Jamf at JPMorgan Conference: Strategic Expansion Amid Economic Uncertainty

On Tuesday, 13 May 2025, Jamf (NYSE:JAMF) participated in the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. The company addressed investor concerns about potential economic slowdowns, while emphasizing strategic expansions and maintaining a conservative outlook. Despite customer caution and elongated sales cycles, Jamf reaffirmed its guidance and highlighted strong demand in key verticals and international markets.

Key Takeaways

• Jamf is expanding into Android to meet customer demand for comprehensive mobile security solutions.
• The acquisition of Identity Automation is set to enhance security offerings and expand deskless workflows.
• Jamf aims to achieve a Rule of 40 run rate by the end of 2026, prioritizing growth over margin expansion.
• Strong growth is noted in APAC and EMEA regions, with international markets outpacing U.S. growth.
• Jamf maintains a close partnership with Microsoft, focusing on value-driven pricing strategies.

Financial Results

• Q1 was a "normal quarter" following a strong Q4, with April results showing no additional hurdles.
• New logo growth was strong, though upsells were slightly below expectations.
• Revenue from Identity Automation is projected at $15 million for the remaining three quarters.
• International expenses are expected to create a $2-3 million headwind on OpEx this year.

Operational Updates

• Jamf is expanding into Android to secure entire mobile fleets, driven by customer demand.
• A new channel lead in London is expected to enhance international growth.
• The Oracle system now supports multiple currencies, improving competitiveness internationally.
• Integration with Identity Automation is advancing, with shared customers benefiting from enhanced security.

Future Outlook

• Jamf maintains a conservative guidance due to economic uncertainties.
• The company plans to expand its security product roadmap, leveraging the Identity Automation acquisition.
• Jamf is prioritizing growth investments in channels, products, and sales to reach its Rule of 40 target by 2026.

Q&A Highlights

• Jamf experiences elongated sales cycles similar to Q4, amid economic caution.
• Financial, professional services, and retail sectors show strong hiring trends, while tech remains cautious.
• Jamf’s solutions are considered essential for device management and security, mitigating potential slowdowns.
• International growth, particularly in APAC and EMEA, presents significant opportunities.

For further details, readers are encouraged to refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Samik Chatterjee, Analyst: morning. Let me kick it off here. I’m Samik Chatterjee, the analyst covering Jamf. And starting off the conference on day one here, we have the pleasure of hosting John Stroessl, who is the CEO and David Rudow, CFO of Jam. Thank you both for attending the conference and participating.

We appreciate your time coming to the conference. What we’re going to do and this is not specific to Jam, but we’re going to in companies we talk to over the next two days, we’re going to ask everyone this question about the macro since in our view that’s what the most important question for investors are at this point. So maybe I’ll sort of phrase it this way, you have a lot of conversations with your customers on an ongoing basis. And based on the feedback you’re getting from them, how concerned should investors be that we are sort of potentially going into a recession in the back half of the year or there’s a significant slowdown that we’re about to see in the

Unidentified speaker: back half of this year?

John Stroessl, CEO, Jamf: Well, I can take the first part of that and Dave certainly feel free to chime in. Guess certainly we should probably leave forecasting the economy to the economist, but I can certainly talk about what we’re seeing from our customers. And that is it’s just caution really. I mean, we’ve seen some elongated sales cycles not indifferent than it was in Q4. And we see that continuing into Q1.

Caution around some more approval levels, uncertainty, I don’t think that demand has gone away. In fact, I think that there is even maybe some more pent up demand because there’s been this caution for a while, but it’s certainly something that weighs on our customers. And if they pause hiring or if they pause other things, procurement, those are things that can impact the entire customer base, not just ours of course.

David Rudow, CFO, Jamf: Yeah, and I think in terms of what we saw in Q1, was kind of a normal quarter, right? Was Q4 was very strong. I think there was quite a bit of budget flush that happened. We were looking for any follow through into Q1 from that strength in Q4 and there wasn’t any. It was a good quarter.

