Q1 2025 Jamf Holding Corp Earnings Call

May 6, 2025

It will be a question and answer session to ask a question. During this session you'll need to press star one on your telephone. If your question has been answered and you'd like to remove yourself from the queue simply press Star One again as a reminder, today's program is being recorded and now I'd like to introduce your host for today's program, Jennifer Gaumond, Vice President Investor.

Speaker Change: Please go ahead good.

Jennifer Gaumond: Good afternoon, and thank you for joining today's call to discuss <unk> first quarter 2025 financial results. Joining me on today's call are John Russell CEO and David Rudow CFO before we begin a reminder, that shortly after the market closed today, we issued a press release announcing our first quarter financial results. We also published our Q1 investor in earnings.

Jennifer Gaumond: This presentation, along with an excel file containing quarterly financial statements to assist with modeling you may access this information on the Investor Relations section of <unk> Dot com.

Jennifer Gaumond: Today's discussion includes forward looking statements, which involve risks and uncertainties that could cause actual results and trends to differ materially from our forecast.

Jennifer Gaumond: For more details please refer to the risk factors and other information discussed in our most recent SEC reports, including our most recent annual report on Form 10-K.

Jennifer Gaumond: Jeff assumes no obligation to update forward looking statements, which speak only as of the date. They are made we will also reference some non-GAAP measures related to Gm's performance reconciliations to the nearest comparable GAAP measures are available in our earnings release to facilitate a full Q&A. Please limit yourself to one initial question and one follow up now I'll turn it over to John.

Thanks, John.

Jennifer Gaumond: We have achieved solid results in Q1 with year over year revenue growth of 10% and non-GAAP operating income margin of 22% exceeding the high end of our outlook for both metrics.

Total <unk> grew 9% year over year to $658 million or net new commercial IRR saw year over year growth.

Jennifer Gaumond: And excluding FX total net new <unk> growth accelerated for the first time since Q2 of 2022.

Jennifer Gaumond: Additionally, we saw strong new logo bookings in both commercial and education, driven by higher IRR per customer.

Jennifer Gaumond: Europe bookings were also strong driving 17% year over year growth in security <unk> to $162 million.

Contributing to this performance was the successful launch of two new platform solutions in early March Jam for Mac and GM for K through 12.

Jennifer Gaumond: These device based offerings represent the next evolution of Gms platform capabilities, helping remove barriers to apple adoption by providing customers with everything they need for security and management and a single SKU.

These solutions are tailored to specific buyer personas and leveraging strong relationships with the ICP IBM. This.

Jennifer Gaumond: This enables <unk> to deliver across our four key growth vectors security mobile international and channel.

Jennifer Gaumond: <unk> empowers customers to easily embraced math of their operations, including multi layered security that integrates with existing cooling, while reducing the organization security risk footprint.

Jennifer Gaumond: Our global Education publishing group recently expanded and converted to account for them at the.

Jennifer Gaumond: The solution provided the IC admin the ability to enhance the companys device security posture with the IC and not be influenced that budget <unk>.

Jennifer Gaumond: <unk> 12 isn't enhanced education solution that provides IC admins with a powerful yet simple security and management solution, combining two pearl or Champs school with fiancee Internet with this platform solution, we're transforming classroom supporting students success and ensuring equitable opportunities for ever.

Jennifer Gaumond: Learner, whether individual school district or an entire nation.

Jennifer Gaumond: Large school districts in Louisiana recently converted for Jeff K through 12, the district previous security product did not meet their growing security needs and required two leading IC hours to manage.

Jennifer Gaumond: For K through 12 provided the perfect solution at an attractive price meeting the district's requirements and making the ITT more efficient deals.

Jennifer Gaumond: Feels like this has helped drive strong education performance in Q1, typically a seasonally light quarter for education.

Jennifer Gaumond: On the heels of this performance and leading into the traditional education buying season, we closed the acquisition of identity automation dynamic identity and access management platform solution.

Jennifer Gaumond: Security remains a key growth driver contributing to continued demand for Jim Apple for security platform, especially in the mobile space.

Jennifer Gaumond: By acquiring identity automation G M gains almost 90 employees as well as a key product differentiator, which is dynamic identity management for mobile and K through 12 education and other mobile centric industry role and access is constantly shift identity automation platform dynamically adjust access device and.

Jennifer Gaumond: Security policies in real time based on scheduled locations and rule changes.

Jennifer Gaumond: Identity automation has a strong foothold in education with more than 500 customers primarily in the U S.

Jennifer Gaumond: Identity automation has been a long standing partner with over 250 shared customers, including five of the top 10 School district.

Jennifer Gaumond: Binding forces will continue to deliver a solution to benefit schools and other industries that rely on mobile centric and desktops workflows.

Jennifer Gaumond: <unk> has a strong presence such as health care retail aviation and field services.

Jennifer Gaumond: Additionally, a significant opportunity exists for leveraging our 40000 existing capitation customers international footprint and established channel relationships.

Jennifer Gaumond: Well, it's the answer is known for its Apple best platform identity automation offers solutions across multiple endpoints by unifying enhanced endpoint management and security expertise with identity automation of adaptive identity technology organizations can streamline and enhance the overall user experience all within a single platform.

Jennifer Gaumond: We're excited to have the idea that the automation team on board and looking forward to bring the power of jams and identity automation to our customers.

David will review the financial impact of the acquisition later.

Jennifer Gaumond: Now, there's one key growth factor that I haven't touched on yet which is our channel with respect to the channel as you recall, we launched our new global partner program in August of 2024 to accelerate the growth of jams channel partners and managed service providers in just six months. The program is delivering measurable results.

Jennifer Gaumond: Since the launch campus streamlined partner led deal registration, allowing for real time visibility of the status and progress and upcoming renewals, helping him partners engage more effectively with customers.

Jennifer Gaumond: This has resulted in deal registration growth of nearly 50% year over year and more than 25% growth and new partners added since the program launched expanding Gm's global reach we continue to be a strong channel first business with partner driven <unk> representing over 60% of total <unk>.

Jennifer Gaumond: Outside of the U S partner driven here our account for over 80%.

Speaker Change: In recognition of our channel efforts, Jeff recently received a five star rating in the 2025 CRM partner program Guide.

Speaker Change: The five Star award as an elite recognition given the companies that have built their partner programs on the key elements needed to nurture lasting profitable and successful channel partnerships.

Operator: After the speaker's presentation, there will be a question-and-answer session.

Speaker Change: The Jam Global partner program reaches partners in over 70 countries worldwide.

Operator: To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again.

The program Leverages, a point based system that rewards partners and equip them with the necessary resources they need to grow their business, while helping organizations of all sizes succeed with Apple dance partner hub. It's the one stop shop for example partner community offering them the ability to monitor deal registration status check on upcoming.

Operator: As a reminder, today's program is being recorded.

Jennifer Gaumond: And now I'd like to introduce your host for today's program, Jennifer Gaumond, Vice President, Investor Relations. Please go ahead.

Jennifer Gaumond: Good afternoon, and thank you for joining today's call to discuss Jamf's first quarter 2025 financial results. Joining me on today's call are John Strosahl, CEO, and David Rudow, CFO. Before we begin, a reminder that shortly after the market closed today, we issued a press release announcing our first quarter financial results. We also published our Q1 investor and earnings presentations, along with an Excel file containing quarterly financial statements to assist with modeling. You may access this information on the Investor Relations section of Jamf.com.

Speaker Change: Customer renewal complete training certification and a host of other co selling functionality.

Speaker Change: Now before I hand, it over to David I wanted to discuss how we are operating given the current geopolitical climate, we continue to see demand for <unk> solutions and expect it to continue given <unk> industry, leading Apple first solutions, we're closely monitoring customer sediment and buying cycles the cost of him as a relatively small portion of an overall.

Speaker Change: T or security budget, and we believe Gm's mission critical status for many organization allows us to be insulated from efficiency efforts.

Jennifer Gaumond: Today's discussion includes forward-looking statements, which involve risks and uncertainties that could cause actual results and trends to differ materially from our forecast. For more details, please refer to the risk factors and other information discussed in our most recent SEC reports, including our most recent annual report on Form 10-K. Jamf assumes no obligation to update forward-looking statements, which speak only as of the date they are made.

Speaker Change: With respect to our federal government exposure outside of education government related air makes up approximately 2% of our total IRR. This amount includes state local and federal with federal being the smallest portion.

Speaker Change: In K through 12 education, the vast majority of funding comes from the state and local level with only a small portion coming from federal funds as such we haven't seen an impact to our case control budget.

Jennifer Gaumond: We also referenced some non-GAAP measures related to Jamf's performance. Reconciliations to the nearest comparable GAAP measures are available in our earnings.

Jennifer Gaumond: To facilitate a full Q&A, please limit yourself to one initial question and one follow-up.

Speaker Change: It should be noted that Q2, and Q3 are typically our strongest K through 12 education quarters. So we'll be watching that space closely over the next coming months.

John Strosahl: Now, I'll turn it over to John. Thanks, Jamf. Jamf achieved solid results in Q1, with year-over-year revenue growth of 10% and non-GAAP operating income margin of 22%, exceeding the high end of our outlook for both Total ARR grew 9% year-over-year to $658 million. Our net new commercial ARR saw year-over-year growth. And excluding FX, total net new ARR growth accelerated for the first time since Q2 of 2022. Additionally, we saw strong new logo bookings in both commercial and education, driven by higher ARR per customer. Security bookings were also strong, driving 17% year-over-year growth in security ARR to $162 million.

Speaker Change: In summary, considering the fluid situation, we're continually monitoring adjusting as needed. We believe we are well positioned given <unk> ability to meet both the security and the management needs for Mac and mobile devices with the most robust Apple first platform.

Speaker Change: In closing I want to thank our customers our partners employees and shareholders for all of your ongoing support next I will turn it over to David to review, our Q1 results and provide our Q2 and full year 2025 outlets.

David Rudow: Thanks, John as a reminder, all non revenue metrics I'll be discussing will be on a non-GAAP basis.

