Apple (NASDAQ:AAPL) device management company, Jamf (NASDAQ:JAMF) beat analysts' expectations in Q1 CY2024, with revenue up 15.1% year on year to $152.1 million. The company expects next quarter's revenue to be around $151.5 million, in line with analysts' estimates. It made a non-GAAP profit of $0.14 per share, improving from its profit of $0.05 per share in the same quarter last year.
Is now the time to buy Jamf? Find out by reading the original article on StockStory, it's free.
Jamf (JAMF) Q1 CY2024 Highlights:
- Revenue: $152.1 million vs analyst estimates of $149.2 million (2% beat)
- EPS (non-GAAP): $0.14 vs analyst estimates of $0.12 (21.3% beat)
- Revenue Guidance for Q2 CY2024 is $151.5 million at the midpoint, roughly in line with what analysts were expecting
- The company reconfirmed its revenue guidance for the full year of $620.5 million at the midpoint
- Gross Margin (GAAP): 76.9%, down from 80% in the same quarter last year
- Free Cash Flow was -$17.66 million, down from $15.51 million in the previous quarter
- Market Capitalization: $2.70 billion
Automation SoftwareThe whole purpose of software is to automate tasks to increase productivity. Today, innovative new software techniques, often involving AI and machine learning, are finally allowing automation that has graduated from simple one- or two-step workflows to more complex processes integral to enterprises. The result is surging demand for modern automation software.
Sales GrowthAs you can see below, Jamf's revenue growth has been strong over the last three years, growing from $80.73 million in Q1 2021 to $152.1 million this quarter.
This quarter, Jamf's quarterly revenue was once again up 15.1% year on year. However, its growth did slow down compared to last quarter as the company's revenue increased by just $1.48 million in Q1 compared to $8.02 million in Q4 CY2023. While we'd like to see revenue increase by a greater amount each quarter, a one-off fluctuation is usually not concerning.
Next quarter's guidance suggests that Jamf is expecting revenue to grow 12.1% year on year to $151.5 million, slowing down from the 16.8% year-on-year increase it recorded in the same quarter last year. Looking ahead, analysts covering the company were expecting sales to grow 9.3% over the next 12 months before the earnings results announcement.
Cash Is King If you've followed StockStory for a while, you know that we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can't use accounting profits to pay the bills. Jamf burned through $17.66 million of cash in Q1, increasing its cash burn by 31.9% year on year.
Jamf has generated $41.29 million in free cash flow over the last 12 months, or 7.1% of revenue. This FCF margin enables it to reinvest in its business without depending on the capital markets.
Key Takeaways from Jamf's Q1 ResultsIt was encouraging to see Jamf narrowly top analysts' revenue expectations this quarter. On the other hand, its billings unfortunately missed analysts' expectations and its gross margin shrunk. Overall, the results could have been better. The company is down 1.2% on the results and currently trades at $19.5 per share.