We kind of ended well for the quarter. And then when you look at April’s results, it kind of was more or less okay. There’s no clear indication that there’s any additional hurdles to closing a deal. It’s kind of what John said earlier, like last year, Q1 through Q2 is kind of, you’re have signatures you need and everything else. So there’s no real change to that.

And we’ll see what the balance of the year brings out, right? We’re looking at pipeline build. We talked to the sales team all the time. Is there caution? Yeah, I mean, saw a couple of deals slip in Q1, nothing that was meaningful in North America.

Europe was okay. And then APAC is very strong still. So we’re watching, I think, the guidance update that we gave kind of just maintaining our guidance. I think it’s prudent just to be conservative right now. And

Samik Chatterjee, Analyst: I know tariffs are not a direct impact on you, but there’s a lot of conversation, particularly when it comes to PCs, about seeing some level of pull forward. You support those devices at the enterprise. Are you seeing any of that happen? Or I know you talked about elongated sales cycles, couple of deals pushing out, but are you seeing a pull in at the same time at the device level that might be sort of then a bit more visible to you as you support those devices?

John Stroessl, CEO, Jamf: I haven’t seen the pull in. I’ve seen usually refresh cycles will happen after the life cycle of a product. We’ve seen some of those be elongated because of the uncertainty. And then a lot of times the device counts will go up in organizations due to the hiring plans that they have. And we’ve seen especially in a couple of our industries tech being one of them, K through 12 being another where we’ve seen some of that elongated sales or elongated refresh cycles, just given the uncertainty.

And if they’re not at least in the commercial side, if they’re not planning on hiring people, they’ll hold on to what they have. But again, that can’t last forever. And when I talked a little bit about some of the pent up demand, we’re seeing some of that as those refresh cycles elongate, we’re seeing that the demand doesn’t go away. It’s just being pushed out a little bit given the uncertainty.

Samik Chatterjee, Analyst: Okay. So maybe let’s dive back into some of the commentary that you had on the last earnings call and I’m just looking back at the last couple of quarters. You were cautious about hiring in the tech sector vertical itself a couple of quarters ago, but you’ve been seeing strong momentum when it comes to like financial services. Just maybe take us through what your pipeline looks like by customer vertical and where are you seeing sort of areas of strength versus weakness relative to maybe what your expectations were ninety to one hundred eighty days ago?

John Stroessl, CEO, Jamf: Sure.

David Rudow, CFO, Jamf: G, do you want to? Yes, I’ll run through. Yes, so for Q1 we saw strength in healthcare financial services. We saw strength in APAC. APAC has been very strong for us.

EMEA, South Central Europe and then also UK, Ireland saw strength and Americas were weaker as we talked about. We saw good new logo growth though in Q1, which is different than what we’ve seen in the The upsells were less, probably a little bit less than we anticipated, which has been kind of the ongoing issue with us over the last couple of years really. Good news is like the down sells have slowed. It’s just the upsells is what we’re waiting to see as whether they add additional heads or whether they expand their Mac programs inside the enterprise. That’s what we look for in the upsell side.

Samik Chatterjee, Analyst: Just maybe talk broader about hiring trends across all these verticals because as you mentioned, that’s a good driver that you haven’t really seen kick in for the last couple of years now. So like how what are you seeing right now? Is there sort of any vertical that you’re seeing sort of hiring trends are improving materially?

John Stroessl, CEO, Jamf: Yes, I think, as we mentioned, the financial services, professional services and retail are areas that doing really well. And we’re seeing hiring in those areas. We’ve seen a bit of a, again, a cautious, but cautious optimism in tech. So there’s been, we did see some layoffs in January. And I think we took that into consideration when we guided for Q1 and how we performed in Q1.

And we’ve seen that not be as high as it was in January, but not really go be steady state, a little bit less than January, but steady state. If we look at tech layoffs and hiring plans in the tech space, but in the retail professional services and transportation, especially those are areas that are hiring. And for a variety of reasons expanding, especially their mobile footprint. And that’s been a benefit to us, especially in retail.

