Great. Good afternoon and welcome to the Needham Growth Conference. My name is Josh Riley, and I'm an analyst on the enterprise software team. This afternoon, we're excited to have Jamf, with the CEO, John Strosahl, and the incoming new CFO, David Rudow. So just kind of kicking off here, you know, thanks for attending as always. John, maybe you could start with an overview of Jamf for those less familiar? Yeah, absolutely. Thanks, Josh, so Jamf is Apple device management and security software product that is the only company that provides management and security at scale, and, you know, there'll be other competitors in the marketplace, but none of them have both management and security in order that they do it at the scale that we do. We have about two-thirds of our business as SMB, but we also have 75% of the Fortune 100 as well, so we've got a wide breadth of customers that we service all types, and we are a global company. Awesome. All right. So, John, I think it'd be helpful maybe to rewind a bit on the last couple of years. You took over as CEO in late 2023 in what I would characterize as a challenging time for the industry given the device growth slowing down pretty significantly. But I would highlight, you know, in my opinion, your execution in 2024 has been very strong relative to the plan that you laid out at the March Analyst Day. How would you kind of summarize the market evolution over the last couple of years? I would agree with you, Josh. It was a tough market, not just for Jamf, but of course, across the board. You know, we have two major industries that were early Apple adopters in education and technology, and both of those were impacted post the COVID, post the pandemic with education, you know, buying a lot of product in order to get that one-to-one for their students, not just in the U.S., but on a global basis. Then, of course, tech. We saw it was a great ramp-up when companies started sending people home to work, but then we saw a bit of a contraction in that space that has impacted our upsell in both of those markets. We're still awaiting an education refresh. They typically happen every four years or so. And of course, a lot of the buying happened late 2020, early 2021. So we're anticipating that at some point, but we haven't seen that in earnest yet. Although there are some discussions, especially outside the U.S., about refresh cycles in education. And tech, of course, is another major industry of ours, early adopter of Apple. And we did see less upsell because companies, in many cases, weren't growing. In fact, sometimes laying people off. And how we've executed against that is we've actually leaned in. If they had the management product, we leaned in and we added security to that. We sold them a security product on top of that. So a lot of cross-sell. And we also did extend into additional and adjacent verticals, professional services, for example, financial services, wholesale and retail. You know, it's the last time you walk into a retail outlet and someone didn't have a mobile device to check you out or whatnot. Well, all of those devices need to be managed and secured within their environment. And that's really helped us and benefited us in a lot of ways. Got it. As we kind of think about the market going forward, you haven't guided to 2025 yet, but we do have the three-year plan that you laid out at the March Analyst Day. Do you still feel that that plan is reasonable or has anything changed in the market that would have you thinking differently about the growth versus profitability matrix? Yeah, Josh, this is David. Thanks for having us as well. Yeah, so I arrived at the end of October, got a chance to go through a board call, earnings, talk to a bunch of investors. We worked on the annual plan. We'll be ready to give guidance for 2025 on the earnings call, and so I will hold off any comments on that until we talk then. I think the business and the structure is quite good, and if anything, since being here, we've gone on three months and another week or two, I am more excited today than I was when I started, so the transition has gone very well. Awesome. All right. So the strategy for Jamf has shifted over the last couple of years to really emphasize Trusted Access or selling both management and security. How does this strategy differentiate Jamf from other competitors in the market, whether it's startups or legacy vendors? Yeah, Josh, I'll take that one. You know, I would say it's less of a shift in strategy, more of an extension of our strategy. You know, we're still managing many more devices than even when we were just managing devices. So we're continuing to add on to the management piece of it. But the reason why we added security is because our customers asked us to. You know, you can't have a secure device without that device also being managed because if you find out something, there's a vulnerability, you actually need to do something about it. And that requires a management device management product. In fact, you can't even deploy a security product without a device management product. So those two really go hand in hand. And our customers asked us, "we really want to, we would deploy more Apple devices in our environment if we felt