Apple device management company, Jamf (NASDAQ:JAMF) reported Q1 CY2025 results exceeding the market’s revenue expectations, with sales up 10.2% year on year to $167.6 million. Guidance for next quarter’s revenue was better than expected at $168.5 million at the midpoint, 1.5% above analysts’ estimates. Its non-GAAP profit of $0.22 per share was in line with analysts’ consensus estimates.
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Jamf (JAMF) Q1 CY2025 Highlights:
- Revenue: $167.6 million vs analyst estimates of $166.3 million (10.2% year-on-year growth, 0.8% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.21 (in line)
- Adjusted Operating Income: $37.64 million vs analyst estimates of $36.37 million (22.5% margin, 3.5% beat)
- The company lifted its revenue guidance for the full year to $693 million at the midpoint from $678 million, a 2.2% increase
- Operating Margin: -2.5%, up from -13.9% in the same quarter last year
- Free Cash Flow Margin: 0.6%, down from 4.5% in the previous quarter
- Billings: $161.3 million at quarter end, up 12.7% year on year
- Market Capitalization: $1.48 billion
Company Overview
Founded in 2002 by Zach Halmstad and Chip Pearson, right around the time when Apple began to dominate the personal computing market, Jamf (NASDAQ:JAMF) provides software for companies to manage Apple devices such as Macs, iPads, and iPhones.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Jamf grew its sales at a 17.7% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds.
This quarter, Jamf reported year-on-year revenue growth of 10.2%, and its $167.6 million of revenue exceeded Wall Street’s estimates by 0.8%. Company management is currently guiding for a 10.1% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 7.3% over the next 12 months, a deceleration versus the last three years. This projection doesn't excite us and implies its products and services will face some demand challenges.
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Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
Jamf’s billings came in at $161.3 million in Q1, and over the last four quarters, its growth was underwhelming as it averaged 8.9% year-on-year increases. This performance mirrored its total sales and suggests that increasing competition is causing challenges in acquiring/retaining customers. 
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period measures the months a company needs to recoup the money spent on acquiring a new customer. This metric helps assess how quickly a business can break even on its sales and marketing investments.
It’s relatively expensive for Jamf to acquire new customers as its CAC payback period checked in at 99.8 months this quarter. The company’s slow recovery of its sales and marketing expenses indicates it operates in a highly competitive market and must invest to stand out, even if the return on that investment is low.
Key Takeaways from Jamf’s Q1 Results
It was encouraging to see Jamf’s full-year revenue guidance beat analysts’ expectations. We were also glad its revenue guidance for next quarter exceeded Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $11.36 immediately following the results.
So should you invest in Jamf right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it’s free.