Jamf Holding Corp. (JAMF) Earnings Call Transcript & Summary

This is perfect. Before we get started, I want to remind everyone that today's discussion will include forward-looking statements. Please refer to our most recent SEC filings, including our most recent annual report on Form 10-K, which will include a discussion of factors that could cause our actual results to differ materially from these statements. And here's our agenda for today. You'll hear from John and Ian, as well as Henry Patel, our Chief Strategy Officer. We'll also have a customer panel moderated by our Chief Customer Officer, Sam Johnson. With 2 opportunities for Q&A with the entire Jamf management team who is here today. We will be taking questions from the live audience as well as consolidating questions that arrive via the live webcast. And with that, I'll hand it over to John.

[Audio Gap] It's our first one. Now I've been the CEO at Jamf for just over 6 months. But while I'm new to the role, I'm not new to the company. I started with the company back in 2015, as the Chief Revenue Officer. And then served as the Chief Operating Officer and then most recently in the President role, before our previous CEO retired in late last summer. So I know the company well, but I also know the industry well. I've spent my entire career, which is almost 35 years and counting in InTech and about 1/3 of that outside the United States. And I've managed hyper-growth companies. I've managed large scale, mature organizations. And I think I've seen the gamut in our industry. And I think that given that context, I'm really qualified to say that Jamf is that special place. And we're going to talk about taking it to the next level of its evolution and its maturation process, which is efficient scalability. Now we're going to start with why Jamf is that special place and why we've been successful? And I'll cover how our solution is differentiated from our competitors and why we have a deep and wide competitive moat around our product line. We're -- we will demonstrate why our large addressable market is expanding and how we're going to fulfill that customer need and that customer demand in the process. We have a successful strategy. I'm very proud of establishing that over the past 8 years with my Jamf teammates, and we're ready for that next phase of evolution, which is that efficient scalability that we spoke about. And we're going to build on that through discipline, rigor and cadence. And lastly, we're going to talk through the road map today to get us through to the numbers that Ian is going to take us through later on in the presentation. I'll start with the strong foundation that we've built. And then I'll outline why our solution brings such compelling value to our customers and why, again, we have that moat around our product line. And then lastly, will explain the steps that we're going to take and how we're going to get to those metrics over the next 3 years. Let's first talk about the strength of our foundation. Jamf is the undisputed leader in managing and securing Apple devices. In fact, it's the only company that can deploy modern management and comprehensive security at scale within the Apple ecosystem. And strong growth. Since our IPO just 3.5 years ago, we have a CAGR approaching 30%. And with virtually all of that revenue, 97% in fact, that's recurring, and that's up from 30%, when I started. But that 97% recurring revenue provides a very stable and predictable top line. And this is a true SaaS offering. This is always up to date. This is a subscription service. And customers vote with their dollars. And with a retention rate, net retention rate of 108% and a gross retention rate hovering around 90%, those customers have voted with their dollars and they've proven and demonstrated the value that we bring to their companies. And this strong foundation, it doesn't happen overnight. We've been innovating at the pace of Apple for over 28 years. And we've listened to our customers every step of the way from deploying smart groups back in 2006 to releasing same-day readiness for the Vision Pro, which we just announced last week. And take security, for example. We just didn't think up of an Apple First Security Solution. Our customers specifically asked for it. As they expanded their Apple footprint within their organizations, they needed to be sure that those devices weren't just deployed and managed, but then also secured so they could access the company resources. And the notion that you can't have a secure product without it also being managed really plays out here. I mean if you have a device that has a potential vulnerability, how do you stop access to that device? Or if you have an application that may have a potential vulnerability, how do you force that update to that application? These are all things that we can do with our product line, and we do that in a holistic solution. Now our customers spoke and we listened. It's obvious by this chart and also the growth trajectory that we've seen on the upper right-hand side. So when Apple innovates, Jamf celebrates because it provides us or it creates an opportunity for us to provide value. And this value and the strength of our foundation isn't limited to specific industries or geographies. In fact, just take a look at some of the sample here, we service everything from the SMB customer, all the way up to 8 of the top 10 Fortune 100 companies. All of the major U.S. banks, 80% of the largest U.S. school districts and all of the Top 15 global universities. And we do this in over 100 different countries. And while we have this impressive roster of customers, there's room to expand in every one of them because Jamf, just like Apple, has a land-and-expand strategy. And if you have a few employees within a function or even a department that uses Apple devices, once that organization and InfoSec and IT teams figure out how easy it is to deploy, manage and secure these devices in their environments, they buy more Apple devices, which expands our user base. So we have the headroom for ample expansion in each one of these customers. Now we've spoken about the strength of our foundation and how we've -- let's take a look at how we've done over the past 3 years and how we've executed on that. So we went public in 2020. We're supposed to go out in April of 2020, did the roadshow in person. The pandemic has something to say about that. So then we saw an opportunity to share our story later that summer with investors. And so we were able to have an exit, an IPO, in later that summer in July of 2020. And since then, we've over doubled the size of the business. We've increased by $300 million in ARR. And while security at that point in time was a pretty small footprint, we have now a business of $130 million in ARR, in our Security business and growing at 30% year-over-year. And with gross margins consistently north of 80%, we have a lot of flexibility in our expense model. And lastly, we do what we say we're going to do. We've met or exceeded every formal guidance that we've given since our IPO at 15 quarters and counting. That's solid execution on a strong foundation. Now let's double-click on our Security business here because it's really been transformative in our business and really has an outsized positive impact on our total business. So, as I mentioned, we listen to our customers all the way. And even before we went public, back in 2018, our customers said to us, one of our biggest pain points is the number of IT tickets that we get around passwords. And so then we release Jamf Connect, and that allows our users to federate those passwords across devices and across applications. And then we added endpoint security. And then we added with the acquisition of Wandera, we added network security. And most recently, Jamf Executive Threat Protection. And let me just talk about Executive Threat Protection for a second because, again, it's a special product and has a halo effect. It's an endpoint of threat defense, actually -- sorry, it's an endpoint, it allows customers and our high user targets high-value targets to be able to really look and find out what's happened. So as I mentioned, we have 8 of the Top 10 Fortune 100 companies, and we have many governments around the world, and we have a lot of 3-letter government agencies that use our product as well. And when those high-value targets will come back from some geographies, they literally have to throw the phone away. They know it's been compromised. They just don't know when and how and where. But Jamf Executive Threat Protection allows them the visibility in that -- into that device, to be able to do it. And if -- so you can see how that's projected throughout the time line here and how our revenue has increased as a result. And the other thing about management and security together, when we offer the 2 of these together, we have a conversion rate of almost twice, that if we use only if we go to market with only one of those products, and we have higher retention rates. So again, our Security business has really been transformative in our company, and it's really had an outsized positive impact on our business. And that is a solid part of our future, as we move forward. So I've outlined the strength of our foundation and how we've executed on that. And now let's turn to why our market-leading position is so defensible and why we have that moat around our product lines. There's many facets to our business, both our product and our company, our services and support, that we refer to as our whole product experience, that our customers benefit from and that helps create that competitive advantage that we have. So let's talk about a few of those here. Just taking a look at Apple in the workplace. Apple creates the best consumer simple device. And research will show you that Apple is expanding in the enterprise because of this. Now Fletcher Previn, who's the CIO of Cisco, recently did a survey released the results of that survey from within his organization. And he asked his employees. He gave them the choice that they would have an Apple device or if they wanted a device of another type. And not only Cisco does this, but many other companies do this and many more are planning on doing this. But with that choice, 2/3 of those users preferred an Apple device. And what's interesting about that is they weren't all new employees. I mean some of these were going through a refresh cycle. So we know that Apple is taking a bigger piece of the pie. And interestingly enough, he did a very similar study a few years ago when he was the CIO at IBM. And he got very similar results. So it really adds to the credibility of that data. Now if you just look at college students, for example. Some of them have only ever used an Apple device. And guess what they want to take with them when they go into their working world and they start their career? In fact, an interesting story I heard recently, our former CEO and current Board member had a daughter, the graduated college. And she started her first day at work, and she was giving her new laptop, and she looked at it and opened it up and called dad. And said, "Dad, I got my new laptop for work and not sure what it is, but it looks old. And Dad said, "Is there a start button in the corner?" And she said, "Yes." He said, "Honey, that's called a PC." So -- and for those of you that know Dean, that's an extra story. Now with Apple's footprint really growing inside organizations, it's even more important for their IT and InfoSec teams, to feel secure about not only deploying and managing but then also trusting those devices to access their company resources. And this is where we make our living. Between the consumer simple device that Apple creates and the needs of the organization to deploy secure and manage those devices within their corporate environment and to trust them to access the company resources, and that's trusted access. And over 75,000 customers trust Jamf with over 32 million devices to do that and counting. Now you may ask yourself, "Yes, but there's got to be other products on the market that do that." I mean, considering all the devices that are out there, and you'd be absolutely right. There are some fantastic point products out there that can enroll your device, that can deploy applications and update applications. And some others yet that can actually do the endpoint management. And all of them were written for the Windows operating system. And we've seen time and time again, companies will start with a product with one operating system or platform, and they'll try to extend it to other platforms. And then what they get is they just diluted the user experience down to the lowest common denominator. And then those users don't get the benefit of any one of those particular operating systems. But Jamf provides a holistic solution, built specifically to work together, designed specifically for the Apple ecosystem. And that's at lower cost, that's seamless integration, that's the full user experience and that's trusted access. And we don't do all of this alone. In fact, we've got some very powerful industry partners that work alongside us to amplify what we do, and for the benefit of our mutual customers and also so that they have access and a conduit to our community. Now these are just a sampling of the partner ecosystem that we have, we have many more. But just in the sample alone. We have the top 3 cloud providers. You have the Top 3 identity providers and you have the Top 3 endpoint management providers, all working with Jamf to amplify what we do. And most of these partners are also customers, and all of them were speakers in our general session at the keynote at a recent Jamf Nation User Conference. This -- again, this ecosystem is not something you create overnight. We've been doing it for over 20 years. This is solid execution on a strong foundation. So if having a world-class product and platform with a demonstrated capacity to succeed and some powerful industry partners isn't enough. We also have the prevailing industry wins in our favor. Now, Apple's presence in the enterprise is only growing. In fact, IDC has predicted that 20% more Macs will be sold into businesses from 2023 to 2024. And users want that consumer simple technology. As competition for top talent increases, we believe that the employee experience is either going to be improved or degraded by the technology that they use at work. And this doesn't only apply to the laptop. I've spoken with many non-tech forward-leading industries like manufacturing and transportation. And they're really leaning into the Apple Watch, and the iPad and the Vision Pro, and trying to figure out how they can incorporate those devices into their businesses and into their workflows. Apple makes the most secure operating platform available. But with Apple expanding inside of the enterprise, it becomes even a larger and more attractive target to bad actors. And so being able to identify and halt or stop Apple-specific threats is really allowing us to succeed. And those are the industry wins that we can use in our favor. We talk about our differentiation in our product line and in our company. I think one of the most overlooked and probably undervalued assets that we have at Jamf is Jamf Nation, which is our user community. This is 100,000 members, and it is the tightest knit Apple administrator community on the planet. Now if anyone has questions about how do you go about something, how do you deploy something issues to overcome or even if they're looking for work, they will reference this community. And every year, we bring this community together. Last year, we did it in Nashville. This year, we're going to do it -- or sorry, last year, we did it in Austin. And this year, it's going to be in Nashville. And we have over 3,000 attendees attend this. And we expect even more of those to come this year. And that provides us -- having a front-row seat into user preferences, product ideas, M&A targets. I mean it's literally unmatched in its value to Jamf. And the knowledge and the technical capability and the comradery that you get from this 100,000-plus user community again, it's not something you can create overnight. And it's something we've been benefiting from for the last 2 decades. Now one of my top goals is maintaining the strong culture that we have at Jamf. And it's one of the best in the industry, and it's what I spoke about earlier about Jamf being that special place. It's really down to the people that work there and the culture that we have. And I'm very proud of the culture that we've built over the past 8 years, and before I even started with some very early employees at Jamf. But when you have a culture where 9 out of the 10 employees surveyed say they're proud to work for the company, and we have a voluntary retention rate over 90%. I mean this really speaks volumes to the employee satisfaction and how they feel about our organization. Customers vote with their dollars and employees vote with their feet. And if you just look at our customers with an NPS Score in the mid-50s and gross retention hovering around 90%, those customers have voted with their dollars and they prove every day of the value that we provide their organizations. And our employees practice, our company values every day, which is relentless self-improvement and selflessness. And that's really what makes Jamf special. And that's a strong foundation with demonstrated success. Now we've covered that strong foundation and our market-leading position, and how we've executed against that. I've also outlined our competitive advantages and how we've created in and widened that competitive moat around our product line. Now let's talk about where we go from here. Now my priorities at Jamf are to build on the strategy that we have in place. It's the right strategy. We have a solid business and demonstrated success. And we have 3 major growth drivers in front of us. And Henry is going to take us through those in a bit more detail. But just in short, we're going to continue to extend our security functionality. Every device can have one device management product on it. But every device can have several security products on it, whether it's an endpoint security or network security or what have you. So it provides us with tremendous opportunity just in our current installed base. We've also not even scratched the surface of the mobile opportunity. I mean despite the phone, just put the phones aside for a second, which is a massive installed base in itself, especially with Apple dominating that space in a lot of different regions. The fact that there's all these other devices. So if you look at iPads and when's the last time you walked into a retail store and didn't see an iPad as a point of sale? For pilot log books, remember those old -- some of you may remember some of those old books cases that pilots used to carry with their logs in it. Well, now it's an iPad, simply just an iPad. And you've got the Apple Watch for driver tracking and baggage handling. And we've got health care companies talking to us about Vision Pro and use cases in the medical field. So the opportunity for these devices in these industry workflows is absolutely unlimited. And every one of those devices needs to be deployed, managed and secured within that company's environment, and that's how we do it. And that's what we can help with. So -- and our commitment to our customers is paramount. And the way we want to be around for them for the long haul is to really execute with efficiency and scalability. And in order to do that and take us to the next level, we're going to continue that demonstrated success that we have today. Now if we take a look at some of the items that we're working on to achieve that scalability and efficiency, we've mentioned to many of you in the past that we have a pretty extensive internal infrastructure project that we're deploying out now. And that will make it easier for customers to become a customer of Jamf and to stay a customer of Jamf. And it will also help us mitigate a lot of the manual processes that we're doing today. Our platform is strong, and we're going to continue to extend it with security functionality. And we have a demonstrated productivity capacity within our go-to-market organizations that will return as we leverage that internal infrastructure product project that we have. In addition, leveraging those strategic partners that we have, in addition to our third-party channel partners. And lastly, as I mentioned, we're going to continue to expand into that international installed base opportunity strategically, that we have available in front of us. And these actions will result in a 1,700 basis points improvement. And by the third year, and Ian will take us through those in a second. So in summary, we have a strong business. We have a differentiated market position with a deep moat around it. And we have a proven strategy that will take us to the next level. And we have a strong set of initiatives that are going to continue and provide that profitable growth. And we do what we say we will do, and we're going to continue to do that, just as we've done for the past 15 quarters in counting with discipline and rigor and cadence. All right. Now I will hand it off to Henry to talk about some of our growth opportunities.