really good about those devices accessing our corporate resources." Now, Apple has the most secure operating system available, but as more and more corporations, especially, start to use Apple, it just becomes a bigger target for bad actors. And so those CISOs and those InfoSec teams really want to make sure that they've got the security that's specific to Apple, doesn't drag down the performance of the machine, doesn't have false positives. Those types of things are what our customers ask us to produce, and we have, and they've bought accordingly. Got it. You had some price increases that began to layer in the model early in 2023 and now should largely be embedded in the customer base moving forward given the anniversary of contracts. How much pricing leverage do you have moving forward, and what's the thoughts around more consistent price increases? Yeah, we raise prices normally when we increase the functionality of the software. And so you'll see us increase in prices over time. I think we do have the ability to raise prices. On the bundles that we sell, we have a natural built-in pricing increase that's annual. And so as we review kind of the product set and what we've added to it, we will go back to market at some point and increase prices again. And we'll look to do that as needed in the future. Got it. You gave some stats recently around the number of devices quarterly you were winning from VMware following their acquisition by Broadcom. Is this kind of 10,000-plus device quarterly number a sustainable level moving forward, or do you think the kind of low-hanging fruit opportunities have already been captured? Yeah, Josh, this is John. I'll take that one. You know, it's been pretty consistent for the last several quarters. And, you know, the thing is, is that everything, so what we do is we work with those customers in their existing contract period. And so because they have multi-year contracts that don't all renew at the same time, we're just working with those. And as they come up for renewal, we're working with them on an upgrade to our product. And that's kind of how that's panned out. So I believe this has a pretty long tail because there's a lot of contracts out there, and they are multi-year, and they all come due at different points in time. So I think that's, you know, it feels to me like that's what we're seeing, and that's what we can expect as we move forward. All right, so a big internal accomplishment in 2024 for you guys was the implementation of a new ERP system. I know you worked on that for quite a while, which is allowing greater segmentation of customers among other benefits. Can you just speak to that reclassification of customers that we just recently saw, and what other benefits are you seeing in terms of savings, et cetera, from the new ERP system? Yes. Yeah, this is David again. Yeah. So we went live with the new ERP system in August. I mean, any ERP implementation is difficult and complex. I think the team has done a great job. We're still working through some kinks, little nits in the software, but it's gone well up to this point, for sure. I think from the ERP system standpoint, we are going to see a number of benefits when we get better data on the reporting side. We'll be able to. It will streamline. We'll get some automations on quote -to -cash, so less manual billings and such. And then we're also going to be able to bill in local currency. We've not been able to do it in the past. So this year, we'll be rolling out local currency billings, which will be great for our customers. And then also the channel can now register their deals within the solution too and get pricing details on it as well. So we're excited about it. Still some work to do, but I think we had a great start from when it launched in August, and I look forward to further working on it throughout this year. All right. So a key driver of sales efficiency moving forward is expanding the partner portal, which will allow partners to close new business without getting a Jamf rep directly involved. Can you maybe just discuss how the process worked before if a customer wanted to expand and how much more efficient it'll be kind of post this new process? Yeah, absolutely. This is really one of the biggest benefits I see of our ERP system. This and others, but it's not just accounting for the revenues and the deals coming in, but it's also helping us streamline our go-to-market. And the partner portal is just one of many things that happens that's going to be a benefit for us. In the past, a partner would have to actually call and talk to either a Jamf sales rep or a Jamf channel rep in order to generate a quote or register a deal. And that's horribly inefficient, both for the partner because they have to make a call versus just doing it themselves. And secondly, for Jamf, because we have to spend resources in order to do that, now they can go in and do that themselves. We've seen thousands of deal registrations directly done and quotes generated by partners directly, which is awesome. Obviously, we can see how that is because we have the system, but they're actually doing that and registering that on their own. I mean, David mentioned the multi-currency and over a third of our