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What changed in Jamf Holding Corp.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of Jamf Holding Corp.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+395 added−405 removedSource: 10-K (2025-02-27) vs 10-K (2024-02-27)

Top changes in Jamf Holding Corp.'s 2024 10-K

395 paragraphs added · 405 removed · 313 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

76 edited+22 added−29 removed71 unchanged
Biggest changeKey capabilities of Jamf Pro include: • providing a seamless initial device deployment, giving companies the ability to choose between a zero-touch experience or offering a more hands-on device enrollment and deployment; • enrolling personally owned devices with support of Apple’s user enrollment workflows, allowing for management of corporate resources while maintaining the user’s personal privacy; • enabling customization of devices beyond configuration profiles, use policies, and scripts for the optimal user experience; • facilitating pre-configuration of user settings before deployment; • providing app management flexibility wherein apps can be made available automatically to users or through an enterprise self-service catalog; • granting users the ability to update software and maintain their own devices through Jamf’s brandable self-service application without an IT help desk ticket; 9 Table of Contents • automating ongoing inventory management, such as automatic collection of hardware, software, and security configuration details from devices, creating custom reports and alerts, and managing software licenses and warranty records; and • securing devices by leveraging native security features, such as encryption, managing device settings and configurations, restricting malicious software, and patching all devices without the need for user interaction.
Biggest changeKey design capabilities of Jamf Pro include: • providing a seamless initial device deployment, giving companies the ability to choose between a zero-touch experience or offering a more hands-on device enrollment and deployment; • enrolling personally owned devices with support of Apple’s user enrollment workflows, allowing for management of corporate resources while maintaining the user’s personal privacy; • enabling customization of devices beyond configuration profiles, use policies, and scripts for the optimal user experience; • facilitating pre-configuration of user settings before deployment; • empowering employees to request, download, and update apps for their Apple devices, view the security of their endpoints, manage all notifications, and learn how their data is handled with respect to privacy, all in one central, intuitive end user self service portal, so that employees can enjoy the autonomy to be productive quickly and develop the security awareness that is crucial for today’s threat landscape; 9 Table of Contents • offering curated, Mac-ready App Installers for third-party apps, which offers a Mac App Store like experience, saving time and automating app lifecycle management by sourcing, packaging, and deploying the most up-to-date version of apps; • automating ongoing inventory management, such as automatic collection of hardware, software, and security configuration details from devices, creating custom reports and alerts, and managing software licenses and warranty records; • securing devices by leveraging native security features, such as encryption, managing device settings and configurations, restricting malicious software, and patching all devices without the need for user interaction; • providing IT administrators with a modern, Apple native experience with Jamf Remote Assist to remotely assist end users on macOS devices with troubleshooting steps, including access to device terminal to run commands, scripts, and policies; and • offering a standalone Jamf Routines web application designed to help IT teams create workflows and automations by connecting Jamf Pro to other services and software in their technology ecosystem.
We have built our company through a primary focus on being the leading solution for Apple in the enterprise because we believe that due to Apple’s broad range of devices, combined with the changing demographics of today’s workforce and their strong preference for Apple, that Apple will become the number one device ecosystem in the enterprise by the end of this decade.
We have built our company through a primary focus on being the leading solution for Apple in the enterprise because we believe that due to Apple’s broad range of devices, combined with the changing demographics of today’s workforce and their strong preference for Apple, Apple will become the number one device ecosystem in the enterprise by the end of this decade.
Complementing our software platform is Jamf Nation, the world’s largest online community of IT and security professionals focused exclusively on Apple at work. This active, grassroots community serves as a highly-qualified and efficient crowd-sourced Q&A engine for anyone with questions about Apple deployments.
Complementing our software platform is Jamf Nation, the world’s largest online community of IT and security professionals focused exclusively on Apple at work. This active, grassroots community serves as a highly-qualified and efficient crowd-sourced Q&A engine for anyone with questions about Apple and Jamf deployments.
As the competition for top talent escalates, and many organizations continue to rely on remote and hybrid work, we believe technology will play a central role in either improving or degrading the employee experience. The technology experience and the employee experience are now synonymous. Rapidly evolving workplace demographics are also accelerating the consumerization of IT.
As the competition for top talent escalates, and many organizations continue to rely on remote and hybrid work, we believe technology will continue to play a central role in either improving or degrading the employee experience. The technology experience and the employee experience are now synonymous. Rapidly evolving workplace demographics are also accelerating the consumerization of IT.
Cisco found that Mac was actually $148-$395 less 8 Table of Contents expensive over three years, depending on the model, and that it had other benefits like fewer IT support staff needed and an increase in deal creation, bookings, and deal closure. Software engineers were also able to push out nearly 11.5% more code when using a Mac.
Cisco found that Mac was actually $148-$395 less expensive over three years, depending on the model, and that it had other benefits like fewer IT support staff needed and an 8 Table of Contents increase in deal creation, bookings, and deal closure. Software engineers were also able to push out nearly 11.5% more code when using a Mac.
Jamf Pro Jamf Pro offers a robust Apple ecosystem management software solution for complex IT environments, serving SMBs to larger enterprises, educational institutions, and entire school districts. Since its introduction in 2002, Jamf Pro has been our flagship product, serving the largest portion of Jamf’s customer base.
Jamf Pro Jamf Pro offers a robust Apple ecosystem management software solution for IT environments, serving SMBs to larger enterprises, educational institutions, and entire school districts. Since its introduction in 2002, Jamf Pro has been our flagship product, serving the largest portion of Jamf’s customer base.
Realizing these potential benefits requires an enterprise software solution specifically built for the Apple ecosystem. Our Solution Jamf is the only platform that combines Apple management, identity, and security to protect devices and sensitive company data, while simplifying work and preserving privacy for end users.
Realizing these potential benefits requires an enterprise software solution specifically built for the Apple ecosystem. Our Solution Jamf is the only Apple-first platform that combines management, identity, and security to protect devices and sensitive company data, while simplifying work and preserving privacy for end users.
Competition We generally compete with large cross-platform enterprise providers and early stage providers of Apple enterprise solutions. Large enterprise providers, such as VMware, Microsoft, and IBM, typically compete with us on one solution (e.g. device management, identity, network security, or endpoint-security) intended for cross-platform use and not specialized for Apple.
Competition We generally compete with large cross-platform enterprise providers and early stage providers of Apple enterprise solutions. Large enterprise providers, such as VMware and Microsoft, typically compete with us on one solution (e.g. device management, identity, network security, or endpoint-security) intended for cross-platform use and not specialized for Apple.
We value customer engagement and have a dedicated team of customer success professionals who work within three tiers of engagement models to proactively drive adoption, foster communication, and ensure the success of our products.
We value customer engagement and have a dedicated team of customer success professionals who work within three tiers of engagement models to proactively drive adoption, foster communication, and drive the success of our products.
We help IT and security teams confidently protect the devices, data, and applications used by their workforce, while providing employees with the powerful and intended Apple experience. With Jamf’s software, devices can be deployed to employees brand new in the shrink-wrapped box, set up automatically and personalized at first power-on and administered continuously throughout the lifecycle of the device.
We help IT and security teams confidently protect the devices, data, and applications used by their workforce, while providing employees with the powerful and intended Apple experience. With Jamf’s solution, devices can be deployed to employees brand new in the shrink-wrapped box, set up automatically and personalized at first power-on and administered continuously throughout the lifecycle of the device.
Jamf Now facilitates the consistent configuration of devices remotely, provides a 360-degree view of inventory, and remotely enforces passcodes, encryption, installed software, and locking or wiping of devices.
Jamf Now facilitates the consistent configuration of devices remotely, provides a 360-degree view of inventory, and remotely enforces passcodes, disk encryption, installed software, and locking or wiping of devices.
Complementing Jamf Nation, we host JNUC, the world’s largest enterprise Apple IT and security administrator conference. With thousands of attendees, publicly streamed keynotes, and over 150 customer, partner, and Jamf-led sessions, we further tap into the power of our passionate customer base and garner significant market attention as the leader in our space.
Complementing Jamf Nation, we host JNUC, the world’s largest enterprise Apple IT and security administrator conference. With thousands of attendees, publicly streamed keynotes, and over 140 customer, partner, and Jamf-led sessions, we further tap into the power of our passionate customer base and garner significant market attention as the leader in our space.
Macs, of course, are not the entire story around Apple devices in the enterprise. The iPhone is the number one smartphone worldwide in 2023 according to IDC data. Given the expectations of both current and future employees, offering employees a choice in technology brand is becoming imperative for many enterprises.
Macs, of course, are not the entire story around Apple devices in the enterprise. The iPhone is the number one smartphone worldwide in 2024 according to IDC data. Given the expectations of both current and future employees, offering employees a choice in technology brand is becoming imperative for many enterprises.
The plan offers a simple way for commercial customers to purchase all the value and functionality of Jamf Pro, Jamf Connect, and Jamf Protect with user-based pricing. Rather than having separate SKUs for each product or service they need, customers can buy everything through a single SKU.
The plan offers a simple way for commercial customers to purchase all the value and functionality of Jamf Pro, Jamf Connect, and Jamf Protect with user-based pricing. Rather than having separate SKUs for each product or service they need, customers can buy the bundle through a single SKU.
Developer Workflows: Jamf API and Jamf Marketplace Jamf’s platform of solutions have a broad range of well-documented APIs to allow customers and partners alike to build unique custom workflows, create powerful automations, or even augment other connected solutions to enhance their value, all driven by API interactions with Jamf.
Developer Workflows: Jamf API and Jamf Marketplace Jamf’s platform of solutions has a broad range of well-documented APIs to allow customers and partners alike to build unique custom workflows, create powerful automations, or even augment other connected solutions to enhance their value, all driven by API interactions with Jamf.
Through these APIs, customers have created thousands of custom workflow solutions for their own environments, and partners have created and listed over 300 integrations in the Jamf Marketplace — which is a highly curated collection of Apple ecosystem solutions across management, identity, security, and workflow automation.
Through these APIs, customers have created thousands of custom workflow solutions for their own environments, and partners have created and listed approximately 300 integrations in the Jamf Marketplace — which is a highly curated collection of Apple ecosystem solutions across management, identity, security, and workflow automation.
See the discussion contained in Part I, Item 1A, “Risk Factors” of this Annual Report on Form 10-K for information 17 Table of Contents regarding how actions by regulatory authorities or changes in legislation and regulation in the jurisdictions in which we operate may have a material adverse effect on our business. Corporate Information Jamf was founded in 2002.
