by and welcome to JAMPS first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. Should you require any further assistance, please press star 0. I would now like to hand the conference over to your host, VP of Investor Relations, Jennifer Gaumont. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss Jamf's first quarter 2021 financial results. With me on today's call are Dean Hager, Chief Executive Officer, and Jill Putman, Chief Financial Officer. Before we begin, I'd like to remind you that shortly after the market closed today, we issued a press release announcing our first quarter 2021 financial results. We also published an updated investor presentation and an Excel file containing quarterly financial statements for fiscal years 2019, 2020, and 2021 year to date to assist with modeling. Additionally, this afternoon we also issued a press release and accompanying presentation announcing the acquisition of WANDERA, You may access all this information on the Investor Relations section of Jamf.com. Today's discussion may include forward-looking statements. Please refer to our most recent SEC filings, including our most recent annual report on Form 10-K, where you will see a discussion of factors that could cause actual results to differ materially from these statements. I would also like to remind you that during the call, we will discuss some non-GAAP financial measures related to Jamf's performance. You can find the reconciliation of those measures to the nearest comparable gap measures in our quarterly financial statements. Additionally, to ensure we can address as many analyst questions as possible during the call, we ask that you please limit your questions to one initial question and one follow-up. Now, I'd like to turn the call over to Dean Hager. Dean?

Thank you, Jennifer, and thank you to everyone for joining us. On today's call, I will share highlights from our first quarter and discuss our recent announcement regarding our intent to acquire Wandera, a leader in zero trust cloud security and access for mobile devices. Jill will then review our first quarter financial results and provide our outlook for the second quarter and fiscal 2021. Last quarter, we talked about our remarkable balance and momentum across our business in 2020. And we continue to see this in the first quarter, driving our overall ARR growth of 37%. Once again, our first quarter ARR year-over-year growth for every one of our price products was at least 25%. Additionally, our ARR growth in all three major geographic regions, Americas, EMEA, and APAC, was also at least 25% in each geography. And when examining the top industries Jamf serves, ARR growth year over year was also at least 25% for both SMB and enterprise organizations. Additionally, current trends in mobile work, education technology, and digital health continue to strengthen our value to customers as well as our business results. We again saw evidence of these trends and the momentum of Apple in the enterprise in the first quarter. According to a recent IDC report, first quarter 2021 PC sales increased 55% year over year. While this is impressive growth, Apple Mac sales led the way with an even more impressive 111.5% growth year over year. The power, efficiency, and speed of the M1 Mac, combined with increasing individual Mac preference, is helping drive this growth. We believe math will increasingly become the device of choice for many in the workplace, and Jamf is best positioned to help organizations easily adopt and get the most out of this new technology over time. The depth and breadth of our Apple Enterprise Management Platform and our commitment to innovating at the pace of Apple are key differentiators for Jamf. Last month, we announced same-day support of all new operating systems and hardware. Many other providers, both cross-platform and Apple focused, are not same day ready to support Apple hardware and software releases. This can cause some organizations to adopt the Mac slower than their users want, as well as create potential security issues for organizations that have already adopted Mac. However, with Jamf, enterprises can adopt Mac choice programs that meet both the security and device management needs of their organizations. In Q1, Jamf played a significant role in organizations growing their map fleet. In fact, Jamf's 10 largest annual subscriptions signed in the first quarter were all driven by map growth in commercial businesses. In total, these 10 customers grew their Jamf Pro licenses for map by over 93,000 seats. Furthermore, six of the 10 customers also contracted for either Jamf Connect or Jamf Protect or both to enhance their security profile while also providing the best possible user experience. In the healthcare market, we continue to see strong demand for our innovative solutions that enhance patient care. Many hospitals are expanding their use of Jamf for additional new workflows, resulting in our healthcare segment achieving the second highest growth of the top industries we serve. For example, During our third quarter earnings call last year, we highlighted UC Health in Colorado, a large healthcare system that benefits from a number of Jamf innovations. In 2018, UC Health began using Jamf to streamline their technology management and improve patient experience by offering an iPad at each patient's bedside. They used Jamf Healthcare Listener, Jamf Setup, and Jamf Reset to digitally sterilize the device between each patient and easily set it up for the next patient without the need for IT assistance. As virtual healthcare needs spiked last year, UCHealth was an early adopter of our virtual visits workflow for inpatient isolation telehealth, which helped greatly increase the virtual visit sessions each day. UCHealth has now expanded its use of Jamf with iPhones at many of its vaccination sites, including a mass vaccination event at Coors Field in February, where approximately 10,000 Colorado residents received COVID-19 vaccinations. Compared to their initial vaccination site pilot that leveraged PC terminals and required complex network infrastructure, their iPhone-based delivery model leveraged the latest mobile technology to simplify the process. This reduced per-patient vaccination time from three minutes to only 30 seconds. UC Health is a great example of how organizations continue to leverage Jamf to solve new problems, a testament to the flexibility of our architecture and breadth of our solutions. In education, increased global buying patterns have continued through Q1, driven by several government funding programs, including the CARES Act in the United States. The most recent rounds of CARES funding also include provisions for higher education, and we see many colleges and universities utilize these funds to accelerate their technology initiatives. Florida A&M University, or FAMU for short, is a prime example of setting students up for success today and well into the future with technology. Their school of journalism and graphic communication primarily uses Apple to ensure students have the tools that they'll be leveraging in their professional careers. With hundreds of on-campus Mac already managed through Jamf, FAMU purchased additional Mac hardware to empower students to learn remotely. Their school of journalism and graphic communication