business outside the U.S. and growing at a faster rate than the U.S. business. That's going to become even more important, especially as we enter some of these other markets. I'm excited about it. You know, and it also gives us a capability for down the road. We have the plumbing in place now to do in-product purchasing, which again, is something we didn't even have the ability to do before. All of those things are going to greatly help our go-to-market efficiencies. Yeah, I think all of that stuff's amazing. Any update on the timeline in terms of rolling that out to all the partners, or how will that work in terms of we'll go live to all the partners at once, or are you kind of phasing them in in groups? We're phasing them in in groups. And we didn't want to have the whole thing tip over. We wanted to crawl, walk, run, and we are. But everything we've seen so far has been very, very positive. And so we're continuing to roll that out. In addition to that, we also, in conjunction with that, I should say, released a partner program that incentivizes those customers or those partners to actually bring the deals in, and they get different margin levels for bringing the deals in versus we're working with a customer, and then they just fulfill it through the channel. So I think that, again, is not only going to help our margin profile, but it's also going to help the efficiencies on both our side and the channel partner side. Got it. All right. So we've written about this before, but you get a pretty nice uplift in ARR per customer when they shift to the Jamf Business Plan. How should we think about penetration now within the customer base, and can this continue to provide a tailwind to ARR growth in 2025? Yeah, we certainly think it can. I mean, you know, even though budgets have been constrained, security budgets, not as much. I mean, nobody wants to have a breach. And so that's much more of a secure, if you will, budget. You know, we've increased on the security for the mobile side as well. We just released our mobile security suite in August of last year and actually won some awards for that as well as the best security solution. So really leaning into the mobile side on the security side as well as the bundled solution. We also find that those customers that have the bundled solution, they tend to not churn. We have a lower churn rate with them. And we also have more upsell with those customers because they're more invested in the product. They see the benefit of having that management and security together under one roof and working in conjunction with one another. I really think that that's going to continue to provide a tailwind for us. Got it. All right. So education customers, you know, from my work, remain pretty price sensitive, and there seems to be fluctuations in terms of their renewed device counts, which has, you know, unfortunately suppressed some growth in the industry. Can you just reflect on what you saw in 2024 with education trends in kind of the key selling quarters of Q2 and Q3, and can this potentially change in 2025? Yeah, we didn't really see the refresh cycle come in earnest in 2024. Again, we typically have seen, we've been doing education for two decades. We've seen that come in four-year refresh cycles, but they're generally more staggered than they were. But in 2020, it kind of all happened at once. 2020 and 2021, it kind of all happened at once. A lot of funding allowed for buying of those devices, and they were digesting those devices. And so we're in discussions. Again, we're not just in the U.S. So we have the DigitalPakt in Germany. We have GIGA Project in Japan. We have Taiwan Ministry of Education. We have a lot of different global education districts that are purchasing our products. And we're in discussions with some of them about that refresh cycle now, especially those international ones. But we still anticipate that refresh cycle to happen. You know, in the meantime, we're really allowing them and showing them some of the things in the security side that we didn't have when they bought the first time around. And one of the things that's had a great uptick is the Safe Internet product. Many companies or many districts, I should say, are required to have some sort of a filtering or protection security product along with their management product just to make sure that they're securing those students. And so we're benefiting from leaning into the security side as well as working with those districts on upcoming renewals. What do you think happens, just kind of following up on that point, what do you think happens on a global basis with the whole concept around one device to one student? Do you think that that is going to stick in the post-COVID world, or do you think that there's some remediation around that? I do. I mean, I don't know. I have a middle schooler, and she has an iPad, and I don't see any way, shape, or form that someone's going to take that away. I mean, everything that they do is on those iPads now. They don't even have paper, much less books. You know, they look at their iPad, they turn their homework in on the iPad, they see what homework they have on the iPad, they study on the iPad. So I would think it's going to be very