See the discussion contained in Part I, Item 1A, “Risk Factors” of this Annual Report on Form 10-K for information regarding how actions by regulatory authorities or changes in legislation and regulation in the jurisdictions in which we operate may have a material adverse effect on our business. Corporate Information Jamf was founded in 2002.
This trend is expected to continue as these generations increasingly become a larger proportion of the workforce and their preferences in workplace technology continue to shape the workplace experience. The consumerization of IT has been one of the most significant trends impacting enterprise IT over the past decade. This trend is exemplified by Apple’s iPhone, introduced in 2007.
This trend is expected to continue as these generations increasingly become a larger proportion of the workforce and their preferences in workplace technology continue to shape the workplace experience. The consumerization of IT has been one of the most significant trends impacting enterprise IT over the past two decades. This trend is exemplified by Apple’s iPhone, introduced in 2007.
The information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K, and you should not consider any information contained on, or that can be accessed through, our website as part of this Annual Report on Form 10-K or in deciding whether to purchase our common stock.
The information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report on Form 10-K, and you should not consider any information contained on, or that can be accessed through, our website as part of this Annual 17 Table of Contents Report on Form 10-K or in deciding whether to purchase our common stock.
Our principal executive offices are located at 100 Washington Ave S, Suite 1100, Minneapolis, MN. Our telephone number is (612) 605-6625. Our website address is www.jamf.com.
Our principal executive offices are located at 100 Washington Ave S, Suite 900, Minneapolis, MN. Our telephone number is (612) 605-6625. Our website address is www.jamf.com.
We sell our SaaS solutions via a subscription model, through a direct sales force, online, and indirectly via our channel partners, including Apple. Our multi-dimensional go-to-market model and cloud-deployed offering enable us to reach all organizations around the world, large and small, with our software solutions.
We sell our SaaS solutions via a subscription model, through a direct sales force, online, and indirectly via our channel and other strategic partners, including Apple. Our multi-dimensional go-to-market model and primarily cloud-deployed offering enable us to reach organizations around the world, large and small, with our software solutions.
Apple continues to gain market share in the enterprise, and as organizations continue to embrace Apple technology, we provide unique value as the only management and security vendor that is built Apple-first and Apple-best. 12 Table of Contents • Expand with mobile in existing customer base.
Apple continues to gain market share in the enterprise, and as organizations continue to embrace Apple technology, we provide unique value as the only management and security vendor that is built Apple-first and Apple-best. • Expand with mobile in existing customer base.
Jamf is the leader for managing Mac at work, and we are seeing many of our customers looking to consolidate all their management and security with one vendor and therefore expanding their usage of Jamf to include their mobile devices. • Land new logos.
Jamf is the leader for managing Mac at work, and we continue to see many of our customers looking to consolidate all their management and security with one vendor and therefore expanding their usage of Jamf to include their mobile devices. • Land new logos.
News and World Report), 8 of the 10 largest U.S. school districts (according to Niche), and 16 of the top 20 U.S. hospitals (according to U.S. News and World Report). Our customer base is highly diversified, with no single end customer representing more than 1% of ARR.
News and World Report), 9 of the 10 largest U.S. school districts (according to Niche), and 15 of the top 20 U.S. hospitals (according to U.S. News and World Report). Our customer base is highly diversified, with no single end customer representing more than 1% of ARR.
While the Mac computer was once primarily associated with creative or artistic activities, it now represents a growing share of computers within the enterprise. This wave of new Mac devices requiring seamless remote access to business apps and resources is causing friction among many enterprise IT support and management teams, which have historically focused more on Windows device management.
While the Mac computer was once primarily associated with creative or artistic activities, it has grown as a share of computers within the enterprise. This wave of new Mac devices requiring seamless remote access to business apps and resources is causing friction among many enterprise IT support and management teams, which have historically focused more on Windows device management.
In response to the consumerization of IT movement, enterprises are transforming digitally to create a more engaged workforce, offering employees consumer-like tools to get work done and their choice of technology brands.
In response to the consumerization of IT movement, enterprises continue to transform digitally to create a more engaged workforce, offering employees consumer-like tools to get work done and their choice of technology brands.
Recent market consolidation in the legacy device management space has created a strong replacement market for Jamf. • Expand with security with current management customers by selling vision of Trusted Access. Organizations are trying to consolidate their tooling and increase their ROI.
Recent market consolidation in the legacy device management space continues to serve as a strong replacement market for Jamf. • Expand with security with current management customers by selling vision of Trusted Access. Organizations are trying to consolidate their tooling and increase their ROI.
We strive to provide the best possible support for our customers and maintained a high customer satisfaction score of 9.24 out of 10 in 2023 based on our surveys.
We strive to provide the best possible support for our customers and maintained a high customer satisfaction score of 9.34 out of 10 in 2024 based on our surveys.
Approximately 24% of our global employee base is dedicated to research and development. Our research and development teams are organized into teams that are focused by product and based principally in Minneapolis, MN, Eau Claire, WI, Katowice, Poland, Brno, Czech Republic, and Tel Aviv, Israel.
Approximately 26% of our global employee base is dedicated to research and development. Our research and development department is organized into teams by product and based principally in Minneapolis, MN; Eau Claire, WI; Katowice, Poland; Brno, Czech Republic; and Tel Aviv, Israel.
Jamf Assessment app enables live proctoring of web-based assessment exams and displays camera view and the exam itself in a single app so that proctors can always keep students’ screens and third-party video screens on view.
Jamf Assessment, which is built into Jamf Teacher, enables live proctoring of web-based assessment exams and displays camera view and the exam itself in a single app so that proctors can keep students’ screens and third-party video screens on view.
Our customers include many highly recognizable brands and organizations including Apple itself, 8 of the largest 10 Fortune 500 companies, 8 of the top 10 Fortune 500 technology companies, 22 of the 25 most valuable brands (according to the Forbes Most Valuable Brands rankings), the 10 largest U.S. banks (based on total assets according to bankrate.com), the top 15 global universities (according to U.S.
Our customers include many highly recognizable brands and organizations including Apple itself, 8 of the largest 10 Fortune 500 companies, 7 of the top 10 Fortune 500 technology companies, the 10 largest U.S. banks (based on total assets according to bankrate.com), the top 15 global universities (according to U.S.
It has transformed the technology landscape by placing the user first, creating a harmonious, interconnected experience across devices, and designing everything around maximizing the Apple user experience. In the 1990s and early 2000s, endpoint technology was dominated by Microsoft Windows, particularly in the workplace.
It has transformed the technology landscape by placing the user first, creating a harmonious, interconnected experience across devices, and designing everything around maximizing the Apple user experience. In the 1990s and early 2000s, endpoint technology was dominated by Microsoft Windows, particularly in the workplace. Employees were not typically given a choice in their devices.
By merging device management, identity management, and endpoint security on Jamf’s Apple-first platform, organizations can ensure only authorized users are granted access to corporate data on enrolled devices, provide a secure connection to corporate apps and data, and deliver comprehensive, modern security to defend against an evolving threat landscape.
By merging device management, identity management, and endpoint security on Jamf’s Apple-first platform, we designed our platform so that only authorized users are granted access to corporate data on enrolled devices, to provide a secure connection to corporate apps and data, and to deliver comprehensive, modern security to defend against an evolving threat landscape.
This expertise enables us to fully support new innovations and operating system releases the moment they are made available by Apple. This focus has allowed us to create a best-in-class user experience in the enterprise and grow to more than 75,300 customers deploying 32.3 million devices in more than 100 countries and territories as of December 31, 2023.
This expertise enables us to fully support new innovations and operating system releases the moment they are made available by Apple. This focus has allowed us to create a best-in-class user experience in the enterprise and grow to more than 76,500 customers deploying 33.2 million devices in more than 100 countries and territories as of December 31, 2024.
As of December 31, 2023, we owned 13 issued U.S. patents and 28 issued patents in foreign jurisdictions. Excluding any patent term adjustments or patent term extensions, our issued U.S. patents will expire between 2034 and 2042.
As of December 31, 2024, we owned 14 issued U.S. patents and 29 issued patents in foreign jurisdictions. Excluding any patent term adjustments or patent term extensions, our issued U.S. patents will expire between 2034 and 2042.
The potential device numbers are multiplied by the Jamf ASP for each device and enterprise type. Our Growth Strategy We fill the gap between Apple’s powerful consumer-focused technology and the stringent management and security needs of the modern enterprise.
The potential device numbers are multiplied by the Jamf ASP for each device and enterprise type. 12 Table of Contents Our Growth Strategy Our purpose is to fill the gap between Apple’s powerful consumer-focused technology and the stringent management and security needs of the modern enterprise.
News and World Report), 8 of the 10 largest U.S. school districts (according to Niche), and 16 of the top 20 U.S. hospitals (according to U.S. News and World Report) as of December 31, 2023. Our focus on customer success and innovation has resulted in a Net Promoter Score of 55 as of November 2023, which significantly exceeds industry averages.
News and World Report), 9 of the 10 largest U.S. school districts (according to Niche), and 15 of the top 20 U.S. hospitals (according to U.S. News and World Report) as of December 31, 2024. Our focus on customer success and innovation has resulted in a Net Promoter Score of 56 in 2024, which significantly exceeds industry averages.
Jamf also makes it easy to leverage its other solutions within Jamf Now such as password syncing with cloud identity providers, malware prevention which helps prevent malicious software and other threats from running on Mac devices in an environment, and Self Service which connects users to App Store and third-party apps with an on-demand Mac App catalog.
Jamf also makes it easy to leverage its other solutions within Jamf Now such as password syncing with cloud identity providers, malware prevention which helps prevent malicious software and other threats from running on Mac devices in an environment, Self Service which connects users to App Store and third-party apps with an on-demand Mac App catalog, and web protection which combines web threat prevention with an extensive content-filtering database to block unsafe content and malicious attacks on supervised iOS and iPadOS devices.
We are a group of curious self-starters who thrive on taking initiative and are excited by global impact. We strive to provide an environment where our employees enjoy the freedom to be themselves and work how they work best.
We are a group of curious self-starters who thrive on taking initiative and are excited by global impact. We strive to provide an environment where our employees enjoy the freedom to be themselves and work how they work best. We believe it is important to create an inclusive environment in which all Jamf employees belong.
