Jamf's Q1 2025 Earnings Call: Unpacking Key Contradictions in Security Growth and Market Dynamics
Earnings DecryptWednesday, May 7, 2025 7:28 pm ET
2min read
Security growth and impact of data reclassification, confidence in security as a growth driver, impact of tariffs on device purchases, growth drivers in 2025, identity automation acquisition strategy are the key contradictions discussed in Jamf's latest 2025Q1 earnings call.
Revenue and Growth:
- achieved year-over-year revenue growth of 10% and non-GAAP operating income margin of 22%, exceeding the high end of their outlook for both metrics.
- Total ARR grew 9% year-over-year to $658 million.
- Growth was fueled by strong new logo bookings and a strategic focus on security, mobile, and international markets.
Acquisition Impact and Strategic Expansion:
- The acquisition of Identity Automation contributed to 17% year-over-year growth in security ARR, reaching $162 million.
- This acquisition added nearly 90 employees and expanded Jamf's product offerings with dynamic identity management, particularly in education and deskless workflows.
- The integration is expected to enhance existing security solutions, expand market reach, and improve overall user experience.
Channel Growth and Partner Program:
- Deal registration grew nearly 50% year-over-year since the launch of the new global partner program in August 2024.
- Partner driven ARR represented over 60% of Jamf's total ARR, with international partner ARR accounting for over 80%.
- The program has improved partner engagement and expanded Jamf's global reach, leading to recognition as a 5-Star partner program.
Operating Efficiency and Financial Health:
- The trailing 12-month unlevered free cash flow margin decreased slightly to 12.3%, but is expected to improve as DSOs normalize.
- With a strong balance sheet, Jamf remains in a healthy liquidity position, maintaining its commitment to strategic investments and profitability.
- The company anticipates unlevered free cash flow growth of at least 75% for the year, with a focus on achieving the Rule of 40.
Revenue and Growth:
- achieved year-over-year revenue growth of 10% and non-GAAP operating income margin of 22%, exceeding the high end of their outlook for both metrics.
- Total ARR grew 9% year-over-year to $658 million.
- Growth was fueled by strong new logo bookings and a strategic focus on security, mobile, and international markets.
Acquisition Impact and Strategic Expansion:
- The acquisition of Identity Automation contributed to 17% year-over-year growth in security ARR, reaching $162 million.
- This acquisition added nearly 90 employees and expanded Jamf's product offerings with dynamic identity management, particularly in education and deskless workflows.
- The integration is expected to enhance existing security solutions, expand market reach, and improve overall user experience.
Channel Growth and Partner Program:
- Deal registration grew nearly 50% year-over-year since the launch of the new global partner program in August 2024.
- Partner driven ARR represented over 60% of Jamf's total ARR, with international partner ARR accounting for over 80%.
- The program has improved partner engagement and expanded Jamf's global reach, leading to recognition as a 5-Star partner program.
Operating Efficiency and Financial Health:
- The trailing 12-month unlevered free cash flow margin decreased slightly to 12.3%, but is expected to improve as DSOs normalize.
- With a strong balance sheet, Jamf remains in a healthy liquidity position, maintaining its commitment to strategic investments and profitability.
- The company anticipates unlevered free cash flow growth of at least 75% for the year, with a focus on achieving the Rule of 40.
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