difficult to not have a one-to-one. In fact, some of the districts didn't go one-to-one initially. They couldn't afford to. So what they did, in fact, one of our international customers in the education space did a six-to-one, but they allowed for parents to actually purchase through a portal the iPad, and then the district actually put the software on it. So that gives us an indication that they're going more the other way versus scaling back from a one-to-one. Not all of them did go to one-to-one, and those are actually leaning into the one-to-one. Got it. That's super helpful. You made some important product releases and updates this year at JNUC. Blueprints and Compliance Benchmarks, I would highlight in particular. I spoke with some Kandji switchers at the conference that were excited about the Blueprints functionality, so I think that's going to be great. Being able to kind of templatize or drag and drop key pieces of the declarative device management functionality to kind of ease the platform use. Moving forward, how are you thinking about new functionality and investments between the management platform and the security platform? Sure. One of the things I love about Jamf, and I've been in this industry for over 35 years, and one of the things about Jamf is we really do listen to our customers. And you actually attended the Jamf Nation User Conference that we had earlier this or last year, I guess it was, in Nashville. We do it every year. 2,000 Jamf Apple administrators came. And when we announced the Blueprints and the Compliance Benchmark, we got a standing ovation. It's because they've been asking for that, and we've actually developed what they've asked for. And so well received is almost a bit of an understatement, I think. And that's just because, again, we listened to the customers. We leaned into security when they asked us to. We're doing the Blueprints and Compliance Benchmarks. One of the advantages that we have with the scale that we have that no other company has in the Apple space is that we can learn from a wide variety of customers, and we know what they're doing with the product because they tell us. So we can help then things like Blueprints. We have an idea. We have a concept of how that product is being used and what other companies may need to do in order to use it in the same way so they don't have to reinvent the wheel. And that's the advantage of having the scale that we have and listening to our customers to release things like Blueprints and Compliance Benchmarks. And that's going to continue, Josh. We've been doing this for two decades, and we continue to listen to our customers and develop what they're asking for. They've got a nice list for us, and we're pursuing those both organically and inorganically. Got it. All right, so one of the questions I get quite a bit is obviously around the competitive landscape and just trying to understand if there's been anything that's changed here, and in particular, the way that people typically pose the question to me is, is the slowing growth that you've had over the last couple of years directly related to the market growth change, or has there been any change that's impacted the ARR growth from that perspective? You know, the competitive landscape hasn't really changed, and we saw a bit of a more acute competitive pressure in January of last year, and we found out later that one of our subscale Apple-specific competitors was going for funding, but that died down in Q2, and we haven't really seen it. It kind of comes ebbs and flows a little bit on the small subscale competition side. You know, on the enterprise side, it's been pretty consistent. We've been able to win a lot of business from legacy UEMs, but that, again, is not going to come all at one time. It's kind of a longer tail as those multi-year agreements come up for renewal. Got it. All right. So for the international business, you mentioned before it's roughly one-third of the ARR for the company. With the dollar strengthening post-election, can you just review any impact to revenue? I believe all of your contracts are priced in US dollars, and you just mentioned that you're going to be able to start billing in multi-currency. How are you kind of thinking about all of these dynamics with the currency moving forward if you do start to bill in foreign currency? Yeah, yeah, this is David again. Yeah, so we will start billing. I think we might have started billing in local currency. And so that will roll out through the year. I would say on the revenue side, probably minimal impact. I think it's going to take us a while to get through that as we bill, whether customers renew or whether we have monthlies, and we'll try to switch it over. We do have costs in countries. We have an office in London. We have an office in the Netherlands as well in Amsterdam. And so those costs will offset as we roll into that local currency on the revenue side. We will watch this as we move along and monitor it closely to get a feel of how it will impact revenues for this year. But my guess would be at this point, it would probably be minimal impact from where I sit today. Got it. If you look at the enterprise versus SMB market, curious says you kind of win new