As of December 31, 2023, our customers included 8 of the largest 10 Fortune 500 companies, 8 of the top 10 Fortune 500 technology companies, 22 of the 25 most valuable brands (according to the Forbes Most Valuable Brands rankings), the 10 largest U.S. banks (based on total assets according to bankrate.com), the top 15 global universities (according to U.S.
As of December 31, 2024, our customers included 8 of the largest 10 Fortune 500 companies, 7 of the top 10 Fortune 500 technology companies, the 10 largest U.S. banks (based on total assets according to bankrate.com), the top 15 global universities (according to U.S.
All of our work is anchored on our Jamf values. As of December 31, 2023, based on employees who chose to identify their gender, approximately 33% of our workforce and 46% of new hires in 2023 self-identified as women. Women also made up approximately 37% of the Jamf management team as of December 31, 2023.
As of December 31, 2024, based on employees who chose to identify their gender, approximately 33% of our workforce and 38% of new hires in 2024 self-identified as women. Women also made up approximately 36% of the Jamf management team as of December 31, 2024.
The consumerization of IT The consumerization of IT refers to the migration of software and hardware products originally designed for personal use into the enterprise. Today, employees are often less inclined to draw a line between work and personal technology and commonly prefer not to settle for enterprise solutions that are harder to use than what they have at home.
Today, employees are often less inclined to draw a line between work and personal technology and commonly prefer not to settle for enterprise solutions that are harder to use than what they have at home.
Furthermore, we plan to invest in our products and technology to fulfill the unique needs of the market we target. Sales and Marketing Sales We have a global, multi-faceted go-to-market approach that allows us to efficiently sell to and serve the needs of organizations of varying sizes.
Sales and Marketing Sales We have a global, multi-faceted go-to-market approach that allows us to efficiently sell to and serve the needs of organizations of varying sizes.
It is the most valuable brand in the world according to Forbes. Apple’s success has been driven by delivering the best user experience to its customers through its innovative combination of hardware, software, and cloud services.
It is the largest company in the world by market capitalization according to data from Motley Fool. Apple’s success has been driven by delivering the best user experience to its customers through its innovative combination of hardware, software, and cloud services.
Additionally, this market includes the potential number of non-Apple devices that could run one or more of Jamf’s security solutions. Frost & Sullivan includes both devices purchased and provided by enterprises as well as BYODs owned by end users that may require a management and security solution to provide necessary access to resources or services from the enterprises.
Frost & Sullivan includes both devices purchased and provided by enterprises as well as BYODs owned by end users that may require a management and security solution to provide necessary access to resources or services from the enterprises.
To continuously offer a software solution built specifically for Apple, we have always worked closely with Apple’s worldwide developer relations organization in an effort to support all new Apple innovations the moment their hardware and software is released. Additionally, throughout the course of our relationship, Jamf and Apple have formalized several contractual agreements: • Apple as a customer.
Our relationship with Apple has endured and grown to be multi-faceted over the past 23 years. To continuously offer a software solution built specifically for Apple, we have always worked closely with Apple’s worldwide developer relations organization in an effort to support all new Apple innovations the moment their hardware and software is released.
In 2023, Fortune Media ® and Great Place To Work ® , a global leader in workplace culture, named Jamf to its 2023 Best Workplaces for Women List. Additionally, Jamf was listed as one of the top technology companies to work for by U.S. News.
Jamf was also named to Newsweek’s 2024 list of America’s Greatest Workplaces for Parents and Families. In 2023, Great Place To Work ® and Fortune ® named Jamf to its 2023 list of Best Workplaces for Women. Additionally, Jamf was listed as one of the top technology companies to work 16 Table of Contents for by U.S.
In 2016, millennials surpassed Generation X to become the single largest generation in the U.S. labor force, according to a 2018 study by the Pew Research Center. Millennials and Gen Z are digitally-native generations that have grown up with broadband, smartphones, tablets, laptops, and a massive library of apps through which they interact with the world and each other.
Millennials and Gen Z make up over half of the U.S. labor force according to a 2024 Trendlines published by the U.S. Department of Labor Employment and Training. Millennials and Gen Z are digitally-native generations that have grown up with broadband, smartphones, tablets, laptops, and a massive library of apps through which they interact with the world and each other.
We believe that by engaging employees, keeping them motivated, and empowering them to make a difference, they find deeper connections to and meaning in their work, which helps us retain top talent and provide a better customer experience. As of December 31, 2023, our voluntary retention rate for employees was 93%.
Together, we propel Jamf to be a global leader of equality and fairness in the workplace. We believe that by engaging employees, keeping them motivated, and empowering them to make a difference, they find deeper connections to and meaning in their work, which helps us retain top talent and provide a better customer experience.
Jamf Teacher, Student, Parent, and Assessment apps Jamf's education apps empower teachers, parents, and students to quickly and easily control, manage, and secure devices inside and outside of the classroom.
By making it possible to identify compromised devices, organizations are able to quickly respond and remediate, preventing extended exposure. Jamf Teacher, Student, Parent, and Assessment apps Jamf's education apps empower teachers, parents, and students to control, manage, and secure devices inside and outside of the classroom.
In 2010, Apple became a Jamf customer, using our software solution to deploy and secure its fleet of devices internally. For the year ended December 31, 2023, Apple as a customer represented less than 1% of our total revenue. • Apple as a channel partner in education and in retail.
For the year ended December 31, 2024, Apple as a customer represented less than 1% of our total revenue. • Apple as a channel partner in education and in retail. In 2011, Apple became a Jamf channel partner in the education market, reselling our software solution to K-12 and higher education organizations within the U.S.
Website references in this document are provided for convenience only, and the content on the referenced websites is not incorporated by reference into this report. While we believe that our ESG commitments align with our long-term growth strategy and financial and operational priorities, they are aspirational and may change, and there can be no assurance that they will be met.
While we believe that our ESG commitments align with our long-term growth strategy and financial and operational priorities, they are aspirational and may change, and there can be no assurance that they will be met.
To complement our direct sales teams, we have a large network of over 400 channel partners globally that resell our products across the world. These channel partners provide us with expanded market coverage and an efficient way to reach smaller or emerging geographies, providing us with additional sales capacity and the ability to be present in more global markets.
These channel partners provide us with expanded market coverage and an efficient way to reach smaller or emerging geographies, providing us with additional sales capacity and the ability to be present in more global markets. As of December 31, 2024, approximately 62% of our ARR was facilitated via our channel partners.
Customers As of December 31, 2023, we had more than 75,300 customers, over 28,000 of which became customers in the last three years, in more than 100 countries and territories.
Customers As of December 31, 2024, we had more than 76,500 customers, over 16,000 of which became customers in the last three years. Our customer base is comprised of businesses of all sizes, across all industries and in more than 100 countries and territories.
Jamf Protect also enforces acceptable usage policies to eliminate shadow IT and block risky content and manage data consumption with real-time analytics and granular reporting. 10 Table of Contents Jamf Business Plan Jamf Business Plan provides customers with the only Apple solution of scale that automates the entire lifecycle of Apple devices, including device deployment, identity and access, management, and security in one bundled purchase.
Jamf Business Plan Jamf Business Plan provides customers with the only Apple solution of scale that automates the entire lifecycle of Apple devices, including device deployment, identity and access, management, and security in one bundled purchase.
As a result, Apple market share in the enterprise has grown significantly. Apple’s commitment to the enterprise has expanded through partnerships with enterprise giants, such as Accenture, Cisco, Deloitte, General Electric, IBM, Salesforce, and SAP. Evidence of this momentum is further supported by Statcounter, an organization that aggregates data based on web traffic.
Apple’s commitment to the enterprise has expanded through partnerships with enterprise giants, such as Accenture, Cisco, Deloitte, General Electric, IBM, Salesforce, and SAP. According to Statcounter, an organization that aggregates data based on web traffic, Apple operating systems comprised 22% of global web traffic (both business and consumer) in December 2024, up from 4% in January 2009.
Today, we have become the only company in the world that provides a complete management and security solution for an Apple-first environment that is enterprise secure, consumer simple, and protects personal privacy. Our relationship with Apple has endured and grown to be multi-faceted over the past 22 years.
Our Relationship with Apple Jamf was founded in 2002 with the sole mission of helping organizations succeed with Apple, making it the first Apple-focused device management solution. Today, we have become the only company in the world that provides a complete management and security solution for an Apple-first environment that is enterprise secure, consumer simple, and protective of personal privacy.
Based on Frost & Sullivan data, Jamf’s global Total Addressable Market was estimated to be approximately $35 billion in 2022. This market represents the potential number of Apple mobile phones (iPhones), tablets (iPads), and laptop and desktop computers (Macs) based on growing acceptance by education and business IT departments.
This market represents the potential number of Apple mobile phones (iPhones), tablets (iPads), and laptop and desktop computers (Macs) based on growing acceptance by education and business IT departments. Additionally, this market includes the potential number of non-Apple devices that could run one or more of Jamf’s security solutions.
Apple released the iPod in 2001, followed by the iPhone in 2007, and the iPad in 2010. These products, which utilized Apple iOS (Apple’s proprietary mobile operating system), shared a design element that placed the user first.
In the 2000s, Apple introduced a series of revolutionary products that transformed how the world interacts with technology. These products, which utilized Apple iOS (Apple’s proprietary mobile operating system), shared a design element that placed the user first.
According to Statcounter, Apple operating systems comprised 24% of global web traffic (both business and consumer) in December 2023, up from 4% in January 2009. Apple’s gains in the U.S. have been even more significant, with Apple operating systems representing over 41% of web traffic in December 2023, compared to 35% for Microsoft and 20% for Google.
Apple’s gains in the U.S. have been even more significant, with Apple operating systems representing over 38% of web traffic in December 2024, compared to 33% for Microsoft and 25% for Google. Over that same period, the market share of Microsoft in the U.S. has declined from 92% to 33%.
Jamf Setup and Jamf Reset are iOS and iPadOS apps that simplify wireless device provisioning and refresh for clinical communications and other frontline work deployments. In all cases, these patented Jamf-based workflows empower people with devices for a purpose, improve user experience, and reduce the typical barriers for IT and InfoSec teams.
These Jamf-based workflows empower people with devices for a purpose, improve user experience, and reduce the typical barriers for IT and InfoSec teams.
