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Jamf (NASDAQ: JAMF) tops first-quarter sales estimates, but gross margin declines

JAMF cover photo

Apple device management company Jamf (NASDAQ:JAMF) exceeded analysts’ expectations in the first quarter of 2024, with revenue growing 15.1% year-over-year to $152.1 million. The company expects next quarter revenue to be around $151.5 million, in line with analyst estimates. It posted non-GAAP earnings of $0.14 per share, an improvement over earnings of $0.05 per share in the same quarter last year.

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Jamf (JAMF) Q1 2024 Highlights:

  • Income: $152.1 million compared to analyst estimates of $149.2 million (over 2%)
  • EPS (non-GAAP): $0.14 vs. analyst estimates of $0.12 (up 21.3%)
  • Revenue forecasts for the second quarter of fiscal year 2024 is $151.5 million at the midpoint, roughly in line with analyst expectations
  • Business confirmed its revenue forecasts for the entire year an average of $620.5 million
  • Gross margin (GAAP): 76.9%, compared to 80% in the same quarter last year
  • Free cash flow was -$17.66 million, compared to $15.51 million in the previous quarter
  • Market capitalization: $2.70 billion

Founded in 2002 by Zach Halmstad and Chip Pearson, around the time Apple began to dominate the PC market, Jamf (NASDAQ:JAMF) provides software for businesses to manage Apple devices such as Macs, iPads and iPhones y.

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Increase in sales

As you can see below, Jamf’s revenue growth over the last three years has been significant, increasing from $80.73 million in Q1 2021 to $152.1 million this quarter.

Jamfa's total revenues

This quarter, Jamf’s quarterly revenues were again up 15.1% year-over-year. However, its growth slowed compared to the previous quarter, as the company’s revenue increased by just $1.48 million in the first quarter compared to $8.02 million in the fourth quarter of fiscal 2023. While we would like to see revenue increase by a larger amount each quarter amount, one-time fluctuations are usually not disturbing.

Forecasts for the next quarter suggest Jamf expects revenue to grow 12.1% year-over-year to $151.5 million, a slowdown from the 16.8% year-over-year growth it reported in the same quarter last year year. Looking ahead, analysts covering the company expected sales to grow 9.3% over the next 12 months ahead of the earnings announcement.

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Money is everything

If you’ve been following StockStory for a while, you know that we place an emphasis on free cash flow. Why are you asking? We believe that cash is king at the end of the day and accounting profits cannot be used to pay bills. Jamf burned through $17.66 million in cash during the first quarter, increasing its cash burn by 31.9% year over year.

Jamf Free Cash Flow

Over the last 12 months, Jamf generated $41.29 million in free cash flow, representing 7.1% of revenue. This FCF margin allows it to reinvest in its business without relying on capital markets.

Key takeaways from Jamf’s first quarter results

It was encouraging to see Jamf slightly beat analyst expectations for revenue this quarter. On the other hand, unfortunately, the settlements did not meet analysts’ expectations and the gross margin decreased. Overall the results could have been better. The company’s earnings dropped 1.2% and are now trading at $19.50 per share.

Jamf may have had a difficult quarter, but does that actually create an investment opportunity right now? When making this decision, you need to take into account its valuation, business features, as well as what happened in the last quarter. We discuss this in our full, practical research report, which you can read here. It is free of charge.