Thank you for standing by. We lcome to Jamf's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star one, one on your telephone. As a reminder, today's program is being recorded. Now I'd like to introduce your host for today's program, Jennifer Gaumond, Vice President, Investor Relations. Please go ahead. Good afternoon and thank you for joining us on today's conference call to discuss Jamf's third quarter financial results. With me on today's call are Dean Hager, Chief Executive Officer, Ian Goodkind, Chief Financial Officer, and John Strosahl, President and Chief Operating Officer. Before we begin, I'd like to remind you that shortly after the market closed today, we issued a press release announcing our third quarter financial results. We also published a third quarter earnings presentation along with an updated investor presentation and Excel file containing quarterly financial statements to assist with modeling. You may access this information on the investor relations section of jamf.com. Today's discussion may include forward-looking statements. Please refer to our most recent SEC reports, including our most recent annual report on Form 10-K, where you will see a discussion of factors that could cause actual results to differ materially from these statements. I would also like to remind you that during the call we will discuss some non-GAAP measures related to Jamf's performance. You can find the reconciliation of those measures to the nearest comparable GAAP measures in our SEC reports and earnings release. Additionally, to ensure we can address as many analyst questions as possible during the call, we ask that you please limit your questions to one initial question and one follow-up. Now, I'd like to turn the call over to Dean Hager. Dean? Thank you, Jen, and thank you everyone for joining us. We are pleased to report for the tenth consecutive quarter, Jamf again exceeded expectations in third quarter with year-over-year revenue growth of 30%, a $2.1 million increase from the high end of our third quarter outlook. ARR growth in third quarter was 27% year-over-year to $491 million. We continue to see strong demand for our security products with year-over-year ARR growth of 50%, while growing ARR for our device management products 23% during the same period. Year-over-year ARR growth in commercial markets was 33% and 15% in education markets, maintaining the balance between Jamf's higher growth commercial markets, which represent 71% of our business, and a healthy education market. The diversity and balance of Jamf's commercial business continues to provide tremendous strength and resiliency. In our commercial markets, Jamf achieved at least 25% growth year-over-year across all major geographies, all major industries in both direct and indirect channels, and across small, medium, and large enterprises. This performance is especially noteworthy considering that third quarter represents the first quarter post the one-year anniversary of Jamf's acquisition of Wandera. Therefore, all results are from organic operations. We are also proud we achieved these strong results, having faced a number of market challenges. The most notable has been the recruiting and retaining talent in order to achieve a fully staffed and ramped sales team to meet the market demand for Apple-first management and security solutions. As a destination employer, Jamf's twelve-month employee retention for the company, and specifically within sales and marketing, is approximately 89%, which we believe is excellent in this employment climate compared to other technology companies. Yet due to an incredibly challenging hiring environment throughout most of this year, we have fallen short of our new employee onboarding goals. Heading into fourth quarter, we are beginning to see greater availability of talent and are intensifying our recruiting efforts. We are optimistic that we can increase the pace of our sales onboarding in fourth quarter as we prepare to enter 2023. Secondarily, Jamf also experienced market challenges in third quarter due to an uncertain macroeconomic environment. Some customers have taken a more moderate outlook when planning their future hiring and therefore device growth needs. It has also become clear that the past year of supply chain challenges has impacted customer device growth at their annual renewal. According to IDC, Mac device shipments significantly declined in second quarter of this year and was approximately flat year-over-year for the four quarters that preceded third quarter. However, in third quarter, IDC reported that Mac shipments experienced a record quarter growing 40% year-over-year, representing over 13% of all PC shipments, the highest Mac share on record. This is an indication that Mac supply may have normalized. Considering the growing demand for Apple Mac computers, a reduction in supply chain friction would bode well for customer growth at renewal in the coming year. Although current macro conditions introduce uncertainties and some short-term device reconciliation by our customers, demand for Jamf's solution remains strong, demonstrated by the fact that both second quarter and third quarter were record bookings quarters for Jamf. Our new customer acquisition was excellent in third quarter with our active customer base growing by over 2,000 organizations, and our customer retention remains near its all-time high. Jamf's business has proven resilient, and we believe we are poised for long-term growth with an expanding addressable market as the consumerization of IT, popularity of remote work, and changing workplace demographics continue to drive the popularity of Apple in the enterprise and the need for consumer simple and enterprise secure endpoint technology. Additionally, Jamf's addressable market grows as our product platform expands, including security solutions for Android, Chromebook, and Windows devices. Going forward, we believe we will continue to grow market share and deliver strong results due to our diverse business model and four key factors. One, our position as the clear market leader in Apple enterprise management and security. Two, continued innovation by both Jamf and Apple. Three, the increasing demand for enterprise security solutions. And four, Jamf's philosophy and proven capability to deliver balanced growth and healthy profitability. I will speak to Jamf's market leadership position and innovation. John will discuss the increasing