As of December 31, 2023, we had 2,767 employees, of which 1,665 were employed in the U.S. and 1,102 were employed outside of the U.S. In certain countries in which we operate, we are subject to, and comply with, local labor law requirements, which automatically make our employees subject to industry-wide collective bargaining agreements.
In certain countries in which we operate, we are subject to, and comply with, local labor law requirements, which automatically make our employees subject to industry-wide collective bargaining agreements. An insubstantial number of our employees are currently subject to collective bargaining agreements. We have not experienced any work stoppages.
One example of this is at JNUC, our annual conference and the world’s largest gathering of Apple administrators, where Apple has presented various sessions and on our main stage since the conference’s inception. Market Opportunity We believe our solutions address a large and growing market covering the use of Apple technology in the enterprise.
In addition to these contractual relationships, Apple and Jamf personnel frequently join forces to influence and collaborate as we work with customers, helping them succeed with Apple. One example of this is at JNUC, our annual conference and the world’s largest gathering of Apple administrators, where Apple has presented various sessions and on our main stage since the conference’s inception.
We have a large international presence which we intend to continue growing. For the year ended December 31, 2023, approximately 35% of our new subscriptions originated outside of North America. We intend to continue making investments in our international sales and marketing channels to take advantage of this market opportunity, while refining our go-to-market approach based on local market dynamics.
We intend to continue making investments in our international sales and marketing channels to take advantage of this market opportunity, while refining our go-to-market approach based on local market dynamics. Furthermore, we plan to invest in our products and technology to fulfill the unique needs of the market we target.
We work closely with these various Apple teams across both sales and marketing to develop close relationships and expand our customer base. For smaller businesses or those with less complex requirements, we provide an online self-service e-commerce model that allows organizations to find products best suited for their needs.
For smaller businesses or those with less complex requirements, we provide an online self-service e-commerce model that allows organizations to find products best suited for their needs. This provides an efficient way to introduce smaller organizations to Jamf, with an opportunity for the relationship to grow over time.
Apple currently offers an entire ecosystem of desktops, laptops, tablets, phones, and wearable devices designed to interoperate seamlessly at home, at work, and everywhere in-between. This has made Apple the leading technology brand overall, according to a 2022 brand intimacy study by MBLM.
Apple currently offers an entire ecosystem of desktops, laptops, tablets, phones, and wearable devices designed to interoperate seamlessly at home, at work, and everywhere in-between. The consumerization of IT The consumerization of IT refers to the migration of software and hardware products originally designed for personal use into the enterprise.
With the ecosystem of Jamf education apps, education institutions keep teachers productive, parents collaborative, and students engaged, while gaining insights necessary for IT and security teams. Industry Workflows: Patient Experience, Virtual Visits, Clinical Communications, Jamf Setup, and Jamf Reset Jamf has a unique set of patented solutions that streamline user and IT experiences in healthcare and other vertical markets.
With the ecosystem of Jamf education apps, education institutions are enable to keep teachers productive, parents collaborative, and students engaged, while gaining insights necessary for IT and security teams.
By consolidating with Jamf, organizations know they are using the only solution that is built for Apple and that combines management, security, and identity into one platform.
By consolidating with Jamf, organizations are using the only solution that is built for Apple and that combines management, security, and identity into one platform. • International expansion. We have a large international presence which we intend to continue growing. For the year ended December 31, 2024, approximately 36% of our new subscriptions originated outside of North America.
In 2022, Great Place to Work ® and Fortune ® magazine named Jamf as one of the year’s 100 Best Companies to Work For ™ and 16 Table of Contents one of the Best Workplaces in Technology ™ . These awards are based on the responses of current employees on their employee experience.
Our commitment to and focus on our people and culture has led to the following workplace awards. These awards were based on the responses of current employees on their employee experience. In 2024, Jamf was recognized by Great Place To Work ® and PEOPLE magazine as one of the 2024 PEOPLE ® Companies that Care.
Each of these contractual relationships continue to this day and span all enterprise technology across the Apple ecosystem, including Mac, iPad, iPhone, and Apple TV. In addition to these contractual relationships, Apple and Jamf personnel frequently join forces to influence and collaborate as we work with customers, helping them succeed with Apple.
In 2014, we became a member of Apple’s Mobility Partner Program, which focuses on solution development and effective go-to-market activities. Each of these contractual relationships continue to this day and span all enterprise technology across the Apple ecosystem, including Mac, iPad, iPhone, and Apple TV.
In 2011, Apple became a Jamf channel partner in the education market, reselling our software solution to K-12 and higher education organizations within the U.S. In 2012, Apple expanded their channel relationship by offering our software solution to businesses through Apple retail stores in the U.S.
In 2012, Apple expanded their channel relationship by offering our software solution to businesses through Apple retail stores in the U.S. Our partner relationship with Apple accounts for less than 2% of our ARR as of December 31, 2024. • Mobility Partner Program.
Healthcare Listener is an electronic medical record integration to Jamf Pro that automates iPad and Apple TV deployments for patient experience. Virtual Visits is a video conferencing solution that facilitates easy, remote telehealth encounters for patients, families, and providers.
Industry Workflows: Patient Experience, Virtual Visits, Clinical Communications, Jamf Setup, and Jamf Reset Jamf has a differentiated set of patented solutions that streamline user and IT experiences in healthcare and other vertical markets. Healthcare Listener is an electronic medical record integration to Jamf Pro that automates iPad and Apple TV deployments for patient experience.
An insubstantial number of our employees are currently subject to collective bargaining agreements. We have not experienced any work stoppages. Our Purpose and Impact Report, which is available on the Corporate Responsibility section of our website, provides additional information on our key ESG programs and commitments.
Our Purpose and Impact Report, which is available on the Corporate Responsibility section of our website, provides additional information on our key ESG programs and commitments. Website references in this document are provided for convenience only, and the content on the referenced websites is not incorporated by reference into this report.
This information is then analyzed to identify IOC, which can show when a device has fallen victim to a highly targeted attack. By making it possible to identify compromised devices, organizations are able to quickly respond and remediate, preventing extended exposure. We previously referred to Jamf Executive Threat Protection as ZecOps, a business we acquired in 2022.
Jamf Executive Threat Protection Jamf Executive Threat Protection is an ADR solution for mobile devices that gives organizations the ability to extract critical device telemetry. This information is then analyzed to identify IOC, which can show when a device has fallen victim to a highly targeted attack.
Considering IDC’s estimate of Mac enterprise penetration, we believe there is significant opportunity to fill the gap between how many employees want a Mac and how many currently use one. Rise in remote and hybrid work More and more work is being done on mobile devices as hybrid work becomes the norm at many organizations.
We believe there is significant opportunity to fill the gap between how many employees want a Mac and how many currently use one. Rise in deskless work According to a 2024 Boston Consulting Group publication, deskless workers comprise 70% to 80% of the global workforce. These deskless workers face unique challenges that are often overlooked in corporate strategies.
Jamf Safe Internet also provides network threat prevention, which secures the network from phishing, as well as malware or ransomware attacks. Jamf Executive Threat Protection Jamf Executive Threat Protection is an ADR solution for mobile devices that gives organizations the ability to extract critical device telemetry.
Jamf Safe Internet also provides network threat prevention, with capabilities to secure the network from phishing, as well as malware or ransomware attacks. By utilizing Apple security frameworks and on-device functionality, Jamf Safe Internet enables security and privacy, wherever students access their devices online.
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Many enterprises prioritized standardization over user experience in order to facilitate the deployment, security, and management of massive numbers of Windows PCs. Employees were not typically given a choice in their devices. In the 2000s, Apple introduced a series of revolutionary products that transformed how the world interacts with technology.
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These are not just remote employees who are working outside the office, but also those whose job functions are mobile by necessity. In industries such as healthcare, transportation, retail, education, manufacturing, and field service, deskless workers frequently spend their time on-the-go: working room-to-room, from a vehicle, in a large open space inside a building, or outdoors.
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Over that same period, the market share of Microsoft in the U.S. has declined from 92% to 35%. And, according to a study by IDC in August 2023, it is predicted that the number of Macs sold to business users worldwide will increase by 20% between 2023 and 2024.
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We see these employees in positions as varied as frontline, operational workers, nurses, pilots, flight mechanics, and cashiers, all with vastly different use cases but common IT requirements at the foundation. Organizations that provide mobile devices to enhance deskless workers’ efficiency must also ensure proper implementation, management, and security.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeRisk Factor Summary The following summarizes certain of the principal factors that make an investment in our Company speculative or risky: • the impact of adverse general and industry-specific economic and market conditions and reductions in IT spending; • the potential impact of customer dissatisfaction with Apple or other negative events affecting Apple services and devices, and failure of enterprises to adopt Apple products; • the potentially adverse impact of changes in features and functionality by Apple and other third parties on our engineering focus or product development efforts; • changes in our continued relationship with Apple; • the fact that we are not party to any exclusive agreements or arrangements with Apple; • our reliance, in part, on channel partners for the sale and distribution of our products; 18 Table of Contents • our ability to successfully develop new products or materially enhance current products through our research and development efforts; • our ability to continue to attract new customers and maintain and expand our relationships with our current customers; • our ability to correctly estimate market opportunity and forecast market growth; • our ability to effectively manage our future growth; • our dependence on one of our products for a substantial portion of our revenue; • our ability to change our pricing models, if necessary, to compete successfully; • the impact of delays or outages of our cloud services from any disruptions, capacity limitations, or interferences of third-party data centers that host our cloud services, including AWS; • our ability to meet service-level commitments under our subscription agreements; • our ability to maintain, enhance, and protect our brand; • our ability to attract and retain highly qualified personnel and maintain our corporate culture, including as a result of our recent workforce reduction; • the ability of Jamf Nation to thrive and grow as we expand our business and the potential impact of inaccurate, incomplete, or misleading content that is posted on Jamf Nation; • our ability to offer high-quality support; • risks and uncertainties associated with acquisitions, divestitures, and strategic investments; • our ability to predict and respond to rapidly evolving technological trends and our customers’ changing needs; • our ability to effectively implement, use, and market AI/ML technologies; • our ability to compete with existing and new companies; • risks associated with competitive challenges faced by our customers; • the impact of our often long and unpredictable sales cycle; • our ability to effectively expand and develop our sales and marketing capabilities; • the risks associated with free trials and other inbound, lead-generation sales strategies; • the risks associated with indemnity provisions in our contracts; • risks associated with cybersecurity events; • the impact of real or perceived errors, failures, or bugs in our products; • the impact of general disruptions to data transmission; • risks associated with stringent and changing privacy laws, regulations, and standards, and information security policies and contractual obligations related to data privacy and security; • the risks associated with intellectual property infringement, misappropriation, or other claims; 19 Table of Contents • our reliance on third-party software and intellectual property licenses; • our ability to obtain, protect, enforce, and maintain our intellectual property and proprietary rights; • the risks associated with our use of open source software in our products; and • risks related to our indebtedness, including our ability to raise the funds necessary to settle conversions of our convertible senior notes, repurchase our convertible senior notes upon a fundamental change, or repay our convertible senior notes in cash at their maturity.