Speaker Change: We achieved solid results again in Q1 exceeding the high end of our revenue outlook year over year total revenue growth was 10%.

Speaker Change: Recurring revenue grew at 11% representing 98% of total revenues less strategic sources of revenue such as services and license continued to experience year over year declines.

John Strosahl: Contributing to this performance was the successful launch of two new platform solutions in early March, Jamf for Mac and Jamf for K-12. These device-based offerings represent the next evolution of Jamf's platform capabilities, helping remove barriers to Apple adoption by providing customers with everything they need. Security, and Management in a Single View. These solutions are tailored to specific buyer personas and leverage Jamf's strong relationships with the IT edge. This enables Jamf to deliver across our four key growth factors. Security, Mobile, International, and Jamf. Jamf for Mac empowers customers to easily embrace Mac in their operations. including multi-layered security that integrates with existing tooling while reducing organization security risk.

Speaker Change: Our Q1 net retention rates remained flat from Q4 at 104% and gross retention rates remained consistent with historical levels.

Speaker Change: non-GAAP operating income exceeded the high end of our Q1 outlook at $37 6 million or a 22% margin an 800 basis point improvement over Q1 2024.

Speaker Change: This was driven by our continued commitment to disciplined investment and efficiency efforts.

Speaker Change: Sales and marketing as a percent of total revenue and approximately 400 basis points compared to the prior year period, and G&A improved approximately 200 basis points.

Speaker Change: Our trailing 12 month Unlevered free cash flow margin decreased slightly to 12, 3% compared to 12, 5% in the prior year.

John Strosahl: Global Education Publishing Group recently expanded and converted to Jamf format. The solution provided the IT admin the ability to enhance the company's device security posture with the IT and not the InfoSec budget. Jamf for K-12 is an enhanced education solution that provides IT admins with a powerful, yet simple security and management solution combining Jamf Pro or Jamf School with Jamf Safe Internet. With this platform solution, we're transforming classrooms, supporting student success, and ensuring equitable opportunities for every learner, whether an individual school, district, or an entire nation. A large school district in Louisiana recently converted for Jamf K-12.

Speaker Change: Unlevered free cash flow margin continues to impacted by the timing of billings and collections associated with their comprehensive systems update.

Speaker Change: In the quarter, we made good progress on collections and expect Dsos to return to normal levels over the next few quarters.

Speaker Change: From a cash perspective, we ended Q1 was $222 million.

Speaker Change: On April one we closed the identity automation acquisition.

Speaker Change: Under the terms of the agreement the $215 million purchase price is payable in two installments.

Speaker Change: $75 million paid at the close.

Speaker Change: And $40 million payable on October one.

Speaker Change: Gibbons Champs growth and improving profitability, we remain in a healthy liquidity position.

Speaker Change: Now turning to our outlook for the second quarter and full year 2025.

John Strosahl: The district's previous security product did not meet their growing security needs and required too many IT hours. for K-12 provided the perfect solution at an attractive price, meeting the district's requirements, and making the IT team more affordable. Fields like this have helped drive strong education performance in Q1, typically a seasonally light quarter for education.

Speaker Change: We remain committed to being a profitable growth company and we will build on the progress we've made improving efficiencies while strategically investing for growth.

Speaker Change: We believe in creating an achievable model. This outlook reflects current market conditions, and we will continue to monitor potential risks as they pertain to the current macro environment.

John Strosahl: On the heels of this performance and leading into the traditional education buying season, we closed the acquisition of Identity Automation, a dynamic identity and access management platform. Security remains a key growth driver, contributing to continued demand for Jamf's Apple-first security platform, especially in the mobile. By acquiring Identity Automation, Jamf gains almost 90 employees, as well as a key product differentiator, which is dynamic identity management for mobile. In K-12 education and other mobile-centric industries, roles and accesses constantly shift. Identity Automation's platform dynamically adjusts access, device, and security policies in real time based on schedules, locations, and role changes.

Speaker Change: Outlook is based on current FX rates and any future currency fluctuations are not factored in.

Speaker Change: We've taken a prudent approach to the remainder of 2025 by maintaining our previously provided revenue outlook.

Speaker Change: With the U S dollar weakening relative to other currencies and our growing international expense base, we are seeing headwinds of about $2 million to $3 million for the remainder of the year and in turn are including this in our operating income outlook.

Speaker Change: The Q2 and FY 'twenty five guidance also includes the revenue and operating income from the recently closed identity automation acquisition.

Speaker Change: It should be noted that identity automation is seasonality with respect to <unk> revenue with the second half of the year generating higher levels than the first half.

Speaker Change: For the second quarter of 2025, we expect total revenue of 167, five to $169 5 million representing year over year growth of 10% at the midpoint.

John Strosahl: Identity Automation has a strong foothold in education with more than 500 customers, primarily in the U.S. Identity Automation has been a long-standing Jamf partner with over 250 shared customers, including five of the top 10 school districts. Combining forces will continue to deliver a solution to benefit schools and other industries that rely on mobile-centric and deskless workplaces. especially where Jamf has a strong presence, such as healthcare, retail, aviation, and field services. Additionally, a significant opportunity exists for leveraging our 40,000 existing Jamf education customers, international footprint, and established Jamf channel relations. While Jamf is known for its Apple best platform, Identity Automation offers solutions across multiple endpoints.

non-GAAP operating income of $29 $5 million to $35 million.

Recurring revenue grew at 11% representing 98% of total revenues less strategic sources of revenue such as services and license continued to experience year over year declines.

Representing a non-GAAP operating margin of 18% at the midpoint.

Speaker Change: This includes some additional go to market investment and identity automation as well as the previously mentioned impact of FX.

Our Q1 net retention rates remained flat from Q4 at 104% and gross retention rates remained consistent with historical levels.

Speaker Change: For the full year of 2025, we expect total revenue of 691% to $695 million.

non-GAAP operating income exceeded the high end of our Q1 outlook at $37 6 million or a 22% margin an 800 basis point improvement over Q1 2024.

Speaker Change: Representing year over year growth of 10, 5% at the midpoint.

Speaker Change: non-GAAP operating income of $144 five to $147 $5 million, representing a non-GAAP operating margin of 21% at the midpoint and.

This was driven by our continued commitment to disciplined investment and efficiency efforts.

John Strosahl: by unifying Ham's endpoint management and security expertise. With Identity Automation's adaptive identity technology, organizations can streamline and enhance overall user experience all within a single platform.

Sales and marketing as a percent of total revenue and approximately 400 basis points compared to the prior year period, and G&A improved approximately 200 basis points.

And approximately 500 basis points improvement over fiscal year 2024.

Speaker Change: These amounts include the contribution from identity automation of approximately $15 million of revenue for the remaining three quarters of the year.

Our trailing 12 month Unlevered free cash flow margin decreased slightly to 12, 3% compared to 12, 5% in the prior year.

John Strosahl: We're excited to have the Identity Automation team on board and looking forward to bringing the power of Jamf and Identity Automation to our customers.

Speaker Change: While being margin accretive for the balance of the year.

Speaker Change: This also embeds the previously mentioned impact of FX.

Unlevered free cash flow margin continues to impacted by the timing of billings and collections associated with their comprehensive systems updates.

David Rudow: David will review the financial impact of the acquisition later.

Speaker Change: As you model the seasonal impact of identity automation remember that its revenue contribution is highest in Q3.

John Strosahl: Now, there's one key growth factor that I haven't touched on yet, which is our channel. With respect to the channel, as you recall, we launched our new global partner program in August of 2024 to accelerate the growth of Jamf's channel partners and managed service partners. In just six months, the program is delivering measurable results. Since the launch, Jamf has streamlined partner-led deal registrations, allowing for real-time visibility of the status, progress, and upcoming renewals, helping Jamf's partners engage more effectively with customers. This has resulted in deal registration growth of nearly 50% year-over-year and more than 25% growth in new partners added since the program launched, expanding Jamf's global reach.

In the quarter, we made good progress on collections and expect Dsos to return to normal levels over the next few quarters.

Speaker Change: Additionally, given our strong margin profile, we continue to expect to generate unlevered free cash flow growth of at least 75% for the year.

From a cash perspective, we ended Q1 with $222 million.

Speaker Change: In closing we are committed to growth, while driving incremental operating margin improvement regardless of the environment. Our objective is to exit fiscal 'twenty six at a rule of 40 run rates as defined as the sum of the year over year growth plus adjusted EBITDA margin to be more in line with our comparable group and for ease of calculation we.

On April one we closed the identity automation acquisition.

Under the terms of the agreement the $215 million purchase price is payable in two installments.

75 million paid at the close.

And 40 million payable on October one.

Given the Champs growth and improving profitability, we remain in a healthy liquidity position.

Speaker Change: Have made the decision to move to adjusted EBITDA margin for calculating the rule of 40.

Now turning to our outlook for the second quarter and full year 2025.

Speaker Change: I look forward to sharing our progress against this objective as we move through the year.

We remain committed to being a profitable growth company and we will build on the progress we've made improving efficiencies while strategically investing for growth.

John Strosahl: We continue to be a strong channel-first business with partner-driven ARR representing over 60% of Jamf's total ARR. Outside of the U.S., partner-driven ARR accounts for over...

Speaker Change: I also want to thank the entire GM team for another great quarter and for expertly, serving our customers now we will take your questions operator.

We believe in creating an achievable model. This outlook reflects current market conditions, and we will continue to monitor potential risks as they pertain to the current macro environment.

Certainly and our first question comes from the line of Joshua Reilly from Needham Your question. Please.

John Strosahl: In recognition of our channel efforts, Jamf recently received the 5-star rating in the 2025 CRN Partner Program. The Five Star Award is an elite recognition given to companies that have built their partner programs on the key elements needed to nurture lasting, profitable, and successful channel partners. The Jamf Global Partner Program reaches partners in over 70 countries worldwide. The program leverages a point-based system that rewards partners and equips them with the necessary resources they need to grow their business while helping organizations of all sizes succeed with Apple. Jamf Partner Hub is the one-stop shop for Jamf's partner community, offering them the ability to monitor deal registration status, check on upcoming customer renewals, complete training certification, and a host of other co-selling functionality.

