All right. Good afternoon, everybody. Thank you so much for joining us. My name's Hamza from Morgan Stanley. With me, I have the pleasure of having the team from Jamf here. We have John Strosahl, CEO, and David Rudow, CFO, as of the last six months, I believe. Before I begin, just brief disclosure. For important disclosures, please see the Morgan Stanley Resource Disclosure website, www.morganstanley.com/resource-disclosures. With that, John, David, thank you so much for joining us. Yeah, thank you. Thank you very much. Maybe just on a high level, it'd be great, John, to get a sense of Jamf, the company, what the core products are for those investors who may be relatively new to the story. Sure. Sure. We provide management and security products for over 33 million devices across 76,000 customers in over 100 countries. We have quite a large footprint. We have 75% of the Fortune 100 as customers, as well as a pretty broad small to medium-sized user base as well. We serve both the education vertical as well as the commercial vertical, and the Mac, all the way, and as well as the mobile devices. Great. Great. You mentioned very large install base, starting off in device management, really specializing on the Mac ecosystem. In recent years, you've also expanded into the security arena, which is now close to $160 million ARR, 25% of the total business. Curious what that entails, what the composition of that is, and how the upsell momentum has been going there within your device management base. Yeah. I mean, I think it's important to note that we didn't decide to go into security. Our customers really asked us to. They said, we have these Apple footprints, and we would put more Apple devices in our ecosystem if we trusted that all of those devices could access our corporate resources. They really pushed us toward what we call a trusted access outcome. That's when we started to get into security, not just on the device security on the Mac, but also on the mobile device, network security, mobile threat defense. We have all of those things. Most recently, we just added dynamic identity to that as well. Yeah. Can you maybe explain a little bit on that recent acquisition that you made? What is Identity Automation exactly? How does it differ from maybe some of the access management providers that we know, like Okta, et cetera? Sure. We partner with Okta very closely, with Microsoft Entra as well. It is not meant to be a replacement for either one of those identity providers. What Rapid Identity is, is a product that we have gone to market for quite a while with the company called Identity Automation. We have gone to market with this primarily in the education space because they have a unique need in the education space that we also see applying to some of our commercial customers as it relates to the iOS and deskless workflows like you would see in retail or transportation. What it provides is identity that is specific to the person that can change. If a kid graduates from one grade to the next, their identity and provision authorization will change. Because they integrate into the school information system, or it could integrate into a commercial HRMS system as well, it really helps identify that person, what their authorization and provisions level should be, and as it changes. It can change on where they're at, contextual, location-wise. It can change on the role that they have, or if they've graduated from that. They don't have to do anything manually on the device. They can actually do all of that through the integration with the system, and it becomes automatic. It's a touchless workflow. That's really benefited the education space. Like I say, I think there's some application in our commercial customers as well. Great. Great. David, maybe shift the conversation to you. So you've been at Jamf now a little over four months, actually. Sure. Just curious, as you've been here now for four months, what are some of the immediate priorities that you have, and what have been your first impressions so far? Yeah. Yeah. No, it's been a great four months. I think anytime you enter a new company, there is one, OK, what am I going to find? It was actually refreshing. We have, as John said, a very good customer base, blue chip customers. We sell security, mobile. We have the management piece too, international. The team is great. I have a very good team. I think it's only gotten better. I look at the opportunity for us around the world. I mean, there is a huge opportunity on Apple. Like this Identity Automation acquisition, it's user-based. Now we can access any device on the identity side. We did deploy a new ERP. We went with Oracle Fusion, and we deployed a new version of Salesforce. I think that I knew that coming in. That's been a lot of hard work by the team. I mean, any deployment, of course, is difficult. This is no different. We have 76,000 customers. You think about the idea of doing a quote-to-cash test for every single permutation, it's just really hard. We are well through our way with the system issues that we've run into. We had some billings issues that increased DSOs. Now it's kind of like tweaking around the edges, move on to phase two over the next couple of months too. I look at it and think, I mean, this is a great company. It's been a lot of fun getting to know it. I enjoy talking to investors about it. In terms of priorities, of course, the system. We're going to continue to work on that. I think with that system, we have the ability now to be even more strategic with each and every division. We'll get slices of data. We can look at ARR differently. We can look at sales differently because we have a lot more detail now. Really have the team become a lot more strategic with the organization and help grow and increase margins as well. I think those are probably the priorities. Of course, going and telling the story. Jen, who's here too, she's been here a lot longer than me, much more smarter on Jamf. We're hitting the circuit. We're talking to investors, telling the story. We're going to Europe next week and go tell the great news about Jamf. Great. I definitely want to come back to that. John, I had the pleasure of going to your user conference some months back. It was really great to hear the customer feedback. 