Thank you, John. Thanks, John. Good morning, everyone. I'm Henry Patel, Chief Strategy Officer. I've been at Jamf for over 10 years. And in fact, I've been in the Apple ecosystem throughout my whole career, including working at Apple and various go-to-market roles. Today, I'm actually excited to talk about a large and expanding serviceable addressable market opportunity. And how we're enabling ourselves to go capture our share of wallet. Now Jamf is well positioned in both commercial and education. And when we look at when we look at our SAM, we've been focused on which countries that we serve and which product categories we're in today, both in management and security. In education, education is a smaller market but it's actually a very significant opportunity for us because we actually go to market with Apple in various regions. And in fact, of the $1.4 billion serviceable addressable market, we've actually captured 11% of that global EV market. Commercial represents a significant opportunity for us. And combined with education, it's almost a $22 billion SAM, and we've captured 3% of that market share, which gives us a lot of headroom above that. Again, as we speak of serviceable, addressable market opportunity, these numbers are representative of the countries that we serve and the product categories we have today. Now as we enter more countries or as we introduce new products or capabilities, obviously, that serviceable addressable market will grow. Now we've had impressive growth, and we have a great runway for continuing down that path. We expect strong growth in both markets. And given the size of commercial, it will drive the overall CAGR. And we would anticipate achieving ARR growth in excess of these market growth rates after 2024. Now a few factors that contribute to our belief in capturing our share of the market. One is Apple will continue to grow in the enterprise. And more recently, in Apple's earnings call, they mentioned their overall footprint has grown over 2.2 billion devices. That's actually a pretty impressive growth. Second is when given a choice, as John mentioned, employees choose Apple. And not only when they choose Apple, there's a halo effect of they want to use more of the Apple products. If I'm using an iPhone, I want to try Mac. If I'm using a Mac or an iPhone, I want to try the Apple Watch. Third is our proficiency in capturing more share of wallet with our customers on security and mobile. We'll talk a little bit more about that as well. And fourth, as John mentioned, our continued investment in growth of geographies outside the U.S. And we expect this total SAM to grow to $27 billion by 2026. Now security is a key growth driver across both markets. Of the $20 billion -- almost $22 billion SAM, $14 billion is related to security, and we've had impressive growth in this category since we IPO-ed. And over that period of time, we've added various security capabilities around identity and around securing, protecting devices. And growth in this area is clear evidence that our strategies at work, with our Apple-first approach. Our vision of trusted access, which is only authorized users on enrolled devices that are secure and free of threats are able to access critical applications and data is driving the differentiation in the market for us. We also know that security is a team sport, and we support Apple. We also know that Apple devices are constantly targeted. Thus, our goal is to help address the needs of organizations that have enterprise-level requirements around security and compliance. We know that the investments that we've made over the last 3 years will continue to gain momentum as we've offered more differentiated products in the security space with Apple-first approach. And we expect the Security SAM to reach approximately $19 billion. Now there are key opportunities with security in both markets. In education, we introduced Jamf Safe Internet. It helps schools protect their students from network threats such as malware and phishing, but also from inappropriate online content. Now as schools deploy Jamf Safe in over the last period of time. They've asked us that this is fantastic that you're protecting Apple devices, but we want you to protect all the devices that are in our schools. And so last year, we introduced Jamf Safe Internet to support both Windows and Chrome OS. In commercial, which is our biggest opportunity, a good example there is around identity and access. You know that with our Jamf Connect product, you know that through our Jamf Connect product. Jamf Connect provides a large potential as we're seeing growing interest and adopting trust technologies in the market. And we're at the early stages of that inflection point. The ability to ensure that an authorized user, on a trusted device, can securely access the resources that they need in a consumer simple way is where we excel. Now we have a robust platform to protect Apple users. And we -- because we build it on top of what Apple provides to look for Apple-specific threats. But we also incorporate the health of the device and making decisions on what kind of access that user has. We also protect the Apple users on device and on the network. And in fact, John mentioned that we have a more advanced tool around Jamf Executive Threat Protection for sophisticated threats and for those high-value targets that our executives or might be in regulated industries or government officials. Third is integrating remediation through our management capabilities. And lastly, building and delivering a unified user experience through our Jamf Trust and user application that supports the Jamf platform across all Apple devices. Now our commitment is innovating at the pace of Apple, bridging the gap on what Apple builds and what the enterprise needs. And developing to deliver a consumer simple experience with privacy at the forefront of our minds. Now we have a solid road map for the future. And one example is to unify the end user experience, where one application can deliver secure access to critical resources, both in automation or in self-service, while the ensuring transparency to the end user on the health of their device, which can be continuously trusted tamper-free. We believe that Jeff is the only company that can deliver this experience for Apple. Now there are 4 key strategic growth drivers that will enable us to capture these large and growing market opportunities, powered by Jamf Global go-to-market strategy. And we'll go through each one of these. First, we're excited about the long growth runway for Apple in the enterprise. Again, when given a choice, employees choose Apple, whether it be a Mac or whether an iPhone. And when you look at the journey that Jamf has been with Apple on the Mac Choice specifically, it started with the very first Mac choice program with Mac at IBM in 2015. And we continue to see more adoption of both choice in the enterprise. In fact, John mentioned Fletcher Previn, CIO of Cisco, that did an internal ROI study on their Mac implementation. And they found that they were saving up to $400 on a Mac versus a PC. And they were also requiring 33% less support resources on a Mac versus a PC, and improving productivity. So superior functionality, powered by a powerful M1, M2 and M3 chip now and lower TCO cost for Apple, which is compelling for many organizations. Our leadership in the Mac is often the inroad to actually having customers expand from within. And with the Mac, once we get into a customer environment, it opens the doors to help them understand how we provide a better experience for not only the Mac users but also around security as well as their mobile. And so because of that, we have a great opportunity to grow within our existing customer base. Now, speaking of existing customer base, we have a great opportunity to cross-sell into our existing customer base with security. We've been fortunate to have a strong customer base that spans all industries, geographies and business sizes. And as you heard from John, we have a strong Jamf Nation community, which actually helps us understand what should we be addressing to address key gaps to help them deliver a good experience of Apple in their environment. We have 41% of our customer base with multiple products, management and security. Cross-selling into our customer base increases our ASP by up to 3x, which represents almost $350 million, of opportunity, without Jamf actually having to add a net new customer. Third, similar to our cross-sell is our large mobile expansion opportunity. We have 5 million corporate-owned mobile devices in our installed base, against the serviceable addressable market opportunity of 104 corporate-owned devices. So we've had approximately 5% of that SAM, which gives us a lot of headroom to grow. Now we are expanding our ability to capture more mobile devices through different ways. One is we're differentiated in our security capabilities through our vision of trusted access. Second is the unique workflows and purpose-based devices that we support. John gave you some examples around the airline industry, being able to support the pilots in their electronic flight bags, supporting mechanics under the wing who are servicing those planes, making sure that their iPads are secure and they're managed effectively so they can get the content, the latest mechanical documentation they need. As well as flight attendants, who are serving customers on board. There are other industries that we also play well in such as health care and patient bedside, clinical communications. And in retail, whether it be the person on the retail floor that picks up a random iPad, based on their role, they get the applications that they need to do their job or the supervisor who gets the same kind of iPad, can have their world-based applications delivered to them. And the best example that I love about mobile, is what we do at Jamf. I can actually access all the buildings that we have through my watch. So I don't need that actual badge to get in. I can just walk in, badge in with my watch and I gain access. That kind of integration is very innovative and very helpful to many customers out there looking to actually expand on the use of mobile devices. Future opportunities, obviously, many to come around watches, but also the Vision Pro. As John mentioned, we just announced support for management and security on Day 1. And so we're excited about the opportunities that Vision Pro may provide. Now one thing to note here that we haven't even contemplated BYOD, where we differentiate as well. Fourth is our large potential for continuing to grow outside the U.S. 1/3 of our business is international. And in the last 3 years, we saw a 40% CAGR from outside the U.S. Now partly, this is due to Apple's significant growth internationally, which helps us to drive adoption of Jamf and provides opportunity for us to partner in various go-to-market motions with Apple. As Apple's installed base is growing significantly, we want to be where Apple is. And Apple recently highlighted that there were emerging markets that they're seeing traction in, and we're well positioned to go support those actual emerging markets. And there are areas that we're doubling down where we already have an existing footprint, such as Japan and India. We see both those markets growing significantly over the next few years. And as Apple is growing, the SAM is increasing outside the U.S., and our revenues are growing along with it. Thus more wallet share to capture. Now how are we going to capitalize on all this? Well, obviously, Jamf has a global go-to-market strategy, and we have a multipronged approach to have customers buy when, where and how they want. One is we have a strong direct sales team that focuses on customers based on market, industry, new acquisitions of customers, growing existing customers. But also supporting multinational strategic accounts. So there's clear focus on the right personas, buying methods and decision-making trees. We're doubling down on our global channel strategy, which -- with incentivized channel programs to grow our partner network, whether it be the traditional Apple reseller, but also those that are not traditional Apple resellers, where they're serving customers that have Apple in their environment. Also in areas where we see market penetration and expansion opportunities, and with partners such as value-added security partners or managed service providers or global system integrators. So we're expanding that whole capability around our indirect routes. In addition to the channel partners, John talked about strategic partnerships. And in those strategic partnerships, we have some great integrations. And one example is Amazon. We have great integration with our EC2 cloud platform. We also have a great integration with Amazon's Verified Access for Zero Trust. However, over the last year or so, we've actually been moving towards a more -- closer go-to-market motion with Amazon, through the AWS Marketplace. The benefit this has is that our joint customers can actually benefit from easing the procurement process, but also gaining benefit of taking their AWS commit spend down by procuring Jamf products. And lastly, self-directed opportunities via in-product or self-service for those customers and partners who wish to do business in that manner. So in summary, we have a large market opportunity where we've identified key growth areas and go-to-market motions to help capture the key opportunities that lay before us. And we have multiple ways to achieve this. Now I'd like to invite John to the stage and maybe we take some questions.