demand for Jamf security solutions, and then we'll hand it over to Ian to showcase Jamf's balance of growth and profitability, along with our results and outlook. I'll start with Jamf's increasing position as market leader. Adding a net of 2,000 new active customers in third quarter, growing our active install base to over 69,000 customers, running 29.3 million total devices, clearly demonstrates that Jamf has become an enterprise standard and one of the most used device management solutions in the world. We believe Jamf's market leadership is a result of our unique focus on creating an Apple first, Apple best enterprise solution. Jamf has a proven track record competing with other Apple-focused solution providers, as well as cross-platform mobility management solutions. As we discussed last quarter, the majority of cross-platform software providers that were considered leaders in the enterprise mobility management market just five years ago have been consolidated into other organizations, leading to uncertainty regarding continued support of Apple innovations. One of the most critical ingredients to serving the Apple market well is innovating at the pace of Apple. Unlike with other computing platforms, the Apple market expects Apple innovations to be supported same day by both management and security providers. Jamf's commitment to provide customers with certainty and uninterrupted workflows while closing security gaps created when solutions don't support the latest Apple technology has been a critical component of Jamf's success. In third quarter, consistent with past years, Apple announced new operating systems for all platforms with significant new capability. As a result of Jamf's consistent same-day support, we saw increased interest from a growing replacement market, which resulted in Jamf again displacing thousands of device seats previously managed by less specialized cross-platform providers. As Apple continues to innovate and evolve their frameworks with Apple-only capabilities like account-based user enrollment and declarative management, managing and securing Apple at work will require greater specialization in the coming years, not less. Recently, one of Jamf's customers highlighted the power of our same-day Apple support. Early in the day on 24 October 2022, the launch day of macOS Ventura, SAP, a longtime Jamf customer with over 36,000 Mac and 90,000 iOS devices, announced their full internal support of macOS Ventura and encouraged their employees to upgrade. SAP's IT director posted the announcement on LinkedIn, listing several employee benefits of upgrading right away, which resulted in 37% of their Mac users upgrading in the first week. It's rare for a solution provider to announce same-day operating system support, but it's nearly unheard of with any system other than Jamf for customers to have already tested that support prior to the operating system being generally available. When achieving this same-day readiness, Jamf customers eliminate upgrade projects, reduce support costs, and improve their security posture. Accomplishing this feat for an implementation of over 36,000 Macs would be extremely difficult to do without Jamf. Jamf's position as the market leader for managing and securing Apple at work was showcased in September at the thirteenth annual Jamf Nation User Conference in San Diego. Joining us during the keynote presentation, which was viewed by thousands, were representatives from Apple, there to showcase continued advancement of Apple-only frameworks for work and school. Okta to discuss collaboration with Jamf for enrollment and Platform Single Sign-On. Google to demonstrate co-development with Jamf on Chrome browser cloud management and their Google BeyondCorp Zero Trust security framework. Amazon to present a brand-new partnership between our companies, where Jamf is the only solution to manage virtual AWS EC2 Macs. Microsoft to promote integration between our management, connection, and protection platforms. These five partners represent the top three endpoint operating system providers, the top three cloud identity providers, and the top three cloud infrastructure providers in the world. Bringing together these industry leaders sharing the same stage demonstrates Jamf's market leadership and our commitment to collaborate with the industry's best to provide a stronger whole solution for customers. I know some of you were able to join JNUC in person while others joined virtually. I wanna thank you for taking time to learn more about Jamf. I hope you were able to see some of the exciting innovations firsthand and get a sense for the truly unique Jamf Nation community, which we believe is the tightest community in high tech. For those of you who didn't attend, we focused our new innovations on helping customers accomplish the most important goal for IT and InfoSec teams, providing technology that users love because that makes them better at their jobs and access to corporate resources in a manner that organizations trust. I will now hand things over to John to take you through the increasing demand for Jamf's unique security solutions and our most recent addition to Jamf's security portfolio. John? Thanks, Dean. As Apple continues to grow market share in the enterprise, combined with a more mobile workforce, there is a corresponding greater need for protection from a new class of cyber threats. It's becoming increasingly critical for InfoSec and IT teams to deploy specialized solutions to keep users, devices, and enterprise resources safe. The need to meet these security requirements while creating an excellent consumer-like user experience is driving increased demand for Jamf Security Solutions. In third quarter, we saw this momentum continue, with 18% of our third quarter ARR coming from our security products, resulting in Jamf's security business now surpassing $90 million in ARR, which represents 50% organic growth year-over-year. We closed seven six-figure deals, which included one or more of our security products, with several flagship names across a number of industries. While demand for our security products has been growing in large corporations, we've seen significant penetration in small and medium-sized businesses, where a single economic buyer chooses Jamf's full management and security solution. In total, Jamf has 12,500 customers who run one of our management solutions in combination with a Jamf security solution. That