Outlook is based on current FX rates and any future currency fluctuations are not factored in.

Joshua Reilly: Awesome, Thanks for taking my questions and nice job on the quarter here.

We've taken a prudent approach to the remainder of 2025 by maintaining our previously provided revenue outlook.

Joshua Reilly: As you highlighted in the press release the identity automation acquisition is set to enhance their mobile and security adoption. It seems the solutions initially targeted at the education market. How do you think about moving this solution.

With the U S dollar weakening relative to other currencies and our growing international expense base, we are seeing headwinds of about $2 million to $3 million for the remainder of the year and in turn are including this in our operating income outlook.

Joshua Reilly: More to commercial markets overtime, as well and including kind of the go to market strategy on that front as well.

John Russell: Yes, Josh this is John I'll take the question and then we actually have Henry propelling the roomba as well our chief strategy officer. He can he can add some color to certainly part of this acquisition.

For Q2, and FY 'twenty five guidance also includes the revenue and operating income from the recently closed identity automation acquisition it.

It should be noted that identity automation is seasonality with respect to <unk> and revenue with the second half of the year generating higher levels than the first half.

Joshua Reilly: We really saw this benefit.

Joshua Reilly: The education market and we've gone to market with identity automation for quite a while as mentioned in the prepared remarks with a lot of joint customers and so we already have some traction there we really liked the fact that it provides the identity to the person whether it's a shared device or a device that they have is based on context and by extending that security out and proving it out in an edge.

For the second quarter of 2025, we expect total revenue of 167, five to $169 5 million representing year over year growth of 10% at the midpoint.

John Strosahl: Now, before I hand it over to David, I want to discuss how we are operating given the current geopolitics. We continue to see demand for Jamf solutions and expect it to continue given Jamf's industry-leading Apple-first solution. We're closely monitoring customer settlement and buying cycles. The cost of Jamf is a relatively small portion of an overall IT or security budget, and we believe Jamf's mission-critical status for many organizations allows Jamf to be insulated from efficiency efforts. With respect to our federal government exposure, outside of education, government related ARR makes up approximately 2% of our total ARR.

non-GAAP operating income of $29 $5 million to $35 million, representing a non-GAAP operating margin of 18% at the midpoint.

Joshua Reilly: <unk> setting you can imagine all of the different areas that the desktop workflow and benefit from that similar type of.

This includes some additional go to market investment and identity automation as well as the previously mentioned impact of FX.

Joshua Reilly: Of model. So if you are a shift worker. If you are a traveling nurse. If you are named Nate your retail.

For the full year of 2025, we expect total revenue of 691% to $695 million representing year over year growth of 10, 5% at the midpoint.

Joshua Reilly: Manager all of those things require.

Joshua Reilly: The provisioning and the identity based on where that person is and it could be time based as well. So we really believe that we can extend this out beyond education, but again, we have a lot of room to grow in the education, we have over 40000 education customers worldwide and identity automation sold little to none outside the U.

John Strosahl: This amount includes state, local, and federal, with federal being the smallest portion. In K-12 education, the vast majority of funding comes from the state and local level, with only a small portion coming from federal funds. As such, we haven't seen an impact to our K-12 budget. It should be noted that Q2 and Q3 are technically our strongest case for 12 education quarters, so we'll be watching this space closely over the next coming months.

non-GAAP operating income of $144 five to $147 $5 million, representing a non-GAAP operating margin of 21% at the midpoint at.

And approximately 500 basis points improvement over fiscal year 2024.

Speaker Change: So we're really looking to double down on that I don't know Henry.

These amounts include the contribution from identity automation of approximately $15 million of revenue for the remaining three quarters of the year.

Joshua Reilly: Yeah.

Henry: Sure John Yes, I'll, just make a quick comment here I think John has kind of outlined all the different opportunities we have within the education and outside of education and really what we're looking for is how do we actually.

While being margin accretive for the balance of the year.

John Strosahl: In summary, considering the fluid situation, we're continually monitoring, adjusting, and We believe that we are well-positioned, given Jamf's ability to meet both the security and the management needs for Macs and mobile devices with the most robust Apple-first platform.

This also embeds the previously mentioned impact of FX.

As you model the seasonal impact of identity automation that remember that its revenue contribution is highest in Q3.

Henry: Tie ourselves to workflows that we can serve our customers.

Additionally, given our strong margin profile, we continue to expect to generate unlevered free cash flow growth of at least 75% for the year.

Henry: And if we look at some of the retail aviation.

David Rudow: In closing, I want to thank our customers, our partners, employees and shareholders for all of your ongoing Next, I'll turn it over to David to review our Q1 results and provide our Q2 and full year 2025 outlook. Thanks, John. As a reminder, all non-revenue metrics I'll be discussing will be on a non-GAAP based We achieved solid results again in Q1, exceeding the high end of our revenue outlook. Year-over-year total revenue growth. Recurring revenue grew at 11%, representing 98% of total revenue. Less strategic sources of revenue, such as services and license, continue to experience year-over-year declines.

Henry: The benefit here is really tying that identity to that device and how do we make that workflow better. Obviously, we're focused on the Apple devices, and we want to make that whole experience much better.

In closing we are committed to growth, while driving incremental operating margin improvement regardless of the environment. Our objective is to exit fiscal 'twenty six at a rule of 40% run rate is defined as the sum of the year over year growth plus adjusted EBITDA margin to be more in line with our comparable group and for ease of calculation.

Speaker Change: Got it that's helpful. And then just one quick follow up for me now that you have the jump from Mack how do you think about the marketing of that relative to jam business plan going forward and I guess in terms of like what will you be pushing in terms of customers to adopt and whats the rate scenario, where you want to use Jim.

We have made the decision to move to adjusted EBITA margin for calculating of the rule of 40.

Look forward to sharing our progress against this objective as we move through the year.

John Russell: For Mac versus the Jam business plan. Thanks, Scott Josh This is John.

Also want to thank the entire <unk> team for another great quarter and for expertly, serving our customers now we will take your questions operator.

John Russell: The gems business plan really.

David Rudow: Q1 net retention rate remained flat from Q4 at 104% and gross retention rates remained consistent with historical levels. Non-GAAP operating income exceeded the high end of our Q1 outlook at $37.6 million, or a 22% margin, an 800 basis point improvement over Q1 2021. This was driven by our continued commitment to discipline, investment and efficiency. Sales and marketing as a percent of total revenue for approximately 400 basis points compared to the prior year period, and GNA improved to approximately 200. Our training 12-month unlevered free cash flow margin decreased slightly to 12.3% compared to 12.5% in a prior year.

John Russell: Was oriented more towards the smaller business customer and Mac for enterprises really are designed for the enterprise and how we have.

Certainly and our first question comes from the line of Joshua Reilly from Needham Your question. Please.

John Russell: Our go to market and the the buying motion all of those things are oriented around that enterprise buyer and including the solution. So it really kind of differentiation. There is the smaller customers are going to are going to be more business plan.

Joshua Reilly: Awesome, Thanks for taking my questions and nice job on the quarter here.

You highlighted in the press release.

Speaker Change: Identity automation acquisition is set to enhance their mobile and security adoption. It seems the solutions initially targeted at the education market. How do you think about moving this solution.

John Russell: And the enterprise customers are going to be more on the enterprise for Mac and after releasing that we've really seen some some good traction there just given the fact that you can talk to a buyer.

Speaker Change: It's a commercial markets overtime, as well and including kind of the go to market strategy on that front as well.

John Russell: Buyer who's trusted.

John: Yes, Josh this is John I'll take the question and then we actually have Henry propelling the roomba as well our chief strategy officer. He can he can add some color to certainly part of this acquisition.

John Russell: A customer of ours and has been for years and they can help extend the security within their environment without having to go through a separate.

David Rudow: Unlevered free cash flow margin continues to be impacted by the timing of billings and collections. associated with their comprehensive systems. In the quarter, we made good progress on collections and expect DSOs to return to normal levels over the next few quarters.

John Russell: <unk> motion.

John: We really saw this benefit.

John Russell: Understood helpful. Thank you guys.

John: Education market and we've gone to market with identity automation for quite a while as mentioned in the prepared remarks with a lot of joint customers and so we already have some traction there we really like the fact that it provides the identity to the person whether it's the share device or a device that they have is based on context and by extending that security out and proving it out in an edge.

Speaker Change: Thank you and our next question comes from the line of Koji Ikeda from Bank of America. Your question. Please.

David Rudow: From a cash perspective, we ended Q1 with $222 million.

Koji Ikeda: Yeah, Hey, guys. Thanks, so much for taking the questions a couple from me today.

David Rudow: On April 1st, we closed the Identity Automation Acquisition. Under the terms of the agreement, the $215 million purchase price is payable in two installments. $175 million paid at the close. $40 million payable on October 1st.

Speaker Change: So when I listen to the prepared remarks, and specifically on the commentary on demand.

It sounds like demand is very good out there and so with you guys keeping the guide it feels kind of interesting and so where I'm going with this is is the guidance on the keeping of the guide a reflection of the good demand as coming in as expected and you're pulling it forward therefore, keeping the guide or could.

John: <unk> setting you can imagine all of the different areas that the desktop workflow would benefit from that similar type of.

David Rudow: Given Jamf's growth and improving profitability, we remain at a healthy liquidity Now turning to our outlook for the second quarter and full year 2020. We remain committed to being a profitable growth company and will build on the progress we've made improving efficiencies while strategically investing for We believe in creating an achievable model. This outlook reflects current market conditions, and we will continue to monitor potential risks as they pertain to the current macro environment. Our outlook is based on current FX rates and any future currency fluctuations are not expected. We've taken a prudent approach to the remainder of 2025 by maintaining our previously provided revenue.

John: Of model. So if you are a shift worker. If you are a traveling nurse. If you are named Nate your retail.

John: Manager all of those things require.

Speaker Change: You have potentially kept our raised the guide meaning has the demand improved but you are maintaining the guide because of an uncertain macro environment, yes.

