Jamf Holding Corp.

Thank you for standing by, and welcome to the fourth quarter 2021 Jamf Earnings Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this 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, Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss Jamf's fourth quarter and full year 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 fourth quarter and full year 2021 financial results. We also published a Q4 earnings presentation, updated investor presentations, an Excel file containing quarterly financial statements for fiscal years 2019 through 2021 to assist with modeling. You may access 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 measures related to JANF performance. You can find the reconciliation of these measures to the nearest comparable GAAP measures in our SSE filings and press 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, Jen. And thank you everyone for joining us. On today's call, I will share highlights from Jamf's fourth quarter and fiscal year and how we plan to build upon our continued momentum in the coming year. Then Jill will review the fourth quarter in fiscal 2021 financial results and provide our financial outlook for 2022. 2021 was a pivotal year for Jamf as we continued our mission to help organizations succeed with Apple. We strengthened our Apple enterprise management platform with new products and functionality with an emphasis on security and hybrid work. We completed Jamf's largest acquisition to date, closed the three largest customer contracts in Jamf's history, added a record number of devices to our platform, completed our first full fiscal year as a public company, and consistently delivered strong financial results that exceeded expectations. In February last year, we strengthened our security platform with the acquisition of CMD Reporter, a suite of security and compliance tools purpose-built for Mac OS. Based on this technology, we launched a new compliance reporter solution in the second quarter, closing a 14,000 Mac seat subscription in its very first quarter of availability. Compliance Reporter was a significant addition to Jamf's platform. continuing to produce results all year for both new and existing customers, including in Q4, where we closed both an 8,000 max seat subscription to a net new customer who is not running Jamf's management solution, and a 10,000 seat subscription to an existing Jamf customer, extending the value of our Apple Enterprise Management Platform. In July, we continued our product expansion with the acquisition of Wanderer, a leader in zero-trust cloud security and access solutions. This acquisition uniquely positions Jamf to help IT and security teams confidently protect devices, data, and applications across Windows, Android, and Apple endpoints, while delivering the intended Apple-best experience when coupled with the most robust and scalable Apple enterprise management platform on the market. The acquisition of Wondera led to launching several rebranded Jamf solutions that are sold both through the traditional Wondera resellers, like carriers and security partners, and now through Jamf's highly effective sales team. These products include Jamf Private Access, a zero-trust network access solution that replaces legacy VPNs and conditional access technologies. Jamf Threat Defense, a mobile security solution that protects endpoints from threats with zero-day phishing prevention. And Jamf Data Policy, a solution to automate, enforce, and manage usage policies and data consumption. All three of these products enhance Jamf's Apple enterprise management platform, creating substantial upsell and cross-sell opportunities, while also providing Jamf new landing products that deliver value for Apple, Windows, and Android endpoints, regardless of the device management solution used. We have been very encouraged by the early customer response to these new solutions and our ability to minimize disruption from the acquisition. Employee turnover has been very low from the Wandera team, and for the first six months the Wandera solutions were offered by Jamf in the second half of 2021, new annual subscription bookings grew by more than 30% year over year. In Q4, the traditional Wandera sales channel alone delivered 38% bookings growth year over year. When combined with the additional sales through Jamf, total new annual subscription bookings from the products we acquired from Wandera grew by over 60% year over year in Q4. Altogether, Jamf has seen significant success with all of our new security solutions, ending 2021 with approximately 8,000 commercial customers running Jamf Connect, Jamf Protect, Jamf Private Access, Jamf Threat Defense, or Jamf Data Policy on millions of Apple devices and also on Android and Windows devices. In October, at the Jamf Nation User Conference, we also announced key product enhancements to help organizations succeed in today's hybrid work world. including new Bring Your Own Device, or BYOD, functionality, industry-leading application lifecycle management capabilities, device compliance integration with Google, and data loss prevention features. We expect that all of these announcements will be generally available by early spring of this year, further cementing Jamf as the most complete and scalable Apple enterprise management platform available. For Q4 and the full fiscal year, we demonstrated our continued ability to drive consistent, balanced growth across our business. Strong new logo acquisition and device expansion resulted in Jamf adding over 6 million devices and 13,000 customers to the platform, ending the year with 26.6 million devices and more than 60,000 customers. Over the past two years, Jamf has added over 10 million devices and 24,000 customers, demonstrating both market leadership and continued consistent momentum throughout changing market conditions. Jamf's total ARR growth in Q4 was 45% year-over-year, driven by new customers, device expansion, a growing portfolio of add-on products, and the Wandera acquisitions. Once again, all legacy Jamf products saw year-over-year ARR growth of at least 25%. All three major geographies and all of Jamf's top 10 commercial industries experienced ARR growth of at least 30%. In education, growth rates have returned to pre-pandemic levels while we continue to see acceleration in commercial markets. Despite every economic, geographic, and industry-specific challenge we've encountered, Jamf has continued to deliver consistent, strong results. 