Samik Chatterjee, Analyst: Okay. So maybe just let’s do a comparison like you’ve run this business over a longer period of time and much have much better visibility on how it’s tracked relative to investors. Past downturns or slowdowns in the macro, how have Jamf customers typically responded? And you obviously have a very high subscription model at this point. You’ve rolled off some of the licensing as well.

So how do you think the company’s overall position right now relative to maybe even prior slowdowns that you’ve gone through?

John Stroessl, CEO, Jamf: Yes. As far as the slowdowns, we’ve been around for over two decades. And so there we’ve had to navigate a couple of them in the past. And I think if you look at it from a higher level, the products that we provide and the solutions that we provide our customers, especially when it comes to management and security of their devices and their endpoints. And it’s not that you can’t have management, a secure device without it also being managed.

So the two of them really going together is really important. It’s not a nice to have so that those companies need to protect and manage those endpoints. And when you look at the overall IT spend, we’re not a huge chunk of that. So we’re a smaller percentage of the IT spend in an area that is a necessary need to have. So those two things combined, I think have let us not see as choppy as some other companies may see with respect to potential slowdowns or headwinds.

Don’t know, David.

David Rudow, CFO, Jamf: And we do track like everybody else is probably the layoff tracker. I forget which one we use, but we looked at it, January, there was a bit of a spike. It hasn’t been that bad. And then there was again a spike, I think it was in April, but there was one or two companies that laid off a large amount of people in the tech sector. So we watch that stuff.

It kind of comes and goes, but where we’d see something if layoffs did happen and there was a renewal unit of seeing, oh, we’re going to need to lower our seat count. We haven’t seen like a big increase in that yet though.

Samik Chatterjee, Analyst: Okay. Let’s dive into the product portfolio a bit and maybe we should have I should have done this earlier like for any new investors to Jamf, maybe just outline the big pieces of the portfolio. You mentioned management and security, but just help us think about the portfolio as it stands today and separating out how it looks for an enterprise versus education.

John Stroessl, CEO, Jamf: Sure, sure. Well, we’ve really listened to our customers and oriented our solutions around specific buyer or persona that is going to acquire our solution. And so when we look at that across the board, we certainly have K-twelve. We have a management and security solution that’s really oriented around the K-twelve, which is a bit different than it may be for commercial different buying motion, different solution that we would have with respect to network security and mostly mobile devices, which is particularly what they use in education. So we’ve got the K-twelve and then we have Mac for enterprise and the mobile for enterprise.

Now they have a very similar buyer motion between those enterprise procurement organizations. And many times though, within an enterprise, there’ll be two separate buyers for that. Sometimes they’re the same, but many times they’re separate. Someone handles the mobile devices and someone else may handle the laptops. And so in order to orient a solution that’s specific to that mobile buyer in the organization that includes both management and security, again, at the behest of our customers, it really allows us to go in there and leverage the strength and the brand that we have in the IT device management side of it.

And then extend that out through the security capabilities that our customers are asking for without going in and spurring up another sales motion in a security part of the organization. We can really go in through the IT, deploy that out and show and demonstrate the capacity of the management and security working together. Same thing would be for the Mac.

Samik Chatterjee, Analyst: Maybe just taking that forward, you did have an announcement on Friday in terms of extending these capabilities on Android. So maybe flesh that out for us a bit in terms of like you obviously, the history of the companies in iOS. You have differentiated your solution when it comes to iOS relative to your competitors. So what’s the strategic thinking in expanding to Android and how do you create differentiation the same way that you’ve done on iOS?

John Stroessl, CEO, Jamf: Yeah, and just let us state for the record that our focus on Apple has not wavered at all. And we’re continuing down that path and making it Apple first and Apple best. And the only reason to include some capabilities here to enroll and then deploy an application on an Android device is again at the behest of our customers. Many times we will companies will have a mobile fleet and a vast majority of it will be iOS and they will have some Android devices. But not being able to deploy our security products, our customers want to deploy those security products on the Android device as well.

But they may not have a methodology to do that or they would have to go through another work stream to do that. So what we’ve done is really listen to our customers and created a work stream, a workflow that they can deploy those products, our products across their entire fleet including sometimes of which are Android. But that’s really our focus here was an answer to our customer’s request to do that.