So give us a minute here, as the management team collects at the front of the stage.

We wanted to bring the executive management team here together because it really shows the breadth and the depth of our -- of the talent that we have on the team. And so we wanted to make sure that you could get to know them a little bit more, and it should certainly help build your confidence in our company.

While everyone's gathering. Let's take our first question from the webcast from Rob Owens from Piper. "We've seen an increase in layoffs across some of your most notable customers. Help us understand where the customer conversations are right now and the level of optimism you are seeing from customers relative to 2024 versus an environment of continued belt tightening?"

Okay. Well, I can start that and then I'll hand off to Liz, and you can talk about kind of what we're seeing more recently. We miss you, Rob. I hope you would have been here. But I think if you look at Apple's expansion in the workplace, you can't really look at it quarter-to-quarter. And so our revenues and our sales are necessarily correlated on a quarter-by-quarter basis, but they are over a longer term. So when you stretch that out over an extended period of time, and Apple is continuing to gain in the enterprise in a variety of areas, not just the laptops as we mentioned, but also other types of devices. That's where we see our growth over a period of time. So it's not a very finite quarter-to-quarter thing. It's over a longer period of time. Liz, do you want to talk about some of the things that we're seeing today?

Yes, absolutely. Thank you so much. So interestingly enough, yes, we are seeing customers lay off employees. That is a reality. There's a couple of things that we see an opportunity. For one, as you think about everyone has a Mac, and that usually requires a person. Everyone else has a mobile phone. So great opportunity for us to do that. The other thing that we see with our customers is that they're really trying to consolidate resources vendor's costs. And our solution, our bundled solution plays a really nice dovetail into that. So we are able to provide them, both management and security, in one SKU basically. That allows them to cover a lot of different basis. So we're seeing that. And then the other thing I would say is in the enterprise, so more larger accounts, that's where you feel the layoffs, right? That's where you see it in -- not in the movies, in the news. And excuse me, about that. And -- but still, what we're seeing there is that the enterprises are still looking for best-in-class. They just want to do it at a cost that makes sense, right? And so we've strategically taken our management and security solutions with that kind of vein and looked at how we price it appropriately, especially when we're leading with the trusted access message, which is management and security.

Raimo Lenschow from Barclays. By the way, really helpful. The question I had is on the 5 million mobile devices that you manage at the moment versus the market being much, much bigger. Obviously, those devices are managed by something, someone else at the moment. Can you speak a little bit about like what can be done? I mean in theory, you should do it, but most -- a lot of them are Apple. So like why are you not doing it? What can you do to kind of help that transition? And are there any kind of milestones that some of the vendors that do it at the moment, got taken over. Maybe focusing less on that space, et cetera. But like what can you actually do to kind of get those?

Thanks, Raimo. Henry, do you want to touch on that and maybe you can pass off to Wudi. Wudi always have some good opinions on this.

Sure. Absolutely. So first, yes, we have a great opportunity to go capture more mobile. I think the way we approach it is around the vision of trusted access, that's the piece that I think many customers want to see. We also have capabilities around how we help them through that journey because it is not a just one [ suit ] felt-kind of migration. But we do have capabilities both services and tooling that will help customers get through that journey.

The quick answer that I would come back to is that there is a significant deploy rate of where management has been procured over the years and those that are under that side. There is an element of -- they touched on in their presentation, where we excel is when it is more than just good enough, the workflow, the user experience or something else that they're trying to get done in their organization where we bring the ecosystem to it, which leads into -- that may be a portion of those devices to start. But when trusted access comes along, which we believe is a full solution that nobody else is delivering, and then you add on the one additional element of our Jamf Executive Threat Protection. We have a solution that nobody in the market is able to provide for those pieces of the devices and the good enoughs can come along is what we often see as we're engaging those customers. So it is not a jump in and try and grab every device all at once. It is fine to those, where we provide that differentiation, the customers understand the value and continue to make them successful, and we're seeing significant traction. I think Ian will talk about it a little bit later in the day.

Yes. Actually, I want to add one thing there, and I'm not sure which mic I'm using here. But it's interesting, we have a Slack channel in our office called Ring the Bell, where we look at real wins. And there was one just recently live flag for us and have to bring this up. I'll just say, a group in this room just recently signed up for mobile security. And the story there was, "Hey, we're on a UEM provider that has a good enough solution." And then they looked and they weren't really optimized. And the fact was both when we added management and security together, we won that against other competitors. So I'll talk more about nonleading tech forward industries lean into tech. This is a perfect example of that.

Jacob Roberge with William Blair. When you talk about that $14 billion serviceable addressable market in security, how much of that is more greenfield or going up against some of the legacy vendors in that market that you can displace versus some of their more modernized security vendors that might be focused on the PC ecosystem, but also address the Apple ecosystem? So just curious if you could kind of break out that market and then how you look to differentiate against some of those more modernized solutions?

Do you want to take a shot and I'll follow up?

Yes. So when we take a look. I think a lot of the data that's in there and what would have come forward is actually talking about a place where there was something that was actually put forward across that device, meaning if that device was known of and managed, there is some organizational requirement to have something on the endpoint. The elements that we have when we come forward and actually roll up to what's there, we think about it from the endpoint first. And we continue to play inside of that ecosystem where we actually believe that, that data about what's going on in the endpoint is the customer data. And we're happy to play with and feed it into any other solution that's there. So as John stated, we don't think of it as there's only one of us and it's choosing an ore. We often come alongside of an existing vendor, who may have the cloud or analytics platform and we are augmenting them or actually bringing insight and visibility that they don't get otherwise. So in some ways, the answer is both, right? I'm not trying to skirt the question. But even if there is existing spend, we see customers come back and actually bake it off with what we put and we provide insights and capability, and feed it into those existing systems that they don't get otherwise. So we're looking at that whole space as being an opportunity for us, whether that dollar was already directed there or not. It really does come down to what I think Liz was referring to about whether there is the opportunity to show them the ROI of that and we can provide the value, as well as a cost effective solution. But it comes back to, we can actually deploy it, detect it and remediate it and bring it all from that perspective, you get into -- it's hard for any other vendor to put that together when it comes to that Apple endpoint what we do.

Yes. And I'll just add one thing on to that quickly. It's specific to the Apple ecosystem. We've heard from many of our customers, "Well, they'll have 2 maybe security products running side-by-side," but they'll get some false positives. They'll detect a vulnerability that that's just how the Apple operating system is supposed to work, but then they're chasing their tail trying to find these and solve these false positives. So again, it's something specifically designed for the Apple ecosystem that really stands as a part here. I don't know, Henry, do you have anything else you want to add?

No. That's the answer I was going to give anyway. Is that we do have multiple -- all good.

Josh Reilly from Needham. If you look at the international markets, you highlighted that 33% of Jamf's revenues are coming from outside the U.S. versus the 50% installed base for Apple. Is it simply a matter of increasing investments in additional countries, or do you also make some changes on the go-to-market or partnership front as well to increase international TAM penetration?

I can start with that and then maybe hand it off if Liz or Henry want to add anything to it. International has always been -- when I started with the company, we were right around 15% of our business came from outside the U.S. But there's this massive opportunity to partner with Apple. We partner with Apple so well inside the U.S. We've extended that partnership to outside the U.S. in very key markets like Japan and Europe. The person that runs enterprise for Apple actually for the go-to-market for enterprise and Apple sits in Europe. And then obviously, Japan is a big single market in itself. So we've continued to leverage those strategic opportunities in those locations. It's not just a spray-and-pray type of thing across the entire world. So Japan is obviously a very strategic growth market for us where our business isn't representative are where it should be relative to the IT spend. We also have emerging markets like India that Henry was speaking about that we have a massive opportunity there that we can invest as well alongside Apple. So it's really by design, looking at where Apple is expanding, where they have good installed base. And then strategically making those investments to capture that installed base. Henry, do you want to add anything else?

No. I think, we're good.

Koji Ikeda from Bank of America. I wanted to follow up to a previous question about the 104 million devices. I think we heard a couple of answers of why you guys win, and how you guys land and expand. But I'm more curious on why you don't win. What are some of the reasons that prospects or enterprises or mid-markets out there maybe push off the deal? What are some of the reasons why they would? And what are some of the internal triggers or catalysts that you hear from customers that tell you now we're ready to adopt Jamf?

Do you want to start Henry?

