Jamf Holding Corp.

Good day, and thank you for standing by. Welcome to the JAMS second 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, and if you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Jennifer Gaumont. Vice President of Investor Relations, please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss JAMS' preliminary second 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 preliminary second quarter 2021 financial results. You may access this information on the investor relations section of Jamf.com. In the press release, we disclosed our decision to revise our prior period financial statements to correct an immaterial error related to certain commissions that were incorrectly capitalized instead of being expensed. We expect to correct this immaterial error in our quarterly report on Form 10-Q for the quarter ended June 30, 2021, and a supplemental release of revised historical financials. Throughout this conference call, we are providing our current expectations with respect to our financial results for the second quarter of 2021. As such, JAMF Second Quarter 2021 financial results are preliminary and subject to the completion of the audit process. We plan to provide final financial results for the quarter and file the related quarterly report on Form 10-Q as soon as possible. JAMS undertakes no obligation to update or supplement the information provided until JAMS reports its final financial results for the fiscal quarter ended June 30, 2021. 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 measures related to JANPS performance. You can find the preliminary reconciliation of those measures to the nearest comparable GAAP measures in our preliminary earnings release. 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 everyone for joining us. On today's call, I will share highlights from the second quarter and an update on the Wandera acquisition, which closed on July 1st. Jill will then review our preliminary second quarter financial results and provide our outlook for the third quarter and fiscal 2021. I'm incredibly pleased with our performance in the second quarter as our teams work diligently to deliver exceptional results while developing integration plans and closing the one-day acquisition, our largest acquisition to date. For the last few quarters, we've talked about the remarkable balance and momentum across our business. In the second quarter, we saw continued and even improved balance and growth. Once again, all Jamf products saw year-over-year ARR growth of at least 25%. We saw continued strength in our education market and significant building momentum in commercial markets, especially with our add-on products, Jamf Connect and Jamf Protect, which delivered a combined ARR year-over-year growth of over 250%. Additionally, all three major geographies and all of Jamf's top 10 commercial industries experienced ARR growth of at least 30%, helping drive our total ARR growth of 38%. our strongest growth rate since becoming a publicly traded company. We believe these strong results demonstrate Jamf's ability to execute consistently during changing market conditions, showcasing the incredible strength and durability of our business model. In both Jamf's commercial and education markets, we saw Booking's growth rates return back to pre-pandemic levels. In SMB and enterprise businesses, growth rates were particularly strong. resulting in 75% of our Q2 bookings coming from commercial markets. This commercial strength in Q2 was well balanced across all geographies, with similar bookings growth in each of our three key regions, Americas, EMEA, and APAC. Our pipeline indicates that this commercial strength will continue, which bodes well for Jamf as we launch the products acquired with OneDara, including private access, data policy, and threat defense. Additionally, we continue to see positive trends in the industry as Apple Mac popularity grows. According to IDC, Mac again experienced strong growth in Q2. Perhaps more important, IDC reports show over the past four quarters, total Mac shipments grew over 45% compared to the four quarters prior, which is faster than any other PC covered by the IDC report. Additionally, according to a Forrester report published just last month, the MAC popularity in business is driven by higher employee retention and productivity and also lower total cost to deploy and support. Based on interviews with decision makers from organizations using the new M1-based MAC, Forrester reports that the cost savings of deploying an M1 MAC is $843 per device when compared to its PC counterpart. These positive benefits and trends have helped drive seat growth with Jamf customers and partners across all of our products. In Q2, our new logo growth was an exceptional 51% compared to last year, which helped us grow our total active customers by approximately 3,000 new organizations. bringing our total active customer count to over 53,000. It is worth noting that Jamf's customer count is conservatively stated. Many large organizations, like the largest school districts in the U.S., are counted as one customer, even though Jamf solutions are deployed to hundreds of the