Samik Chatterjee, Analyst: Okay. And just the second part of that, I mean, you’ve clearly put a lot of R and D into the iOS differentiation, but what does the Android announcement mean from an investment standpoint? Is the investment really in front of us? Do you now have to go and incrementally spend quite a bit to develop that same level of differentiation on that front?

John Stroessl, CEO, Jamf: Not at all, not at all. We have some, like I said, some capabilities to deploy particularly our security products on those devices. And we have that capability now that we intend on releasing here very shortly within the next couple of months. And so it’s run proof of concept and things are in motion for that. So there’s not a massive R and D spend or effort that we have to do going forward in that at all.

Samik Chatterjee, Analyst: And should investors largely think of this as the primary initial customer base you’re going after is the one that’s already adopted the iOS solution and they’re layering it on the Android front?

John Stroessl, CEO, Jamf: That’s correct. It provides a means to an end to secure the entire mobile fleet of our customers.

Samik Chatterjee, Analyst: Okay. Sorry, the last follow-up on this is, I mean, do you see yourself in very quick order going and sort of looking at deals that are only Android without any iOS component?

John Stroessl, CEO, Jamf: That is not our intention. No. Okay. We’re not throwing our hat in the ring to be a general UEM competitor that we would we simply did this at the request of our customers, the ability to deploy those products on some of their fleet, which may also be Android. Got it, okay, great.

Samik Chatterjee, Analyst: Maybe then talk about the competitive landscape. How does it look today and particularly you have a large competitor like Microsoft in this space. How do you manage to navigate the competitive dynamics with that large competitor as well?

John Stroessl, CEO, Jamf: Yes. Well, a couple of things. Competitive landscape hasn’t really changed. It’s been pretty consistent. We hear some noise kind of ebbs and flows a little bit, especially on the smaller Apple specific subscale competitor side.

On the enterprise, you mentioned Microsoft. I don’t know many software companies that don’t have something that in some way Microsoft also does. They do quite a number of things, but you must remember that Microsoft is one of our most closest partners and we have over a dozen integrations with Microsoft into Defender, into Sentinel. We were on the Azure marketplace. We use Azure as one of our cloud solutions as well.

So there’s a lot of touch points within Microsoft that we work very closely with Microsoft and we’ll continue to do so.

Samik Chatterjee, Analyst: Okay. We’ve seen price increases across the industry, particularly with some of your competitors. So maybe can you talk about what your pricing strategy is and how are you sort of evaluating price increases versus sort of price elasticity for demand?

John Stroessl, CEO, Jamf: Yes. I can answer and then maybe you’ve got some color on that. We never have been the lowest cost provider because we don’t feel that we need to be. We really sell the value of our solution, our end to end capability, especially now with management and security together and being Apple native for those devices. So we haven’t found it necessary to really be the low cost provider.

We offer a very good value for the price. And we do have in many of our agreements, an annual price increase that happens. And that’s something that we haven’t done before, but now we are doing it because we see that not only is the market in general moving that way, but it helps continue to continue to make them the right ones for our customers.

David Rudow, CFO, Jamf: Yeah, and we do add quite a bit of functionality built into year every year as we continue to develop on each and every product. There is quite a bit of additional functionality that we feel that we can charge for with the customers. You look at the platform solutions, there’s an embedded price increase that goes there. Business plan has embedded price increase. So we will look to get the value that we’re developing for our customers and that they’re seeing great benefit for in their environments.

Got it.

Samik Chatterjee, Analyst: Can you just walk us through how Jamf differentiates its marketing and sales strategy when it comes to Jamf for Mac versus the Jamf business plan? What are these specific customer segments targeted by each offering?

John Stroessl, CEO, Jamf: Yeah, can take a swing at that one. So Jamf Business Plan, remember it’s a user based license and it covers both mobile and Mac together. And the Mac for the enterprise is just the Mac and it’s focused on larger customers and it’s also device based. So we have that differentiation. The business plan is really oriented toward the small to medium sized business that kind of wants everything into one.