Sure. Absolutely. And then I can actually have Liz chime in or Ben chime in as well from what they see out in the market. First and foremost, I think when you have a -- when you have mobile devices managed, obviously, there's only one management tool you can have on it, right? So I think one of the biggest areas that we look at is are they seeing the experience that they want from it. Now as much as day 1 support is sort of should be common across all management platforms, it's not necessarily the case. And so when they start to see pain points around, hey, we're not up to date on both the operating system and the capabilities that's where they start to question saying, "Hey, do we have the right platform to do it?" We also see decisions being delayed mainly because they're just not ready to make those decisions. There's other priorities that they continue to see when they see security in place is when we start to see the conversation change. So if we're going in management only, yes, they do deal with good enough. But when we start to think about how do we add more value to that customer, we see that conversation moving forward. It doesn't mean it's going to take -- turn them overnight. Obviously, there's a long runway in terms of just helping them understand what we provide both on the security and management side. We also have customers, especially in the enterprise that want to do some testing and validate internally. So we do see that sales cycle a little bit longer. But the reality is that the differentiation is what drives the conversation. Liz, do you want to add or Ben?

Sure. I can add to that. There's 2 types of -- well, we have -- we serve all different markets. So mid-market or SMB, mid-market and enterprise, right? And the challenges in each of those for a customer to not buy are different in each of those regions. I'd say in the SMB space, especially with the macroeconomics, it's -- they are looking at solutions for the lowest cost provider, and they are willing to make, as Henry said, to make a good enough decision. Where we see that falter and you asked about the trigger around when do they come back to Jamf is when they're trying to scale. They are not -- they don't have the ability to scale with good enough solutions and that -- we see that time and time again, we call those boomerang customers. In the enterprise space, we, as Henry alluded to, the proof of concept and that sort of thing is important. But the beauty of Jamf that I think is really exciting is that, yes, there's only 1 MDM solution that you can have on any device, but you can have as many security solutions as you want. And so sometimes in the security space, it's not always a replacement market, oftentimes, people think of that. It's like, oh, you can only run one security vendor, and that's not the case at all. In fact, a lot of our customers run multiple vendor -- security vendors at the same time. And when we are -- and when they're running multiple security vendors at the same time, where we extend is sometimes our customers will have a security vendor that's really good on Windows, but not as great on Apple. And so that's where we come in. And so we run alongside of a lot of the security vendors as well.

It's Gregg Moskowitz from Mizuho. So the notion of trusted access, I think, resonates with all of us. And we've seen such great progress at Jamf over the past few years in terms of growing your security footprint, but I look at that 41% of customers that are leveraging both, it still feels like that absolutely should be going a lot higher over the next 2 years. And so I'm wondering, over time, I mean, John, where do you -- what do you think when you look at the composition of your customer base, obviously, enterprise being your target market, it does extend to the SMB as Liz was just mentioning. But where -- can this reasonably go over time? And maybe more importantly or as importantly, is there anything that you can do to potentially accelerate adoption from a go-to-market standpoint, whether that be easier on ramps, free trials because again, I think when you look at management plus security, it's just a much stronger solution versus just having the one module or a product. And so that would be helpful in terms of if you could opine a little bit.

Sure. Thanks, Gregg. Well, when we speak about -- so I'll try to parse the questions down here, where can security go? Well, in theory, it could be 100% of our installed base, could have security and management on it because they work really well together and more and more companies are figuring out that it's really hand in glove. It's 2 sides of the same coin. As I mentioned, you can't have a secure device without it also being managed the timing of that, why isn't it 100% already? Just as I mentioned, we've only been doing this just a few years. We went public 3.5 years ago, had a very small security footprint, have continued, and there's multifaceted capabilities to security, and we're continuing to add those as our customers prefer them. One of the ways to accelerate that -- so it is happening, it's accelerating. It's not at 100% yet, but we see it heading north of where it is for sure. What are some of the things that we can do to accelerate that, offering our bundled solution? I mean our bundled solutions sales have been up dramatically. I think as of the last earnings release, Ian, keep me honest here, I think it was almost 80%. It was a 79% year-over-year increase. In our bundled sales opportunity, we also added the security functionality to Jamf now to make it Jamf Fundamentals. Those are areas that we're sharing the value and the power of management security together even for those companies that don't yet get it. But most -- some of them do, some of them haven't yet, but as security becomes more and more important in the organization, and then they figure out how well security and management works together, that's where we'll continue to increase. We're obviously doing it as fast as we can. We win twice -- almost twice as many deals when we enter when we have security and management together. And they're higher retention as well. So we have a big benefit to doing that. Our customers benefit from it, which is the reason I just mentioned. And so it's something we're going to obviously continue. I can't tell you exactly when we'll get to the 100%, but we're certainly striving in that direction. I don't know who else can add to that. Sam?

Sure. Yes.

He's just shaking in his seat.

Yes. I just want to take a moment and clarify the bundled solutions just to make sure that everybody understands what those are because when we offer our bundled solutions, we cover the gamut of management and security. But within security, we have both the network security as well as the endpoint security that's there. And we offer the bundled solutions on a user license, which means that they can use them both for the Mac and the mobile devices that they have out there. So it is a very compelling thing that we work with. Gregg, you had mentioned other things that we can do to help expedite that value into customers' hands or give them a taste of the solutions that we have to offer. During our last user conference for all in-person attendees to the user conference, we gave access free trials to all of the solution within those bundled business plan elements, we saw great adoption from those users who attended really seeing that value and then moving through that sales pipeline as well.

It's Darren from Prime Cap. I wanted to ask kind of about Apple's product cycles actually and how you guys see those as relevant for you or not. I mean I think from an investor standpoint, on the one hand, it's clear like both among consumers and among businesses, Apple's market share is growing in many locations, even in markets where they already have pretty robust share to begin with. On the other hand, it feels like the last, I don't know, just to take an example, maybe the last 2 years' worth of iPhone cycles, like a lot of people are feeling like the device didn't really change that much. Maybe I don't need to update as often that sort of thing. And so I would just love to hear how you guys think about kind of the state of Apple's new product releases and whether that sort of layers on top of the headcount growth story, overall device additions within your customers as being a factor that could kind of swing, I guess, the demand for your products on top of that Apple release.

I think our best person to answer this is our Apple whisper, Mr. Wudi.

So there's a couple of pieces of what you're talking about here. The first is that with the installed base that Apple has and what they've talked about, there's a ton of devices that actually exist out in the rest of the world. The corporate liability devices when it comes to phones versus the total set of phones that are out there, and how they're being used as a part of the conversation that comes in. A lot of times, when we look at the drive of a user wanting to pick up the latest phone, I think of that as more the BYO, and that's they're choosing it, right? The corporate refresh isn't tied to Apple's release cycle, but the users is -- and so that's -- there's a little bit of a difference of who's driving that decision. But when it comes back to what Apple is doing, there is work for us in capacity for all of the organizations to lower their threat landscape to be able to continue to take under-managed or unenrolled devices and continue to bring them in and normalize them and work through everything that's in their life cycle with a device that exists today. And we often find that when we get deployed, we find more of those devices or the ease of way doing that. Some of the ROI numbers that were put up is bring them back in, it's enjoyable to be able to add that to the fleet once you have the basis of our tooling in place. So how does the Apple piece change? We get excited. Two things that happen when Apple releases is, one, they're putting hardware out, it almost always changes the narrative in some fashion. We'll talk about the Vision Pro later today, opportunities that expand. Even talk about what gets done with the hardware of Apple silicon and M1 chip and M2, the cost of that device and the number of employees who've actually been able to pick that up because of where it's positioned for the enterprise, but that's actually not the part that we key on. We key on what is getting shipped in the software. And if you actually watch what has been going on for a bunch of years, Apple has become the kit company. Everything comes with a software development kit and the expectations, and our ability to hook into the next piece is there to see where it's going, is what actually drives the user experience. So the thing that I would say is why did somebody love what we do, they might accept another solution, but love it is because the team that's actually working behind us that's actually digging in every day, and you have a chance with a couple of really talented folks over there that look to demos, they actually understand what's going on, and they know what's in that kit. So the software life cycle matters more than the hardware for what we do and why customers buy, the hardware drives the user sentiment of what they want and what they want to put in their hands. Does that make sense?

Any others? Okay, so we have a 15-minute break. It's 10:10. We'll come back here at 10:25 Eastern Time for those on the webcast. For those here in the room, we do have some demo stations available. Feel free to check them out. We have Matt and Michael back there with a bunch of MAX iPads and iPhones for you to check out. Thanks all. [Break]

All right. It looks like everyone is getting settled in. Welcome back, everyone. And once again, thank you for joining us today. My name is Sam Johnson. I'm the Chief Customer Officer at Jamf. And I lead the support and success and services teams help our over 75,000 customers be successful with Jamf. So I've been at Jamf for -- well, over 16 years now, which around our hallways, makes me the unofficial Jamf historian as well. And I use that on my colleagues a lot. But before I was employee, I was actually a customer of Jamf. And before that, I was an MSP who used Jamf to help our clients. So I've seen it from both sides of the lens and been with the company ever since our Hubble beginnings back in 2002. Now you've heard us talk today about our growth drivers and strategy for the future. But sometimes, it's better to hear from the customers directly. And that's why I am so thrilled to have these distinguished members of our Jamf Nation Community, our Jamf customers here today to talk with you. Let me first introduce Lisa Brown, who is the IT Strategic Initiatives Director at SAP. Lisa has been at SAP for over 2 decades now, you beat me out for sure. There, she's held several different leadership roles within the company. We first met when you were leading the mobility team, in fact, and SAP-selected Jamf to not only manage their MAX, but also their mobile devices as a total Apple platform. But SAP is always at the forefront of technology, and it has just been an excellent example of employee choice programs specifically at scale. Next, we have Harald Bosman, who is the Senior Endpoint Security Engineer at Amsterdam Internet Exchange. Amsterdam Internet Exchange plays a very crucial role right at the core of the internet. In fact, they are one of the largest hubs of Internet traffic around the world. They've been doing it for 30 years, no pressure Harald. We all rely on your services every single day. Harald has been using Jamf for quite some time now. But in 2021, he consolidated his devices that his users use around the world for management, he consolidated with the security tooling as well and has a lot of great use cases from that. And last, but certainly not least, we have Mike Viola, who is the principal technologist right here at NASDAQ. So Mike did not win the travel the furthest distance award to be here with us today. It was just a few floors for him. But nonetheless, we've worked with NASDAQ for a very long time. It's a very good example of not only a very successful employee choice program in a highly regulated industry like fintech, but also working with just a very strong growth and maturation of an Apple practice within that type of environment.

So let's get started. And Mike, if you don't mind, I will start with you. I did mention, you didn't win the furthest distance traveled, but you also have worked for NASDAQ now for 37 years. So you're going to win an award after this anyway. You got the tenure award here. You've seen a lot here. Tell us a little bit about the history of Apple and Jamf at NASDAQ, and how that has evolved throughout the time.

Sure. Apple devices have been very prominent here at NASDAQ and we had Jamf come in early on to help us manage the devices. That went really well. We hit our stride with being able to manage the security and the deployment. And as you mentioned, the regulation side of any company that's regulated has a lot more to do to make sure things go well. And if you don't do that, you find out when you're audited. So it's very important. And Jamf helps us with that a lot. We do have an employee choice program and that is creating a lot of growth within NASDAQ to go Apple and Jamf, and that -- those numbers are really increasing. We also found it has been very good for us to -- on the authentication process. Jamf works very well with Microsoft AD, now called Entra ID. They're always changing the names, but it always works when you connect. So thank you for that.

Yes. And just give me an idea, like you said that it's kind of been going wild within the environment. Where did you start, and where are you now when it comes to Mac deployment within your user base?