John: The provisioning and the identity based on where that person is and it could be time based as well. So we really believe that we can extend this out beyond education, but again, we have a lot of room to grow in the education, we have over 40000 education customers worldwide and identity automation sold little to none outside the U.

Speaker Change: Yes. Thanks Koji. This is David yes, when as we thought about the guidance for the balance for Q2 and the guidance for the year I think you have to keep in the back of your mind of kind of the noise that's out there.

Speaker Change: Q1, I think there was like little things that we saw like nothing big.

Henry: So we're really looking to double down on that I don't know Henry.

Speaker Change: April seems more or less in line I mean, its first month of the quarter and so I think to be prudent I think it was reasonable for us to just kind of maintain our guidance for the year I think we feel comfortable doing that obviously, we're going to keep our eyes open watch for any changes in the marketplace and we correct accordingly, but I think it's just prudent right now to provide an.

John: Yeah.

Henry: Sure John Yes, I'll, just make a quick comment here I think John has kind of outlined all of the different opportunities we have within the education and outside of education and really what we're looking for is how do we actually.

David Rudow: with the U.S. dollar weakening relative to other currencies and our growing international expenses. We are seeing headwinds of about two to three million dollars for the remainder of the year and in turn are including this in our operating income. Q2 and FY25 guidance also includes the revenue and operating income from the recently closed Identity Automation Act. It should be noted that Identity Automation has seasonality with respect to AR and Revenue. The second half of the year generating higher levels than the previous year.

Henry: Tie ourselves to workflows that we can serve our customers.

Speaker Change: Maintain the guidance for the year.

Speaker Change: Got it. Thank you and appreciate all the color on FX and the impacts there on operating expenses, but I wanted to ask.

Henry: And if we look at some of the retail aviation.

Henry: The benefit here is really tying that identity to the.

Henry: That device and how do we make that workflow better obviously, we're focused on the Apple devices, and we want to make that whole experience much better.

Speaker Change: Maybe FX is the potential of FX as being an international demand driver just thinking about a weakening USD could you remind us how is <unk> priced internationally is it all in USD or has it translated to local currency in and is a weakening dollar potentially better for you guys from a demand perspective.

David Rudow: For the second quarter of 2025, we expect total revenue of $167.5 to $169.5 million, representing year-over-year growth of 10% at the Non-GAAP Operating Income of $29.5 to $30.5 million, representing a Non-GAAP Operating Margin of 18% at the... This includes some additional go-to-market investment and identity automation, as well as the previously mentioned impact of FDI.

Henry: Got it that's helpful. And then just one quick follow up for me.

Speaker Change: Now that you have the jump from Mack how do you think about the marketing of that relative to jam business plan going forward and I guess in terms of like what will you be pushing in terms of customers to adopt and whats the rate scenario, where you want to use Jim for Mac versus the Jam business plan. Thanks, Scott Josh This is John.

Speaker Change: For international customers. Thank you, yes. So we went live with our new system. We did a system update in August of last year and part of the reason for that is because we solely billed and collected in U S. Dollars now that the system is live and up and running we have the flexibility and the ability to bill in local currency. So we are in fact doing that now it's going to be slow.

Henry: Really the gems business plan really.

John: Was oriented more towards the smaller business customer and Mac for enterprise is really designed for the enterprise and how we have.

David Rudow: For the full year of 2025, we expect total revenue of $691 to $695 million, representing year over year growth of 10.5% at the non-GAAP operating income of $144.5 to $147.5 million, representing a non-GAAP operating margin of 21% at the moment. and approximately 500 basis points improvement over fiscal year 2020. These amounts include the contribution from Identity Automation of approximately $15 million of revenue for the remaining three quarters of the year. while being margin-incretive for the balance. This also embeds the previously mentioned impact of FX. As you model the seasonal impact of identity automation, remember that its revenue contribution is highest in Q3.

Speaker Change: They're in transition as we signed new deals and as customers renew we will switch them to to local currency billings. So we saw very minimal benefit with the dollar weakening on the top line, but we do have over 25% of our cost in international locations. So we are seeing a negative impact on the cost side.

John: Our go to market and the the buying motion all of those things are oriented around that enterprise buyer and including the solution. So it really kind of differentiation. There is the smaller customers are going to are going to be more business plan.

John: And the enterprise customers are going to be more on the enterprise for Mac and after releasing that we've really seen some some good traction there just given the fact that you can talk to a buyer.

Speaker Change: Thank you so much.

Speaker Change: Thank you and as a reminder, ladies and gentlemen, if you do have a question at this time. Please press star one on your telephone. Our next question comes from the line of Jake Roberts from William Blair. Your question. Please.

John: Buyer who's trusted.

John: A customer of ours and has been for years and they can help extend the security within their environment without having to go through a separate.

Jake Roberts: Yes. Thanks for taking my questions can you talk a little bit more about the identity automation acquisition I know, it's still early but would love to hear what the initial reception has been like from customers and partners and then I know you've historically had some partnerships with some of the more traditional identity vendors in this space. So curious if you see those.

John: <unk> motion.

John: Understood helpful. Thank you guys.

Speaker Change: Thank you and our next question comes from the line of Koji Ikeda from Bank of America. Your question. Please.

David Rudow: Additionally, given our strong margin profile, we continue to expect to generate unleveraged free cash flow growth of at least 75% for the year.

Koji Ikeda: Yeah, Hey, guys. Thanks, so much for taking the questions a couple from me today.

David Rudow: In closing, we are committed to growth while driving incremental operating margin improvement, regardless of the environment. Our objective is to exit fiscal 26 at a rule of 40 run rates as defined as the sum of the year-over-year growth plus adjusted EBITDA. To be more in line with our comparable group and for ease of calculation, we have made the decision to move to adjusted EBITDA margin for calculating the rule of 40.

Koji Ikeda: So when I listen to the prepared remarks, and specifically on the commentary on demand.

Speaker Change: <unk> changing at all moving forward yes.

Speaker Change: I'll take the first part of the question like Henry to add some color as well.

Koji Ikeda: It sounds like demand is very good out there and so with you guys keeping the guide it feels kind of interesting and so where I'm going with this is is the guidance and the keeping of the guide.

Speaker Change: As I mentioned before we've been selling with identity automation for some time now so it's not a new go to market motion with us and I think I think on day, two we closed our first deal.

Koji Ikeda: Flexion of the good demand as coming in as expected and you're pulling it forward. Therefore, keeping the guide or could you have potentially kept our raised the guide meaning has the demand improved but you are maintaining the guide because of an uncertain macro environment, yes.

Speaker Change: So it's been it's gotten.

Speaker Change: Continued and we've been Ben.

David Rudow: I look forward to sharing our progress against its objective as we move through the year.

Speaker Change: Very happy with the results and how thats going with the integration and the traction that they go to market teams are growing again, we are using our go to market team to support theirs. So that we can really expand it certainly internationally and then and then think about how to do other other industries outside of education, but Henry why don't you why don't you add a little as well.

David Rudow: I also want to thank the entire Jamf team for another great quarter and for expertly serving our customers.

Operator: Now, we will take your questions.

Koji Ikeda: Thanks Koji this is David yes, when as we thought about the guidance for the balance for Q2 and the guidance for the year I think you have to keep in the back of your mind of kind of the noise that's out there with <unk>.

Operator: Operator. Certainly.

Joshua Reilly: And our first question comes from the line of Joshua Reilly from Needham. Your question, please. Awesome. Thanks for taking my questions and nice job on the quarter here. As you highlight in the press release, the identity automation acquisition is set to enhance your mobile and security adoption. It seems the solution is initially targeted at the education market.

Henry: Yes, absolutely.

Koji Ikeda: Q1, I think there was like little things that we saw like nothing big.

Speaker Change: James.

Speaker Change: <unk>.

Speaker Change: As always we're trying to integrate into <unk>.

Koji Ikeda: April seems more or less in line I mean, its first month of the quarter and so I think to be prudent I think it was reasonable for us to just kind of maintain our guidance for the year I think we feel comfortable doing that obviously, we're going to keep our eyes open watch for any changes in the marketplace and we correct accordingly, but I think it's just prudent right now to provide an.

Speaker Change: Existing customer environments, how do we fit in and how do we stand we have great partnerships in the identity market. We continue to have those partnerships.

John Strosahl: How do you think about moving the solution more to commercial markets over time as well, including kind of the go-to-market strategy on that front as well?

Speaker Change: We will strengthen those as well what identity automation brings to the table is that dynamic identity, how do we actually build on that workflow.

John Strosahl: Yeah, Josh, this is John. I'll take the question. And then we actually have Henry Patel in the room as well, our chief strategy officer. He can add some color too, certainly part of this acquisition. You know, we really saw this benefit the education market. We've gone to market with identity automation for quite a while, as mentioned in the prepared remarks, with a lot of joint customers. And so we already have some traction there. We really like the fact that it provides the identity to the person, whether it's a shared device or a device that they have, it's based on context.

Koji Ikeda: Just maintaining the guidance for the year.

Speaker Change: For those customers in those specifics.

Speaker Change: Got it. Thank you and appreciate all the color on FX and the impacts there on operating expenses, but I wanted to ask.

Speaker Change: Segments on the population of customers that we want to actually try to drive more solutions.

Speaker Change: As an additive to the existing identity enterprise providers. So we're actually further rating. So we don't lose the ability to partner in fact, we're enhancing the partnership here.

John Russell: Okay. That's helpful and then great to hear that net new <unk> accelerated during the quarter can you talk about some of the drivers of that and whether anything stood out between security mobile or or maybe even some of the key industries within tech or education that that helped drive that yes. Jake This is John.

Henry Patel: And by extending that security out and proving it out in an education setting, you can imagine all of the different areas that the deskless workflow would benefit from that similar type of model. So if you are a shift worker, if you are a traveling nurse, if you are, you know, name your retail manager, all of those things require the provisioning and the identity based on where that person is. And it could be time-based as well. So we really believe that we can extend this out beyond education. But again, we have a lot of room to grow in the education.

John Russell: The Mac for the enterprise and the mobile for enterprise both of them saw some good traction.