So they have the mobile, they have the Mac, they have the management, they have security. It’s user based so they can use many devices and that’s really helps accommodate a smaller, more dynamic SMB business where the MAC for enterprise is management security for the MAC at scale with some premium services and cloud capabilities around that that’s really oriented toward the enterprise.

Samik Chatterjee, Analyst: And I mean you envision it as the MAC one is for enterprise, the Jamf business plan is for SMB, but are you seeing customers choose that way or are you seeing any interest from enterprises to have business plan as well?

John Stroessl, CEO, Jamf: We have, we actually call it the enterprise plan. We don’t generally talk about it as much as like the business plan because those are very specific cases where we work with certain enterprises based on that type of solution or architect or licensing model, I guess you would say. But primarily it’s the SMB on the business plan and Mac for enterprise on the high end. Yeah. And we just released those skews Mac for mobile, Mac for Jam for Mac at the March.

So we saw It’s early days.

David Rudow, CFO, Jamf: And there’s a lot of interest. We actually closed a bunch of deals in that. And then Mac for mobile launched April 1. So it’s very early days, but like the initial traction and feedback has been great.

John Stroessl, CEO, Jamf: Yeah. They’ve landed some deals already with that, which is exciting.

Samik Chatterjee, Analyst: Moving to security and maybe just help us think about how do you envision the evolution of the security product roadmap, particularly in light of the acquisition of Identity or automation, how you’re thinking overall how critical security is?

John Stroessl, CEO, Jamf: Yeah. Well, think first it’s important to note that we didn’t wake up one day and think, oh, we should go do security. Our customers had asked us, hey, we would expand our Apple footprint if we felt better about these devices accessing our corporate resources. So that’s when we started looking at build buy and partner security solutions so that we had something to offer them. And we have both on device, the Mobile Threat Defense on device in Jamf Protect as well as network security as well.

And so we have that span, but there are still areas that we can continue to expand in our security footprint. Interestingly enough, identity automation came to us. We had a go to market partnership prior to the acquisition and we have had for a few years and we’ve had a lot of good traction. In fact, of the 500 customers that identity automation has, half of them are shared customers with Jamf. So we knew that that solution had traction and going to market together.

And the fact that we can then work with identity automation and they sold with the exception of one or two deals, outside The United States, everything is in customers, many of which are outside The U. S. And growing at a faster pace than inside The U. S. And so it’s a natural extension to take identity automation, continue the traction we’ve had in The U.

S. Because we still have a lot of runway there, but then also pretty much greenfield outside The U. S. And it helped them expand. And you remember for our education customers, and we have entire countries that have standardized on our product and being able to extend that in the identity automation footprint into those customers, I think is really exciting.

And if you just think about all the different aspects to security, one of them of course is you need to identify the person and identity automation really focuses on the person as opposed to the device. And also in the context that that person is in. And so it started off using in education, they’ve expanded a bit to healthcare, but we see a lot of opportunity in this deskless workflows that we’ve been talking about at retail with all these mobile devices where there’s a similar framework or structure and how those employees may go from context to context and need different provisioning based on the context that they’re in. So if you’re a student and you’re in fifth grade and you are in honors class here but not over here and then you graduate to sixth grade, it can give you different provisionings based on that. And if you think about a retail environment where you have a person that’s at a certain store and they may be an individual contributor, but then the second shift they’ll go and be a manager at another location.

They have different provisioning, but it’s the same person. So those are areas that we believe we can extend identity automation. The great work that they’ve done in education, we believe we can extend that out into the commercial areas.

Samik Chatterjee, Analyst: I mean, this feels like it could really bolster your overall relevance to anything outside of the tech vertical, which is traditionally where you’ve been strong anywhere where this is a deskless workflow

John Stroessl, CEO, Jamf: One of the fastest areas that we’ve seen grown is in the mobile space and specifically around this deskless workflow. If you think of airlines and in the cockpit it’s iPads not flight books anymore. It’s behind the cockpit and above the wing. It’s flight attendants carrying the mobile device under the wing. It’s maintenance workers using iPads as opposed to the big manuals and finding out where things are.