It was small at the beginning when we hit the employee choice program that was 2019, and then we saw a significant growth. Then beyond that, we acquired a anti-financial crime company called Verafin in 2021. That was very good. They're an incredible division over Newfoundland, and they've been a very good complement to even our marketplace. But they taught us a lot about Jamf in the way they use the business plan. And it was even enhanced from what we were doing. So now that we have that plan in place, the teams love the ability to deploy efficiently, and it's been working greatly.

That's great. And roughly, how many of your end users today use an Apple computer for work?

About 30%. And we have about 6,000 mobile devices, which through the help of Jamf, I'm going to plug it out there. April 1st, we're getting them pushed out. So it's really critical for our employees to have devices that are safe. That is key for us.

And I think that's a common story that we hear a lot. You start with some Renegade Mac devices that are in your environment. You open up an employee choice program that allows us to really flourish and then you end up with 30% to 50% of people using Apple computers when given the choice, it can be higher as well. But then after that, looking at also the mobility side. So April 1st, next phase of the project is to bring on mobile devices. Is that right?

Yes.

And you mentioned the integration working with authentication to Microsoft. Is there anything else in kind of how you perceive the high compliance or any of the other standards that you have to abide by working with Jamf and Microsoft together?

Yes, and that's not always easy to do, but we -- because we're regulated every -- not only is the build and deploy process really important, but we have InfoSec teams constantly monitoring, assessing where things go. And then after the deployment and the authentication happens, then tune trust part of that. People have phones. People love to put things on their phones. And 6 months after things were set up, is it still compliant? Is that employee still safe? And we can do that. It does work.

It's amazing. And you mentioned complexity and a lot of compliances insert complexities that you have to make simple, especially for your end users to be successful. As I mentioned, the Amsterdam Internet Exchange deals in one of the most complex and distributed environments I've ever heard of. If you don't mind, Harald, would you just give us a little bit of background information on the Amsterdam Internet Exchange, who you serve as far as your end users, what you do? And then a little bit about how you use Jamf within your environment.

Sure. So we are part of the -- a crucial part of the infrastructure of the Netherlands and also from the EU. And we have about 14 internet exchanges all over the world. we have to be independent and neutral and the safety for my colleagues is really, really important because internet starts with us in the end. So we are not a huge company, but the complexity of all this, talking with governments big parties, that's -- yes, it takes a lot from the security tools and the management from all these MAX. So the Amsterdam Internet Exchange is an epi-centric company. And with 14 internet exchanges all over the world, I have a lot of colleagues that are also traveling all over the world. And their safety is crucial. So one of my colleagues, he is a risk and compliance manager, and he went to Brussels for a governmental meeting, and he called me, and he said, "Harald, I have no internet. I cannot connect to WiFi." I said, "Wait, I'll check what happened." He wanted to connect to the WiFi, and it was infected with malware. So I was very happy that, first of all that he called me, and second of all, that the security tools blocked him from using that WiFi. On the other hand, we are also represented in the Far East of this globe. And my sales colleagues, they go a lot to trade shows. And in one of these trade shows, they called me again and said, "Hey, we don't have any internet." What happened is, again, malware on the WiFi network. In this case, it -- their devices were blocked because one of the security tools is an active tool, so they could monitor that, and they could block their iPhones. So I said, "Okay, I'll fix it." And they had to go back to the hotel. And so in the end, I am looking for -- at that moment, I was looking for a tool that was more passive. So I called one of my contacts at Jamf, I said, "Hey, listen, we have this issue. Can you please help me?" At that moment, Jamf just had the Jamf Executive, Threat Prevention, which is a more passive tool. And that helps me to keep my colleagues safer in countries where is -- where people are actively monitored. So in this case, that makes it all really complex to keep these mobile devices secure because these mobile devices, they have in the end, more information than our laptops. So having the security tools that can cover this that helps us tremendously to get everyone safe.

Interesting. Usually, you hear those stories about malware after they've infected the device and they've made headlines because of breaches. But it's good to hear those the success stories as well, trust me. Now a question was asked earlier about why pick Jamf for the management and security aspects. And I just want to -- from your opinion, what led you down to that decision? Why did you choose Jamf for the entire spectrum of management?

Yes, I hear that question, and I want to touch on that. For us, Jamf Pro is the orchestrator. All the security tools are integrating, like Mike said, with Azure, Entra, but Jamf is -- Jamf Pro is the orchestrator. So all the security tools are talking to Jamf Pro. In the end, that gives a really good user experience. And that's key, first of all, for the user, but also for me as an admin. So I can make users aware. And that integration is key for solving issues and making sure that their business can go on.

Definitely. And I think especially in your environment, Henry had spoken earlier about high-value targets when it comes to attacks and attackers. And it seems like every employee in your organization ends up being a high-value target for attackers, which means that you have to really be on your toes for...

Yes. Being the company we are, we are a huge target. And that means that I -- that makes my work more complex since all the travels, the different countries where they go to. So yes, the security tools from Jamf help me with that. And besides the fact that Jeff Pro is the orchestrator, I can also do the remediation via Jamf Pro. So I also worked with different security tools, and what most security tools lack is that remediation part and notifying a user from, "Hey, what's going on?" Because the user wants to know why he is being blocked or what is going on, it's not just me. So the orchestration and managing all the security tools is key for our organization.

Excellent. And as you're sitting here today and looking forward for the next year ahead, what types of priorities are you looking at concentrating on to bring the next chapter of your work with Jamf?

Jamf gives me the opportunity to automate all the notifications, all threats more and more, especially with the integration with Entra ID. So their commitment with Entra is also really important for us.

Very good, very good. I think you are a use case in complexity given the kind of the sensitive and the environments that you're operating in day in and day out. This is an area where, obviously, at Jeff, we look to make this simpler and be able to help unique use cases like this. But eventually, after these things become more common practice, the next layer of that cake or the next thing that we have to achieve is scale, which brings us to Lisa, of course, at SAP, not a small company by any means, imaginary, also global. Lisa, we've worked together for a very long time, and you have been a blueprint for a lot of other companies out there to help scale their employee choice program, their Mac and Mobile program, their security programs. What drove you to make these decisions and what were some of those pivotal points from a culture of SAP and a business driver that you think really helped make that pave the new trail.

Yes, absolutely. So we've had an employee choice program around 10 years. We started out with 2000 MAX and has scaled over the course of time to 38,000 MAX. And it is -- and I mean, it is due to the backbone of Jamf being there and working with us on, and we've created different tools. We were just talking about the privileges app. So we have a bunch of open-source tools that we are providing that help us internally, and we also like to share with the Mac community in general. So I think it is the amount of partnership and work that we've done together. And then on the mobile side, that's been a little less amount of time, but we had our own -- SAP had our own internal tool that we were using and then we decided to deprecate that and we did a best-in-breed. We could have chosen what we do for our Android devices. But what we found really important is to focus on the user and what is important for the user. And that's not a one-size-fits-all tool. We have to look at what their pain points are, and what provides the best for our 86,000 mobile devices and that includes whether it's phones or iPads. And so what we went with Jamf have been a great partner in helping us move that program forward. We try to provide an enrollment that is 10 to 15 minutes, and we partner very well with when we find some issues or if there is a user experience going back and working together with Jamf and even Microsoft, we use conditional access, where SAP is a big Microsoft shop to, and how we can all work together to provide a great experience for SAP employees. So one of the other things that we're working on right now is BYOD. So that is something that we've always had a program for bring your own device, but we're excited to implement Apple's workflow and work with Jamf on how that can create this seamless experience on iPhone for BYOD, so?

That's great. And if you need a demo BYOD, we're happy to provide that back here if you haven't already seen it in action. Seeing is believing sometimes, after all. Lisa, you've got such an intense focus on the user experience. And that's one thing that I think really stands out. What about consolidating on that Jamf platform, to really think about things as Apple and other rather than computer and computer versus mobile and mobile? What are the things that really help kind of benefit your employees from that standpoint?

Yes. When we started out in -- with the 2000 MAX, people didn't actually -- they didn't want to get a MAC because Windows had everything on there, their PC was -- could do their job, they could use Excel, they could -- and so there was some really big concern there. So as we started to scale and work with our partners, we started -- we had a real focus, laser focus on parity and wanting to know that if they chose an Android or an iPhone, or if they chose a Mac and they chose Windows, that they had the exact same experience, well, maybe not the exact same experience because there are different experiences, but -- and so -- but be able to use the tools that they needed to get their job done. And so that was really important as we work with all the different providers to make sure that whatever you chose. And I think we didn't really go out and promote employee choice. We actually -- it was a really word-of-mouth type of program, where they -- where people will be like, "Oh, I got a Mac, and I was able to do all these things." And there was like, "Oh, you got a Mac, I want a Mac." And then -- and so that really snowballed that. And that's just due to behind-the-scenes, making everything work. So employees don't even notice that that's what's happening.

Excellent. Obviously, like I said, you've paved the way for a lot of employee choice programs at scale. You continue to kind of stay at the cutting edge of different things. What's next at SAP? What are some projects that you're working on that you're excited about right now?

Yes. I'm really excited about employee badges on my watch and phone. It is really exciting. As you go into the office and I'm carrying all my stuff, I can just lean over and my watch can badge me in. It's a really great experience in working with Swift Connect and Jamf as well as HID and Apple to make that experience happen. So that has been awesome. I had to switch over phones because I accidentally broke my one phone just before I came here, and I was able to provision a badge in 2 minutes. It was that quick downloading from self-service, the Jamf Trust, and then able to just provision my badge and get that into my wallet and onto my watch. So those are the types of things that we want to do for our employees. It is right now happening in the U.S. and we're looking to eventually expand to other offices. So that's the first thing. So that's exciting. And then the other thing is the Vision Pro. So looking, SAP has built a couple of apps for the Vision Pro out there. We have our mobile start, SAP mobile start on Vision Pro. And then we also have SAP Analytics Cloud, where you can get dashboards and move them around. It's really kind of coy actually can demo if anybody is interested. And then we also have a spatial boardroom with a cool globe that you can move around and touch things and filter. And -- but none of that could happen unless we can manage those devices. So that was one of the first things that I started asking Apple and Jamf was, "Hey, when are we going to get management? When can we secure the data that is on those devices?" So I appreciate Jamf reaching out and asking, well, what would you like to manage, asking some questions about that. Also looking at seeing how Jamf Trust could help with that. And so it's been a great partnership. We already -- I actually -- first , it was out on beta. I was able to enroll the device and get on the SAP network. So that was really exciting. So especially when you're using the guest network, you all probably know how that works when you're using a guest network.

Nothing like live demos on guest network. And if you thought people look cool driving cyber trucks, while wearing Vision Pros, wait until they're in the boardroom wearing Vision Pros, everyone. It's going to be great. I promise. Well, I really think that this -- the story of scale, the story of complexity and the high stakes environments and then also just having a highly regulated high compliance needs is something that we see across a lot of our customers. And I want to thank the 3 of you for joining us here today. We appreciate all of the partnership and effort that you all put forward, and we love the stories that you guys have. So thank you to the 3 panelists that we have here today. Any last words before we go?

I want a Vision Pro.

You want a Vision Pro. He wants a Vision Pro. All right. Round of applause for our panelists, please. Speaking of I want a Vision Pro, we do have a few Vision Pros. And although it won't be a mass demonstration, we can stream them to the monitors that we have out there. And a few of you would love to show you the experience of this SAP boardroom, so you can be the person in the cyber truck wearing the Vision Pro in the room. Nonetheless, 3 great stories from 3 wonderful customers. The beautiful thing about this is we have hundreds of customers telling their stories every year at our Jamf Nation User Conference and hundreds more telling their stories at our Jamf Nation lives. Our Jamf Nation lives in Europe will be this summer in June. They'll be in our APAC region in August. Jamf Nation User Conference will be in Nashville, Tennessee, October 1st to 3rd.