business here in the enterprise market. Who are you most commonly winning from? Is it legacy UEMs? And then same question in the SMB market. Are you most commonly picking up unmanaged devices, or are you winning those devices from another vendor? Yeah, Josh, I'll take that one. You know, on the enterprise side, it is typically, you know, they have something in place. They're generally not unmanaged. And what happens is they had a smaller Apple footprint, and they have tried to utilize their Windows-specific products and extended that to the Apple. And then they've gotten an Apple at scale where they figure, "Okay, this isn't going to work. We need something that's Apple-specific." And then we'll win those over. You know, on the one we talked about earlier, you know, being acquired, you know, puts into question their ability to continue to invest and innovate at the pace of Apple because Apple doesn't stand still, and rightly so. And we work alongside them very closely so that all of the updates that come out, you don't have to wait to update your operating system. We're ready day zero when Apple does a release. And we do things to not inhibit or negatively impact the Apple innovative workflow that Apple has spent a lot of time and energy on. And we extend that in our products versus having a Windows product that you've tried to port over. So we typically see legacy UEM or Windows-specific products that we're trying to use for Apple. And then when Apple gets at scale, they'll come over. And on the SMB side, either it's unmanaged and they're just getting to the point where they figure they've got to start managing stuff, or if we have lost to a sub-scale Apple-specific competitor, they get to the point where they realize that, you know, it isn't all what it was cracked up to be or that that really, really low price to begin with isn't sustainable at renewal. Those are some of the reasons, or it just doesn't scale at all. That's some of the reasons that we get those products back or those customers back on the SMB side. Got it. All right. And just as a reminder, I forgot to mention this upfront. If anybody has any questions, feel free to submit them in the question queue or email me at jreilly@needhamco.com, and I'll be happy to ask them at the end as well. All right. So moving on to some financial questions here. David, you took over as CFO, I believe it was November 28th. Your experience, you know, I believe positions you kind of perfectly at this point of Jamf's juncture of growth here. I know investors are curious about a few things. Maybe first, will there be any change in the strategy around guidance? And then how are you thinking about, you already mentioned this briefly, but how are you thinking about the three-year plan that was laid out at the March 2024 analyst day? And then any other priorities you want to highlight here in your term? Yep, yep. So as I was researching the company and doing my interviews, I reviewed how they treated guidance and their beat-and-raise model, and it fits pretty much exactly with how I view things. I like to issue an achievable model and then outperform throughout the year, so very similar, so I would not expect any adjustments from how we've done that in the past. Targets, you know, we'll talk about 25 when we come out on our earnings call at the end of February. But I would say, you know, I think the Rule of 40 remains the goal for 2026, which is no change from when the Analyst Day. I think, you know, we have shown this year so far through Q3 our ability to grow and to expand margins and generate meaningful cash flow. So, expect, you know, I would expect that to continue out as we look into next year. You know, I've met with a lot of investors. I've done some conferences. I've gotten a better feel for the company. You know, we'll be telling the story. I think it's an awesome story. Profitable. We're growing at a reasonable rate. We're dominant in the Apple ecosystem. We're expanding to security and many other things. So, I'm excited about the opportunity to tell the story and look forward to reporting earnings at the end of February and updating everybody on 2025 numbers. Awesome. All right. So previously, guidance for NRR for the year was given that it would decline about one point every quarter in 2024, which would imply that it would end the year at about 104%. And you seem to be on track for a little bit better than that. Maybe just highlight, you know, what are the key points of consideration with why that is a little bit better maybe than was expected entering the year? Yeah, I think, again, I think we give an achievable number when we talk about things. But, you know, we have seen a good amount of downsell as the economy has not been favorable. I think what we said, I don't know, Jen, you might want to remind me what we said for Q4, flattish, I think NRR, something like that in that range. But, you know, as the economy turns and becomes more favorable, I think we could see better, you know, if NRR does improve, it will come from upsell. And I would say less downsell, which is what we've seen over the last two years. And then also our ability to cross-sell in security. I think that's been happening throughout the year. And I think