number grew by over 900 customers in third quarter alone, which demonstrates the attractiveness of combining a security solution that identifies potential risk with a management solution that can automatically take action to mitigate risk. Since JNUC, many customers have taken interest in Jamf and Apple innovations that have tackled the primary issue experienced with BYOD devices, which is fully securing the employee's personally owned device while honoring their right to personal privacy. The Apple and Jamf approach is completely unique compared to all other platforms on the market. Customers and prospects are in the early stages of taking notice, with JNUC having taken place late in third quarter. Dozens of prospects already chose Jamf for BYOD late in third quarter, many having implemented policies that require all devices accessing corporate resources to be Jamf enrolled. Using prior methods of implementing BYOD, employee devices were either left unmanaged, which is a security risk, or fully managed, which violates employee privacy. According to IDC, prior to 2020, the lack of adequate BYOD security led to corporate liable mobile devices gaining favor over BYOD programs. However, out of necessity, in 2021, US organizations dramatically expanded the scope of their mobile BYOD programs in order to enable employees to work at home. We believe this trend will continue as hybrid work is here to stay, with organizations looking for new BYOD solutions that balance privacy and security, and therefore eliminate the need for employees to secure mobile phones. In today's challenging economic environment, having a secure BYOD program can also be used to reduce an organization's IT spend. For these reasons, since JNUC, our pipeline for BYOD has been building, and we believe it represents a significant new opportunity for us in 2023. Next in security is Jamf Safe Internet, which provides the only Apple-first education-focused cybersecurity solution to ensure students can navigate the Internet safely with content filtering and network threat prevention technologies. Made generally available to all markets in third quarter, Jamf Safe Internet integrates with Jamf School and Jamf Pro, providing a seamless experience for both management and security and allows for multi-product adoption in education. Jamf Safe Internet is our first add-on product sale that Jamf developed specifically for education. We believe the timing of this product is perfect after the greatest device expansion that has ever occurred in education during the heart of the pandemic. In third quarter, its first quarter of availability, over 200 customers chose Jamf Safe Internet, surpassing the first quarter booking stats of both Jamf Connect and Jamf Protect, making it Jamf's strongest performing product launch to date. In other exciting security news, in late September, we announced Jamf's intent to acquire ZecOps, a leader in mobile detection and response. Today's mobile security solutions often have a limited visibility when compared to what's possible on computers through tools like Jamf Protect on Mac or Microsoft Defender for Windows. ZecOps takes a unique approach by capturing and analyzing logs and other system data to provide deeper visibility into the presence of threats. This new mobile security capability will allow Jamf to identify sophisticated attacks that target individuals with access to the most sensitive data. This capability is extremely unique and will allow us to bring iOS security and visibility standard up to the standard we already set with Jamf Protect for Mac. With the inclusion of ZecOps in the portfolio, we will also add more telemetry and data sources to an already rich set that includes endpoint data, network data, mobile data, and application data. We have an opportunity to have the largest subset of Apple-focused data in the world, creating the ability to make work more secure and privacy-centric. With ZecOps, Jamf will have a comprehensive set of capabilities that allow customers to secure devices, stop threats on-device and in-network, stream telemetry, compliance, and threat hunting, and remediate across Mac and mobile devices. We couldn't be more excited about the opportunities this acquisition provides Jamf, and we look forward to welcoming the ZecOps team to the Jamf family after the acquisition closes, which is currently expected in the fourth quarter, pending satisfaction of standard closing conditions. Now I'll hand it over to Ian to cover Jamf's balanced growth and healthy profitability, as well as our financial results and outlook. Thanks, John. Jamf's philosophy of balanced growth and profitability provides us with the financial flexibility and stability to weather uncertainty related to rapidly changing market and economic conditions. For example, during the pandemic, we were able to continue to invest in innovation to drive sustainable top-line growth while pivoting some of our spend to our education go-to-market to meet unprecedented demand. Going forward, we will continue to be prudent with our expense structure while reinvesting in areas with the highest expected return and continuing to drive strong, consistent cash flow generation. We believe our cash flow generation profile continues to differentiate Jamf from many other high-growth tech companies. Now for our results and outlook. We ended third quarter serving more than 69,000 customers with more than 29.3 million total devices on our platform. Third quarter revenue growth is 30% year-over-year, and total ARR growth is 27%, driven primarily by device expansion, new logo acquisition, and upsell and cross-sell efforts. We saw balanced growth across many facets of our business, including management and security, commercial and education, major geographies, top commercial industries, channels, and size of enterprise. It should be noted that our ARR is reported on a constant currency basis. If we were to report ARR in actual currency, the year-to-date impact would be less than 1% of the total. As Dean mentioned, we continue to navigate an uncertain macro environment with hardware supply issues now for an entire year having led up to third quarter, muted customer hiring expectations, and increased scrutiny in customer approval processes. These factors impacted customer device growth and annual renewal. Additionally, Jamf experienced a unique challenge in third quarter with our Jamf School install base. The month