Jamf Holding Corp.

Thank you for standing by, and welcome to the Jamf Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. As a reminder, today's program is being recorded. I would now like to introduce your host for today's program, Jennifer Gamon, Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss JAMS' third 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 third quarter 2021 financial results. We also published an investor presentation and an Excel file containing quarterly financial statements for fiscal years 2019, 2020, and 2021 year-to-date to assist with modeling. 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 JAMS 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, Jen, and thank you, everyone, for joining us. On today's call, I will share highlights from the third quarter and recap our annual Jamf Nation user conference. Jill will then review our third quarter financial results, provide our outlook for the fourth quarter and fiscal 2021, and give some high-level thoughts on fiscal 2022. For the last few quarters, we've talked about the remarkable momentum, consistency, and balance across our business, and Q3 was no exception. Our total ARR growth was 47%. As a reminder, Jamf completed the acquisition of Wondera at the beginning of Q3. So this ARR is reflective of our combined companies. Jamf's Q3 organic ARR growth was 37%, which matches our average ARR growth for the six quarters we've been a public company, demonstrating remarkable consistency. Going forward, we will not break out ARR growth by product or acquired companies. but we felt it important to provide this clarity since Q3 represents the first quarter post acquisition. This ARR growth was driven by both strong new logo acquisition, growing Jamf's total active customers to over 57,000 by the end of Q3, and also tremendous growth within our customer base due to Apple device expansion and customers purchasing new add-on products. Still, Despite customers growing their use of Jamf, no one customer represents more than 1% of our total ARR, a testament to the diversification of our revenue stream. Additionally, once again, we saw excellent year-over-year ARR growth for all Jamf products, all three major geographies, and all of Jamf's top 10 commercial industries. We talked last quarter about how in both Jamf's commercial and education markets, we saw bookings growth rates return back to pre-pandemic levels. As expected, in Q3, after tremendous growth last year, the education market leveled off a bit, while growth in Jamf's commercial markets accelerated even further. Commercial markets again made up nearly 75% of our total bookings, with both the Americas and EMEA markets showing substantial strength. Jamf's growth is reflective of Apple's device growth across global enterprises, driven by the acceleration of IT consumerization, user preference, and financial savings for organizations. In our Q2 earnings call, we cited a new Forrester report finding that cost savings of deploying an M1 Mac is $843 per device when compared to its PC counterparts. In Q3, Hobson & Company, a leading research firm focused on total cost of ownership and return on investment studies, conducted new independent research specifically with Jamf customers and found that our Apple Enterprise Management solution addressed several specific customer challenges across both large and small enterprises to deliver a quick and compelling ROI. The study identified that Jamf's platform delivers significant benefits to organizations across three broad business objectives, simplifying IT management, improving end-user experience, and mitigating risk. Respondents indicated a 90% reduction in time spent on device provisioning, deployment, ongoing management, and application management. End-user productivity also benefited. with customers seeing a 90% reduction in productivity loss as support tasks were virtually eliminated with Jamf. And as security continues to be a key focus for organizations, customers saw a 70% reduction in time spent remediating incidents and vulnerabilities. We believe the significant value of Apple Enterprise Management, and specifically the Jamf platform, will continue to drive organizations to expand their Apple fleet through employee choice programs, in particular for Mac. Today, Jamf serves more than 60 customers who have deployed greater than 10,000 Macs, far more than any other provider of management and security solutions in the world. In no industry has Mac choice been more prolific than in the technology industry. where the Mac has become the device of choice for software engineers. Jamf's Apple Enterprise Management solutions are used by eight of the top ten technology companies in the world, three of which have deployed more than 100,000 Macs. In Q3 alone, five technology companies grew their Jamf deployments from supporting a total of approximately 160,000 Macs to over 175,000. We believe the changing employee demographics combined with the consumerization of IT, growth in remote work, and overwhelming popularity of the new line of Apple Silicon Mac is changing the landscape of the PC marketplace. According to the latest analysis by IDC, in Q3, Apple shipped more Mac than in any quarter in history with a growth rate double that of the industry. More importantly, This Apple Mac momentum has been sustained with greater than 29% year-over-year growth for the full year 2020 as well as 2021 year today, making Mac the fastest-growing computer over those seven quarters, a growth rate approximately twice the industry. As Jamf's platform capabilities broaden to solve more IT and security challenges while helping enterprise Mac become more affordable, we've seen Mac choice expand at even faster rates. One example of clear Jamf and Mac ROI benefits is found at BJSS, a UK-based technology and engineering consulting firm. When the M1 chip and Big Sur arrived in 2020, BJSS's existing systems couldn't provide the support they needed for Apple's new technology, so they purchased 1,400 seats of Jamf Business Plan, which includes all Jamf management, connection, and protection solutions. And now BJSS tells us their new ability to purchase the more affordable M1 Mac and manage and secure them out of the box has resulted in rapidly achieving return on their Jamf investment. Jamf's value and momentum is also accelerating as we help organizations with industry digital transformation. which has led to iOS and iPadOS representing the fastest-growing device type on our platform for the past four quarters. Jamf differentiates with a patented ability to automate unique industry workflows for rapid adoption of Apple devices specifically to transform mission-critical processes and customer touchpoints. In Q3, this capability led to Jamf signing the largest commercial iOS and iPadOS deal in Jamf history. One example of Jamf's industry digital transformation can be found in the transportation industry, where one of our partners, Lifesaver Mobile, provides a solution that prevents employee phone use while driving, as they did with B-Suite Citrus, a key supplier of Citrus to Costco. Lifesaver Mobile's app can be deployed to every employee phone with each app