Biggest changeRisk Factor Summary The following summarizes certain of the principal factors that make an investment in our Company speculative or risky: • the impact of adverse general and industry-specific economic and market conditions and reductions in IT spending; • the potential impact of customer dissatisfaction with Apple or other negative events affecting Apple services and devices, and failure of enterprises to adopt Apple products; • the potentially adverse impact of changes in features and functionality by Apple and other third parties on our engineering focus or product development efforts; • changes in our continued relationship with Apple; • the fact that we are not party to any exclusive agreements or arrangements with Apple; • our reliance, in part, on channel and other partners for the sale and distribution of our products; • our ability to successfully develop new products or materially enhance current products through our research and development efforts; • our ability to continue to attract new customers and maintain and expand our relationships with our current customers; • our ability to correctly estimate market opportunity and forecast market growth; 18 Table of Contents • our ability to effectively manage our future growth; • our dependence on one of our products for a substantial portion of our revenue; • our ability to change our pricing models, if necessary, to compete successfully; • our ability to meet service-level commitments under our subscription agreements; • our ability to maintain, enhance, and protect our brand; • our ability to attract and retain highly qualified personnel and maintain our corporate culture, including as a result of our recent workforce reduction; • the ability of Jamf Nation to thrive and grow as we expand our business and the potential impact of inaccurate, incomplete, or misleading content that is posted on Jamf Nation; • our ability to offer high-quality support; • risks and uncertainties associated with acquisitions, divestitures, and strategic investments; • our ability to predict and respond to rapidly evolving technological trends and our customers’ changing needs; • our ability to effectively implement, use, and market AI/ML technologies; • our ability to compete with existing and new companies; • risks associated with competitive challenges faced by our customers; • the impact of our often long and unpredictable sales cycle; • our ability to effectively expand and develop our sales and marketing capabilities; • the risks associated with free trials and other inbound, lead-generation sales strategies; • the risks associated with indemnity provisions in our contracts; • risks associated with cybersecurity events; • the impact of real or perceived errors, failures, or bugs in our products; • the impact of general disruptions to data transmission; • risks associated with stringent and changing privacy laws, regulations, and standards, and information security policies and contractual obligations related to data privacy and security; • the risks associated with intellectual property infringement, misappropriation, or other claims; • our reliance on third-party software and intellectual property licenses; • our ability to obtain, protect, enforce, and maintain our intellectual property and proprietary rights; • the risks associated with our use of open source software in our products; • risks associated with our recent systems transformation implementation; • the impact of delays or outages of our cloud services from any disruptions, capacity limitations, or interferences of third-party data centers that host our cloud services, including AWS and Azure; and 19 Table of Contents • risks related to our indebtedness, including our ability to raise the funds necessary to settle conversions of our convertible senior notes, repurchase our convertible senior notes upon a fundamental change, or repay our convertible senior notes in cash at their maturity.
We also have several direct contractual relationships with Apple that span all enterprise devices across the Apple 21 Table of Contents ecosystem, including Mac, iPad, iPhone, and Apple TV. Additionally, Apple is a significant reseller of Jamf products, particularly in education. These contractual relationships can be terminated by Apple at any time with limited advance notice to us.
We also have several direct contractual relationships with Apple that span all enterprise devices across the Apple ecosystem, including Mac, iPad, iPhone, and Apple TV. Additionally, Apple is a significant reseller of Jamf products, 21 Table of Contents particularly in education. These contractual relationships can be terminated by Apple at any time with limited advance notice to us.
We also expect our operating expenses to increase in future periods, particularly as we continue to invest in research and development and technology infrastructure, expand our operations globally, develop new products and enhancements for existing products, and as we support our operations.
We also expect our operating expenses to continue to increase in future periods, particularly as we continue to invest in research and development and technology infrastructure, expand our operations globally, develop new products and enhancements for existing products, and as we support our operations.
Further, 40 Table of Contents these events could decrease the capital we have available to operate our business. Any or all of these events could harm our business and financial performance. Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
Further, these events could decrease the capital we have available to operate our business. Any or all of these events could harm our business and financial performance. 40 Table of Contents Our ability to use our net operating losses to offset future taxable income may be subject to certain limitations.
While we enter into non-compete agreements where permissible, not all jurisdictions permit such agreements, and regardless of the jurisdiction, our key personnel could still pursue employment opportunities with other parties, including, potentially any of our competitors and there are no assurances that our non-compete agreements with any such key personnel would be enforceable in a cost effective manner, if at all.
While we enter into non-compete agreements where permissible, not all jurisdictions permit such agreements, and regardless of the jurisdiction, our key personnel could still pursue employment opportunities with other parties, including, potentially any of our competitors, and there are no assurances that our existing non-compete agreements with any such key personnel would be enforceable in a cost effective manner, if at all.
Additional risks we may face in connection with such transactions include, among others: • disruptions to management focus on day-to-day responsibilities and ongoing operations; • inherent uncertainties in valuation models; • reductions in cash available for operations and other uses; • challenges with implementing adequate and appropriate controls, procedures, and policies in acquired businesses; 28 Table of Contents • increased exposure to risks related to foreign operations due to the increase in our employee presence outside the U.S.; • potential difficulties in completing projects associated with IPR&D of acquired businesses; • retention of key personnel from acquired companies; • changes in relationships with strategic partners or the loss of any key customers or partners as a result of product acquisitions or strategic positioning resulting from any such transaction; • liability for pre-acquisition activity, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities, and other known and unknown liabilities; • litigation or other claims resulting from any such transaction, including claims from terminated employees, customers, current and former stockholders, or other third parties; • risks relating to the challenges and costs of closing a transaction, including completion of customary closing conditions for each transaction (such as obtaining applicable regulatory and stockholder approvals); and • failure to achieve the expected benefits of any such transaction, including the need to later divest acquired assets at a loss if a transaction does not meet our expectations.
Additional risks we may face in connection with such transactions include, among others: • disruptions to management focus on day-to-day responsibilities and ongoing operations; • inherent uncertainties in valuation models; • reductions in cash available for operations and other uses; • challenges with implementing adequate and appropriate controls, procedures, and policies in acquired businesses; • increased exposure to risks related to foreign operations due to the increase in our employee presence outside the U.S.; • potential difficulties in completing projects associated with IPR&D of acquired businesses; • retention of key personnel from acquired companies; • changes in relationships with strategic partners or the loss of any key customers or partners as a result of product acquisitions or strategic positioning resulting from any such transaction; • liability for pre-acquisition activity, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities, and other known and unknown liabilities; • litigation or other claims resulting from any such transaction, including claims from terminated employees, customers, current and former stockholders, or other third parties; • risks relating to the challenges and costs of closing a transaction, including completion of customary closing conditions for each transaction (such as obtaining applicable regulatory and stockholder approvals); and • failure to achieve the expected benefits of any such transaction, including the need to later divest acquired assets at a loss if a transaction does not meet our expectations.
If any such indemnification obligations are triggered, we could face substantial liabilities or be forced to make changes to our products, enter into license agreements, which may not be available on commercially reasonable terms or at all, or terminate our agreements with customers, channel partners, and other third parties and provide refunds.
If any such indemnification obligations are triggered, we could face substantial liabilities or be forced to make changes to our products, enter into license agreements, which may not be available on commercially reasonable terms or at all, or terminate our agreements with customers, partners, and other third parties and provide refunds.
This Annual Report on Form 10-K includes our internal estimates of the addressable market for our products. Market opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may prove to be inaccurate.
This Annual Report on Form 10-K includes our internal estimates of the total addressable market for our products. Market opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may prove to be inaccurate.
Since our customers may rely on our products to secure their Apple products and systems, and because customers use our products to assist in necessary business and service interactions and to support customer and client-facing applications, any outage on our products would impair the ability of our customers to operate their businesses and provide necessary services, which would negatively impact our brand, reputation, and customer satisfaction.
Since our customers rely on our products to secure their Apple products and systems, and because customers use our products to assist in necessary business and service interactions and to support customer and client-facing applications, any outage on our products would impair the ability of our customers to operate their businesses and provide necessary services, which would negatively impact our brand, reputation, and customer satisfaction.
The timing of our sales can be difficult to predict. We and our channel partners are often required to spend significant time and resources to better educate and familiarize potential customers with the value proposition of our products. We spend substantial time and resources on our sales efforts without any assurance that our efforts will produce a sale.
The timing of our sales can be difficult to predict. We and our channel and other partners are often required to spend significant time and resources to better educate and familiarize potential customers with the value proposition of our products. We spend substantial time and resources on our sales efforts without any assurance that our efforts will produce a sale.
We have indemnity provisions under our contracts with our customers, channel partners, and other third parties, which could have a material adverse effect on our business. In our agreements with customers, channel partners, and other third parties, we typically agree to indemnify them for losses related to claims by third parties of intellectual property infringement, misappropriation, or other violation.
We have indemnity provisions under our contracts with our customers, partners, and other third parties, which could have a material adverse effect on our business. In our agreements with customers, partners, and other third parties, we typically agree to indemnify them for losses related to claims by third parties of intellectual property infringement, misappropriation, or other violation.
Further, entities providing services to governments are required to comply with a variety of complex laws, regulations, and contractual provisions relating to the formation, administration, or performance of government contracts that give public sector customers substantial rights and remedies, many of which are not typically found in commercial contracts.
Entities providing services to governments are required to comply with a variety of complex laws, regulations, and contractual provisions relating to the formation, administration, or performance of government contracts that give public sector customers substantial rights and remedies, many of which are not typically found in commercial contracts.