of August represents the largest renewal month for the Jamf School product. While our customer retention for Jamf School and all Jamf products remained very strong, some schools reconciled the number of devices they needed to support their students now that they are all back in the classroom. All these factors had an impact on total company net retention, lowering it slightly to 115% in third quarter. If device supply chain issues continue to ease, as the IDC numbers may suggest, and now that we have gone through an entire year of students being back in the classroom, some of these challenges will subside as we progress into 2023. Additionally, with the increasing popularity of Jamf security products, we believe Jamf's net retention will become less dependent on device expansion over time. Therefore, we believe Jamf is in an excellent position to continue growing through a period where customer hiring may slow. Ultimately, we believe all these concerns to be short-term issues, and the market presents an excellent opportunity for us to succeed despite macroeconomic challenges and accelerate as conditions improve. The remainder of my remarks on margins, expense items, and profitability will be on a non-GAAP basis. Our GAAP financial results, along with a reconciliation between GAAP and non-GAAP, are found in our earnings release. Third quarter non-GAAP gross profit margin was 82%, which is slightly higher than both second quarter and the prior year. We continue to anticipate gross margins in the low 80% range and expect slight fluctuations each quarter. We saw an improvement in non-GAAP operating margin in third quarter over the prior year, resulting in third quarter non-GAAP operating margin of 6% compared to 2% in the prior year quarter. Non-GAAP operating income was $6.9 million, exceeding our expectations due to revenue outperformance. Our trailing 12-month unlevered free cash flow margin was 14% compared to 24% in the prior year. The prior year benefited from a large number of multi-year education deals where the full amount is typically paid up front. We anticipate unlevered free cash flow margins to improve slightly from this 14% for the full year. Our annual effective tax rate is 1.4%, consistent with our expectations. As we indicated during our last two calls, starting with first quarter 2022, for non-GAAP metrics, we will use our statutory rate for calculating tax impacts, which is currently 24%. We have included calculations using this updated methodology for current and prior periods in the Excel file containing our quarterly financial statements that has been posted to our IR website. Please note that we do not pay cash taxes on a US federal basis. Now, I'll provide thoughts on our financial outlook for the fourth quarter and full year 2022. Due to continued macroeconomic uncertainty, we remain cautious with our outlook. However, we believe demand for Jamf's innovative solutions will remain solid. This, coupled with our continued strong performance and the factors we've outlined on today's call, will help us deliver on our outlook. For the fourth quarter of 2022, we expect total revenue in the range of $128.5 to 129.5 million, representing growth of 24% to 25% year-over-year. Non-GAAP operating income in the range of $6.5 to 7.5 million. For the full year 2022, we expect total revenue in the range of $477 to 478 million, representing growth of 30% year-over-year. Non-GAAP operating income in the range of $23.5 to 24.5 million. Additionally, for modeling purposes, we provide estimates for amortization, stock-based compensation, and related payroll taxes, annual effective tax rate, and basic and diluted weighted average shares outstanding in the earnings presentation as part of the webcast, and it's also posted on our investor relations website. In closing, I've now been in the CFO seat for just over two months, but I have played a key role in Jamf's finance team since 2019, including our IPO. I believe we have the right balance of growth and profitability, and when coupled with our commitment to innovation and doing the right thing for our customers, we are well-positioned to continue to deliver for our stakeholders. I've had the pleasure of meeting a lot of you so far, and I look forward to getting to know you better. For those that I haven't met, I hope we can meet in the future. Now Dean, John, and I will take your question. Operator? Certainly. Ladies and gentlemen, if you have a question at this time, please press star one, one on your telephone. One moment for our first question. Our first question comes from the line of Joshua Reilly from Needham. Your question, please. All right. Thanks for taking my questions. Nice job on execution here in a challenging quarter. Maybe starting off on the macro, can you give us a sense of how the quarter developed in terms of sales cycle elongation and demand trends early in the quarter versus late in the quarter? Where do we stand today in terms of demand trends? Have customers become incrementally cautious here in fourth quarter? Yeah. Thanks for the question, Josh. Maybe I'll start out on this and then John can chime in a little bit as well. Overall, I don't know that there was a significant change in the rhythm of the quarter throughout third quarter. For the most part, I think maybe we are very pleased that the demand for our overall solutions remains high. If anything, any of the, you know, concerns that we would have had from an economic perspective to do with the number of devices that were being licensed, in particular, organizations are a little bit more cautious on how many people they expect to hire in the future. Overall, from an activity perspective, interest, leads, companies interest in our logo retention and our new customers, with 2,000 customers joining us during the quarter, that all remained very strong and really had more to do with the number of devices that were being licensed. John, did you notice anything as with the rhythms of the quarter as the quarter progressed? I did not. In fact, our ASP and our sales cycle hasn't changed significantly over the past several quarters, so that remains pretty strong. We are a lower average sales price for a company and for an IT department or for a security team. We're not the first ones evaluated heavily. There are some bigger spends in their budgets than us, and we've enjoyed being in that position and continue strong growth and the demand that we've