provides a zero-touch Mac deployment experience. to give students access to the same learning resources at home as in the classroom. FAMU's program is indicative of the technology awakening that's occurring in education, with education technology programs growing in importance whether students are learning in the classroom, remotely, or a combination of both. Programs like FAMU's demonstrate the significant impact a well-thought-out education technology program can bring to student learning and career preparation. With the backdrop of our outstanding Q1 performance and these examples of how we will continue to deliver innovative solutions to help organizations succeed with Apple, I'd like to discuss our Wandera acquisition announcement. First, some context. There has been a mass proliferation of Apple devices in the enterprise. According to IDC's 2020 Enterprise Survey, The average penetration of Mac OS devices is around 23%, compared with 17% in 2019, a six-point movement in just one year. And iPhones account for 49% of the smartphone installed based amongst enterprises, while iPads make up the majority of tablets used in business. As a result of its growth in the enterprise, Apple devices are now a bigger target for security threats. coupled with greater mobility at work and dependence on sensitive cloud resources is accelerating the demand for zero trust solutions. In 2020, we recognized the changing requirements for security solutions and launched Jamf Protect, which was purchased by approximately 400 customers in its very first year. In 2021, the momentum for Jamf Protect continues to grow. as we added over 300 new Jamf Protect customers in the first quarter alone. Wandera, an Apple-first provider of unified cloud security, brings zero-trust network access, content-filtering data policies, and mobile threat defense to Jamf's platform, rounding out our security solution from access through endpoint protection and solidifying Jamf's security offering for the enterprise. Wandera strengthens Jamf's overall position in Apple Enterprise Management and offers a number of expansion opportunities. Our first opportunity is with iPhones and iPads in commercial markets. Since 2002, Jamf has been a leader with the best whole product solution for Mac, helping any organization manage, protect, and connect their macOS devices with their enterprise resources. This strength in Mac has led more organizations to also use Jamf for iOS device management, consolidating all Apple management into one tailored solution for the Apple ecosystem. In fact, in Q1, Jamf's iOS commercial business was our fastest ARR growth segment year over year. Yet, today, Jamf has not expanded our iOS solution into the access and security space the way we have with Mac. Wanderer's mobile access and threat defense products, coupled with Jamf's industry-best iOS device management capabilities, will complete the whole solution our customers require. Both Jamf and Wanderer sales are driven by the same market forces, and like Jamf, Wandera's product team takes an Apple-first approach, leading to iOS representing approximately 80% of the devices Wandera secures. Yet there is no overlap between our solutions. The addition of Wandera products to the Jamf portfolio will increase Jamf's iOS competitiveness, which is the largest segment of our total addressable market. Even more exciting, Wandera's solutions will grow Jamf's TAM by $5 billion across all global commercial markets. And that market expansion doesn't include non-Apple devices, which the Wandera solution also supports and will continue to be a valuable part of Jamf's product portfolio. Our second opportunity is in the education market. Educators are coming off a year that provided the greatest education technology awakening in history. The very technology that was required for distance learning can now transform classrooms and provide student-centered personal learning plans that are engaging and equitable. But as exciting as this is, technology also presents potential danger to students and greater concern for parents. Jamf is already the clear leader in deploying Apple education technology. Wandera's solution offers a valuable follow-on that can be used to secure school resources, protect student privacy, and restrict student access to inappropriate, threatening, or prohibited content. This opportunity is also additive to Jamf's solution and represents an additional $1 billion in the total addressable market in our education sector. Jamf's third opportunity with Wanderer is leveraging our complementary teams and go-to-market channels. Headquartered in London, the majority of Wanderer's customers are based in Europe. While Jamf has a strong presence in EMEA, an increased European customer base will accelerate our international growth. Additionally, one of the key channels for Wanderer has been mobile carriers. In fact, more than half of Wanderer's historical sales have come through carriers. while less than 1% of Jamf sales have come through that channel. With Wandera, we believe Jamf can now offer carriers a better whole product solution. Finally, we are also very excited that most of Wandera's employees are on the product side of the company. Historically, Wandera has invested little in direct go-to-market channels, but Jamf's go-to-market direct and indirect channels have proven extremely efficient and effective. We believe with the additional scale of Jamf sales and marketing teams, we can help many more organizations globally experience success with the Wandera solution. Together, Jamf and Wandera can help mitigate barriers to Apple adoption in the enterprise. Jamf is the leading provider of Apple enterprise management with significant market share and differentiation. Wandero's Apple-first solution complements Jamf's leadership and end-user focus with unique mobile and security capabilities. Now, from a single provider, customers can benefit from an Apple-first enterprise solution that connects, manages, and protects all Apple devices, data, and users while preserving the legendary Apple user experience with same-day Apple technology support. Many of Wondera's largest customers are also Jamf customers, utilizing Jamf for Mac and Wondera for mobile to connect, manage, and protect devices with no overlap in the solutions provided. Customers like these will provide compelling use cases for both Jamf-only and Wondera-only customers, helping drive significant cross-sell opportunities. And with Jamf's capability to install new apps to the existing 21.8 million Apple devices on our platform, Wondera's cloud-based solutions can be easily deployed to our existing customer base. Jamf's heritage and focus on Apple paired with Wondera's zero-trust and advanced security solutions greatly extends the Jamf platform to uniquely position us to help IT and security teams continue to succeed with Apple We're so excited to welcome the Wandera team into the Jamf family. In closing, 2021 is off to a great start with continued momentum in our business. The strategic acquisition of Wandera extends our leadership position in Apple Enterprise Management, solidifying Jamf as an enterprise security provider and helping accelerate Apple's continued growth in the enterprise. Now, Jill will walk through our financial results and guidance. Jill?