As we released those and it really simplifies our go to market motion there as well so that certainly was helpful.

John Russell: We continued to see demand as David mentioned, there's caution out there.

Speaker Change: <unk> transitioned as we signed new deals and as customers renew we will switch them to to local currency billings. So we saw very minimal benefit with the dollar weakening on the topline, but we do have over 25% of our cost in international locations. So we are seeing a negative impact on the cost side.

Speaker Change: The same across the industry I've spoken with other Ceos and they are seeing similar things theres caution, but theyre still there is still demand and with the mobility and the increase of mobility and the need for mobile security all of those things play really really well into our into our commercial performance since last quarter.

Henry Patel: We have over 40,000 education customers worldwide, and identity automation sold little to none outside the U.S. So we're really looking to double down on that. I don't know, Henry, do you have... Sure, John. Yeah, just make a quick comment here. I think John has kind of outlined all the different opportunities we have within education and outside of education. And really, what we're looking for is how do we actually, you know, tie ourselves to workflows that we can, you know, serve our customers? And if we look at some of the retail aviation, you know, the benefit here is really tying that identity to that device.

Speaker Change: Thank you so much.

Speaker Change: And Jay just to add on in terms of vertical performance I think we saw strength in healthcare.

Speaker Change: Financial services education and on the regional side, we had a good <unk> quarter, and then in Europe Central Southern and UK, Ireland also performed well.

Speaker Change: Very helpful. Thanks for taking my questions.

Speaker Change: Thank you and our next question comes from the line of DJ Hynes from Canaccord Genuity. Your question. Please.

Speaker Change: Hey, guys. This is Luke on for DJ Thanks for taking the question so.

Joshua Reilly: And how do we make that workflow better? Obviously, we're focused on the Apple devices, and we want to make that whole experience much better. Got it. That's helpful.

Speaker Change: We've seen reports out there of customers pulling forward Apple device purchases of trying to get ahead of potential tariffs I understand.

Speaker Change: Changing at all moving forward.

Henry: I'll take the first part of the question like Henry to add some color as well.

Joshua Reilly: And then just one quick follow-up for me.

Speaker Change: The impact to you there isn't going to be direct but wondering if you have any thoughts about how that might play out for your business.

Henry: As I've mentioned before we've been selling with identity automation for some time now so it's not a new go to market motion with us and I think I think on day, two we closed our first deal.

Joshua Reilly: Now that you have the Jamf for Mac, how do you think about the marketing of that relative to Jamf Business Plan going forward? And I guess in terms of like, what will you be pushing in terms of customers to adopt? And what's the right scenario where you want to use Jamf for Mac versus the Jamf Business Plan?

Speaker Change: If there is any any change in sort of.

Henry: It's been it's gotten.

Speaker Change: Pull forward.

Henry: Continued and we've been Ben.

Speaker Change: And then those device content at your customers.

Henry: Very happy with the results and how thats going with the integration and the traction that they go to market teams are growing again, we are using our go to market team to support theirs. So that we can really expand it certainly internationally and then and then think about how to do other other industries outside of education, but Henry why don't you why don't you add a little as well.

Speaker Change: Yeah look I can I can try to answer that question of course, I can't speak for Apple.

John Strosahl: Yeah, Josh, this is John. It's really the Jamf Business Plan really was oriented more toward the smaller business customer. And Mac for Enterprise is really a design for the enterprise and how we have our go-to-market and the buying motion. And all of those things are oriented around that enterprise buyer and including the solution. So really kind of differentiation there is the smaller customers are going to be more business plan, and the enterprise customers are going to be more on the enterprise for Mac. And after releasing that, we've really seen some good traction there, just given the fact that you can talk to an IT buyer who's trusted a customer of ours and has been for years, and they can help extend the security within their environment without having to go through a separate buying motion.

Speaker Change: We have seen we haven't seen necessarily the pull forward I don't doubt that that would happen. If companies are trying to buy ahead of potential tariffs and things like that down the road and Youre right. It doesn't have a direct or immediate correlation to our business, but longer term, obviously as apple expands that gives us.

Henry: Yes, absolutely.

James.

Henry: <unk>.

Henry: As always we're trying to integrate into <unk>.

Speaker Change: <unk> footprint I.

Henry: Existing customer environments, how do we fit in and how do we stand we have great partnerships in the identity market. We continue to have those partnerships.

Speaker Change: I guess, the only thing from the Apple side is that they tend to navigate these types of things really really well in the past and Theyre healthy company. So.

Henry: We will strengthen those as well what identity automation brings to the table is that dynamic identity, how do we actually build on that workflow.

Speaker Change: I think that.

Speaker Change: If a company a hardware company is going to be able to navigate it well, it's certainly apple.

Speaker Change: Yeah, that's great and helpful. Thank you and then maybe a follow up.

For those customers in those specifics.

Henry: Segments on population of customers that we want to actually try to drive more solutions. It is additive to the existing identity enterprise providers. So we're actually Federer rating. So we don't lose the ability to partner in fact, we're enhancing the partnership here.

Speaker Change: Just on your cloud marketplace momentum momentum.

Speaker Change: WNS marketplace has been a strong channel for you guys in the past I think as you just went online in Q4, just wondering if you're seeing any early signs of.

Joshua Reilly: Understood. Helpful.

Operator: Thank you, guys. Thank you.

Koji Ikeda: And our next question comes from the line of Koji Ikeda from Bank of America. Your question, please. Yeah, hey guys, thanks so much for taking the questions. A couple from me today. So, when I listen to the prepared remarks and specifically on the commentary on demand, it sounds like demand is very good out there. And so, with you guys keeping the guide, it feels kind of interesting. And so, where I'm going with this is, you know, is the guidance and the keeping of the guide a reflection of the good demand as coming in as expected, and you're pulling it forward, therefore, keeping the guide?

John: Okay. That's helpful and then great to hear that net new <unk> accelerated during the quarter can you talk about some of the drivers of that and whether anything stood out between security mobile or or maybe even some of the key industries within tech or education that that helped drive that yes. Jack This is John.

Speaker Change: Our pipeline build in that channel.

Speaker Change: For that marketplace, and how do you see that evolving over time.

Speaker Change: We do actually it says.

Speaker Change: As I mentioned in past calls, we were very pleasantly surprised on the AWS marketplace and now extending that into the Azure marketplace. We're seeing.

Speaker Change: We're seeing similar traction it's early days, but we have we have closed deals through it and we know that Theres pipeline building we speak of.

Henry: Really.

Henry: The Mac for the enterprise and the mobile for enterprise both of them saw some good traction.

Speaker Change: Very regularly with our Microsoft sales partners and they're.

Henry: As we release those and it really simplifies our go to market motion there as well so that certainly was helpful.

Speaker Change: They are continuing to try to head along with our teams and so I'm optimistic about how azure, we will do it in a similar way that AWS did.

David Rudow: Or could you have potentially kept or raised the guide, meaning has the demand improved, but you're maintaining the guide because of an uncertain macro environment?

Speaker Change: We continue to see demand as David mentioned, there's caution out there and it's the same across the industry I've spoken with other Ceos and they are seeing similar things theres caution, but theyre still there is still demand and with the mobility and the increase of mobility and the need for mobile security all of those things play really really well into our into our commercial performance.

Yes.

Okay.

David Rudow: Yeah, thanks, Koji.

David Rudow: This is David. Yeah, when as we thought about the guidance for the balance for Q2 and the guidance of the year, you know, I think you have to keep in the back of your mind of kind of the noise that's out there. Q1, I think there was like little things that we saw, like nothing big. April seems more or less in line. I mean, it's its first month of the quarter. And so I think to be prudent, I think it was reasonable for us to just kind of maintain our guidance for the year. I think we feel comfortable doing that.

Speaker Change: Does that answer your question.

Speaker Change: Yes, that's great. Thank you.

Speaker Change: Thank you and our next question comes from the line of Marine moments channel from Barclays. Your question. Please.

Henry: Since last quarter.

Hey, everyone. This is logic on for Raimo. Thanks for taking the question maybe.

Speaker Change: And Jake just to add on in terms of vertical performance I think we saw strength in healthcare.

Speaker Change: Maybe on the education side, great to hear the strong performance in the quarter.

Speaker Change: Financial services education and on the regional side, we had a good APAC quarter, and then in Europe Central Southern and UK, Ireland also performed well.

Speaker Change: Hi, Jeff K through 12 has already started to pick up a little bit as we think about you moving into the seasonally more weighted education portion of the year. How are you feeling from a pipeline perspective and has J F. K through 12 augmented your visibility at all of the shiny degree.

David Rudow: Obviously, we're going to keep our eyes open, watch for any changes in the marketplace, and we correct accordingly. But I think it's just prudent right now to provide and just maintain the guidance for the Got it.

Very helpful. Thanks for taking the questions.

DJ Hynes: Thank you and our next question comes from the line of DJ Hynes from Canaccord Genuity. Your question. Please.

David Rudow: Thank you. And appreciate all the color on FX and the impacts there on operating expenses. But I wanted to ask maybe FX, the potential of FX as being an international demand driver, you know, just thinking about a weakening USD. Could you remind us, you know, how is Jamf priced internationally? Is it all in USD or is it translated to local currency? And is a weakening dollar potentially better for you guys from a demand perspective for international?

Speaker Change: Yes.

Speaker Change: Certainly has.

Speaker Change: Hey, guys. This is Luke on for DJ Thanks for taking the question.

Speaker Change: We know.

Speaker Change: We've been talking about this education.

DJ Hynes: Sure.

Speaker Change: Refresh coming for quite a while and we know that some jurisdictions have paused on that just out of out of caution and out of expense.

Speaker Change: We've seen reports out there of customers pulling forward Apple device purchases of trying to get ahead of.

DJ Hynes: Central tariffs I understand the <unk>.

Speaker Change: Pressure, but we are seeing some of that we talked about it last quarter on the call. We're certainly seeing some pipeline build we are in discussions with.

DJ Hynes: Back to you there isn't going to be direct but wondering if you have any thoughts about how that might play out for your business.