Among other things: • these provisions allow us to authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued without shareholder approval, and which may include supermajority voting, special approval, dividend, or other rights or preferences superior to the rights of shareholders; • these provisions provide for a classified board of directors with staggered three-year terms; • these provisions provide that, at any time when Vista beneficially owns, in the aggregate, less than 40% in voting power of our stock entitled to vote generally in the election of directors, directors may only be removed for cause, and only by the affirmative vote of holders of at least 66 2∕3% in voting power of all the then-outstanding shares of our stock entitled to vote thereon, voting together as a single class; • these provisions prohibit shareholder action by written consent from and after the date on which Vista beneficially owns, in the aggregate, less than 35% in voting power of our stock entitled to vote generally in the election of directors; • these provisions provide that any amendment, alteration, rescission, or repeal of our bylaws by our shareholders will require the affirmative vote of the holders of at least 66 2∕3% in voting power of all the then-outstanding shares of our stock entitled to vote thereon, voting together as a single class; and • these provisions establish advance notice requirements for nominations for elections to our Board or for proposing matters that can be acted upon by shareholders at shareholder meetings; provided, however, at any time when Vista beneficially owns, in the aggregate, at least 10% in voting power of our stock entitled to vote generally in the election of directors, such advance notice procedure will not apply to it.
Among other things: • these provisions allow us to authorize the issuance of undesignated preferred stock, the terms of which may be established and the shares of which may be issued without shareholder approval, and which may include supermajority voting, special approval, dividend, or other rights or preferences superior to the rights of shareholders; • these provisions provide for a classified board of directors with staggered three-year terms; • these provisions provide that, at any time when Vista beneficially owns, in the aggregate, less than 40% in voting power of our stock entitled to vote generally in the election of directors, directors may only be removed for cause, and only by the affirmative vote of holders of at least 66 2∕3% in voting power of all the then-outstanding shares of our stock entitled to vote thereon, voting together as a single class; • these provisions prohibit shareholder action by written consent from and after the date on which Vista beneficially owns, in the aggregate, less than 35% in voting power of our stock entitled to vote generally in the election of directors; 48 Table of Contents • these provisions provide that any amendment, alteration, rescission, or repeal of our bylaws by our shareholders will require the affirmative vote of the holders of at least 66 2∕3% in voting power of all the then-outstanding shares of our stock entitled to vote thereon, voting together as a single class; and • these provisions establish advance notice requirements for nominations for elections to our Board or for proposing matters that can be acted upon by shareholders at shareholder meetings; provided, however, at any time when Vista beneficially owns, in the aggregate, at least 10% in voting power of our stock entitled to vote generally in the election of directors, such advance notice procedure will not apply to it.
Each of these difficulties could result in substantial compliance burdens and could materially adversely affect our business and results of operations. We are subject to export controls and economic sanctions laws, and our customers and channel partners are subject to import controls that could subject us to liability if we are not in full compliance with applicable laws.
Each of these difficulties could result in substantial compliance burdens and could materially adversely affect our business and results of operations. We are subject to export controls and economic sanctions laws, and our customers and partners are subject to import controls that could subject us to liability if we are not in full compliance with applicable laws.
Our prices may also change because of discounts, a change in our mix of products toward subscription, enterprise-wide licensing arrangements, bundling of products, features and functionality by us or our competitors, anticipation of the introduction of new products, or promotional programs for customers or channel partners.
Our prices may also change because of discounts, a change in our mix of products toward subscription, enterprise-wide licensing arrangements, bundling of products, features and functionality by us or our competitors, anticipation of the introduction of new products, or promotional programs for customers or channel and other partners.
From time to time, there may be changes in our senior management team. In the last two years, we have hired (including via internal promotions) a new Chief Executive Officer, Chief Financial Officer, Chief Sales Officer, and Chief People Officer, among other leadership changes.
From time to time, there may be changes in our senior management team. In the last two years, we have hired (including via internal promotions) a new Chief Executive Officer, Chief Financial Officer, and Chief Sales Officer, among other leadership changes.
Our 2020 Credit Agreement contains a number of restrictive covenants that impose significant operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interests, including restrictions on our ability to: • incur certain additional indebtedness; • pay dividends on or make distributions in respect of capital stock or repurchase or redeem capital stock; • prepay, redeem, or repurchase certain indebtedness; • make loans and investments; • sell or otherwise dispose of assets, including capital stock of restricted subsidiaries; • incur liens; • enter into transactions with affiliates; • enter into agreements restricting the ability of our subsidiaries to pay dividends; and • consolidate, merge, or sell all or substantially all of our assets.
Our 2024 Credit Agreement contains a number of restrictive covenants that impose significant operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interests, including restrictions on our ability to: • incur certain additional indebtedness; • pay dividends on or make distributions in respect of capital stock or repurchase or redeem capital stock; • prepay, redeem, or repurchase certain indebtedness; • make loans and investments; • sell or otherwise dispose of assets, including capital stock of restricted subsidiaries; • incur liens; • enter into transactions with affiliates; • enter into agreements restricting the ability of our subsidiaries to pay dividends; and • consolidate, merge, or sell all or substantially all of our assets.
In addition, even claims that ultimately are unsuccessful could result in expenditures of management’s time and other resources. Furthermore, any legal claims from customers and channel partners could result in reputational harm and the delay or loss of market acceptance of our products.
In addition, even claims that ultimately are unsuccessful could result in expenditures of management’s time and other resources. Furthermore, any legal claims from customers and partners could result in reputational harm and the delay or loss of market acceptance of our products.
U.S. export controls, sanctions, and regulations apply to our channel partners as well as to us. Any failure by our channel partners to comply with such laws, regulations, or sanctions could have negative consequences, including reputational harm, government investigations, and penalties.
U.S. export controls, sanctions, and regulations apply to our channel and other partners as well as to us. Any failure by our channel and other partners to comply with such laws, regulations, or sanctions could have negative consequences, including reputational harm, government investigations, and penalties.
Customer dissatisfaction with Apple could be attributed to us, impact our relationships with customers, and/or result in the loss of customers across all of our products if any of our customers chose to discontinue or reduce their use of Apple devices.
Customer dissatisfaction with Apple could be attributed to us, impact our relationships with customers, and/or result in the loss of customers across any or all of our products if any of our customers chose to discontinue or reduce their use of Apple devices and services.
In addition, provisions regarding limitation of liability in our agreements with customers, channel partners, or other third parties may not be enforceable in some circumstances or jurisdictions or may not protect us from claims and related liabilities and costs.
In addition, provisions regarding limitation of liability in our agreements with customers, partners, or other third parties may not be enforceable in some circumstances or jurisdictions or may not protect us from claims and related liabilities and costs.
If we are unable to attract new customers, retain our current customers, or sell additional functionality and services to our existing customers, our revenue growth will be adversely affected. To increase our revenue, we must continue to attract new customers and increase sales to existing customers.
If we are unable to attract new customers, retain our current customers, or sell additional functionality and services to our existing customers, our revenue growth will be adversely affected. To increase our revenue, we must attract new customers and increase sales to existing customers.
In addition, if the market for Jamf Pro grows slower than anticipated, or if demand for our other products does not grow as quickly as anticipated, whether as a result of competition, pricing sensitivities, product obsolescence, technological change, unfavorable economic conditions, uncertain geopolitical environment, budgetary constraints of our customers, or other factors, our business, results of operations, and financial condition would be adversely affected.
In addition, if the market for Jamf Pro grows slower than anticipated, or at all, or if demand for our other products does not grow as quickly as anticipated, whether as a result of competition, pricing sensitivities, product obsolescence, technological change, unfavorable economic conditions, uncertain geopolitical environment, budgetary constraints of our customers, or other factors, our business, results of operations, and financial condition would be adversely affected.
Additional factors that may influence the length and variability of our sales cycle include: • the discretionary nature of purchasing and budget cycles and decisions; • impacts on customers’ business, cash flows, and financial condition as a result of macroeconomic conditions; 31 Table of Contents • lengthy purchasing approval processes; • the mix of products considered by our customers; • the industries in which our customers operate; • the evaluation of competing products during the purchasing process; • time, complexity, and expense involved in replacing existing products; • announcements or planned introductions of new products, features, or functionality by our competitors or of new products or offerings by us; and • evolving functionality demands.
Additional factors that may influence the length and variability of our sales cycle include: • the discretionary nature of purchasing and budget cycles and decisions; • impacts on customers’ business, cash flows, and financial condition as a result of macroeconomic conditions; • lengthy purchasing approval processes; • the mix of products considered by our customers; • the industries in which our customers operate; • the evaluation of competing products during the purchasing process; • time, complexity, and expense involved in replacing existing products; • announcements or planned introductions of new products, features, or functionality by our competitors or of new products or offerings by us; and • evolving functionality demands.
For example, in January 2024, Apple made certain changes to iOS, the 20 Table of Contents App Store, and Safari in response to the EU Digital Markets Act. Any such required changes to Apple’s business practices could have a material effect on our ability to offer certain of our products effectively or at all.
For example, in 2024, Apple made certain changes to iOS, iPadOS, the App Store, and Safari in response to the EU Digital Markets Act. Any such required changes to Apple’s business practices could have a 20 Table of Contents material effect on our ability to offer certain of our products effectively or at all.
The importance of high-quality customer support will increase as we expand our business and pursue new customers. Existing and future acquisitions, divestitures, strategic investments, or partnerships could be difficult to identify and integrate, divert the attention of key personnel, disrupt our business, dilute shareholder value, and adversely affect our business, operating results, and financial condition.
The importance of high-quality customer support will increase as we expand our business and pursue new customers. Acquisitions, divestitures, strategic investments, or partnerships could be difficult to identify and integrate, divert the attention of key personnel, disrupt our business, dilute shareholder value, and adversely affect our business, operating results, and financial condition.
We therefore cannot yet fully determine the impact these or future laws, rules, regulations, and industry standards may have on our business or operations.
We therefore cannot fully determine the impact these or future laws, rules, regulations, and industry standards may have on our business or operations.
Because techniques used to sabotage or obtain unauthorized access to systems change frequently, have increased in sophistication, and generally are not recognized until successfully launched against a target, we may be unable to anticipate these techniques, react in a timely manner, or implement adequate preventative measures.
Because techniques used to sabotage or obtain unauthorized access to systems change frequently, have increased in sophistication, and generally are not recognized until successfully launched against a target, we may be unable to anticipate these techniques, react in a timely manner or at all, or implement adequate preventative measures.
In addition, our 2020 Credit Agreement also limits our ability to incur certain additional debt and therefore we may need to amend our 2020 Credit Agreement or issue additional equity to raise capital. If we issue additional equity, your interest in us will be diluted. We may face exposure to foreign currency exchange rate fluctuations.