seen. Things have been pretty consistent. Got it. Maybe just a quick follow-up. You know, we saw the NRR move down to 115% here in the quarter. Do you guys shift your focus a bit more towards new customer growth with some of the commentary here versus upsell, cross-sell in the current environment? Again, I don't know that I would call it shifting our focus. Obviously, I think the things that have been changing with Jamf over the last two years is, as you'll recall, Josh, you know, we thought, but our NRR was almost exclusively dependent on device expansion within the customer base. Over the last year, building a security business from just over $9 million to over $90 million of ARR, it really has offered a whole new trajectory for us for expanding NRR. I think that we would have seen that continue to expand had we not seen some device expansion during the current trajectory. Got it. Thanks, guys. Yeah. Thank you. One moment for our next question. Our next question comes from the line of Matt Stotler from William Blair. Your question, please. Hi, there. Thanks for taking the questions. First, just maybe a follow-up on the headcount dynamic that you mentioned. You know, we'd love to kinda get a sense from you of the impact on the limited capacity or the less than expected capacity when you think about, you know, growth going forward and then your hiring plans from here and expectations for fulfilling that capacity. Yeah. Thanks, Matt. I'll tell you that this, you know, it was a very deliberate decision on our part to be responsible in our spending this year as we can. It was in my 34 years in the industry, probably as tough a hiring environment as I've seen. You know, as you well know, we could have solved that with overspending if we would have wanted to say, we're gonna get headcount on board at all costs. We just thought that was unwise for the organization. We kept disciplined in our approach to onboarding, you know, with the retention of people that would stay because, you know, as you know, Jamf has very high retention. As a result, our QBR, our quota-bearing rep growth was slower this year than it has in past years. That probably more than anything had an impact on the pace at which ARR grew, for instance. I've mentioned on several occasions that we do not feel like we're market limited at all. Our greater limitation is the ability to be able to onboard that or meet that market demand. We think just numerically, you know, the math just comes out and proves it that had we been able to head count faster, we would have grown faster. Now, the great news is, for a lot of reasons that are apparent being in the industry right now, we are seeing a greater availability of talent of late. August was actually our number one hiring month in our history, and so we're seeing that loosen up a little bit. That's very helpful. Thank you. Maybe just one follow-up. Follow-up on the macro point. You know, good to hear some of the, you know, data points in terms of activity leads, et cetera. You mentioned a little bit of you know kind of tough you know results in the education end market specifically due to seasonality there. How about you know any color on the commercial side of the business? Any particular areas of strength or weakness when you look at that end market or the, you know, that set of end markets? Again, the situation was slightly different in education and commercial, when it come to the device reconciliation. On the commercial side, it was a little bit just using higher breaking expectations. On the education side, it was more just kinda reconciling the number of devices that they purchased when they were going through the whole distance learning, you know, a year earlier. Once again, I mean, the balance of all of our offerings together in between commercial and education, we are quite pleased with. Despite the, you know, school reconciliation on devices, we ended up launching Jamf Safe Internet, which, I mean, frankly, it was a pleasant surprise in that it was the fastest-growing product in the first quarter of our launch in our history, with over 200 customers using Jamf, outselling both Jamf Connect and Jamf Protect in their first quarters when we launched those. We thought that they were excellent launches. It's about, you know, the future and, you know, both device expansion that will come, but even being in a better position for product expansion. Great. Thanks again. Yep. Thank you. One moment for our next question. Our next question comes from the line of Raimo Lenschow from Barclays. Your question, please. Hey, thanks. Thank you. Dean, there is a couple of things you mentioned on the call, but I'm still slightly confused in terms of the magnitude of the impact from all of them. Could you just try to separate a little bit between, like, the macro skills capacity and the issues in the education side in terms of, like, so is this kind of more like a macro-driven? Is macro a minor point and it was more capacity-driven? Can you help us understand that a little bit? Because there were several items that you kind of called out, but I wasn't sure how they kind of connected together. Yeah, I mean, the order in which we went was the order in which they had impacts. In my prepared remarks, I said most notably was actually the head count growth being a bit slower than we expected because we shifted hiring more. That was actually the number one impact, not necessarily on the demand side. But in addition to that, there were three things, all to a lesser degree, that impacted us. One in education was a bit of, you know, some schools realizing that they did some panic buying during the distance learning move, and they just realized they didn't need quite as many devices at renewal. Those schools didn't leave us. They just reconciled the number of devices. That's kind of a one-time thing, you know, a year later. We personally have organizations that are, you know, a little bit more muted on their hiring expectations for between now and the end of the year. That matters a little bit less, but nevertheless did. Finally, probably the lowest impact, but yet it did have some, is the supply chain constraints that really now have lasted about a year. You can imagine since Jamf is, you know, we renew on an annual basis with some of the new after supply chain constraints, you'll have a little bit less of a seat count that they'll renew to or not as rapid a growth. We listed them in the