Jamf Holding Corp.

Thank you for standing by, and welcome to the first quarter 2022 Jeff Earnings Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session, and instructions will be given at that time. If anyone should require assistance during the program, please press star then zero on your touchtone telephone. As a reminder, today's program is being recorded. And now I'd 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 first quarter financial results. With me on today's call are Dean Hager, Chief Executive Officer, Jill Pubman, Chief Financial Officer, and John Strossel, President and Chief Operating 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 financial results. We also published a Q1 earnings presentation an updated investor presentation, and Excel file containing quarterly financial statements to assist with models. 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 those measures to the nearest comparable GAAP measures in our FTC 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.

Thank you, Jen. And thank you everyone for joining us. On today's call, I will share some highlights from Jamf's first quarter and exciting updates from our recent Jamf virtual customer event, where we announced several key product enhancements. John will then walk you through recent customer successes and how we're enabling our go-to-market teams. Then Jill will review the first quarter financial results and provide Jamf's financial outlook for the second quarter and fiscal 2022. Q1 marks the eighth quarter of Jamf reporting business results as a publicly traded company. Over those two years, Jamf's company, market, and product have transformed significantly. We have exceeded expectations every quarter despite facing a pandemic, recession, a challenging environment for recruiting and retaining talent, and most recently, the war in Europe. In Q1 of 2022, we continued to exceed expectations. growing ARR to $436.5 million, a 42% increase over the same period last year. Since Jamf's IPO, we have added over $200 million of ARR, approximately 23,000 customers, over 10 million devices, and onboarded over 1,000 new Jamf team members. We are especially proud of Jamf's growth in Q1, since we have now completely lapped the surge in education buying that occurred in Q3 and Q4 of 2020 and in Q1 of 2021, where programs like the Giga Project in Japan drove device growth in the education market never before seen in history. To better understand how Jamf's business evolved throughout different stages of the pandemic, I'd like to compare Jamf's Q1 growth rates in education and commercial markets versus the past two years. To assist you, we have included a quarter-by-quarter representation of these metrics over the past two years in Jamf's earnings presentation, which is available via the webcast and Jamf's IR website. At the start of the pandemic in Q2 2020, Jamf's first quarter as a public company and prior to the surge in education buying, Jamf reported year-over-year ARR growth of 36%, which was comprised of 50% growth in commercial markets and 18% growth in education markets. Over the course of the next three quarters, we reported that market dynamics had pushed our commercial and education growth rates closer together, culminating in Q1 of 2021, where Jamf's year-over-year commercial ARR growth was 39% and education growth was 33%. From that point on, education growth rates started to return to normal levels, as expected, and Jamf's commercial growth rates accelerated, also as expected. This has continued each quarter and is reflected in our Q1 2022 results, where year-over-year ARR growth in education was 15%, despite lapping an incredibly strong prior year. And ARR growth in commercial markets was 57% in Q1, now for the first time representing over 70% of total ARR. We are very pleased with the balance between GENT's healthy education market and higher growth commercial markets, with the larger portion of our business growing at significantly faster rates. Going forward, we believe that buying cycles and year-over-year comparisons will no longer have significant pandemic anomalies. We celebrate the return to a healthier balance across markets, but we are also proud that our business was flexible enough to adapt during the pandemic in order to help organizations work, care, and learn remotely while continuing to succeed as a public company, maintaining consistent, strong growth throughout this period. Perhaps most impressive has been the transformation in Jamf's product platform over the past two years. At the time of Jamf's IPO, our business was primarily driven by Apple device management solutions, and we had just recently entered the security market with products like Jamf Connect and Jamf Protect. Two years ago, in Q1 of 2020, Jamf's total ARR from security solutions was approximately $5 million. We are very pleased to report that ARR from Jamf's expanding line of endpoint security solutions has grown well over tenfold to $75 million in Q1 of 2022, with the vast majority of our security ARR coming from commercial markets. We have accomplished this impressive growth with Jamf's security portfolio while continuing high growth for our Apple management products. For commercial markets, Jamf's Q1 ARR growth for our Jamf Pro and Jamf Now Apple management solutions was over 30% year-over-year in every geography. Today, Jamf is a leading provider in both Apple device management and cross-platform mobile security that includes identity-based account management and authentication, next-generation Zero Trust VPN, prevention of malware, phishing, and malicious downloads, content filtering, data capping, compliance, and reporting solutions. Jamf is one of the very few companies in the world that offer both endpoint management and security, giving Jamf the unique ability to identify, prevent, and remediate security threats automatically. Of the few companies in the market that offer both endpoint management and security, Jamf is the only provider that manages and secures an Apple-first enterprise. which is a critical differentiator since the iPhone is the number one smartphone used in the enterprise. The iPad is the number one enterprise tablet, and the Mac is the fastest-growing computer in the enterprise. According to IDC data, Apple's growth has continued in 2022 with near-record Mac shipments in Q1, still growing despite a very strong Q1 2021 when Mac shipments grew an amazing 111%. Jamf not only supports this Apple growth, we help drive it by delivering a consumer simple experience that employees love and an enterprise secure solution that organizations trust, fulfilling our purpose to simplify work. Jamf will continue to win the trust of organizations by developing innovative solutions that are Apple first and Apple best, further solidifying Jamf as the provider best suited to power the Apple run enterprise of the future. A great example of this is the recently launched Jamf Fundamentals plan. Jamf Fundamentals is a simple yet powerful solution that provides a superset of mobile device management capabilities, along with the ability to simply turn on malware prevention and password sync with the most popular cloud identity providers. Ideal for growing small and medium-sized businesses, this plan helps provide the management and security functionality Businesses need to thwart modern threats all within one simple platform. Any new customer can deploy Jamf Fundamentals with no training required and without speaking to a Jamf sales representative. And all current Jamf Now management customers can upgrade to Jamf Fundamentals with one simple click. We launched Jamf Fundamentals in late March and have seen an impressive number of devices enrolled into the plans. We showcased this new solution along with several other platform capabilities a few weeks ago at the Jamf Spring event. During this event, which was attended by thousands, we took the opportunity to update Jamf customers on the progress we've made on what we announced at JNUC last October, along with some new features, including BYOD, app installers, and new security solutions. Leveraging Apple's latest native technology, Jamf has now delivered a new BYOD solution that strikes the right balance between organizational security and end-user privacy, all for a compelling price point, 85% less than the cost of corporately owned iPhones and iPads. This new capability transforms Jamf's competitiveness in the large and underserved BYO markets. With the delivery of new app installers as part of Jamf's app catalog, we are now providing a workflow for software delivered directly by third parties that mirrors the simplicity of the Mac App Store. We believe Jamf's solution is significantly differentiated in the volume, velocity, and validation of the third-party software we support. And we anticipate customers will save an average of 5 to 15 hours per week using this new capability. Continuing our strategy to expand our security portfolio, we also announced significant enhancements to Jamf Protect for Mac, with the goal of providing the entire solution needed to maintain good Mac security hygiene, detect attacks, and stop malware from compromising endpoints. With this new announcement, Jamf also prevents incoming network threats, like phishing and malicious downloads, before they put users or devices at risk. These enhancements, combined with Jamf's mobile security suite, make Jamf the only comprehensive endpoint and network security platform built first for Apple, yet also available for Android and Windows. Innovations like these, built for the purpose of simplifying work, help Jamf extend its lead in Apple enterprise management and ultimately help drive Apple adoption in enterprises of all sizes. For more on Jamf's recent customer successes and how we're enabling go-to-market teams to deliver Jamf's comprehensive platform, here's John.