We'd love to have obviously everyone here. But now let's talk a little bit about our future. And to help us do that, let me welcome to the stage, Jamf's Chief Financial Officer, Ian Goodkind.

All right, everybody. I'm talking with a lot of you. I know you're excited about the financial part. But first, where are they? I just want to think that panel with Lisa, Harald and Mike somewhere else. Really appreciate you being here. That was a great session. And Sam, thanks for hosting that. It warms my heart to see how we can drive value for our customers. So let's wrap up the day by focusing on driving renewed growth and scaling profitably. First, we will start with the strong business we've created. Then we will turn to our disciplined approach to capital allocation. And last, we will focus on how we will expect to drive renewed growth and expand margins. We have a strong financial foundation. We've built a business that grows on 3 drivers: new logo, device expansion and cross-sell. We have a predictable business with 97% revenue, recurring revenue. Our gross margins have been consistent and strong and over 80% since we've IPO-ed. In 2023, we expanded our operating income margins by almost 300 basis points when compared to 2022. We've delivered consistent cash flow generation, and we've delivered double-digit unlevered free cash flow, trailing 12-month margins since we've IPO-ed. We've had a disciplined approach to our capital allocation, and we've reinvested in those areas that had provided us the highest returns. We've had an upper 20s CAGR for both ARR and revenue. In 2023, we doubled the operating income dollars compared to 2021. We have had a strong growth and profitable company. We've had strong gross retention. I know many of you asked me, Ian just disclose gross retention. Here you go. We've had strong gross retention since the time we've been public, and it hasn't materially moved. This has been driven by our customer focus to see our panel today. The primary driver though of the reduction of net retention over the last 2 years have been the lack of device expansion. But our security profile is set up to help us strengthen our gross retention and accelerate net retention. So let's talk about security. Our commercial security business has been a key driver of growth. In Q4 of 2020, it represented less than 5% of our total ARR. Today, it represents 21%, not too bad. It also represents over $120 million and less than $30 million of that came from inorganic activity. In summary, our commercial security business has been a key driver of our business, and it will continue to be. So you've asked me about the diversity of our business. We have a large and diversified customer base. And in times of economic downturn, they act as a stabilizer. And as the economy improves, they act as an accelerator. We've been able to maintain a similar breakdown between our SMB and our enterprise over the time we've been public. We will continue to be a volume business and we will go after those large enterprise customers. In other words, we're going to continue with our balanced approach. But diversity doesn't end by size of business, we are becoming more diversified by industry. Tech and K-12 historically, our 2 largest industries have seen softness over the last 6 quarters impacting Jamf. We will be less reliant on those industries. We've seen strength in others by non-leading tech industries leading into tech. We've seen strength in professional services, financial services, and wholesale and retail. And we expect this trend to continue as these non-leading tech-forward industries lean into Tech. So in summary, we've built a strong financial foundation. Next, let's turn to disciplined approach to capital allocation. We've delivered strong cash flows since we've IPO-ed. We've invested those back into our business to support growth. In addition, we've invested those in acquisitions that help us accelerate our roadmap. We've been diligent with our cash, and we've invested in those areas that have provided us the highest returns. So let's talk about our capital allocation priorities. First, we will maintain a strong balance sheet. Second, we will invest in organic growth; and third, we will invest in M&A that drives long-term value. So let's start with our first priority. We have a strong balance sheet, which gives us financial flexibility. Our debt value to total enterprise value is low. And in fact, that debt has extremely favorable terms. When factoring in a revolver and more significantly the cash generation that we have, it gives us financial flexibility. Our strong balance sheet will provide us the ability to grow in the future. Second priority, organic. We will continue to invest in those areas that have the highest returns. And our primary focus for spending is growth and then scalability. So let me give you 2 examples of that. First, we will invest in those international locations that provide the highest return. We've already begun shifting resources from those that weren't growing as fast to those who are growing faster. Second, we will invest in those strategic partnerships that both John and Henry had spoke about earlier. We've already been working on more scalable go-to-market motions and additional product integrations. We are the only Apple focused organization to have these strategic partnerships. Last priority, acquisitions. We have a rigorous approach to potential acquisitions. Acquisitions must help us solve a customer pain point, accelerate our road map, it have to have a group of talented individuals. And of course, last but not least, the technology has to be focused, Apple first. This will help us maintain our leadership. So let me show you how we've applied this methodology. We've invested more in the security side of our platform to accelerate that part of our road map. And this supports our trusted access outcome in the tenets of our strategy: Mac leadership, Management and Security, Mac and mobile. And when combined, we have a strong and impressive rate of return on these investments of 24%. So in summary, we have a strong and disciplined approach to capital allocation. Now I need to switch gears for a second and talk about 1 other item on your minds, stock-based compensation. In recent years, our stock-based compensation as a percentage of revenue has been impacted by a pre-IPO awards and IPO awards. We expect for stock-based compensation as a percentage of revenue to come down over time. In addition, we expect our dilution rate to come down over time. We will do this by continuing to focus on market compensation at the right levels. And based on our current multiples using our forecasted ARR and our forecasted head count we will manage this to a dilution rate of 2.5% to 3%. Okay. So the last item of the day, reaccelerating growth and expanding margins. We expect to improve our gross retention by 200 basis points, which is within the historical norms. We're going to do this by focusing customer health and customer stickiness by enhancing automation or onboarding and adoption of additional products. We know when customers have more than 1 of our products, or they deploy our products to multiple types of devices. They are a healthier customer and thereby more sticky. In other words, cross-sell will strengthen our gross retention driven both through security and mobile. We expect our net retention to continue to come down through 2024, where we believe our security or our cross-sell will set the floor and then we expect it to reaccelerate. We expect to drive a higher net retention in both '25 and '26, and we've assumed less reliance on device expansion. We are focused on what we can control, cross-sell. And right now is the best time to sell back into our large customer base based on the opportunities that Henry had spoken about. And we've seen recent success examples. Let me give you 2. Over the last 5 quarters, we've seen success in the mobile replacement market against a UEM provider and we've been able to take away in the range of 40,000 devices to 120,000 devices per quarter, and we expect that to continue. The other example has been commercial security. We believe commercial security will be a key driver of growth. Like I said earlier, in Q4 of 2020, it was 5% of our total ARR. Today, it's 21%. And using a similar trajectory by the end of 2026, it would be 30%. And when looking at this, we looked at the historical CAGR of this business, and that was 39%, and that was post Wandera. And when we look forward, we've assumed a 28% CAGR. Therefore, we believe we can achieve a 30% of our total ARR comes from commercial -- from the commercial security business. We believe this is a key driver of our business. All right. So we have a clear path to reaccelerate growth, but I want to go through it driver by driver, starting with new logos. We've assumed a slight increase in dollars from new logos in 2026, but as a contribution to ARR growth, we've assumed flat. We've also assumed in 2026, more of those sales are of the sales of our bundles, i.e., management and security versus today. Skip down or upsell. For upsell, we've assumed this is slightly up from what we saw in 2023 in dollars, but as a contribution to ARR, we've assumed slightly less than we saw in 2023. We've also assumed that when we see upsell in 2026, and we see customers expand, they will be expanding both with management and security. For cross-sell in 2026, we've assumed both the dollars and the contribution to ARR growth increases. We believe the key driver of that, though, is our commercial security business. But it's interesting to note the mobile side as well. That has some really interesting aspects. And even based on our customer panel today, you've heard about mobile. And this can also be supported by security within education. And oh, by the way, on gross retention, again, that's supported, as we talked about by the -- our strengthening security profile. So we have a clear line of sight to reaccelerate growth and achieve at least $850 million of ARR by the end of 2026. Something to note here. If customer spending increases, either in the form of more hiring or more employee choice programs, our ARR would increase pretty quickly. If customer spending changed just 1% from what we've assumed in both 2025 and 2026, we would expect to see an additional $14 million of ARR in 2026. In other words, it doesn't take much for our business to reaccelerate. But I'm going to state this again, we've assumed less reliance on device expansion. We're going to focus on what we can control, we have a clear line of sight to reaccelerate growth, and we expect to achieve at least $850 million of ARR by the end of 2026. Let's turn to margins. So we expect to achieve a 25% operating margins in 2026. We are targeting a 1,700 basis point improvement in the next 3 years. We've already committed to delivering a 700 basis point improvement in 2024. We exited Q4 with an operating income of 14%. We took an action to rightsize our workforce in January, but we are also continuing to invest in both growth and scalability, but we expect to achieve our operating income of approximately 15% this year -- our operating margin this year. We expect, over time, over the next 3 years, to improve our sales and marketing as a percentage of revenue by 1,000 basis points by focusing on productivity. We expect to improve our R&D as a percentage of revenue by 200 basis points by focusing on optimization -- optimizing and for G&A, we expect to improve that 500 basis points by focusing on automation. But let's dive more into those details. So we have clear steps for each department over the next 3 years to optimize our expenses and work from the bottom up here. For cost of goods sold, we expect to deliver consistent gross margin. So our cost of goods sold is already scaled, and we expect to deliver those same strong gross margins, we've all become accustomed to. For sales and marketing, we've assumed in dollars that slightly ticks up and as a percentage of revenue, it comes down. And we are focused on productivity. One thing we are working on this year is we are focused on delivering an incentivized program to our channel partners. This will allow us to get more channel-led deals versus just being fulfilled through the channel. And therefore, we can scale our sales and marketing organization more than it is today. For R&D, we expect that our dollars will grow with our business. But as a percentage of revenue, it will slightly tick down. One area we are focused on here is building shared capabilities. So in other words, in the future, when we need to make a change, we make it once to the platform versus today where we make it in multiple products. This will provide us efficiencies, but we will also continue to innovate at the pace of Apple and we'll continue our market leadership. For G&A, we expect to hold those dollars flat and for it to come down as a percentage of revenue. We are focused on back office automation and our first project comes to fruition later this year in the areas of lead to cash. And we expect to see benefits late this year from that. Many of these initiatives are underway right now, and we have a clear line of sight to optimize our expenses and increase margins. So bringing it all together, here is what you can expect. We expect to reaccelerate growth by focusing on what we can control, cross-sell, security and mobile. Gross margins, we are expecting to deliver something similar to what you've seen very strong margins over 80%. For sales and marketing, we expect to bring that down as a percentage of revenue. We've assumed in 2026 when taking the net new ARR added divided by the sales and marketing costs, we expect to see a similar productivity level to 2022. We expect R&D to trickle down as a percentage of revenue based on the optimization. And for G&A, we are targeting 11% based on the large global footprint we have and the volume business we have. We have a clear line of sight to reaccelerate growth and expand our margins. We are committed to the Rule of 40. And based on the initiatives I just outlined, we expect those to make significant strides in our Rule of 40 in 2025. And then as those mature more, we expect to exceed the Rule of 40 in 2026. We are driving long-term value and we expect to exceed the Rule of 40. We've developed this list of key milestones within 2024 for you to track our progress. So we expect to achieve our quarterly revenue and operating income outlook similar to the last 15 quarters. We expect to bring down sales and marketing and G&A cost as a percentage of revenue, and we are targeting at least 25% growth in our security business this year. We will give you updates on progress on these initiatives, and we expect to achieve this list and more. So in summary, we expect to reaccelerate growth and expand margins. We're going to do this by focusing on what we can control and leveraging our strong financial foundation. We are committed to taking this business to the next level, and we have a clear line of sight to achieving at least $850 million of ARR by the end of 2026. Thank you, everyone. And I'll invite John and Henry and the rest of the team to join me. Thanks.