Speaker Change: Renewals and expansion of a lot of our international customers, particularly in the APAC region. So we're again, we're optimistic about.

DJ Hynes: If there is any any change in sort of a pull forward.

David Rudow: Yeah, so we went live with our new system. We did a system update in August of last year, and part of the reason for that is because we solely billed and collected in U.S. dollars. Now that the system is live and up and running, we have the flexibility and the ability to bill in local currency, so we are, in fact, doing that now. It's going to be a slow transition as we sign new deals, and as customers renew, we will switch them to local currency billings. So, we saw very minimal benefit with the dollar weakening on the top line, but we do have over 25 percent of our cost in international locations, so we are seeing a negative impact on the cost.

DJ Hynes: And then those device content at your customers.

Speaker Change: In the case of 12 upcoming season, and certainly with identity automation that really gives us some extra push not only an experienced sales team that we used to working with education, but we have a more holistic solution. We can go to market with together. So we're excited along with our K through 12 offerings.

Speaker Change: Yeah look I can I can try to answer that question of course, I can't speak for Apple.

DJ Hynes: We have seen.

Speaker Change: Haven't seen necessarily the pull forward.

Speaker Change: No doubt that that would happen if companies are trying to buy ahead of potential tariffs and things like that down the road and you are right. It doesn't have a direct or immediate correlation to our business, but longer term, obviously as apple expands that gives us a bigger footprint.

Speaker Change: Im optimistic about our upcoming season.

Speaker Change: Alright, that's super helpful. And then maybe one for David on the free cash flow side. It was nice to see the improvement year over year in Q1 as well as the reiteration of the full year guide for about 75% growth as we think about the shape of that through the remainder of the year should that seasonality mirror, what we saw in fiscal 'twenty four.

Speaker Change: I guess, the only thing from the Apple side is that they tend to navigate these types of things really really well in the past and there are a healthy company. So I think that.

Operator: Thank you so much.

Speaker Change: If a company a hardware company is going to be able to navigate it well, it's certainly apple.

Speaker Change: Is that going to be a bit more back end weighted does that collections component starts to normalize again.

Operator: And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone.

Speaker Change: Yes, that's great and helpful. Thank you and then maybe a follow up.

Yes, I think what we'll end up seeing is it will improve it should improve throughout the year. If you look at Dsos for Q1 were about 20 days over and the reason for that is with the systems update we did last year. There were some billing corrections that we needed to make in the system. So what happened was we ended up having a back end loaded quarter from a billings perspective, we had a <unk>.

Jake Roberge: Our next question comes in a line of Jake Roberge from William Blair. Your question, please. Yeah, thanks for taking the questions. Can you talk a little bit more about the identity automation acquisition? I know it's still early, but would love to hear what the initial reception has been like from customers and partners. And then I know you've historically had some partnerships with some of the more traditional identity vendors in the space. So curious if you see those changing at all moving forward.

Speaker Change: Just on your cloud marketplace momentum momentum.

Speaker Change: Ws marketplace has been a strong channel for you guys in the past I think Azure just went online in Q4, just wondering if you're seeing any early signs of.

Speaker Change: Pipeline build in that channel.

Speaker Change: Large amount of billings in March and so those should start being collected looking out in May mid may late may early June sometime around that period, and so we would expect dsos to return to a more normal range as we move out to the year and in turn the free cash flow margins will improve as well throughout the year.

Speaker Change: For that marketplace, and how do you see that evolving over time.

Speaker Change: We do actually it says.

Speaker Change: As I mentioned in past calls, we were very pleasantly surprised on the AWS marketplace and now extending that into the Azure marketplace. We're seeing.

John Strosahl: Yeah, I'll take the first part of the question and I'd like Henry to add some color as well. As I mentioned before, we've been selling with identity automation for some time now, so it's not a new go-to-market motion with us. And I think on day two, we closed our first deal. So it's continued and we've been very happy with the results and how that's going with the integration and the traction that the go-to-market teams are going. Again, we're using our go-to-market team to support theirs so that we can really expand it, certainly internationally, and then think about how to do other industries outside of education.

Speaker Change: We're seeing similar traction it's early days, but we have we have closed deals through it and we know that Theres pipeline building we speak of.

Speaker Change: Great. Thank you.

Speaker Change: Thank you and our next question comes from the line of Patrick <unk> from Citi Citizens. Your question. Please.

Speaker Change: Regularly with our Microsoft sales partners and they're.

Speaker Change: They are continuing to try to head along with our teams and so I'm optimistic about how azure, we will do it in a similar way that AWS did.

Speaker Change: Hi, guys. Thank you very much for taking my question. This is Nick on for Pat just one for me David It's been a little over six months since you've started working at JMP.

Speaker Change: Yes.

Speaker Change: What is one thing thats been more challenging than you expected and what is one thing thats been easier than you expected.

Speaker Change: Does that answer your question.

Speaker Change: Yes, that's great. Thank you.

Speaker Change: Yes, I would say probably the challenging piece would be the systems right and anytime you move to a new system, we moved to a new ERP that went live in August we have 76, plus thousand customers. We sell in 100 different countries, we're seeing huge benefit from the system as well as we're getting it optimized and performance is improving but I would say like.

Speaker Change: Thank you and our next question comes from the line of Marine moments channel from Barclays. Your question. Please.

Henry Patel: But Henry, why don't you add a little as well? Yeah, absolutely. You know, Jamf's posture is always that we're trying to integrate into existing customer environments. How do we fit in? How do we stand out? We have great partnerships in the identity market. We continue to have those partnerships and we will strengthen those as well. What identity automation brings to the table is that dynamic identity. How do we actually build on that workflow for those customers in those specific segments and population of customers that we want to actually try to drive more solutions? It is an additive to the existing identity enterprise provider, so we're actually federating.

Speaker Change: Hey, everyone misses logic on for Raimo, Thanks for taking the question maybe.

Speaker Change: Maybe on the education side, great to hear the strong performance in the quarter.

Speaker Change: How Jeff K through 12 has already started to pick up a little bit as we think about you moving into the seasonally more weighted education portion of the year. How are you feeling from a pipeline perspective and has J F. K through 12 augmented your visibility at all of the shiny degree.

Speaker Change: Anybody that moves to new system, while Youre operating a public company a big company that will happen, we feel great with where we're at we're getting better visibility numbers, we're getting better we can bill in different currencies now we have the partner portal setup. So there's a lot of good things that are coming out of it so challenges, but I think in the long run this will be a complete asset for us.

Speaker Change: Yes.

Speaker Change: Certainly has.

Speaker Change: We know.

Speaker Change: We've been talking about this education.

Speaker Change: On the good side I would say, it's our product and our customers. We have a rich set of blue chip customers around the world that we sell into all verticals as a horizontal solution. It's not verticalizing in any way, we can sell at any any vertical and.

Speaker Change: Refresh coming for quite a while and we know that some jurisdictions have paused on that just out of caution and out of expense.

Henry Patel: So we don't lose the ability to partner. In fact, we're enhancing the partnership.

Jake Roberge: Okay, that's helpful. And then great to hear that net new ARR re-accelerated during the quarter. Can you talk about some of the drivers of that and whether anything stood out between security, mobile, or maybe even some of the key industries within tech or education that helped drive that?

Speaker Change: Pressure, but we are seeing some of that we talked about it last quarter on the call. We're certainly seeing some pipeline build we're in discussions with.

Speaker Change: Our international reach as well there is quite a bit of opportunity internationally still I mean, I think it's very early days international So challenges system of course, but then also the customer base and the product the strength of their product is a pleasant surprise.

Speaker Change: Renewals and expansion of a lot of our international customers, particularly in the APAC region. So we're again cautiously we're optimistic about.

John Strosahl: Yeah, Jake, this is John. Really, the Mac for the enterprise and the mobile for enterprise, both of them saw some good traction as we released those. And it really simplifies our go-to-market motion there as well. So that certainly was helpful. We continue to see demand. As David mentioned, there's caution out there, and it's the same across the industry. I've spoken with other CEOs, and they're seeing similar things. There's caution, but there's still demand. And with the mobility and the increase of mobility and the need for mobile security, all of those things play really, really well into our commercial performance this last quarter.

In the case of 12 upcoming season, and certainly with identity automation that really gives us some extra push not only an experienced sales team that we used to working with education, but we have a more holistic solution. We can go to market with together. So we're excited along with our K 12 offering.

Speaker Change: Great. Thank you very much.

Speaker Change: Thank you and our next question comes from the line of SME <unk> from Jpmorgan. Your question. Please.

Priyanka: Hi, This is priyanka on for Sean how are you guys doing.

Speaker Change: I'm optimistic about our upcoming season.

Speaker Change: How are you.

Speaker Change: So one question I see from identity automation that you kind of have a fifth.

Speaker Change: Doing back of the math.

Speaker Change: Back to the paper math right here, we got 15 Milli in dollars uplift in the full year Guide and then for revenue and then $1 5 million for operating profit for 'twenty one.

David Rudow: Yeah, and Jake, just to add on, in terms of vertical performance, I think we saw strength in healthcare, financial services, education, and on the regional side, we had a good APEC quarter. And then in Europe, Central, Southern, and UK, Ireland also performed Very helpful.

Speaker Change: Is that going to be a bit more back end weighted does that collections component starts to normalize again.

Speaker Change: Operating margin is it basically just to kind of keep it at 21% what do what if I had any automated automation operating margins look like typically.

Speaker Change: Yes, I think what we'll end up seeing is it will improve it should improve throughout the year. If you look at Dsos for Q1 were about 20 days over and the reason for that is with the systems update we did last year. There were some billing corrections that we needed to make in the system. So what happened was we ended up having a back end loaded quarter from a billings perspective, we had a <unk>.

Speaker Change: And can it be improved once you kind of move away move into commercial from the education heavy portion that you see right here and I have a follow up.

Operator: Thanks for taking the question. Thank you.

D.J. Hynes: And our next question comes from the line of D.J. Hynes from Canucor Genuity. Your question, please.

Speaker Change: Thats a great question, yes identity automation has a similar shape to revenues throughout the year as we do on the education side. So the second half was stronger than the first half.