76,000-plus customers, not all of them were there, obviously. They love the core device management product. Maybe a big tailwind for Jamf has been Apple's share gain in the enterprise. It really seems like Jamf is very much the category leader there, very much aligned with that trend. What would you say are the two or three differentiation points that separate you from competitors who are also trying to align themselves with that trend? Sure. Sure. We've been doing it for two decades and partnered very closely with Apple all along the way, which Apple is, and they've said it publicly, they are a customer of ours. They use our product to manage Apple devices within Apple. There is certainly a vested interest and a very close partnership as we progress toward new product lines and customer needs and things like that. On the enterprise side, there are customers that do endpoint management that go across all platforms. They tend to be a jack of all trades, master of none. There are some things that happen in the Apple ecosystem that are very specific, especially as it relates to the interoperability between the devices. That is something that really sets us apart and being Apple-specific. The fact that our customers asked us to add security to that, and that we did, both on the network and on the device, and it's an Apple-specific security. There are some things that happen in the Apple ecosystem that are designed that way that a security product written for another platform may not recognize, or say that something's going on when that's just how a Mac is supposed to work. There are some false positives. I think there are some things that set us apart with both management and security that no other company does in the Apple ecosystem at scale. Full stop. There are some smaller competitors on the management side that are Apple-specific, but very subscale. In fact, I think the largest one has about as many devices under management as we have Apple TVs under management. That's a very small portion of our business. We have the scale. We have the management and security. We have the Apple ecosystem specificity. As far as the growth drivers are concerned, I mean, most recently, you exited last year with about 10% ARR growth, a lot of improvements in the profitability, which we'll get into as well, David. I think this is a business that was growing much faster, probably can grow much faster. When you think about some of the exogenous factors from a macro standpoint, as well as things that you're trying to do, what are some of the levers that you have that can get you back to a mid to high teens growth rate over time? Yeah. I think you mentioned one of them. That's just the expansion of Apple in the enterprise. We see a lot of that. Many companies now are providing choice programs. When you start with a company and they say, do you want a MacBook, or do you want a PC? Two-thirds of the time, and we've corroborated this through a couple of different studies, they will choose the Apple device over a PC device, even if they're going through a refresh cycle. We see the expansion of Apple in that space. The other thing that we see is the growth in deskless workflows. Things like retail, when the point of sale, inventory management, returns, payments. If you're inside of a retail outlet, you can bump phones with somebody, walk out the door. You don't have to go stand in line. All of those things are fantastic ways that companies are realizing how to extend the deskless workflow. The Apple ecosystem really stands above there. We look at our growth vectors. There's four of them. Mobile, which we had really good performance in Q4 on mobile and security side. International, this is about a third of the business is international, and it grows at a higher rate. Security and the channel. 80% of our revenues ARR comes from the channel internationally and 50% in the US. We hired a new individual to run the channel program. He came from Symantec and Adobe, big channel companies. We are making additional investments there to really leverage that business and add partners. With the system upgrade, we also have a partner portal now where they can register their deals and get quotes without having to talk to a Jamf salesperson. We are going to see more sourcing of deals from the channel. Those four give us the ability to grow. Obviously, 8%, we don't like 8% growth. We're at a midpoint of our guidance. We will strive to do better as we move through the year. Actually, that's a good segue into my next question. I did have a chance to talk to some of your go-to-market folks in Nashville at your user conference. It did seem like the channel was a really big focus, particularly as it relates to security. We know