2021 was a historic year for Jamf and a testament of our commitment to deliver outstanding customer results. Jamf's earnest focus on customer success led to the lowest gross revenue churn rates in Jamf's history of tracking this metric. which resulted in completing the year with a record high net revenue retention. In 2021, Jamf's top 10 flagship commercial accounts all renewed and all grew their subscription contracts with Jamf. Additionally, Jamf retained 100% of our top 100 customers across both commercial and education markets, and 82% of these customers grew their existing subscriptions. During the year, we also closed the three largest deals in Jamf's history, two of which were to current customers expanding their Apple footprint, and one was to a new customer implementing a transformative business workflow with iPads. All three customers committed to Jamf for multiple years, deploying a total of over 250,000 Apple devices. Despite this success at the high end of the markets, No single customer represents 1% of Jamf's total ARR. We believe Jamf's consistent results are due to our market-leading solutions, significant competitive differentiation, extraordinary focus on customer success, and the increasing momentum of Apple's popularity in the enterprise, in particular with the Mac. According to IDC data, the Mac has been the fastest-growing computer worldwide for the past two years with a compound annual growth rate of 25%, more than 10 percentage points faster than the growth of the PC industry and faster than all other major PC brands. We believe the changing employee demographics, preference for Apple amongst younger workers, combined with the consumerization of IT, growth in remote work, and the popularity of the new line of Apple Silicon Mac is changing the landscape of the PC marketplace, and we are still in the early stages. We've seen this change firsthand and have played a vital role in accelerating it by helping customers deploy approximately 1 million Mac powered by the M1 chip during the first year of M1 availability. With each Apple innovation, Apple's competitiveness in the enterprise and education increases. And Jamf has always been there to support and extend those innovations same day. In addition to supporting new hardware and operating systems, Apple Business Manager, Apple Classroom, and Apple School Manager are all examples of Apple Cloud services that Jamf has historically been the first to support and extend. all having led to accelerated Jamf success in the market. We expect the same to be true when Apple Business Essentials comes to market. True to our mission, Jamf will help customers succeed with Apple Business Essentials, which we expect to reach the low end of the market in a way that no third-party provider has been able to. thus creating more opportunity for Jamf to offer our solutions that extend the value of Apple in a manner that uniquely enhances the experience for users, IT, and information security teams, especially as organizations scale in their Apple deployments and business needs. This unique approach to supporting Apple customers has led to 20 years of a mutually beneficial relationship with Apple. With all our customers, Jan's ability to deliver a combination of enterprise security, personal privacy, and consumer simplicity has played a significant role in the growth of Mac at Work, in particular with the emerging Employee Choice Program. One example of the continued prevalence of Employee Choice Program is HSBC, one of the world's largest banking and financial services organizations. HSBC is on the forefront of employee choice within financial services, launching its program in late 2020, empowering employees to choose Mac globally as their primary work computer. HSBC renewed their contract with Jamf in Q4, expanding in both Jamf Pro and Jamf Connect. Additionally, HSBC purchased Jamf Protect in Q4, showing the power of our broad platform capabilities to solve more IT and security challenges for organizations and our ability to continue growing customers' use of Jamf. In late 2020, we made it easier for customers to take advantage of our full platform for Mac with Jamf Business Plan. During 2021, over 1,000 customers purchased Jamf Business Plan, with more purchases in Q4 than in any other quarter. Offering Jamf Business Plan has transformed the buying process, eliminating multiple sales and approval cycles, enabling customers to experience faster return on investment. One of our first Jamf Business Plan customers a year ago was Shipt, an organization founded on the mission to simplify lives through the delivery of groceries and everyday essentials. Last year, Shipt licensed over 1,000 users of Jamf Business Plan, to help implement their remote workforce efficiently and better meet their security needs for macOS. One year later, in Q4 of 2021, due to the popularity of Mac at Work, SHIP was able to simply and significantly renew and grow their Jamf Business Plan subscription as they continued to meet the increasing demand for SHIP services. Jamf is also continuing to transform the customer experiences With whole industry solutions in healthcare, where Jamf workflows like virtual visits support the social and care connectivity needs of patients and families. Clinical communications changes the iPhone experience for providers and staff. And patient bedside empowers hospitals to digitally sanitize hospital-owned iPads and Apple TVs between patient visits. which alleviates the need for manual IT or care team intervention. To simply manage the security, privacy, and complexity of these healthcare workloads, we employ Jamf's one-of-a-kind healthcare listener solution, which integrates Jamf directly into hospital electronic medical records. One