order of their impact. At the end of the day, we really, our view is that we were more constrained by our internal than we were by the market. Okay, perfect. The follow-up is more for Ian than. If I think about the like in this sort of environment, you know, demand is something, it's difficult. It's not fully under your control, but cost and profitability is a little bit more under your control. How do you think about that balance between growth and profitability in this environment? Especially, you know, if I talk about the capacity update you wanna do on the field side. Like, how do you think about protecting margins in this environment, which seems to be on the mind of many investors? Thank you, and congrats from me as well. Yeah, thanks for the question. You know, you've seen what we've done before. We set our guidance. That's achievable. We start with the balance sheet. We look at pipeline, we look at churn, we look at this macroeconomics, and we take a balanced and prudent approach. We do balance that profitability. What you'll see in the last quarter and this quarter and in our guidance, we've actually reflected more profitability on the bottom line. You'll also note a lot of our free cash flow margin in third quarter of this year is 36% compared to last year at 30%. We are already applying leverage to provide more profitability for the business now. Perfect. Thank you. Thank you very much. Thank you. One moment for our next question. Our next question comes from the line of DJ Hynes from Canaccord. Your question, please. Hey, guys. Thanks for taking the question. This may be for John, but I'd love to hear you guys talk a little bit about what you're doing and the success you're seeing in terms of getting in front of the right security buyers in the enterprise. I mean, it sounds like where that's the same person who makes, you know, device management decisions, you're doing quite well. It'd be great to hear more about, like, what you're seeing further upmarket and how that's progressing. Yeah, DJ, thanks for the question. We've already segmented our go-to-market teams. On the small to medium-sized businesses, that's the same economic buyer across the board. We're having great success there selling business plans, good relationship in there. What we're seeing on the higher end, probably mid-tier and above, when companies start to get an InfoSec team in place, that buyer does shift to the InfoSec team. But we've got such strong relationships in the IT group, and good credibility there that we can leverage that influence into the InfoSec organization. What we've done is we've hired in some of our recent hirings, and we'll continue to do this, really focusing on some of the security specialists. We also have different personas that we market to. We've got sequences that are dedicated to InfoSec team versus the people in the IT teams. We're seeing great traction. As I mentioned, we've signed seven six-figure deals just in the last quarter with security included. We're seeing good traction in that, and we'll just continue to double down on that. DJ, if I can pile on here for a moment, that one of the things that needs to be remembered is not only does Jamf have a solution for the IT team, but the solution that we have for the IT team is the thing that's used to install all security solutions out on the devices that we manage. We're actually the to install those security solutions. An IT team who has to ultimately do the deployment of the security solution can increase policies and checks to make sure that the security software is not tampered with, or within the product they already own, they can click the box that says deploy Jamf Protect. You can imagine just the difference and that's sort of how they sync together. It's a unique advantage we have to be offering the solution that actually deploys the security solutions. Yeah. Yeah. No, that's helpful color. Dean, maybe kind of a related question. Just I'm curious how you're thinking about kind of the relative R&D allocation between core Jamf Pro and then your newer security products, right? I mean, any signals we can take there as to kind of where the future of the company is? Yeah. Well, I mean, now where our security ARR is about 18% of our total and of course, growing. We believe ultimately that the TAM long term is going to be for the growing family of security solutions that we have. With that said, it is Jamf leadership mission in Apple management that really sets the stage for everything else we do. We absolutely have to be an innovator on the management side and be just flat out the market leader in new capabilities. You know, it's a balancing act between, but we should not in any way, nor do we ever intend to send the impression that an exaggerated dollar is going to the security solutions because our entire strategy hinges on our continued leadership with management, and we are continuing to do that. As I mentioned, 2,000 customers being added in a quarter. Yeah. Yep. Makes perfect sense. Very helpful. Thank you, guys. Thank you. One moment for our next question. Our next question comes from the line of Matt Hedberg from RBC. Your question, please. Great. Thanks for taking my question. Just one for me. Dean, you know, we continue to think that the VMware replacement opportunity could be significant from a share shift perspective and just you guys gaining just broader market share awareness. Can you talk about, you know, are you seeing any benefits of that? You know, I have to mention you're not assuming anything in guidance, but just sort of curious if, you know, if that's sort of showing up yet in win rates or anything of that nature. Thanks, Matt. As you know, I tend to resist talking about any one specific competitor, what we have noticed consistently when a cross-platform, less specialized management provider get acquired by, you know, part of that market as a consolidator provider, that, if any, indication of the future, that those providers then will frequently fall behind keeping pace with Apple. It only takes about a year, you know, once you're behind... [inaudible] I think that next fall is gonna be a really telling period when it comes to that. Even this last fall, you know, Apple had a boatload of new capabilities like declarative device management, which really just almost... [inaudible] h ow MDM works completely, you know, different in some ways than Android and Windows. If you don't support