Lucan: Hey guys, this is Lucan for DJ. Thanks for for taking the question. So we've seen reports out there of customers pulling forward Apple device purchases, trying to get ahead of potential tariffs. I understand the impact to you there isn't going to be direct, but wondering if you have any thoughts about how that might play out for your business, you know, if there is any, any change and sort of pull forward in that those device counts that your customers. Yeah, Luke, I can I can try to answer that question.

Speaker Change: In turn they do have large customers. It's U S. Based so naturally they are more profitable and we expect that profitability to continue we anticipate it will we said from the beginning it was accretive on the top and the bottom line.

Speaker Change: Great. Thank you.

Speaker Change: We still think that holds true in Q2, we did add some additional expenses for go to market. We're seeing good demand out there that we're seeing some international demand as well and we are preparing for the southern Hemisphere School season.

Speaker Change: Thank you and our next question comes from the line of Patrick <unk> from Citi Citizens. Your question. Please.

Hi, guys. Thank you very much for taking my question. This is Nick on for Pat just one for me David It's been a little over six months since you've started working on Jan.

Speaker Change: And then also as a side note, we have FX too in Q2 and throughout the year, but we expect that.

John Strosahl: Of course, I can't speak for Apple. You know, we have seen, we haven't seen necessarily the pull forward. I don't doubt that that would happen if companies are trying to buy ahead of, you know, potential tariffs and things like that down the road. And you're right, it doesn't have a direct or an immediate correlation to our business. But longer term, obviously, as Apple expands, that gives us a bigger footprint. You know, I guess the only thing from the Apple side is that they've they've been able to navigate these types of things really, really well in the past, and they're a healthy company.

Speaker Change: One thing Thats been more challenging than you expected and what is one thing thats been easier than you expected.

Speaker Change: Identity automation margins will improve in the second half of the year from the second quarter.

Speaker Change: Yes, I would say probably the challenging piece would be the systems right and anytime you move to a new system, we move to a new ERP that went live in August.

Alright fantastic.

Speaker Change: And on the product line, you have Jim from Mac and a few other things that you've launched what makes it very differentiated from your offerings.

Speaker Change: 76, plus thousand customers, we sell in 100 different countries, we're seeing huge benefit from the system as well as we're getting it optimized and performance is improving but I would say like anybody that moves to new system, while youre operating a public company a big company that will happen, we feel great with where we're at we're getting better visibility.

Speaker Change: It could be like some sort of risk of seeing them.

Speaker Change: A bunch of different offerings that may not may or may not be differentiated.

Speaker Change: And will it drive cannibalization of bundling solutions, where customers are choosing I want this X y and Z.

Lucan: So I think that, you know, if a company, a hardware company is going to be able to navigate it well, it's certainly Apple. Yeah, that's great and helpful. Thank you.

Speaker Change: <unk>, we're getting better we can bill in different currencies now we have the partner portal setup. So there's a lot of good things that are coming out of it so challenges, but I think in the long run this will be a complete asset for us.

Speaker Change: So I would love to get into those parts.

Speaker Change: Yes, I can.

Lucan: And then maybe a follow-up, just on your cloud marketplace momentum, the AWS marketplace has been a strong channel for you guys in the past. I think Azure just went online in Q4.

Speaker Change: I can take that first part of it at least.

Speaker Change: We've really oriented the products.

Speaker Change: The good side I would say, it's our product and our customers we have a rich set of blue chip customers around the world.

Speaker Change: Certainly between the Mac for enterprise and the mobile for enterprise, there's different products in there some of them. Some of them are similar but many of them are a very different oriented toward the mobile piece of that for example.

John Strosahl: Just wondering if you're seeing any early signs of pipeline build in that channel for that marketplace, and how do you see that evolving over time? Yeah, we do, actually. It's nice to see, as I mentioned in past calls, we were very pleasantly surprised on the AWS marketplace, and now extending that into the Azure marketplace, we're seeing similar traction. It's early days, but we have close deals through it, and we know that there's pipeline building. We speak very regularly with our Microsoft sales partners, and they're continuing to try to head along with our teams, and so I'm optimistic about how Azure will do in a similar way that AWS.

Speaker Change: Selling to all verticals as a horizontal solution, it's not verticalizing in any way, we can sell at any any vertical.

Speaker Change: As a differentiation there as I mentioned earlier with business plan and Mac for enterprise the differentiation there as those products and a business plan are more oriented towards the smaller customers and what we've included in that and we don't anticipate any cannibalization in that those if we're if we have to go through to buying motions to get that same <unk>.

Speaker Change: And our international reach as well there is quite a bit of opportunity internationally still.

Speaker Change: It's very early days international so challenges system of course, but then also the customer base and the product the strength of their product is a pleasant surprise.

Speaker Change: Great. Thank you very much.

Speaker Change: Product into that customer, we've noted that with our with our platform solutions not only do we have a higher conversion rate at higher asps, but we also have better retention. So those are all things that play into the fact that providing those those platform solutions is the right thing for our customer and again, we listen to our customers and how they want to buy.

Speaker Change: Thank you and our next question comes from the line of SME Chetan <unk> from Jpmorgan. Your question. Please.

Priyanka: Hi, This is priyanka on for Sean how are you guys doing great.

Speaker Change: Great how are you.

Speaker Change: Good good.

Speaker Change: So one question I see from identity automation that you kind of have a fifth.

Lucan: Does that answer your question? Yeah, that's great. Thank you.

Speaker Change: And this is what we've been in discussions with them about so that's why we're providing them.

Speaker Change: If were doing back of the math.

Speaker Change: Back to the paper math by here, we got $15 million uplift and the full year Guide and then for revenue and then $1 5 million for operating profit for 'twenty one.

Raimo Lenschow: And our next question comes from the line of Raimo Lenschow from Barclays. Your question, please.

Speaker Change: And pre of one additional comment on <unk>.

Speaker Change: Identity automation revenues, we go to market with a cloud based solution, but the company does have some legacy term based.

Isaac: Hey, everyone, this is Isaac on for Raimo. Thanks for taking the question. Maybe on the education side, great to hear the strong performance in the quarter and how Jamf K-12 has already started to pick up a little bit. As we think about you moving into the seasonally more weighted education portion of the year, how are you feeling from a pipeline perspective and has Jamf K-12 augmented your visibility at all to any degree? Yes, it certainly has. You know, we, we know, you know, we've been talking about this education refresh coming for quite a while. And we know that some jurisdictions have paused on that just out of, you know, out of caution and out of expense pressure.

Speaker Change: Operating margin is it basically just to kind of keep it at 21% what do what I did in the automated automation operating margins look like typically and can it be improved once you kind of move away move into commercial from the education heavy portion that you see by here and I have a follow up.

Speaker Change: That result in immediate recognition of a portion a good portion of the revenues and then there is maintenance that's pro rata overtime and so youll see that.

Speaker Change: Increase in Q3, and Q4, but it'll end up being a little lumpy between Q.

Speaker Change: Q3, and Q4 because of that.

Speaker Change: Alright, thank you so much.

Speaker Change: Yes, no that's a great question.

Speaker Change: Thank you and our next question comes from the line of aging parents from Piper Sandler Your question. Please.

Speaker Change: The automation is a similar shape to revenues throughout the year as we do on the education side. So the second half was stronger than the first half.

Speaker Change: Yes.

Speaker Change: In onshore Bravo and thank you for taking my question.

Speaker Change: In turn they do have large customers. It's U S. Based so naturally they are more profitable and we expect that profitability to continue we anticipated what we said from the beginning it was accretive on the top and the bottom line.

Speaker Change: The latest acquisition if identity automation, how should we think about R&D spend going forward and the product roadmap for security.

John Strosahl: But we are seeing some of that. We talked about it last quarter on the call. We're certainly seeing some pipeline build. We're in discussions with renewals and expansion of a lot of our international customers, particularly in the APAC region. So, you know, we're, again, we're optimistic about, about the K-12 upcoming season. And certainly with identity automation, that really gives some extra push, not only an experienced sales team that's used to working with education, but we have a more holistic solution we can go to market with together. So we're excited along with our K-12 offering. I'm optimistic about our upcoming season.

Speaker Change: Yeah on the R&D spend.

Speaker Change: We still think that holds true in Q2, we did add some additional expenses for go to market. We're seeing good demand out there that we're seeing some international demand as well and we're preparing for the southern Hemisphere School season.

Speaker Change: We are integrating the company together from a product perspective, and go to market perspective, and that will happen.

Speaker Change: And we are committing a little more money upfront because we see the need.

And then also as a side note, we have FX too in Q2 and throughout the year, but we expect that.

Speaker Change: And.

Speaker Change: I think.

Speaker Change: The addition of R&D to our total throw the percentages off too much because it's part I mean, it's a smaller company and it probably won't be that noticeable as you look out as to the consolidated R&D as a percent of revenues in the coming periods.

Speaker Change: The identity automation margins will improve in the second half of the year from the second quarter.

Speaker Change: Alright fantastic.

John Strosahl: Right, that's super helpful.

Speaker Change: And on the product line, you have Jim for Mac and a few other things that you've launched what makes it very differentiated from your offerings there could be like some sort of risk of seeing them.

David Rudow: And then maybe one for David on the free cash flow side, it was nice to see the improvement year over year in Q1, as well as the reiteration of the full year guide for that 75% growth. As we think about the shape of that through the remainder of the year, should that seasonality mirror what we saw in fiscal 24? Or is that going to be a bit more back-end weighted as that collections component starts to normalize again? Yeah, I think what we'll end up seeing is it will improve, it should improve throughout the year. If you look at DSOs for Q1, we're about 20 days over.

Speaker Change: Alright, Thank you and any more thoughts on how to think about the security product roadmap going forward.

Speaker Change: Bunch of different offerings that may not may or may not be differentiated.

Speaker Change: And will it drive cannibalization of bundling solutions.

Speaker Change: Where customers are choosing I want this X y and Z.

Speaker Change: So I would love to get into those pipes.