In addition, our 2024 Credit Agreement also limits our ability to incur certain additional debt and therefore we may need to amend our 2024 Credit Agreement or issue additional equity to raise capital. If we issue additional equity, your interest in us will be diluted. We may face exposure to foreign currency exchange rate fluctuations.
These factors include: • recessionary periods in our customers’ markets; • the impact of inflationary conditions on our customers’ budgets and financial condition; • the inability of our customers to adapt to rapidly changing technology and evolving industry standards, which may contribute to short product life cycles or shifts in our customers’ strategies; • regulation changes in our customers’ respective industries; • the inability of our customers to develop, market, or gain commercial acceptance of their products, some of which are new and untested; • the potential that our customers’ products become commoditized or obsolete; • loss of business or a reduction in pricing power experienced by our customers; • the emergence of new business models or more popular products and shifting patterns of demand; and • a highly-competitive consumer products industry, which is often subject to shorter product lifecycles, shifting end-user preferences, and higher revenue volatility.
These factors include: • recessionary periods in our customers’ markets; • the impact of inflationary conditions on our customers’ budgets and financial condition; • the inability of our customers to adapt to rapidly changing technology and evolving industry standards, which may contribute to short product life cycles or shifts in our customers’ strategies; • regulatory changes in our customers’ respective industries; 30 Table of Contents • the inability of our customers to develop, market, or gain commercial acceptance of their products, some of which are new and untested; • the potential that our customers’ products become commoditized or obsolete; • loss of business or a reduction in pricing power experienced by our customers; • the emergence of new business models or more popular products and shifting patterns of demand; and • a highly-competitive consumer products industry, which is often subject to shorter product lifecycles, shifting end-user preferences, and higher revenue volatility.
For example, the AI/ML models that we use are trained using various data sets, and if our models are incorrectly designed, the data we use to train them is incomplete or inadequate, or we do not have sufficient rights to use the data on which our models rely, the performance of our AI/ML solutions and features, as well as our reputation, could suffer or we could incur liability through the violation of contractual or regulatory obligations.
For example, the AI/ML models that we use are trained using various data sets, and if our models are incorrectly designed, the data we use to train them is incomplete, inadequate, flawed, biased, or questionable, or we do not have sufficient rights to use the data on which our models rely, the performance of our AI/ML solutions and features, as well as our reputation, could suffer or we could incur liability through the violation of contractual or regulatory obligations.
In addition, certain of our customers are able to terminate their contracts with us for any or no reason. Our customers may renew for shorter contract subscription lengths, reduce the device count of existing deployments, or cease using certain of our products.
In addition, certain of our customers are able to terminate their contracts with us for any or no reason. Our customers sometimes renew for shorter contract subscription lengths, reduce the device count of existing deployments, or cease using certain of our products.
The 2020 Credit Agreement restricts our ability to incur certain additional indebtedness, including secured indebtedness, but if the 2020 Credit Agreement matures or is repaid, we may not be subject to such restrictions under the terms of any subsequent indebtedness.
The 2024 Credit Agreement restricts our ability to incur certain additional indebtedness, including secured indebtedness, but if the 2024 Credit Agreement matures or is repaid, we may not be subject to such restrictions under the terms of any subsequent indebtedness.
The restrictive covenants in the 2020 Credit Agreement require us to maintain specified financial ratios and satisfy other financial condition tests to the extent applicable. Our ability to meet those financial ratios and tests can be affected by events beyond our control.
The restrictive covenants in the 2024 Credit Agreement require us to maintain specified financial ratios and satisfy other financial condition tests to the extent applicable. Our ability to meet those financial ratios and tests can be affected by events beyond our control.
Our new products and product enhancements could fail to attain sufficient market acceptance for many reasons, including: • the failure to accurately predict market or customer demands; • defects, errors, or failures in the design or performance of our new products or product enhancements; 29 Table of Contents • negative publicity about the performance or effectiveness of our products; • the introduction or anticipated introduction of competing products by our competitors; and • the perceived value of our products or enhancements relative to their cost.
Our new products and product enhancements could fail to attain sufficient market acceptance for many reasons, including: • the failure to accurately predict market or customer demands; • defects, errors, or failures in the design or performance of our new products or product enhancements; • negative publicity about the performance or effectiveness of our products; • the introduction or anticipated introduction of competing products by our competitors; and • the perceived value of our products or enhancements relative to their cost.
If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and repurchase the 2026 Notes or make cash payments upon conversions thereof. The conditional conversion feature of the 2026 Notes, if triggered, may adversely affect our financial condition and operating results.
If the repayment of the related indebtedness were to be accelerated after any applicable notice or grace periods, we may not have sufficient funds to repay the indebtedness and repurchase the 2026 Notes or make cash payments upon conversions thereof. 44 Table of Contents The conditional conversion feature of the 2026 Notes, if triggered, may adversely affect our financial condition and operating results.
If we are unable to maintain effective internal control over financial reporting or disclosure controls and procedures, our ability to record, process, and report financial information accurately and to prepare financial statements within required time periods could be adversely affected, which could subject us to litigation, investigations, or penalties; negatively affect our liquidity, our access to capital markets, perceptions of our creditworthiness, our ability to complete acquisitions, our ability to maintain compliance with covenants under our debt instruments or derivative arrangements regarding the timely filing of periodic reports, or investor confidence in our financial reporting, any of which may divert management resources or cause our stock price to decline.
If we are unable to maintain effective internal control over financial reporting or disclosure controls and procedures, our ability to record, process, and report financial information accurately and to prepare financial statements within required time periods could be adversely affected, negatively affect our liquidity, our access to capital markets, perceptions of our creditworthiness, our ability to complete acquisitions, our ability to maintain compliance with covenants under our debt instruments or derivative arrangements regarding the timely filing of periodic reports, or investor confidence in our financial reporting, any of which may divert management resources or cause our stock price to decline.
Additionally, 26 Table of Contents our non-compete periods expire, at which time key personnel could work for any of our competitors. In such event, we would be unable to prevent our current employees and other personnel formerly employed by us from competing with us, potentially resulting in the loss of some of our business.
Additionally, our non-compete periods expire, at which time key personnel could work for any of our competitors. In such event, we would be unable to prevent our current employees and other personnel formerly employed by us from competing with us, potentially resulting in the loss of some of our business.
Beyond this, demand for our products and services may be impacted by public sector budgetary cycles and funding availability, impacts of macroeconomic and geopolitical conditions, and funding in any given fiscal cycle may be reduced or delayed, including in connection with an extended federal government shutdown, which could adversely impact demand for our products and services.
Beyond this, demand for our products and services may be impacted by public sector budgetary cycles and funding availability, impacts 38 Table of Contents of macroeconomic and geopolitical conditions, and funding in any given fiscal cycle may be reduced or delayed, including in connection with an extended federal government shutdown, which could adversely impact demand for our products and services.
We additionally have customers who operate 38 Table of Contents in heavily-regulated organizations who procure our software products both through our partners and directly, and we have made, and may continue to make, significant investments to support future sales opportunities in these sectors. Doing business with government entities presents a variety of risks.
We additionally have customers who operate in heavily-regulated organizations who procure our software products both through our partners and directly, and we have made, and may continue to make, significant investments to support future sales opportunities in these sectors. Doing business with government entities presents a variety of risks.
Even though Vista does not own shares of our stock representing a majority of the total voting power, for so long as Vista continues to own a significant percentage of our stock, Vista will still be able to significantly influence the composition of our Board, including the right to designate the Chair of our Board, and the approval of actions requiring shareholder approval.
Even though Vista does not own shares of our stock representing a majority of the total voting power, for so long as Vista continues to own a significant percentage of our stock, Vista will still be able to significantly influence the composition of our Board, 47 Table of Contents including the right to designate the Chair of our Board, and the approval of actions requiring shareholder approval.
In addition, our ability to pay dividends is, and may be, limited by covenants of our existing indebtedness and any future outstanding indebtedness we or our subsidiaries incur, including under our 2020 Credit Agreement.
In addition, our ability to pay dividends is, and may be, limited by covenants of our existing indebtedness and any future outstanding indebtedness we or our subsidiaries incur, including under our 2024 Credit Agreement.
We provide service-level commitments under our subscription agreements. If we fail to meet contractual commitments for service level commitments or quality of professional services, we could be obligated to provide credits for future service or face subscription termination with refunds of prepaid amounts, which would lower our revenue and harm our business, results of operations, and financial condition.
If we fail to meet contractual commitments for service level commitments or quality of professional services, we could be obligated to provide credits for future service or face subscription termination with refunds of prepaid amounts, which would lower our revenue and harm our business, results of operations, and financial condition. Many of our subscription agreements contain service-level commitments.
Our exposure will depend on many factors but, generally, an increase in our exposure will be correlated to an increase in the market price and in the volatility of our common stock. In addition, upon a default by an option counterparty, we may suffer more dilution than we currently anticipate with respect to our common stock.
Our exposure will depend on many factors but, generally, an increase in our exposure will be correlated to an 45 Table of Contents increase in the market price and in the volatility of our common stock. In addition, upon a default by an option counterparty, we may suffer more dilution than we currently anticipate with respect to our common stock.
Any failure to meet these contractual commitments could also damage our reputation, which could also adversely affect our business and results of operations. If we fail to maintain, enhance, or protect our brand, our ability to expand our customer base will be impaired and our business, financial condition, and results of operations may suffer.
Any failure to meet these contractual commitments could also damage our reputation, which could also adversely affect our business and results of operations. 25 Table of Contents If we fail to maintain, enhance, or protect our brand, our ability to expand our customer base will be impaired and our business, financial condition, and results of operations may suffer.
In addition, any change in export or import regulations, economic sanctions, or related legislation, shift in the enforcement, or scope of existing regulations, or change in the countries, governments, persons, or technologies targeted by such regulations, could result in decreased use of our products by, or in our decreased ability to export or sell our products to, existing or potential customers with international operations.
In 39 Table of Contents addition, any change in export or import regulations, economic sanctions, or related legislation, shift in the enforcement, or scope of existing regulations, or change in the countries, governments, persons, or technologies targeted by such regulations, could result in decreased use of our products by, or in our decreased ability to export or sell our products to, existing or potential customers with international operations.