it, you're already behind on Apple. I will tell you that we've had numerous calls from customers who have not historically been Jamf customers, just asking if with that because they were worried that their less specialized cross-platform provider was not. Yes, we have seen several wins due to that. I think the real potential opportunity is gonna occur perhaps around this time next year when the... [inaudible] you know positioning of the closest to Apple's new stuff. Thanks, Dean. Thanks, everybody. Thank you. One moment for our next question. Our next question comes from the line of Koji Ikeda from Bank of America. Hey, guys. Thanks for taking the questions. I kinda wanted to go back to the ARR and the impacts the education space had on growth. You know, apologies if you guys answered this, but I just wanted to maybe ask it a different way. If you could maybe provide the magnitude of the impact to ARR growth due to the education side. You know, was it $2 million in ARR? You know, that could help frame the growth of the ARR for the quarter ex education. Well, I mean, our ARR growth year-over-year was about 15%. We've mentioned before that we would anticipate both markets sort of battling it to where you have a education growth that's perhaps about half what our commercial growth is gonna be or a little bit less than half, actually. Actually, you know, where it all settled in at is about what we've been, you know, saying is going to happen from a markets perspective. Keep in mind, the way that renewals work, in particular with our Jamf School product, those renewals don't necessarily happen by somebody calling up a Jamf person and renewing. It's actually e-commerce built into the product itself. We have a very elastic, you know, base of devices that are being used within the school. If a school comes up upon a renewal and they're gonna have 20 fewer devices, they will just renew automatically to 20 fewer devices. You know, it had an impact on the quarter, but to some extent, it was made up for with the launch of the Jamf Safe Internet solution. Sort of in the wheelhouse of where we expected it. Got it. Thanks, Dean. I guess that's a good segue into my follow-up. You know, I wanted to ask, you know, with all these layoffs going on, especially in tech, I just can't help but think there are closets full of Apple notebooks and iPads and phones just sitting around now. How should we be thinking about the potential shelfware, you know, attached to these unused devices and what it could potentially mean for renewal cycles? I was gonna make a comment perhaps, you know, users of Apple are. Well, I won't make a comment on that. The bottom line, I think, what we're seeing is that, in addition to, of course, we're seeing some of the layoffs that are out there, but at the same time, the percent of PCs that are being shipped are actually greater on the Mac. The most recent quarter PC, you had a 40% growth of Mac, and you had a decline for the rest of the PC space. I don't think a overall reduction in employment necessarily means a drop in the number of Apple devices. As a matter of fact, because of the share shift that is going to occur, I, for one, think that the Mac is actually gonna continue to grow in spite of this environment. Because as organizations are looking for creating a great employment environment while reducing cost, Mac is a good answer. We don't require employment to grow out there in order for Mac devices to grow. The share shift is gonna do that. Got it. Got it. Thanks, Dean. Thanks so much for taking the questions. Thank you. One moment for our next question. Our next question comes from the line of Chad Bennett from Craig-Hallum. Your question, please. Great. Thanks for fitting me in. So just in terms of how you're thinking about all the different things you guys talked about macro and otherwise, how you're thinking about at least seasonality in ARR for this quarter. I think, you know, seasonal strength is typically kinda up sequentially high single digits. Is that kinda how you're thinking about ARR, overall ARR should perform in the December quarter? Well, just as a reminder, of course, you know, ARR is actually an annual metric. There isn't, you know, any one quarter that's going to, you know, significantly change that. When I think of seasonality, I think a little bit more on bookings. But we don't see anything different seasonality-wise from a bookings perspective than what you would expect this year. Really the only difference right now is, as I mentioned, I think some organizations buying perhaps, you know. You know, in the past, an organization might say, "Well, hey, I'm gonna estimate how many devices I'm gonna have six months from now, and that's what I'm gonna contract to, or that's what I'm gonna renew to." Organizations are just very hesitant in the current climate to project what they might have in six months. They're more renewing what they have right now. That's okay by us. Again, we offer elasticity for our customers to you know, grow their devices or reduce their number of devices. That's sort of the benefits of a subscription. One of the things that we've noticed in the past is you know, the organizations that are really nimble that might be lowering a device count, they're also the very first to grow it right back up again. This isn't the first time that we've seen this type of thing historically. We saw it in second quarter of 2020 as well, but then we saw a rebound from that. It's one of the values that we deliver to our customers, and proud to do it. Got it. Maybe one quick follow-up, Dean. Just in terms of as much as you can tell in this world we live in, just in terms of, you know, your expectations for commercial growth, and I think you indicated obviously, you know, the split. You know, we think, you know, education grows half of what commercial grows, and that's kind of been playing out. I mean, have your expectations for commercial growth rate moderated in the last three to six months? I don't know any company in the world who hasn't had their expectations of what's happening on the commercial side be a touch moderated in the last six months. A lot of that is simply, you know, the unknown. I think we're all sort of curious of what's gonna happen economically over 2023. We are clearly mindful of it. As I've mentioned, we have seen some moderation on expectations from a hiring. That's just the reality of what we've seen. All of that