Jamf Holding Corp. (NASDAQ:JAMF) Q3 2023 Earnings Call Transcript

Gregg Moskowitz: Okay. That’s helpful. And then for John. One thing that I don’t believe you touched on was – very much was the dataJAR acquisition. If you could just talk about what excites you about acquiring that asset. And then also did that add anything just so we’re aware for our models? Did that add anything to revenue ARR or deferred revenue in the Q3? Or any expectations that you have for that in the Q4? Thank you.

John Strosahl: Sure. And Ian can talk to the guidance on where that sits with respect to ARR. It was not a revenue play though. It was really a technology and talent play and what we wanted from that acquisition and what we did get from that acquisition was great technology around giving our customers the ability to look across different instances from a single pane of glass. And that not only helps our MSP channel and we have MSPs all across the world, not just in the UK, of course, where dataJAR is. So it’s going to help enable those MSP partners, but it also helps large school districts, for example, that want to have all these different schools or districts under one big umbrella. It also helps multinational companies manage different locales from a – get a common dashboard in a single pane of glass.

So it’s really the technology and the talent that built that technology. That was the benefit of that acquisition. And we’re seeing that in the feature and functionalities rolled out not only in our product, but also across our channels.

Ian Goodkind: Yes. And I’ll just add in from the outlook perspective, as John noted, this was a tech purchase, it didn’t have a significant amount, or it’s really actually just had an immaterial amount of ARR that came with it. And so we did factor that in the outlook that we’ve provided you.

Gregg Moskowitz: Very helpful. Thank you.

Operator: [Operator Instructions] And our next question comes from the line of Josh Reilly from Needham and Company. Your question, please.

Joshua Reilly: Hey there. Thanks for taking my questions. Nice job on the quarter here. If you’re looking at the calling of devices, any sense now with another quarter of data if there’s another cycle of downsell that needs to occur following the SDB crisis earlier this year, and the interest rate headwinds to tech hiring this year? And these contracts need to reflect these kind of updated levels of employment. Or do you think that the downsell has peaked and becomes less of a headwind in the first half of next year?

Ian Goodkind: Yes. Hey, Josh. It’s Ian here. Yes, thanks for the question on devices. It is interesting, we’ve had two quarters now at about 500,000 devices, and we were just talking about this earlier today. Like, again, you got to think about our business and step back. There’s three ways our business grows, right? There’s the new logo component, there is the upsell component, and there’s the cross-sell component, and we are still finding logos. And that has been a steady stream. It’s the upsell that’s kind of been muted, and that’s been the device count. And then we’re getting stronger and stronger at cross-sell. And when we look at the markets, we have seen – when we looked at our churn, for example, we did look at, let’s call it our largest churn by ARR.

We looked at those. It wasn’t customers leaving, it was customers being consolidated, it was customers restructuring and it was customers just down-selling, right? And look at that, it is the macro environment that we’re in, but we have found ways to offset that. The successes we’ve seen in business plan, the replacement market, the things that Apple talked about on their call, for example, where they talked about, this was a tough Mac shipping, but next quarter looks like it’s going to improve and those are things that are going to help us and I think will drive our growth rates in the future.

Joshua Reilly: Got it. And then just to follow-up on the devices under management growth. How much of that slower growth here in the third quarter is due to the tough comps from education last year versus anything going on, on the commercial side of the business? Thanks guys.