All of that has gone to deskless and every one of those endpoints needs to be both managed and secured. And to the extent that that context for that employee changes, identity automation can help even make that easier.

Samik Chatterjee, Analyst: You had the partnership with Identity Automation before the acquisition. I mean, were they also doing standalone sales without any necessary partnership? Like is your plan to continue on that front as well selling I and D automation standalone?

John Stroessl, CEO, Jamf: We’re going to service our customers. And if they just need that solution, then we will certainly allow them to buy that solution. But many of them prefer to use because the solutions work so well together that they buy them together. We’ll offer pricing and offerings and things like that that’s commensurate with that.

David Rudow, CFO, Jamf: Yeah, we do have a sale, there’s a distinct sales force for identity automation. We’re expanding that. We talked about some additional investments that we’re making in Q2 and this year because we are seeing great traction and the opportunity to sell as international versus mainly in the 95%, ninety eight % of their customers are in The USA, a couple customers in Norway too. So we’re making investments there. We’re seeing the interest.

I know like if you think about cross sell within our base, our sales team is excited about as well. And they’re ramping up for this busy season, but also in the Southern Hemisphere as well.

Samik Chatterjee, Analyst: That’s actually a good segue because I wanted to ask you to walk through how you’re thinking about the international opportunity long term. I know at the Investor Day, there was a focus on the international opportunity. Maybe just outline how do you see the international opportunity, particularly when you compare to your presence in The U. S, how do you

John Stroessl, CEO, Jamf: think about the opportunity there? Yes. Well, we continue to grow outside The U. S. At a faster pace than inside The U.

S. There’s reason for that. One is, and you would probably know this better than anyone. Most if you look at Apple’s financial statement, much of their revenue more than half comes from outside The U. So you can assume that there’s a very healthy, in fact bigger installed base than inside The U.

S. And so we can really address that. And we’ve been doing so with our local presences in all of those different markets. So we continue to work very closely with Apple, not just in The U. S, but in Japan, in Europe, in Asia Pacific, we meet with the leaders of those regions regularly.

In fact, every time I go to Japan, I have dinner with the head of Apple Japan. And we talk about things that are going on in the market. So very close working relationships across the globe in partnership to expand not only their installed base, but then ours as well. We, sorry. No, no, go ahead.

David Rudow, CFO, Jamf: And we are making more investments too. So channel represents about 80 ish percent of revenues international In The US it’s about 55% for the averages about 60% globally. And so we’re making additional investments. Hired a new channel lead out of London, Mark, he’s a great guy. And he’s kind of restructured the team, instituted some best practices across the entire organization.

We’re seeing more partner ads and we’re also seeing partners bring in deals, so we call it deal registration. But we have our new system that we deployed last summer. One of the some of the functionality is that we can now allow partners to register deals, get collateral, quoting is coming. I think it’s partially available now. But the idea is allow the channel to bring us deals too.

We’ve done a great job internationally. We are working very hard in The U. S. Too and we’ve seen good traction on that side. So I’d say a portion of the revenue growth that we’ll see is from the channel involvement to everywhere internationally, especially.

Samik Chatterjee, Analyst: Got it. Okay. Maybe just taking that into how it translates into investor models. I think the natural conclusion would be your growth in international markets should continue to outpace your growth in The U. S.

David Rudow, CFO, Jamf: That’s our expectation. We’ve seen stronger growth. You think about Asia Pacific, we’ve seen tremendous amounts of growth there. And a lot of it is in some cases Greenfield too. The U.

Most have a solution unless you look at SMB that are starting. But on the enterprise, there’s a solution out there that we can go seek to replace. But international, we’re seeing great traction for some Greenfield and there’s also a replacement market as well. But yeah, we’re seeing APAC is very strong and then EMEA is the biggest international contributor and we’re seeing good traction there as well. And the partner channel is really helpful on that too.