ultimately, we believe to be a short-term phenomenon. We just can't say how short-term it's going to be. What we're pleased, Dan, is that the demand for us and our solutions remains high if just the device count might be a little lower than what it would have been a year ago. You're gonna lean in on hiring in fourth quarter on the sales side. That's what you're saying? Yeah. We are going to take advantage of a bit more attractive employment environment even from a go-to-market side. We think we're gonna be able to. We're pleased at what we believe we will do between now and the end of the year in order to set ourselves up for future growth in 2023 versus how challenging it was, I'll say between January and July of earlier this year. Got it. Thanks much. Yep. Thank you. One moment for our next question. Our final question for today comes from the line of Michael Romanelli from Mizuho. Your question please. Yeah. Hey, guys. Mike on here for Gregg Moskowitz. Thanks for squeezing me in. Perhaps just one quick one. Just wondering what the current penetration rate for Jamf Fundamentals within the Jamf Now base is. I believe it was 60% last quarter. Thanks. Yeah, we're whispering here just to make sure we have the right number. If you recall, in our earlier call, I think we had already gotten to 70% for second quarter, and I think it might be 80% now. Again, you know, I believe Ian had mentioned it in his commentary or John did. I forget now that we have 12,500 customers running at least one of our solutions and one of our security solutions. Of course, Jamf Fundamentals is a packaged management and security solution. In third quarter, we actually saw that number grow by 900, which is really an excellent number, showing that we're really leading with the combination of management and security, which we consider to be two sides of the same coin, both being able to detect that threat and automatically mitigate those threats. Just completely unique in the industry. You know, we're sort of setting a new standard, and I believe that, as the market matures, we're able to say that there will be increasing demand for that full solution, as we head into next year. Thanks. Thank you. One moment for our next question. Our next question comes from the line of Joey Marincek from JMP Securities. Your question please. Hi, team. Thanks so much for the question. You know, on employee retention, can you talk about the culture at Jamf? Why do you think you have such high employee retention? You know, how do you expect to maintain that Jamf culture as you continue to grow? Thank you. Thanks, Joey. Boy, I kind of want to camp out the rest of the call here and just talk about this. I'll tell you know, we do an annual engagement survey. The question every single year, we just did it in September. The question every single year that I'm most proud of is, we get a really high participation in our employee engagement survey. The question is, does my manager genuinely care about my well-being? Over 90% of Jamf answer affirmatively to that every single year. I think at the end of the day, that is it. I think that we have a leadership team here, and I'm not just talking about here at the C-suite. I'm talking about every single first-line manager within this organization that genuinely cares about the people that have that responsibility. To put that, although we're still working very flexible and remote, largely remote environment, people feel connected, and they feel cared for. The result of that is we've even seen that retention kick in a little from those end of September numbers that I mentioned on the call. It's been remarkably high. It's always been real high retention. It really starts with caring about one another and really being excited about inventing and creating solutions for our customers. We're here in Minneapolis today, and we had our SE meeting where our systems engineers from around the world came in and gathered to learn best practices from each other. The excitement that I see in them to solve customer problems is just inspiring. I think it's about solving problems and caring about one another. I think that's the core of our strategy, that's why engagement scores continue to be high every year. Thank you for that question. Oh, it's great to hear. That culture was definitely on display at JNUC. Last question here. Can you talk about the Okta partnership? Just love to hear more about that relationship and sort of how you see that progressing. Thank you again. Yeah, you bet, Joey. I'll answer that, and then I'll just make some parting remarks and we'll wrap it up. Okta is a terrific partner of ours. As we mentioned during JNUC, we're each other's customers. Because we're each other's customers, and because we value of really wanting to implement internally first what we end up offering to our customers, it means that we learn a lot. That doesn't mean that we also don't collaborate with all the identity providers out there. We have integrations with Google and with Microsoft Azure AD and with our friends at Ping. But Okta and Jamf very frequently will sort of start the seeds of an innovative new solution. Right now, between, you know, a conditional, you know, solution, and also onboarding for BYOD devices, we have got some joint projects going on right now. As a matter of fact, a team of our members is at Oktane, sent me a picture just last night of how jam-packed standing room only his session was there. There's just a lot of interest in Okta and Jamf working together, and we're pretty committed to each other. Thank you for that final question and thank you all for joining us here today. You know, I'm glad you mentioned Oktane. I think our culture was on display there, but most excitingly is the fact that we're here to innovate on behalf of our customers and to make sure Apple at work, so that every single user of technology in the workplace just loves the technology they use, but also that the organization trusts that access to every corporate resource they have. I'll tell you, that is. It's really easy to love technology that is not secured or to trust technology that is not easy to use. But accomplishing the balance is what Jamf is uniquely focused on. Again, thank you for taking the time to learn a little bit more about our story and how we delivered in third quarter of our results, and we're bullish on the future. Thank you very much. Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.