district schools. Additionally, Jamf has over 300 certified managed service providers as partners who use Jamf to serve thousands of their customers who are additive to Jamf's base of 53,000 customers. One Jamf partner, Electric, an IT outsourcing company that provides solutions and support to manage all types of device endpoints for small to medium businesses, has seen tremendous growth as these businesses realize the operational and compliance benefits of Apple Enterprise Management, without having to implement or manage Jamf's solution on their own. Consistent with trends we see across the industry, 70% of the devices that Electric supports are Apple. And using Jamf, Electric has seen their Mac device growth average more than 40% quarter over quarter for the past year, significantly outpacing other platforms. Electrix customer survey data indicates that this strong growth will likely continue as top customer priorities over the next 12 to 18 months are supporting a hybrid workforce while bolstering the security posture. And it's not only small and medium businesses that are embracing Mac. Jamf runs the vast majority of large Mac deployments in the world. And we've seen larger enterprises significantly grow their map fleets as Jamf's platform has expanded beyond management into connection and protection solutions. Specifically, two Jamf customers in the financial services space, one a top asset management firm and the other a leading global payments provider, have both grown their map fleets by at least 50% over the past two years. During this period, both also added Jamf's expansion products for Mac, purchasing Jamf Connect shortly after it became available and expanding to Jamf Protect in Q2. These two customers demonstrate the power of our expanding platform as customers grow both through deploying additional Mac and also Jamf's add-on solutions. These examples are not isolated cases. In fact, Jamf's top 12 deals in Q2 were primarily driven by Jamf's expansion products for Mac, with all 12 having purchased either Jamf Connect, Jamf Protect, or Jamf's most recent addition, Compliance Reporter, which was just launched in Q2 after having closed the CMD Reporter acquisition earlier this year. In total, for these 12 accounts alone, Jamf's expansion products were added to over 85,000 Macs, all deployed through our flagship product, Jamf Pro. This tremendous execution with newly launched products is a testament to both the incredible loyal and growing customer base for Jamf Pro and also our far-reaching, efficient, and effective sales channel. Less than three years since its launch in late 2018, Jamf Connect has grown to over 3,000 active customers, Complementing this product, in Q2, Jamf raised the bar on access security and simplicity by launching Jamf Unlock, a Jamf Connect workflow app built for both iPhone and iPad. With Jamf Unlock, organizations can provide enterprise-grade, passwordless, multi-factor security to users in a consumer-simple manner. Using the iPhone, the one item that no one forgets when they go to work, users can simply use Face ID on their phone to authenticate to their Mac and cloud identity provider, giving them immediate access to the resources they need to do their job. Jamf has seen similar success with our Jamf Protect product. In only a year and a half, our Jamf Protect customer base has grown to over 1,000 customers as the demand increases for an Apple-first security solution. Jamf Protect provides a compelling value to our customers as organizations often find malicious threats with Jamf Protect that other cross-platform security solutions miss. In Q2, Jamf expanded our security solutions even further. For highly regulated organizations who cannot leverage cloud-native security solutions, Jamf launched Compliance Reporter, a solution that provides even greater visibility into Mac activity for threat hunting and compliance checks. In our very first quarter offering Compliance Reporter, it was selected by multiple companies to help protect their math fleet, including Conduent, a leading business services provider for companies and governments who purchased a subscription of Compliance Reporter for a large portion of their 60,000 plus global workforce devices. In addition to offering each of these add-on products individually, We also offer the Jamf Business Plan, which is a simple way for customers to experience the full value of Jamf's Apple Enterprise Management Platform. Q2 was another successful quarter with more than 250 prospects and long-term customers choosing a Jamf Business Plan subscription, including a leading U.S. insurance company who converted their 2,500 Jamf proceeds to Jamf Business Plans. In addition to Mac products and expansion, we continue to see strength in iOS and iPadOS, which represent the fastest growing device type on our platform in both the education and commercial markets for the past three quarters. We continue to innovate and expand our iOS offering, including the newly launched single login for Jamf Setup and Jamf Reset to simplify and secure shared device deployments which are critical for industries like retail, transportation, healthcare, and field