Samik Chatterjee, Analyst: Got it. What are the puts and takes in terms of the solution sale in The U. S. Versus international? Because when I compare it to some of the other companies we cover, there’s sometimes a lower ASP or the same solution side, is it the customer doesn’t go for the entire solution side, there may bits and pieces that they choose to opt.

I mean, they’re just the dynamics in terms of how the sales and marketing works overall tend to be sometimes different. Like what do you see on the product portfolio side that’s different in international versus U. S. Market?

John Stroessl, CEO, Jamf: Yes. Mean, there and as you well know, not all of the international is the same. They’re very distinct and different. One of the advantages of being geographically diverse as we are that some markets do better during some conditions. And I’ve never seen all of them rise and all of them fall at the same time.

Like APAC will go up a little bit, Europe will be down, but then The U. S. Will be up. So it is helps diversify that revenue stream certainly. But with respect to the products, we don’t see a big difference in outside The U.

There are certain pockets and maybe Central Europe and maybe the Mac hasn’t caught on as much at that point in time, but iOS has done really, really well. And so we’ll see more iOS than Mac in that market. But then in another market, it’ll be just the opposite because there’s less iOS footprint right now expanding, but less right now and more of a Mac installed base. It really depends on the market, but we’re seeing a lot of mobile growth outside The U. S.

Samik Chatterjee, Analyst: Got it. You did introduce billing in international or local currencies. I mean, what was the driver there firstly? What was the driver behind taking that decision to introduce that? David, you want to?

David Rudow, CFO, Jamf: Yeah, I think it makes us more competitive. There are some deals where it’s almost required to bill in local currencies. And so I think it’ll improve our win rates. I think you want to solve any of the negatives that a customer might have, whether it’s a new deal or renewal, if currency is an issue, we have that flexibility now. The system we rolled out Oracle now supports multiple currencies.

And so as we sign new deals, there’s an option to bill in local currencies. And upon renewal, there’s an option too. We’ve seen some traction obviously, just released the Oracle in August. So there’s some traction, but it should end up with better win rates at the end of the day.

Samik Chatterjee, Analyst: Okay, good. How does that impact I mean for investors, how does that impact the currency exposure on the top line versus the cost and when do get to parity

David Rudow, CFO, Jamf: Yes, I think it’s going to be a while. I think on the top line we’re seeing minimal benefit on the revenue side now, but we are seeing higher costs. We talked about an earnings call about 25% of our expenses are international. We have minimal offset in The UK and some in EMEA, but we expect about a 2,000,000 to $3,000,000 headwind on the OpEx side this year. And as we start billing more in local currencies that will offset, I think it’s going to take a while though.

Think about all that we have 70,000, 70 six thousand customers. As we enter new ones, they can move to the local currency billing. And then as customers renew, then they would also see if they have a choice, they would also then bill in local currencies too. So I think it would take a while for that to be at parity between the revenues and the expenses.

Samik Chatterjee, Analyst: Actually I was going go back to the last question was going on, on the international versus The U. S. Is the competitive landscape very different and like do you see a different set of competitors and does it actually become incrementally easier from a competitive standpoint in the international markets given maybe some of the big sort of U. S. Software companies are less present there?

John Stroessl, CEO, Jamf: Yes. But again, it’s the different markets are different. In Japan, for example, you may have some lower level competitors that are Japanese companies that you wouldn’t see in Europe, for example. Again, nothing across the board that’s any significantly different, especially at the enterprise level, but sometimes at the smaller level, there’ll be maybe some local indigenous competitors, but we haven’t really seen that be a big headwind. It’s pretty consistent with the competition that we see in The U.

S. Especially at enterprise level and in varying degrees in Europe, depending on the maturity of that other company in market. We’re pretty mature internationally. There’s areas that we can expand, but I think we’re in most of the geos that we need to be in. And then it’s more effective how much do we invest in that area versus this area based on the demand that we see.

Samik Chatterjee, Analyst: Let me just do a quick check if anyone in the room has a question. Do

Unidentified speaker: you mind just checking with capital allocation priorities? Yes. So post the most recent acquisition and just given the stock year to date, any change in kind of your, I don’t know, allocation stack rank between M and A, share repurchases, dealing with the convertible or are you just trying to build cash on the balance sheet at this point?