customer experiencing Jamf's commitment to healthcare is Stanford Healthcare. The number 12 hospital in the United States, Stanford selected Jamf's healthcare listener in 2019 for their interactive patient system project, which included iPads and Apple TVs in patient rooms for entertainment, education, and access to the Stanford My Health application. They later expanded Jamf to deploy their nursing iPhone for clinical workflow and communication apps like Epic Rover and Volt One. In Q4, Stanford expanded these programs by thousands of Apple devices and are now also testing Jamf's single login workflow and are excited to explore how it can simplify and secure their shared iPhone deployments at scale. Jamf recently was challenged by a top 10 children's hospital in the U.S. to combine the value of our unique healthcare and education solutions. This hospital selected Jamf in 2020 to deploy more than 1,000 nursing iPhones and also used Jamf to deploy iPads to patient rooms for kids. Recently, this hospital asked if we could enable Jamf Parent for hospitals. Jamf Parent is an iPhone and Android-based solution we designed for the education market to arm parents with the ability to focus their students on specific education content. In Q4, we extended this technology to hospitals where our customer now has deployed Jamf Parent across all of their patient bedside devices. On the topic of education, as we've discussed each quarter, 2020 was a year of tremendous Apple device growth as schools initially needed to enable distance learning, but then also became aware of the power of education technology and the importance of equitable access to learning. Now, after the largest expansion of technology in education history, many schools are facing the challenges of device connectivity and student safety. The need to protect our students from the dangers of technology was one of our motivations when acquiring Wandera last July. As a standalone company, Wandera did not focus on the education market. But Jamf's leading position in education, where we empower more than 36 million students with Apple technology, opens up a tremendous opportunity to extend the acquired Wandera products, like Jamf Data Policy, to launch a brand new student safety solution. Around the world, Jamf is now supporting safe in-classroom and virtual learning. In Taiwan, Bouchon Elementary School deployed Jamf on over 2,000 iPads that are being used by students while they learn at home. The iPads are provisioned with Jamf School and Jamf Data Policy to provide sufficient support and guidance for teachers while protecting students from accessing unwanted websites. Bouchon Elementary has been able to save school resources and increase efficiency of remote lessons using Apple and Jamf technology together. The local government has provided funding for this initiative, and Fushan Elementary is just one of approximately 90 schools in Taiwan that will benefit from it. Education is not the only industry where Wandera technology has helped us extend Jamf's value to customers. As we discussed on our last call, Jamf has become a go-to partner for airlines around the world for numerous workflows that engage flight attendants, gate agents, and ground crews. with over 100,000 devices deployed in the last year for airline-specific workflows globally using our patented Jamf setup and reset applications. With Wandera, we have even more value to offer airlines. One example is a major airline based in Asia. In Q4, this customer committed to all three Jamf products based on the technology acquired from Wandera. including Jamf Threat Defense and Jamf Data Policy for flight-crew iPads and also Jamf Private Access for secure, encrypted, zero-trust network connection and access across the entire fleet of devices, including both Apple and Android. Not only have the products from Wondera helped Jamf win new customers, but we have also used these products to expand our relationship with current Jamf customers. like with iOffice and SpaceIQ, a global leader in the digital transformation of workplace and asset management. Together, they are a Jamf Pro customer that recently purchased 500 Jamf private access licenses to improve regional performance over their previous VPN. They needed a remote access solution that would support their diverse device estate, which includes Windows, macOS, iOS, and Androids. and quickly and securely connect users no matter where in the world they're located, Jamf Private Access passed the test and integrates seamlessly with their cloud identity provider. These examples demonstrate the continued strength in their traditional Wanderer sales channel as well as the momentum for the Wanderer products sold through Jamf, which helped drive the 60% plus year-over-year new subscription bookings growth In Q4, I mentioned earlier for these products. As we look to 2022, there are several areas of momentum that will help drive Jamf's continued strong performance. First, 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 bolstered by the acceleration of IT consumerization, user preferences, and financial savings for organizations. Second, we will continue our efforts to win the enterprise by developing innovative solutions that are Apple first and Apple best, further solidifying Jamf as the most dominant Apple provider. Last, our broad solution set offers numerous growth drivers, like Compliance Reporter, Jamf Data Policy, Jamf Threat Defense, and Jamf Private Access. in addition to Jamf Connect and Protect, which all have significant runway for growth. In closing, I'd like to thank our team for an exceptional 2021. We achieved a number of milestones and delivered strong financial results, all while experiencing unprecedented growth. We onboarded over 800 new Jamfs in 2021, and were able to preserve our unique culture maintain 90% plus employee retention, and receive great places to work recognition in several categories. I'm excited to see what our team can accomplish in 2022 as we live our purpose to simplify work by leading and innovating in Apple Enterprise Management. Now, I will turn it over to Jill.