a lot of security is sold through channel partners, MSSPs. Maybe talk to us about the different levels of investment when it comes to the security sale, what you're kind of doing there from a channel perspective relative to the core device management offering. Yeah. We sell them together as a solution. There is not a wild difference between how we will approach the channel for either one of the parts of that product. The fact that we have done some things, David mentioned our comprehensive technical update, our ERP system. What that did is it gave us the opportunity or the possibility to have a partner portal that we did not have before. Now channel partners can come and actually register a deal themselves, which they could not do before. They had to talk to a Jamf salesperson. That helps the efficiency on the channel partner side as well as our own. We deployed a new partner program where it gives different levels of margin or commission based on if they brought the deal to us versus us bringing the deal to them. That is another area that we have focused on. Internationally, we have a bigger percentage of our business that goes through the channel because we started channel first. We did not have the people on the ground to do that. In the U.S., we're transitioning from a direct sales model into the channel. A lot of the investment there has been building up channel reps, channel account managers that can really enable the channel and then make sure they follow through with them. It is almost like running a sales team, if you will. What's your pipeline look like? What's your close ratio? How can I help enable you? What else can I do to support you in that? That mindset is something that's gotten some traction in the U.S. I see that only continuing. I think the other thing is that we are selling more platform deals too. I think buying of these products is going to consolidate into management and security. What we said during Q4 is that we had 50% growth in our business plan, which is our platform of management, security, and mobile. We see nice traction there. What we see, obviously, is if they deploy more of our products and use our products, it's a lot stickier. We are going to market with this bundled approach. We are seeing nice traction there. I think that's how buyers are going to look at this, I think, as you look in the future. I think one of the things that maybe the exogenous factors that are maybe perhaps a little bit out of control is we are seeing longer replacement cycles for devices, particularly Apple devices. I did update my iPhone, actually, recently, though. I think, in general, to your point, more and more people are going to use Apple in the enterprise as consumers start to move their devices into the workplace. Just curious, are you seeing anything change around that? How are you thinking about just the refresh cycle, if you will, as it relates to your guide? Or is it a good question for David? Yeah. I think on the refresh cycle, I mean, if they have an old device, they get a new device, and they have a subscription, it's the same. I think where a refresh will help us is if they have a choice program. We're going to refresh everybody's devices. You can choose what you want. I think it's what, two-thirds of people would choose a Mac, right? Especially as the younger generations come into the workforce, I think you'll see more of it. It does give us the opportunity. We constantly try to cross-sell security and everything else into the base too. I think what we're seeing now is that the hiring has been slower. If hiring picks up again and tech is our biggest exposure, that will be tailwinds for the business as you look out toward the future. I think what we thought about as we built the plan, we talked to the sales team. We tried to get a read on budgets for our customers. It sounded very similar for 2024 to 2025. As we entered into the new year, you look at some of the layoffs that were happening. It kind of leads you to be, I'm a little uncertain here, which was the cause for kind of the 8% midpoint growth that we provided. I think we're taking a conservative view on the year. We've built an achievable model. As we move through the year, we would expect we're going to aim to outperform that number and do the old beat-and-raise model. That makes a lot of sense. I mean, even if units are maybe not growing as fast as you'd like, there's a lot of room to drive ASPs higher as well. I think one of the things, just drilling into the security side of the house, so there's the endpoint security as well as the identity security. Just sometimes when people think of endpoint protection, they think of, obviously, CrowdStrike and SentinelOne and others as well. Just curious, are those some of the competitors you go after and how you think about differentiating versus them? Yeah. I mean, it's not a rip-and-replace model. We tend to see customers that have 80% of their fleet is maybe Windows devices, and 20% is Apple devices. That 20% may be growing or sometimes less than 20%. They may have a Windows-specific or a Windows security product on all of them. Then because they're using our management product to deploy on the Mac, even the security products, they will add ours as well because of the fact that we've really gone after some Apple-specific things that will happen. Apple is the most secure operating system available. Now that it's in more and more enterprise hands, it's becoming a bigger and more valuable target. That's something that