David Rudow, CFO, Jamf: Yes. So we had about $222,000,000 at the end of the quarter. We spent 175,000,000 on April 1, we closed the transaction. We’ve built a little bit of cash since then and we will generate additional cash throughout the year. We do have a convert that goes current $375,000,000 in September, it matures September 26.

So we’re actively working on a solution for the convert right now. Obviously where the stock is at, it’s probably not ideal from a dilution standpoint and a volume standpoint to do a convert. So we’re looking at any and all options around that. I think it’s important to understand like the idea would be the convert because I think it’s a lot more affordable from an interest perspective. But at the same time, whatever solution we have, it’s not a convert has to be flexible.

So if the market comes back and our stock is at a level that makes sense, we would do a convert at some point. So those are the plans. I think the benefit is we continue to expand margins. We continue to generate additional cash and that will continue out through this year and next year, Tim. Maybe

Samik Chatterjee, Analyst: I have two for you and primarily this is on the financial side, but maybe let’s start with the near term guidance that you issued. What is sort of the assumption behind contribution from Identity Automation both in terms of revenue but also accretion on the margin front? And how much of like how do you how should we think about upside risk to that?

David Rudow, CFO, Jamf: Yes. So when we gave guidance last week, week before, last week, it was $15,000,000 we expect for identity automation for the three quarters. Now they have a seasonal cadence to the revenues. Q3 and Q4 are the strongest. They do and there’s some different pieces of revenue.

They do go to market with a cloud solution. They’ve done that over the last couple of years, but we have some bigger customers, existing customers that renew based on a perpetual model, they charge term for it. But those are the deals that we recognize almost a good portion of it immediately. And then we have a piece that subscription maintenance that recognize over a twelve month period too. And so you’ll see a spike in Q3, that’s the high point.

Q4 will be down and then Q1 and Q2 are low points. And if you’re building on an annual model to that. What we talked about too is on the top line growth is accretive to Jamf. And then also on the bottom line on an annualized basis this year and for the three quarters, there’ll be accretive on operating margin as well.

Samik Chatterjee, Analyst: And how do we think about upside risk to it? What are you admitting relative to?

David Rudow, CFO, Jamf: Yes. So like, I mean, anytime you do an acquisition, you always, I mean, you do the modeling, the company, you’ve talked to them for months, you talk to the sales teams, but you never really know like, okay, here’s the number. We always, even with the Jamf Organic, we issue a achievable model, right? And so as we get to understand the cadence of identity automation and how accurate they are to the forecasting, I think it’s still a conservative model, but we’ll get to know them better over time and tighten up the guidance around that too. But I think it’s important when you do an acquisition, you can hit the numbers.

Okay.

Samik Chatterjee, Analyst: Last one from my side. I mean, the rule of 40 objective is something that you’ve outlined to hit by year end 2026. What are the strategies or sort of what is what are you doing to make sure that stays on track relative to all the volatility in the macro aside? And how do you think about balancing growth and profitability to get to that target? Yes.

David Rudow, CFO, Jamf: So as we talked, I think we introduced it last quarter, rule of 40, we expect to exit run rate 2026. So Q4 run rate should be we’re targeting rule of 40. I think obviously we prefer growth over margin expansion. So we prioritize growth for our investments. We’re making investments in the channel products on the sales side.

We are also doing, I think a good job of really smartly investing for that growth right now. We’ve increased I think quarter over quarter that was 800 basis points improvement in sales and marketing. We’ve increased margins 1,100 basis points over the last two years. So we are continuing to really optimize the business and run it better and more efficiently. But the definite priority is growth.

Like we’re going to there’s always a trade off, right? And what’s the timing of the trade off? And we’re mindful of that as we do our work internally and talk to the team across the world, the priority is growth. I’ll wrap it up there.

Samik Chatterjee, Analyst: But thank you both for coming to the conference and thank you to the audience as well. Thank you.

John Stroessl, CEO, Jamf: Thank you so Appreciate it. Thank you.

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