Just give us a few minutes as we get the chairs up for the executive team. Thanks.

Jennifer, do we -- to your point, do we want to just make sure everyone knows who everyone is and we just go around the [indiscernible].

Yes. If we could hand the microphones down and everyone just introduce themselves quickly name, title, that would be awesome for those on the webcast and here as well. Ben, you are first.

Ben Oxnam. So I am the General Manager of our EMEA business.

Good morning. I'm Jeff Lendino, Chief Legal Officer, look after the legal and compliance teams for Jamf.

Sam Johnson, Chief Customer Officer, Jamf official historian.

Hello, Beth Tschida.Chief Technology Officer. I support the engineering team.

Liz Benz, Chief Sales Officer.

Michelle Bucaria, Chief People Officer.

Jason Wudi, and I just go with Woody, when you see me. I believe my primary role is customer advocacy, but I get the chance to work with Henry and Beth in the R&D and strategy teams.

Linh Lam, Chief Information Officer. I have IT as well as security within our enterprise.

All right. Well, questions.

Koji Ikeda again from Bank of America. A question for Ian. The 2026 targets. When you look at it in all the slides, it does show that growth in other metrics either accelerate, improve or expand over that time frame. So what are you seeing out there, either within the pipeline or the business that's giving you that confidence and do the targets assume improving macro or improving tech and education industries.

Yes. I'll take the first part of that, Liz, maybe if you want to take some of the front lines and what we're seeing with customers. But overall, we've assumed less device expansion in 2026 than what we saw in 2023. Now the dollars are higher, but the contribution to ARR growth is lower. So we've been prudent in our assumption there. We are focused on those things we can control. As we look back at the commercial security slide, that is where we see our business accelerating. We've even just talked about with our panel, the security [ piece ]. Our management and security, our bundles is the way we will succeed with customers. So we are focused on those things we can control. And I'd say the one other thing before I turn it to Liz, has been the mobile, which is also something we're selling back into the customers, they're becoming more sticky. This is where we will succeed.

Yes. To add to that, I think you mentioned the tech and the K-12 space and the softness that we're seeing there. We believe that it will come back. We are a tech company ourselves. So we're really excited about it. But from a sales perspective, we're focused on other industries outside of tech and K-12. So fin services, retail pro services, manufacturing, we're seeing a lot of inroads there, especially when you think about the deskless workforce, is a big deal. So Henry talked about the iPads in any retail store or I think John did, too. But we're seeing a lot of traction with those individuals that don't necessarily -- aren't necessarily tied to a MAC or something that they have to put on their desk. Also, lots of good inroads in health care. And of course, across the board, security is one of those things that when you look at the priority list in terms of spend with any of our customers. Security is #1. And so we leverage that quite a bit. As far as K-12 is, yes, the education space actually follows the commercial softness, Believe it or not, it really does. And we believe that the K-12 space will certainly come back. We're still seeing funding issues within K-12, especially in the U.S. But we also are seeing some really interesting wins and pipeline outside of the U.S. And we're talking very large organization. So think of like a whole country's Department of Education. Those kinds of moves are -- we're seeing a lot in education too. So we're really bullish about that in the future.

Josh Reilly from Needham again. When you look at the 1,000 basis point improvement in sales and marketing to operating margin over the next few years, can we just get some more details on what you're doing to make such a large increase to sales productivity while also still having the capacity in place to manage the reacceleration of growth.

Yes, I'll -- let's tag team this again as well, Liz, and maybe I'll just keep tapping on the head. So we -- we are focused on increasing productivity. And I gave one really key example of focusing on delivering that incentivized program to our partners. Today, at times, we see it just being fulfilled from our partners versus having it led by the channel. And I think that's really important. And then there's other examples. I mean we are -- we talked about international locations, and we're focus on investing there, and we see some really unique opportunities. And we've shifted some resources around this year to really capture that. So those are just a couple of examples. Liz, you and I have probably talked about others.

Yes. For sure. Productivity is like what I'm very much focused on right, John. So certainly. So there's -- the channel is a big one, obviously. We really want to make sure that we have the most the best relationships with our channel partners. And we talked about something that I think is interesting when you think about productivity and where we've -- how we've made the turn into not just a management company, but a management and security company. We're talking to different individuals. So we're not just talking to the IT teams now. We're talking to the CISO and their direct line. And that requires us to have different relationships, higher relationships into the organization. And really, the trusted access message is a very forward thinking opportunity and not a reactionary opportunity. So we plan to leverage our channel relationships in that manner. The second thing is, is that we're really looking at our talent, we've got an incredible direct sales team, and we're investing heavily into enablement to make sure that they have the ability to have that broader discussion and not just an IT administrator type discussion, but a CISO and a CIO discussion. And then there's a couple of other things. Obviously, we've talked about cross-sell a lot. That's a big -- very big focus on ours. And like we said, you can have a device can only have one management solution but can have multiple security solutions. We're really focused there. And then lastly, in the realm of our channel vernacular, we're talking -- we've built really good relationships with hyperscalers like AWS, and those kinds of things. When we think about our business and how AWS works and they're based on usage, right? And they're really all about usage, and we're leveraging those to help us get higher into the organization as well as leveraging their relationships across the board.

Jake Roberge with William Blair. And this was really helpful day. But when you think about the targets that you put out there, Ian, I'm curious how you would characterize them. Do you view them as conservative, achievable, aspirational? And then when we think about the building blocks to get to that growth acceleration, whether it be gross retention, the cross-sell of the new products like security or mobile and then the expansion into the newer geographies or industries which do you feel like is the most in your control or achievable? And what might be most out of your control and might take some kind of good execution to get there?

Yes. Thanks for the question. So there's a lot there, so I'll try to unpack it a little bit. You asked first about whether it's conservative, achievable or aspirational, I think is the word used, I would say it's achievable. But we've, again, focused on what we can control. We've assumed that device expansion doesn't fully come back. We are focusing on that. Commercial security is a big piece and we've shown you some new data around our commercial security today, how much of our security actually comes from commercial, and that's a pretty significant amount. So I do believe that's an important point to know. And we've seen real success in our bundles. And when it's together, as Harold even talked about today, when it's together and it's seamless, it really drives value for our customers. Where -- I think you also asked like which of those I'm most excited about, that would be first. After that, I would say for me, the mobile side is really interesting. We've -- we see a really nice replacement market right now. I'll just say, low end of Apple-centric players are having some struggles. We're seeing our UEM provider there cross-platform one having some struggles, we just see some really unique opportunities there. And then international, we've talked about a few locations in Japan, Taiwan, India, India is a really interesting one. Apple has mentioned that a couple of times recently on their phone -- or on their calls. Historically, they hadn't been necessarily like an iPhone shop. They've actually adopted Android because of the cost, but we've seen some recent shifts there. And what's also interesting there is that's a technology hub as well. So we see some really interesting things out there from a location strategy as well.

Raimo Lenschow from Barclays again. John, you talked a little bit about the platform change, the internal changes and I talk about this a little bit during the break. Can you talk a little bit of what you do there in terms of trying to improve internal efficiencies, et cetera? Because obviously, you have like quite big cost-cutting targets and still grow. So something usually need to give unless you do something very much better and more [ efficiently ].

Sure. Thanks, Raimo. I'll touch on that, and then I'll ask Linh to maybe talk a little bit more about some of the details around it. But as I mentioned in my presentation, we have a pretty extensive internal IT infrastructure project going on. And Linh can tell you where we're at with that. But there's a lot of things that we know we can do better. We're just growing as an organization and maturing as an organization. I spent 12 years in e-commerce before I came to Jamf and the first thing I was like, well, where is our product? And how do we -- from within the product, how do they buy? We have some of that capability in Jamf School and other areas, Jamf Now, but really to extend that to our flagship products and include security. So when you're in the product and you want to -- you've got the device management product, really land and expand without ever touching this from a salesperson or even a channel partner to be able to go within that product and add [ seats ] or add future product capability. That's really the platform of the future that we talk about. And that really reduces our cost of the specific costs that we put in to selling that product because we can -- it could be a lot self-directed from the customer themselves. Linh, do you want to talk about where we sit with that project?

Sure, yes. And then Ian also mentioned it a bit during his presentation that we're really focused on the lead to cash motion right now. You can imagine that the growth that we've had that we talked about up here, it required a lot of operations to move very quickly, grow very quickly at Jamf. And so we're going back and looking at our processes and standardizing them first and foremost because that's the only way you're going to be able to get efficiencies. But then from there, you automate once you standardize. And so we're in that process right now. So we -- some of the efficiencies we'll see is some of the functions within the lead to cash. We're carrying a larger team in order to make it easier for our customers and partners to do business with us. But eventually, once we get to the model that John just described there, we want that to be touchless and seamless on the back end for our partners if they need to provision something for their customers or their customers or customers want to add more seats, they need them provision right away. You can't have the middle man in the middle there, adding a day or 2 to that. So if we automate that, we get efficiencies on the back end, but then it's a better customer and partner experience, as well. So we're about 3/4 of the way through that right now, we've been at it for a little bit. And like Ian mentioned, the latter half of this year, we're looking to launch that.

Gregg Moskowitz from Mizuho again. First, a clarification and then a question for Ian. So it does look like there's a slight discrepancy on the unlevered free cash flow margins in the deck because Slide 70 has 24% unlevered FCF margin, Slide 71 has 22%. So just for our models, if you could confirm which number you're comfortable with, that would be helpful. And then for Ian, I did want to just ask...

Sorry, which year was that? Just so I can level that.

Sorry. Slide 70 and 71 on the unlevered free cash flow margins.

For what year though?

Sorry, 2025. So one is 24%, one is 22% Obviously, the 2026, we know at 26% on the unlevered free cash flow. So that was, again, just a clarification. And then the question for you, Ian, is just look back to that upsell contribution to NRR, was 23 points back in 2020. You have it like flat as you pointed out, right, it's sort of like 12.5%, 13%. And just seems clearly conservative. I guess if I were to look on the other side of the equation, perhaps you could look at gross retention where you are expecting an improvement. And so again, I think there's conservatism on the former. When it comes to gross retention, you do have a lot of SMB customers. So maybe just talk about the confidence that you can actually get that higher over the next few years.

Okay. Two separate questions. So unlevered free cash flow in 2025, 24%. On the second question, yes, so let's talk first device expansion. CFOs like myself have been -- we've been tight with our money lately, right? And we're like, no, I don't spend this, don't do this. And I'm not going to assume some big return like, hey, if someone comes and ask me, "Hey, Ian, we're seeing a return, give me 10 heads, I'll be like, time out. Let's figure out what that really looks like. We believe all CFOs are going to be that way. And so we take what we believe is a prudent approach to that device expansion. As for the question on gross retention and related to the SMB versus other areas, yes, we do have a lot of SMB. We've seen some volatility, but I touched on it in another comment we've seen competitors maybe not as strong in some areas, they ebb and flow. Don't get me wrong. We've seen 1 or 2 months here where someone will pop up, but then maybe they die back down. And what we are saying is when we are bundling both our management and security the things are getting stickier and stronger and we continue to increase that profile, and that's even what helps us maintain that stickiness even at the SMB level.