our customers have just said, hey, we want the belt and suspenders to really make sure that our Apple footprint is safe. Also the most resilient operating system out there as we've seen in the last year. It is. Another lever of growth has been expansion in other verticals. I think not the majority, but a decent portion of the business is within tech, education, and some SLED verticals. Just curious, regarding the diversification of verticals, where else do you see opportunity to diversify the business and see growth beyond the main verticals that you go after today? Yeah. Our growth verticals outside of education and tech, we've seen financial services pick up quite a bit. We've seen wholesale and retail pick up quite a bit. Transportation, transportation field services. Airlines, for example, they used to have those big flight plans that the pilots would carry into the cockpit. Now it's an iPad. The flight attendants walking up and down the aisle with their iPhones, all those are managed with Jamf. Not every one of them, not yet, but we're trying to get there. Many of them are. Below the wing, the maintenance crews will have iPads as opposed to manuals. They can figure out where their parts are. They can figure out how to fix something all on the iPad. We're really seeing things, like I mentioned before, just in areas that we hadn't anticipated. Transportation field services, financial services, wholesale retail, those are all areas that are really promising. Another driver, going back to channel, has also been, I think you recently expanded your partnership with Microsoft Azure as well. You're selling through the marketplace there. Maybe talk a little bit about that. Are there other ways that you can drive leverage through marketplace partnerships like that? Yeah, absolutely. This is super exciting. I was pleasantly surprised when we first started it with AWS, AWS Marketplace. Because we used AWS Cloud, we then partnered with Amazon to be on their marketplace as well. The Amazon sales reps can actually sell Jamf, and it retires part of their AWS quota because it uses AWS cycles. The other thing about that is that it can actually use, if you've signed a commitment with AWS for a number of years, a certain amount of spend, you can use part of that spend to buy Jamf products because it backs into AWS. That has been tremendous because customers then have earmarked funds that they've already committed, and now they can use them to buy our product. The approval levels went from eight down to one because it's already earmarked for that. The AWS reps that are talking to all these different enterprises are incentivized to sell our product as well as they get credit for it on their AWS spend. It works so well that we really started to talk to Microsoft and Microsoft Azure about the same thing, about the Azure marketplace. We launched that, I think it was last quarter, two quarters ago. Again, great traction, same concept. The Azure Microsoft salespeople will get credit for selling Jamf product because it backs into Azure. There are some customers that really are already using Azure. This is an addition to that. They can use that committed funds to buy our product. We are really happy and excited about both of those hyperscalers. David, maybe going back to the multi-product story. Are there any stats or any color you can give us around when a customer does buy the Business Plan or when they do buy multiple products with Jamf, what does the gross or net retention uplift generally look like? I'll look at Jen there. You can give some of the look back. Yeah. I I think Business Plan is too new to really get a gauge on what the net revenue retention is because we're not at a renewal point for a lot of those deals. It is higher. It is higher. We have found that when they purchase more than one, we have both a Business Plan and an Enterprise Plan as well. Business Plan will focus more on the mid-tier, small to mid-tier customers. The Enterprise Plan is similar, but it is for the enterprise. We have seen not only higher retention, but higher cross-sell and upsell with those products when they buy the solution together. That's helpful. Sorry for the curveball there. Yeah, I know where you're from. I always look to Jen for help. Yeah. She's always good. I'd love to open it up to the audience for any Q&A. Or you can take a minute as you collect your thoughts. I can ask more questions as well. Oh, no. Carol's going to ask? All right. David, I'll go back to you. Obviously, as a CFO, you're always trying to balance growth versus profitability. I hear John talk about, obviously, investing more in the security business, investing more in the channel, the go-to-market. You also, obviously, aspire to grow more than 8%. The guidance for this year has you expanding operating margins. I think you're going to do a little over 20% this year, which is quite healthy. How do you show that leverage while also trying to invest for that reacceleration? Yeah. I think we've done a nice job of optimizing the teams. The research and development expense is probably in line with where it should be in the long run. We've done a nice job of putting additional help in offshore. In Brno, we have a group of developers in Brno. On the G&A side, we have people in Poland too, Poland and the Czech Republic. This new system migration, that will allow us to become more efficient. We won't have to add as many people. On the sales side too, we continue to find ways to optimize the performance of the