services to implement transformational digital business processes. Single login helps organizations like EDS, a cloud-based warehouse management system provider, deliver a solution that gives warehouse operators more efficient workflows, instant communications, error elimination, and safety and regulatory compliance, all with a great user experience. Of course, iPad expansion also continued in the education market in Q2, which is traditionally a buying season for schools. This quarter, Jamf experienced buying patterns similar to pre-pandemic levels. The difference now is that schools are fully aware of the power of education technology and the importance of equitable access to learning, no matter the student's circumstances. One example of continuing to move learning in the right direction is the City of Edinburgh Council, who recently announced a one-for-one student rollout of 39,000 iPads as part of an ambitious and inclusive education strategy, Edinburgh Learns for Life. These iPads, along with expanded wireless connectivity, provide students with fair and equal access to digital learning with a teacher in school or at home. Jamf's world-class customer loyalty, our success with Mac-specific expansion solutions, and our growth in iOS device seeds all give us confidence in our ability to drive adoption of the latest extensions to our platform, Wondera's mobile security solutions. As a reminder, Wondera is a cross-platform, Apple-first provider of unified cloud security for mobile devices, bringing zero-trust network access, data policy enforcement, and mobile threat defense to Jamf's platform, solidifying Jamf as a provider of enterprise security solutions that are consumer simple for users while protecting their personal privacy. The transaction closed on July 1st, and since then, we've been hard at work integrating our teams and products. Since closing, we've seen our pipeline rapidly grow with significant interest from Jamf customers. This, along with the opportunity to get to know the Wanderer team and their products better, has made us even more bullish on the strategic fit of Wondera within Jamf and the opportunities it provides us to expand our leadership in Apple Enterprise Management. Once again, with the advantages of our flagship product, Jamf Pro, our loyal 53,000 customers, and an effective, high-performing, global direct and indirect sales channel, we believe we can help more organizations and drive significant adoption of Wondera solutions In fact, we already have. While the Wandera sales channel has remained undisrupted, we have already invested in a new Jamf go-to-market channel, built a pipeline, and have even won several new customers. And it's only been a few weeks since we closed the acquisition. Going forward, we believe zero-trust private access, data policy enforcement, and mobile threat defense will all be successful add-on products for Jamf customers much like we've seen with Jamf Connect and Jamf Protect. Finally, I would like to comment on some recent announcements from two important partners, Apple and Microsoft. Each June, Apple hosts their Worldwide Developer Conference, known as WWDC. It's at this conference that the world learns a great deal about where Apple is headed. It's Jamf's job to support Apple technology the same day it's available. To ensure workflows are undisrupted and to prevent security vulnerabilities, it is critical that Jamf support all new Apple operating systems and devices the same day they become available, which we plan to do again this year. It's also Jamf's job to anticipate Apple strategy and innovate solutions ahead of the rest of the market. In 2019, we launched Jamf Connect from Microsoft Azure AD prior to Apple announcing federated Apple IDs with Azure AD at WWDC 2019. In 2020, we launched Jamf Protect months before the availability of the Mac M1 chip, which disrupted support from many other security providers. This year, once again, we believe our most recent product investments are synergistic with Apple's management, security, and privacy announcement at WWDC 2021, and that the combination of Apple and Jamf innovations will change the way enterprises think about security, privacy, and simplicity. Combine these capabilities with Microsoft's announcement that Windows 365 will run in a web browser, including Safari on iPad and Mac, without the complexity of users setting up a virtual environment, an even greater potential exists for Apple expansion in the enterprise. I believe that Jamf has never been more aligned with Apple's and Microsoft's direction than we are right now. And we're excited to bring more products to market later this year, which we plan to showcase at our upcoming virtual Jamf Nation user conference, known as JNUC, scheduled for October 19th to the 21st. In closing, Q2 marked another quarter where Jamf continued to deliver high, consistent, and balanced growth, in large part due to our team's focus on helping customers succeed every day. This results in accelerated adoption of Apple in the enterprise using Jamf, and we believe positions us for success through the remainder of this year and beyond. Now I will turn it over to Jill.