Yes. And I'll just add to that. Sometimes in the SMB area, something can happen outside of our control, a small business economic times to go out of business or even acquired. In fact, we spoke about 1 today where NASDAQ bought a company called Verafin. Verafin had a business plan, NASDAQ did not yet. When they acquired, they looked at that, thought, okay, this business plan opportunity can expand across our entire environment and now NASDAQ has the business plan. So that's one of the ways that we can benefit from that.

Any other question?

Just on the management ARR guide for this year. So if you're doing 25% security, that's, I think, 6% growth in management roughly to get to the 10% overall. I'm just curious there, I mean 6% in that business feels pretty low with no additions to churn. So just how do you think about that business? I know -- and then is there anything funky when you're bundling things and how you allocate some of the value there? I'm just trying to think about this.

Yes, a little bit separate question. So remember, the management number you're taking right now includes education and that we have assumed a continued lower number that we've seen. On the commercial side, we do see that similar to what we saw. So I think there's just some math there that we can go through later. The second part of the question -- sorry, remind me what that was. It was...

[indiscernible].

Oh, I know, you were asking me about the allocation. No, there's nothing that's changed with our allocations. We've continued. We've always allocated it 50-50 between management and security. The reason being is our Jamf Pro platform is so extensive that even when you add in Connect and Protect. Now that could change over time. We've been adding more on the security side and that those functionalities are becoming closer and closer to that side. I don't know, Beth, do you want to add anything on the functionalities between the two?

Yes. I mean we're going to continue to build on our management capabilities and bring them together between management and security. That's what we're doing in the engineering side is how -- so they are going to blend over time. We've talked a lot today about you can look at an alert, but it's remediating that. So where do those workflows kind of come over time, but the robot is very specific in trying to create an experience where those 2 things come together.

I wanted to ask about the balance sheet and capital allocation a little bit. So I guess Ian, this is primarily for you. But I mean, clearly, according to the projections you're expecting to generate multiple hundred millions of dollars of free cash flow over the next couple of years. You've got those converts on the balance sheet. We're still, what, 2.5 years out from that very low interest rates. So just wondering about basically how you're thinking about what you would do with those and over what time frame. But then also based on the cash flow that you have coming in, do you have sort of a relative order of priority in terms of organic investment in the business, possible M&A or shareholder returns on that.

Yes. Let's parse that too a little bit of part. Those converts maturing September of 2026. So we've got some time. Today, I mean, based on that cash generation, we have the financial flexibility to make decisions at that time. We'll look at what does the economy look like? What does the interest rates look like? What is even debt or equity-linked investments look like? So we'll make those decisions as we get closer, and we'll do similar things to what you've seen the other companies do. Our priority just to go back to it. We're going to continue to maintain that strong balance sheet. We'll always focus back in our business for growth and scalability. And then we'll look for those acquisitions that add value in the ways I talked about, we'll address customer needs, accelerate our platform. have a group of talented individuals and those built the Apple first. And we've had one transformational acquisition. The rest have generally been tuck-ins. And when we look out in the market, there's not always typically a one [indiscernible] size acquisition and typically find them in the form of our other acquisitions. And so I think that's how we would think about it as we move forward.

Thanks, guys. A quick question on the security forecast for the next couple of years. If you think about what's embedded in that, there's a simple way to do it, which would be to think about, hey, we've been on a glide path of penetrating our base with the bundles and with the stand-alone products. And then there's also incremental functionality you can buy or build over time, which would raise up the ASP. What are the underlying kind of assumptions in that forecast between those 2 kind of drivers?

Yes. Most of it comes from what we have today. We don't -- we haven't really added -- we haven't factored in inorganic opportunities there. How about that. So -- but as we talked about, we are building shared platform capabilities. We've been focused on user interface and user experience. And we've just been focused on making an overall better and seamless approach. So there's generally not some new functionality within there.

Folks, I'm Chi. I wanted to ask about how customers adopt security products overall. Is there an adoption pattern that you typically see? And maybe speak specifically to the difference between Jamf Connect and Jamf Protect? And then on Jamf Protect specifically, especially as you land alongside existing endpoint protection products, do customers tend to roll out your Jamf Protect all at once? Or is it a much more staged process that you see is typical.

Let's let Henry take care of that.

Sure. That's a great question. We do see adoption rate based on where the user base is. So for example, if we have a specific set of individuals that need protection more than others, you'll see something like Jamf Executive Threat Protection being deployed, right? So Executive, that's 1 area. When we think about Jamf Connect, that one is a little bit more broad based because people do want to have every user authenticating through their IDP. So that is more of a broader-based deployment. And similarly, in Protect, we do see more focused efforts around specific populations for Protect, but over time, that grows as well. Sam, did you want to add anything?

Maybe just to tack on a little bit there. We do a lot of analysis on just customer journey and customer journey mapping across our different segments as well. And typically, what we see is either a new logo customer will come in with a business plan type purchase that [ they ] want to adopt multiple different management and security solutions from Jamf. And during that implementation phase, we're really trying to help them get all of the management all at once in their environment. We also commonly see customers who are already using the Jamf management solution and come in and want to adopt either security or identity solutions on top of that as well. Typically, it's phased, meaning they're either coming in with security or identity first, but we put them back through the same process of implementation that a net new logo customer would come through to make sure that we're doing all the diligence to ensure that we understand where they are from a maturity standpoint, and make sure that they get time to value as fast as possible.

Any other questions?

Maybe a question for John. So in the beginning of the presentation, you guys went over the TAM and the SAM and the SAM is growing, I think it was 13%. And so when we look at your '25, '26 targets, '25 is 1 point above that, 2026, 4 points above SAM growth. But if Jamf is the biggest player in the industry, why not invest more for growth? Or maybe the question is at what sort of growth would you need to hit to maybe reevaluate your profitability targets to drive even more market share gains?

Yes. Thanks, Koji. We have, as Ian said several times, we have really derisked the forecast in '24 and in the out years. And we certainly strive to find opportunities to expand that. And we've also committed to our investor base that we're going to have -- we're going to have a balanced approach. We're going to have profitable growth. So when we look at that, and we see that there's opportunity for return. We're going to continue -- one of our company values that I talked about here earlier was relentless self-improvement. And that really -- we took -- we take a look at every process we have in the company. We look at where we're investing resources. If we're getting a good return, we're going to double down on that. If we're not getting the return that we would expect, we're probably going to pull back and use those resources for areas that we're going to get that return. And so to the extent that the market continues to grow faster, whether -- and I don't look at it as just a complete market, but there's probably industries or regions that we're going to look at. And to the extent that we see those accelerating faster than we anticipated, then we'll certainly invest in that area to grow that. I don't have a specific growth number that triggers that, but we are -- this is a constant process that we're going through, relentless self-improvement. Really looking at where we can invest and we're going to double down in those areas that's going to give us the biggest return.

I am going to take one from the webcast. Can you talk a little bit about the CISO relationships that you have and how often whether in security or outside of security or touching the CISO's budget. And then also as a follow-up to that, probably for Liz as well is where do you feel like you're at in the journey of getting all of our reps really proficient in selling security?

Well, I'll touch on the CISO relationships first. We've noticed that one budget that have remained fairly robust as the security side. And with the CISO being in place, it's really important to have those relationships as high in the security organization as we can possibly get. Now -- and Linh has come to us from a very -- a vast career of working with other CISOs. And that's -- when you ask a CISO, what's going to -- what does it take for you to buy a product? And they say reference from another security expert. And so there's a real tight community there, and Linh has given us kind of an inside track to that, which we've leveraged very, very well. And we -- well, Linh would say, we drink our own champagne. I would say we eat our own dog food. But -- but certainly, it's something that we look at and we use internally, and we understand how that works and fits together through Linh's expertise. But Liz, maybe you can talk a little bit about where we see the journey for the salespeople?

Yes. So it's certainly been a journey. I think we saw some major uptick last year in our comfortable -- our sales rep's ability to be comfortable in front of the CISO suite. Our goal is to have every single sales rep at Jamf and also our channel to be conversationally fluent in the trust of access message and outcome. And so we're hyper focused there. In terms of where we think we are in the scale of things. When you saw the security growth, we're definitely making traction. I think the CISOs are still getting to know Jamf, and Jamf is still getting to know the CISO if I'm being honest. But when we think about when we lead with trusted access and those reps that are comfortable with trusted access, we see a higher win rate. We see a faster turnaround and obviously, a larger ASP. And so from a sales reps perspective, they watch other sales reps see that, right? And so we're really focused on taking those subject matter experts or those reps that are really diving in and seeing a lot of success and repeating that. And so I really am bullish about where we are and where we're headed. We just had a revenue kick off this whole month, that was traveling for the whole month, and that was the single thing that we are focusing on, which was being conversationally fluent and trusted access and making sure everyone has the right pitch as well as objection handling as well.

Anything else? Jake has one more.

You've talked about the win rates being twice as good in security, and you've talked about 44-or-so percent of your pipeline is being generated by security today. But if look at the current base being at 23% of ARR. I'm curious if you take a step back, do you feel like that 23% may have been easier to get to because it may have been the low-hanging fruit or do you feel like the next 23%, getting closer to 50% of the base of the ARR being on security may actually be easier to get to because of what you were talking there of getting to know the CISO, getting to becoming better understood by security professionals. Just curious if you could kind of bifurcate between those, the backwards looking and the forward-looking security opportunity.

Do you want to go ahead, Liz.

Yes. So we were -- we started out as an MDM company, and we really define the space. We did not define the space in security. There was plenty of security players out there when we came on to the market. So I wouldn't actually say any of it was low-hanging fruit. I would say that when we -- if you look at our evolution of how we've evolved and what we've added to our security solution, the first one was Connect. And that one was a higher adoption rate pretty quickly because it really solved a business need that really wasn't out there in the market. But as -- when we look at forward thinking, I do think it's a lot about making sure that the CISOs, we've got a lot of customer references and case studies and things like that. to make sure that we can go get the next 23% as well. Like I said, when we lead with the trusted access message, what really resonates with the CISOs and the CIOs is the ability to consolidate vendors, consolidate costs and less admin resources. Those are the 3 things that really resonate pretty quickly. And then obviously, being secure on an Apple First, Apple Best, just that whole notion is a big one. We see a lot of traction. We had a customer just recently that was really not -- they had an incumbent solution that they're leveraging for mobile, leveraging for Mac, and they had obviously security solutions. So it's a larger enterprise organization. And the CIO was really hesitant to work with us because they thought they had a solution that worked. And as we talked about all the things that we can do from an Apple functionality -- or excuse me, management security on Apple functionality. And then we tied in how it resonates within the organization in terms of their cost and vendor consolidation. It was all they needed to make the decision.

Okay. I think that's it for Q&A. Before we unleash you on the Vision Pros, I'll hand it over to John to give some closing remarks.

Yes. Well, thank you, everyone, for coming. This was -- we feel good about our first Investor Day. We really appreciate you making the trip out here. And for those of you that attended online and to allow us to share our story. Really the last time we were able to share this on a multiyear basis was 3.5 years ago, and we actually did it twice, once in person and once virtually. So we really appreciate the opportunity. We appreciate your confidence in our business. And thank you again for your partnership. Thank you.