team as well. We did a restructuring last year. With that, then we saw a very nice improvement in productivity on the sales side. I think there's other areas to look, even outside of the comp side, where you can squeeze and really look at what we're spending. With the new system, we have a lot more details now to go in and actually look and say, OK, do we need this vendor and that vendor? We're going to go through and do that as well this year. I think there's areas we can tweak without impacting the growth of the business. Yeah. I wouldn't be a software analyst if I didn't ask about AI. Curious if there's any ways that you're using AI internally, whether it's to automate customer support or drive more efficiencies. The answer would be yes. In many of those ways. We've got a number of projects ongoing at the moment. We have a product we call Ask Jamf. And we can query the data that we do have. And we can leverage this massive user group base that we have, which is JNUC, actually, which comes together once a year as JNUC. But it's called Jamf Nation. There's over 150,000 active users that help each other out, help prospects out. We always send people there. If you Google, what do I do with this Apple thing to manage or secure it, 9 times out of 10, if not 10 times out of 10, you'll be redirected to Jamf Nation. And then they will help answer the question for you. We had over 300,000 posts just on that site last year. It's a very, very active group that comes together once a year for JNUC. You saw a portion of that. We leverage this Ask Jamf, the data that we have in that, in order to help not only internally with our teams answer questions, but then also externally as well. We'll continue to leverage that more and more. We use it in the development department to supplement our development, especially some of the low-level, entry-level development pieces to kind of go along with the development team. We use it in the go-to-market side, evaluating through the communications. We can evaluate the sentiment of the conversations. Is there a higher propensity to buy, or is there a higher propensity to churn? We use it on the go-to-market side, the development side. I know you're using it on some of the analytics side internally as well. As Oracle's deployed, there's some automation AI built into it. We also are deploying Clary, which has some AI in it as well. Within Oracle, some of that automation, you'll be able to do reconciliations, cash matching, and some of the billing work that we do. Anything analytics, we should be able to really dig in and get some more data detail out of that too. As you think about future things, you can imagine that with 33-plus million endpoints, our customers know every application on the Apple side, every application that that device has on it, when it's been updated, what the usage of that application is. They get a lot of telemetry from their endpoints that then they can use even across their entire fleet to, is there a security threat? Oh, there's a security threat. What should we do about it? AI can actually go and automatically remediate that because we have both sides of the coin. We have the management side and the security side. You can't have a secure device without it also being managed because if you find out something's going on, how do you do something about it? You need the management product. That's why the two fit really, really well together. AI plays really, really nicely into that because of the telemetry that we have. We can consolidate that. We also know how other customers with similar contexts or environments would deal with that. We can have Blueprints providing suggestions for customers on how to deploy and implement things, and then using AI to actually go remediate issues that they find. Yeah. Certainly, the majority of threat telemetry is coming from the endpoints today. That is an important point. I'll open up to the audience one more time in the Q&A. I can certainly ask more questions. One of the things I also heard at the user conference during the analyst presentation, one of the things that you were trying to address was around building a strong integration ecosystem. I mean, you've got almost 80,000 customers. When it comes to Mac, you're really a system of record. What were some of the things that you're trying to solve for when it comes to integrations? What's been the progress in the last year since that user conference? Yeah. I mean, we have 98% recurring revenue. We do not have a lot of services business as it is today. We do know that when customers do leverage our services capabilities or integrations, it does not have to be us. It can be a partner. When they do utilize that, they do also, much like when they buy the whole solution, have higher, better upsell, better retention, all of those things. We are actively, as part of our channel program, building up those systems integrators and companies that actually work heavily in the Apple ecosystem, for example. They can come in and actually help with some of the integrations that they do for our customers. Many of them, especially internationally, are already contracted with our customers. That really flows well into that. Great. I'll open up to the audience one last time. OK. Why don't we end a few minutes early? John, David, thank you so much for your time. Really appreciate you coming out here. Best of luck with reaccelerating the business and also showing the profitability. Perfect. Thank you. Thank you everyone for joining us.