managed by a cloud-based fleet portal that includes device restriction by implementing real-time locking of iPhone devices when the employee is behind the wheel, enhancing driver safety. Continuing with the travel industry, in aviation, Jamf has become the go-to partner for airlines around the world for numerous workflows that engage flight attendants, gate agents, and ground crews. One specific workflow that leverages our patented Jamf setup and reset applications provides pilots with cockpit flight bags on iPads where the content available changes based on whether the pilot is in cockpit or off duty. Over the past year, this has led to Jamf being used to deploy over 100,000 devices for airline-specific workflows globally. Q3 represented our best quarter ever for the airline industry. And finally, on the topic of travel industry, Jamf was proud once again to partner with SpaceX to manage the iPads used in the first all-civilian space flight in September. The power and value of Jamf's industry workflows can also be seen in the education market. Our patented Jamf teacher, Jamf student, and Jamf parent functionality are completely unique with no other traditional MDM provider matching Jamf's in-classroom capabilities. Sacramento City Unified School District, who has previously deployed Jamf School, Jamf Pro, our Jamf Setup and Reset apps, and Jamf Connect, expanded their deployment to include Jamf Protect in Q3. and therefore is now running our full Apple Enterprise Management platform. The result is that Sacramento City now has unique in-classroom capabilities that give teachers control of their classroom so that they can best empower student learning with Apple technology. 2020 was a year of transformation in education with tremendous device growth as schools became aware of the power of education technology in the importance of equitable access to learning. While last year's focus was on device distribution and connectivity, focus has now shifted to ensuring student safety while using these devices. With the recently passed federal K-12 Cybersecurity Act, along with funding to strengthen schools' IT security protocols, we anticipate a greater need for student safety solutions. Jamf's new student safety offering, which builds upon technology acquired from Wondera and was announced at JNUC in October, provides content filtering, threat defense, acceptable use, and data policies, along with device and network protection. meeting this growing need to protect our students and give peace of mind to teachers and parents. Another example of leveraging the power of Jamf's technology combined with new capabilities from Wondera can be seen with Berkshire Healthcare NHS Foundation Trust, which provides mental health services and other community-based health services primarily to the Royal County of Berkshire in the UK. Berkshire Healthcare NHS, leverages both Jamf and Wandera to deploy new devices and ensure these devices are protected and in compliance. During the height of the pandemic, they saw a 25% increase in mobile device demand and utilized Jamf for efficient zero-touch deployment across its users and facilities. They have also seen significant value in employing Jamf's new data policy solution from Wondera for ongoing data savings to both iOS and Windows 10 devices. Integration of Wondera into Jamf brings additional efficiencies as the Berkshire Healthcare NHS team will be able to seamlessly update mobile devices as they change hands within the organization, building on Jamf's strength to provide healthcare workflows for shared yet personal Apple devices. This capability during our first quarter together led to multiple healthcare wins in Q3, as well as several cross-sell and up-sell wins of the Wondera products through our Jamf sales channel across multiple industries. We were also pleased that the existing Wondera sales channel continued undisrupted, closing its largest deal since 2019 with a major defense organization. For this win, given the new customer's vast data privacy and protection requirements, we engaged in a one-month proof of concept where the new Jamf team deployed threat defense and data policy across the organization. This resulted in the customer fully committing to purchase these products for their 10,000-plus devices, demonstrating the ability for these new Jamf products to rapidly meet the needs of organizations with the strictest security requirements. In Q3, we also advanced Jamf's security solution through partnerships. Prior to the acquisition, Wandera established a partnership with Cyber Reason, a provider of threat prevention, detection, and response for endpoints. In Q3, Cyber Reason and Jamf extended the partnership to fully embed Jamf's threat capability at scale for iOS and Android devices to help security leaders achieve comprehensive protection across all of their enterprise endpoints, no matter their location. In addition, Jamf also announced a new strategic partnership with Red Canary, a security operations company trusted by hundreds of the world's best security teams. Jamf and Red Canary will help organizations succeed with Apple by bringing an integrated Apple native solution for threat detection and response to markets. Red Canary uses telemetry generated by Jamf Protect to analyze device and user activity for risky behavior. When a real threat is identified, Red Canary responds quickly to prevent harm and data loss. We highlighted this new partnership along with our new Jamf-branded solutions like Threat Defense, Data Policy, and Safe Internet, along with other innovations during our virtual Jamf Nation user conference, also known as JNUC, a few weeks ago. JNUC has become the single largest gathering of Apple enterprise experts in the world and provide a forum for collaboration and learning, and this year was no exception. Along with showcasing these industry-leading innovations, many customers and partners shared their stories and how they succeed using Apple and Jamf. The quality and engagement in this year's event were extraordinary. We offered 140 sessions across nine tracks, providing the nearly 8,000 attendees a significant amount of excellent content. The average person attended 7.5 sessions, equaling a total of approximately 57,000 sessions viewed over three days, showing that even though the event was virtual, attendees were incredibly engaged. These numbers don't include the on-demand views that happen over the 30 days that the content remains available to registrants. Additionally, for the first time, Jamf hosted a JNUC investor event, which summarized key takeaways from this year's conference, including Jamf's focus and differentiation, providing solutions that are enterprise secure and consumer simple while protecting personal privacy. Specifically, we highlighted four key areas where we believe our solutions will be market moving. If you missed the event, the replay is available on our IR website. In closing, Q3 again demonstrated the remarkable balance, consistency, and strength of our business. We continue to see momentum in the markets we serve and are poised to continue leading and innovating in Apple Enterprise Management. Now I will turn it over to Jill.