that will continue as we expand our security offering and get into sales force hands. As a reminder, we did have a dedicated security group on the sales side, and what we're doing this year now is, that is, in the hands of everybody in the field, and we've added some territory, so we've got a lot more capability, I would say, on the security side to sell into our customer base. Just one point of clarification that David asked for is, yeah, we do expect slight declines in Q4, but nothing major. Got it. All right. So the current share price, you know, which has been depressed as of late, you know, it seems like this could be kind of an opportunistic time to make some share repurchases. How do you think about capital allocation priorities right now with convertible debt coming due in September '26, M&A still potentially out there, and maybe the opportunity for opportunistic buybacks? Yeah, I think, you know, as we've made our rounds talking with investors, we've gotten a lot of great feedback, and I appreciate all the feedback people give us on this. You know, we're going to take a balanced and prudent approach. We do have a convertible that will go current in September of this year, and it does mature in September of 2026. So we're in the process of planning for what to do with that. We do have, you know, we have whatever cash we had at the $220 million, whatever it was in the Q3. We have a line of credit of $175 million. So we have ample cash, and we continue to generate cash. But we are focused on refinancing the convertible and will continue to kind of watch. You know, I think the depressed stock price doesn't make me excited at these current levels. But we, you know, we're making plans around that as we look out towards the balance of the year. Got it. And then last question for me. So just a reminder, if anybody has any questions from the audience, please feel free to submit them in the Q&A box. All right. So as we kind of look forward here, the three-year plan implies ARR growth will re-accelerate to 14% in 2025 from about 12% exiting 2024. After your initial review, what are some of the puts and takes from your perspective to kind of drive this re-accelerating growth? And can this potentially occur without education growth improving? Yeah, yeah. No, and it's going on to my third month. So I've got a fairly decent handle on my sales team. I've done a lot of digging into the sales side too. But I think what the most interesting thing about Jamf is we have multiple ways to win. We are a large company. We have a global presence. Mobile is a big opportunity to us. And I think it's early in our stage in selling mobile. And that's a global. And the trend for global is the trend for wireless is there's more deskless. There's more mobile devices out there. There's verticals that have a lot of them. So I think mobile is a way that we can win. Security, we've shown that we can sell security. It's about 20% of ARR as of Q3, the end of Q3. I think that is another considerable way that we can continue to win as well. Then international expansion. About a third of our business is international. Apple's is about 55%, something like that. So I think we have a great opportunity to continue to expand not only on the mobile side, but also on the Mac side as Mac enters into many of these enterprises internationally. Then channel. We sell about 80% through the channel internationally and about 40%-50%, I think, in the U.S. So with our upgrades to our systems, I think we can push more business through the channel, which is a great opportunity for us to have more reach out in the field. Then I think the overarching theme of Apple gaining share in the enterprise. I think that continues. So, I look at the business and, you know, I'm not happy with the valuation either, but we have to prove ourselves and increase that naturally. But we have. This is a great business. We're generating a ton of cash. And we do have a number of different ways to win. So, I look forward to that in 2025. Got it. One last question for me, actually, is if you look at some of, you know, the ability to bill in foreign currency, if you look at some maybe deals that you potentially didn't win in the past, has that ever been a factor in why you haven't won some business? And does that open up some incremental opportunities for you? Or have you not found that historically being able to bill in foreign currency was an issue? I don't know. I'm looking at John here. I don't think it's taken us out of any deals. I know that we probably haven't had the partner channel lean into us as much outside the U.S. because of that. So we anticipate some advantage there. But I don't recall of us being not selected for a deal because we couldn't bill in local currency. Yeah, I would say on top of what John just said, I think it just makes it easier to do business with us. Right? So if it's easier, it's in their own currency, and we can bill appropriately. I think it's just one less negative checklist as they go through the deal against the competitors. Got it. All right. Well, with that, I believe we are out of questions here. And I want to thank the Jamf team for their time today and presenting. Great. Well, thank you very much. Appreciate it.