Speaker Change: Allowing especially as we have had a lot of success as we've mentioned before in the desktop workflow we saw a great opportunity for this not only for our 40000 <unk>.

Speaker Change: Yes, I can take that first part of it at least.

Speaker Change: We're not we really oriented the products.

David Rudow: And the reason for that is with the systems update we did last year, there were some billing corrections that we needed to make in the system. So what happened was we ended up having a back end loaded quarter from a billings perspective. We had a very large amount of billings in March. And so those should start being collected, looking out in May, mid May, late May, early June, sometime around that period. And so we would expect DSOs to return to a more normal range as we move out to the year. And in turn, the free cash flow margins will improve as well throughout the year.

Speaker Change: Education customers, but as we look to the desktop workflows all of those things outside.

Speaker Change: Out of education on the security standpoint again. This is an all security play so it is going to help enhance our security footprint.

As a differentiation there as I mentioned earlier with business plan and Mac for enterprise the differentiation there as those products and a business plan are more oriented towards the smaller customers and what we've included in that and we don't anticipate any cannibalization in that those if we're if we have to go through to buying motions to get that same.

Speaker Change: Very helpful. Thank you.

Speaker Change: Thank you.

Speaker Change: This concludes the question and answer session of today's program I'd like to hand, the program back to John Stossel for any further remarks.

Speaker Change: Yes, Thanks, Jonathan and thanks, everyone for your time today, we're pleased with our solid performance. This quarter, we continue to monitor potential risks as they pertain to the current geopolitical environment and will adjust as needed for now we continue to execute on our growth and profitability initiatives and remain committed to our goal of achieving the rule of 40, we hope to see some.

David Rudow: Great, thank you.

Patrick Walravens: And our next question comes from the line of Patrick Walravens from Citi. Citizens, your question, please. Hi guys, thank you very much for taking my question. This is Nick on for Pat, just one for me.

David Rudow: David, it's been a little over six months since you've started working at Jamf. What is one thing that's been more challenging than you expected, and what is one thing that's been easier than you expected? Yeah, I would say probably the challenging piece would be the systems, right? Anytime you move to a new system, we move to a new ERP that went live in August. You know, we have 76,000 plus customers we sell in 100 different countries. We're seeing huge benefit from the system as well as we're getting it optimized and performance is improving. But I would say like anybody that moves to a new system, while you're operating a public company, a big company, that will happen.

Speaker Change: As we participate in the conferences over the next month and thank you again for joining us and have a great evening.

Speaker Change: And this is what we've been in discussions with them about so that's why we are providing them.

Speaker Change: Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.

Speaker Change: And pre of one additional comment on <unk>.

Speaker Change: Identity automation revenues, we go to market with a cloud based solution, but the company does have some legacy term based.

Speaker Change: That result in immediate recognition of a portion a good portion of the revenues and then there is maintenance that's pro rata overtime, and so youll see that increase in Q3 and Q4.

David Rudow: We feel great with where we're at, we're getting better visibility on numbers, we're getting better, you know, we can bill in different currencies now, we have the partner portal set up. So there's a lot of good things that are coming out of it. So challenges, but I think in the long run, this will be a complete asset for us.

Speaker Change: Will end up being a little lumpy between Q3 and Q4 because of that.

Speaker Change: Alright, thank you so much.

Speaker Change: Thank you and our next question comes from the line of Aden Paris from Piper Sandler Your question. Please.

David Rudow: On the good side, I would say it's our product and our customers. We have a rich set of blue chip customers around the world. We sell into all verticals. This is a horizontal solution, it's not verticalized in any way, we can sell it any vertical. And, you know, our international reach as well. There's quite a bit of opportunity internationally still. And I think that's a big part of what we're doing. I mean, I think it's very early days international. So challenges system, of course, but then also, you know, the customer base and the product, the strength of the product is a pleasant surprise.

Speaker Change: Yes.

Speaker Change: Hi, This is on for Rob and thank you for taking my question.

Speaker Change: With the latest acquisition if identity automation, how should we think about R&D spend going forward and product roadmap for security.

Speaker Change: Yeah on the R&D spend.

Speaker Change: We are integrating the company together from a product perspective, and go to market perspective, and that will happen.

Speaker Change: And we are committing a little more money upfront because we see the need.

Operator: Great, thank you very much. Thank you.

Speaker Change: And.

Speaker Change: I think.

Simi Chatterjee: And our next question comes to the line, Simi Chatterjee from J.P. Morgan. Your question, please. Hi, this is Priyanka on for SOMIC. How are you guys doing? Great, how are you? Good, good. So, you know, one question. I see from Identity Automation that you kind of have a fifth, if we're doing the back of the math, back of the paper math right here, we got 15 million dollar uplifts in the full year guide and then for revenue and then 1.5 million for operating profit for, you know, 21 percent operating margin. Is this basically just to kind of keep it at 21 percent?

Speaker Change: Alright, Thank you and any more thoughts on how to think about the security product roadmap going forward.

Speaker Change: Yes, as far as the security roadmap again, it enhances we listen to our customers, we actually got into security because our customers asked us to and this is just one more step in that continued direction, allowing especially as we have had a lot of success as we've mentioned before in the desktop workflow we saw a great opportunity for this not only for our 40.

Simi Chatterjee: What does Identity Automation's operating margins look like typically? And can it be improved once you kind of move away, well, move into commercial from the education heavy portion that you see right here?

Speaker Change: Education customers, but as we look to the desktop workflows all of those things outside.

David Rudow: And I have a follow up. Yep, no, that's a great question. Yeah, Identity Automation has a similar shape to revenues throughout the year as we do on the education side. So, the second half is stronger than the first half. In turn, you know, they do have large customers. It's U.S. based. So, naturally, they're more profitable and we expect that profitability to continue. We anticipated, well, we said from the beginning, it was accretive on the top and the bottom line. And we still think that holds true. In Q2, we did add some additional expenses for go to market.

Speaker Change: A lot of education on the security standpoint again. This is an all security play so it's going to help enhance our security footprint.

Speaker Change: Very helpful. Thank you.

Speaker Change: Thank you.

Speaker Change: Does conclude the question and answer session of today's program I'd like to hand, the program back to John Stossel for any further remarks.

John Strosahl: We're seeing good demand out there. We're seeing some international demand as well. And we're preparing for the Southern Hemisphere school season. And then also, you know, as a side note, we have FX2 in Q2 and throughout the year, but we expect that the Identity Automation margins will improve in the second half of the year from the second Alright, fantastic.

Speaker Change: As we participate in the conferences over the next month and thank you again for joining us and have a great evening.

Speaker Change: Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.

John Strosahl: And on the product line, you have Jamf for Mac and a few other things that you've launched. What makes it very differentiated from your offerings? You know, there, there could be like some sort of risk of seeing a bunch of different offerings that may not may or may not be differentiated. And will it drive cannibalization of bundling solutions where you know, where customers are choosing, you know, I want this X, Y and Z. So I would love to get into those parts. Yeah, I can, I can take that first part of it, at least. You know, we're not, we really oriented the product, certainly between the Mac for Enterprise and the mobile for Enterprise.

Speaker Change: Okay.

Speaker Change: [music].

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Speaker Change: [music].

John Strosahl: There's different products in there. Some of them are similar, but many of them are very different, oriented toward the mobile piece of that, for example. So there's a differentiation there. As I mentioned earlier, with Business Plan and Mac for Enterprise, the differentiation there is those products in the Business Plan are more oriented toward the smaller customers and what we've included in that. And, you know, we don't anticipate any cannibalization in that those, if we're, if we have to go through two buying motions to get that same product into that customer, you know, we've noted that with our, with our platform into the fact that providing those platform solutions is the right thing for our customer.

Speaker Change: Okay.

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David Rudow: And again, we listen to our customers and how they want to buy. And this is what we've been in discussions with them about. So that's, that's why we're providing. And Priya, one one additional comment on identity automation revenues. We go to market with a cloud based solution. But the company does have some legacy term based that result in immediate recognition of a portion, a good portion of the revenues, and then there's maintenance that's prorated over time. And so you'll see that increase in Q3 and Q4, but it'll end up being a little lumpy between Q3 and Q4 because All right.

Simi Chatterjee: Thank you so much. Thank you.

Aidan Perry: And our next question comes from the line of Aidan Perry from Piper Sandler. Your question, please. Hi, this is Aidan on for Rob Owen. Thank you for taking my question.

Aidan Perry: With the latest acquisition of identity automation, how should we think about R&D spend going forward and the product roadmap for security? Yeah, on the R&D spend, it's, we're integrating the company together from a product perspective and go to market perspective, and that will happen. And we are committing a little more money up front because we see the need. And I think it... The addition of R&D to our total, it shouldn't throw the percentages off too much because it's part, I mean, it's a smaller company, and it probably won't be that noticeable as you look out as to the consolidated R&D as a percent of revenues in the coming period.

Aidan Perry: But thank you.

John Strosahl: And any more thoughts on how to think about the security product roadmap going forward? Yeah, as far as the security roadmap, again, it enhanced it. We listened to our customers. We actually got into security because our customers asked us to. And this is just one more step in that continued direction, you know, allowing, especially as we have had a lot of success, as we've mentioned before, in the Deskless workflow, we saw a great opportunity for this, not only for our 40,000 education customers, but as we look to the Deskless workflows, all of those things outside of education on the security standpoint.

Speaker Change: [music].

John Strosahl: Again, this is an all security play, so it's going to help enhance our security footprint.

Operator: Very helpful, thank you.

Operator: Thank you.

Operator: This does conclude the question and answer session of today's program.

John Strosahl: I'd like to hand the program back to John Strosahl for any further remarks. Yeah, thanks, Jonathan. And thanks, everyone, for your time today. We're pleased with our solid performance this quarter. We continue to monitor potential risks as they pertain to the current geopolitical environment and will adjust as needed. For now, we continue to execute on our growth and profitability initiatives and remain committed to our goal of achieving the Rule of 40. We hope to see some of you as we participate in the conferences over the next month.

Speaker Change: Yes.

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Speaker Change: [music].

Operator: And thank you again for joining us and have a great evening.

Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

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