In the ordinary course of their business activities, Vista and its affiliates may engage in activities 47 Table of Contents where their interests conflict with our interests or those of our other shareholders, such as investing in or advising businesses that directly or indirectly compete with certain portions of our business or are suppliers or customers of ours.
In the ordinary course of their business activities, Vista and its affiliates may engage in activities where their interests conflict with our interests or those of our other shareholders, such as investing in or advising businesses that directly or indirectly compete with certain portions of our business or are suppliers or customers of ours.
In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes instituted securities class action litigation against the company that issued the stock. If any of our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit.
In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes 49 Table of Contents instituted securities class action litigation against the company that issued the stock. If any of our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit.
If we need additional capital and cannot raise it on acceptable terms, or at all, we may not be able to, among other things: • develop and enhance our products; 46 Table of Contents • continue to expand our product development, sales, and marketing organizations; • hire, train, and retain employees; • respond to competitive pressures or unanticipated working capital requirements; or • pursue acquisition opportunities.
If we need additional capital and cannot raise it on acceptable terms, or at all, we may not be able to, among other things: • develop and enhance our products; • continue to expand our product development, sales, and marketing organizations; • hire, train, and retain employees; • respond to competitive pressures or unanticipated working capital requirements; or • pursue acquisition opportunities.
Any of these factors could adversely affect our reputation and/or confidence in Jamf Nation and could have a material adverse effect on our business, results of operations, and financial condition. 27 Table of Contents If we fail to offer high-quality support, our business and reputation could suffer.
Any of these factors could adversely affect our reputation and/or confidence in Jamf Nation and could have a material adverse effect on our business, results of operations, and financial condition. If we fail to offer high-quality support, our business and reputation could suffer.
We maintain insurance to 32 Table of Contents protect against certain types of claims associated with the use of our products, but our insurance may not adequately cover any such claims and may not continue to be available to us on acceptable terms or at all.
We maintain insurance to protect against certain types of claims associated with the use of our products, but our insurance may not adequately cover any such claims and may not continue to be available to us on acceptable terms or at all.
These partnerships may require us to adhere to outside policies, which may be administratively challenging and could result in a 22 Table of Contents decrease in our ability to complete sales. Even if the service provider partner considers us to be an important strategic relationship, internal processes at these large partners are sometimes difficult and time-consuming to navigate.
These partnerships may require us to adhere to outside policies, which may be administratively challenging and could result in a decrease in our ability to complete sales. Even if the service provider partner considers us to be an important strategic relationship, internal processes at these large partners are sometimes difficult and time-consuming to navigate.
Changes in our products or changes in export and import regulations may create delays in the introduction of our products into international markets, prevent our customers with international operations from deploying our products globally, 39 Table of Contents or, in some cases, prevent the export or import of our products to certain countries, governments, or persons altogether.
Changes in our products or changes in export and import regulations may create delays in the introduction of our products into international markets, prevent our customers with international operations from deploying our products globally, or, in some cases, prevent the export or import of our products to certain countries, governments, or persons altogether.
Our 2020 Credit Agreement includes certain restrictions on our ability to conduct asset sales and/or use the proceeds from asset sales for general corporate purposes.
Our 2024 Credit Agreement includes certain restrictions on our ability to conduct asset sales and/or use the proceeds from asset sales for general corporate purposes.
We may acquire development stage companies that are not yet profitable, and that require continued investment, which could adversely affect our results of operations and liquidity, thereby reducing our cash available for other corporate purposes.
We may acquire development stage companies 27 Table of Contents that are not yet profitable, and that require continued investment, which could adversely affect our results of operations and liquidity, thereby reducing our cash available for other corporate purposes.
If we fail to enable IT departments to support Apple upgrades upon release, our business and reputation could suffer. This could disrupt our product roadmap and cause us to delay introduction of planned solutions, features, and functionality, which could harm our business.
If we fail to enable IT departments to support Apple upgrades upon release, our business and reputation could suffer, as this could disrupt our product roadmap and cause us to delay introduction of planned solutions, features, and functionality.
If we are unable to evolve our products in time to respond to and remain ahead of new technological developments, our ability to retain or increase market share and revenue in our markets could be materially adversely affected.
If we are unable to evolve our 28 Table of Contents products in time to respond to and remain ahead of new technological developments, our ability to retain or increase market share and revenue in our markets could be materially adversely affected.
Further, our efforts to enforce our intellectual property and proprietary rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our 37 Table of Contents intellectual property and proprietary rights, and if such defenses, counterclaims, or countersuits are successful, we could lose valuable intellectual property and proprietary rights.
Further, our efforts to enforce our intellectual property and proprietary rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our intellectual property and proprietary rights, and if such defenses, counterclaims, or countersuits are successful, we could lose valuable intellectual property and proprietary rights.
If we cannot meet our debt 45 Table of Contents service obligations, the holders of our indebtedness may accelerate such indebtedness and, to the extent such indebtedness is secured, foreclose on our assets. In such an event, we may not have sufficient assets to repay all of our indebtedness.
If we cannot meet our debt service obligations, the holders of our indebtedness may accelerate such indebtedness and, to the extent such indebtedness is secured, foreclose on our assets. In such an event, we may not have sufficient assets to repay all of our indebtedness.
If our customers do not renew their subscriptions or licenses for our products, or if they reduce their subscription amounts at the time of renewal, our revenue and other results of operations will decline and our 23 Table of Contents business will suffer.
If our customers do not renew their subscriptions or licenses for our products, or if they reduce their subscription amounts at the time of renewal, our revenue and other results of operations will decline and our business will suffer.
The addressable market we estimate may not materialize for many years, if ever, and even if the markets in which we compete meet the size estimates and growth forecasted in this Annual Report on Form 10-K, our business could fail to grow at similar rates, if at all.
The total addressable market we estimate may never materialize or may not materialize for many years, and even if the markets in which we compete meet the size estimates and growth forecasted in this Annual Report on Form 10-K, our business could fail to grow at similar rates, if at all.
The terms of the 2020 Credit Agreement restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
The terms of the 2024 Credit Agreement restrict our current and future operations, particularly our ability to respond to changes or to take certain actions.
In addition, our suppliers and partners may increase their pricing for a variety of reasons, such as recent inflationary pressures. There is no guarantee we would be able to offset such cost increases, if at all, which could reduce our expected margins.
In addition, our suppliers and partners have increased their pricing for a variety of reasons, such as recent inflationary pressures. There is no guarantee we would be able to offset such cost increases, if at all, which could reduce our expected margins.
We may in the future experience disruptions, outages, and other performance problems with our infrastructure due to a variety of factors, including infrastructure changes, introductions of new functionality, service interruptions from our hosting or technology partners, human or software errors, capacity constraints, distributed denial of service attacks, or other security-related incidents.
We have experienced and may in the future experience disruptions, outages, and other performance problems with our infrastructure due to a variety of factors, including infrastructure changes, introductions of new functionality, service interruptions from our 34 Table of Contents hosting or technology partners, human or software errors, capacity constraints, distributed denial of service attacks, or other security-related incidents.
A key element of our strategy is to invest significantly in our research and development efforts to develop new products and enhance our existing products to address additional applications and markets. For the year ended December 31, 2023, our research and development expense was approximately 24% of our revenue.
A key element of our strategy is to invest significantly in our research and development efforts to develop new products and enhance our existing products to address additional applications and markets. For the year ended December 31, 2024, our research and development expense was approximately 22% of our revenue.
As part of our business strategy, we have in the past and expect to continue to make investments in and/or acquire complementary companies, services, products, technologies, or talent. We have completed several acquisitions in recent years, including our acquisition of dataJAR in July 2023. We have also invested in certain privately held companies through our Jamf Ventures fund.
As part of our business strategy, we have in the past and expect to continue to make investments in and/or acquire complementary companies, services, products, technologies, or talent. We have completed several acquisitions in recent years. We have also invested in certain privately held companies through our Jamf Ventures fund.
Our ability to accurately predict renewal or expansion rates is limited given the diversity of our customer base, in terms of size, industry, and geography.
Our 23 Table of Contents ability to accurately predict renewal or expansion rates is limited given the diversity of our customer base, in terms of size, industry, and geography.
A breach of the covenants or restrictions under the 2020 Credit Agreement could result in an event of default under such agreement. In the event the holders of our indebtedness accelerate the repayment, we may not have sufficient assets to repay that indebtedness or be able to borrow sufficient funds to refinance it.
A breach of the covenants or restrictions under the 2024 Credit Agreement could result in an event of default under such agreement. In the event the holders of our indebtedness accelerate the repayment, we may not have sufficient assets to 46 Table of Contents repay that indebtedness or be able to borrow sufficient funds to refinance it.
Any damage to, failure of, or interference with our cloud service that is hosted by AWS, or by third-party providers we may utilize in the future, whether as a result of our actions, actions by the third-party data centers, actions by other third parties, or catastrophic events, could result in interruptions in our cloud service and/or the loss of our or our customers’ data.
Any damage to, failure of, or interference with our cloud service that is hosted by our third-party service providers, whether as a result of our actions, actions by the third-party data centers, actions by other third parties, or catastrophic events, could result in interruptions in our cloud service and/or the loss of our or our customers’ data.
For the year ended December 31, 2023, sales of subscriptions to our Jamf Pro product accounted for approximately 60% of our total revenue. We expect these subscriptions to account for a large portion of our total revenue for the foreseeable future.
For the year ended December 31, 2024, sales of subscriptions to our Jamf Pro product accounted for approximately 57% of our total revenue. We expect these subscriptions to account for a large portion of our total revenue for the foreseeable future.
In addition to Vista’s beneficial ownership of 42.8% of our common stock as of December 31, 2023, our certificate of incorporation and bylaws and the DGCL contain provisions that could make it more difficult for a third-party to acquire us, even if doing so might be beneficial to our shareholders.
In addition to Vista’s beneficial ownership of 35.1% of our common stock as of December 31, 2024, our certificate of incorporation and bylaws and the DGCL contain provisions that could make it more difficult for a third-party to acquire us, even if doing so might be beneficial to our shareholders.
This may require us to offer discounts or other incentives to keep such customers, and we may not be able to match free product offerings or significant discounts offered by these competitors. This may result in customers choosing such competitor’s products instead of ours.
This has required us to offer discounts or other incentives to keep such customers, and we may not be able to match free product offerings or significant discounts offered by these competitors. This has resulted in customers choosing such competitor’s products instead of ours.
Risks Related to Ownership of Our Common Stock Vista owns a large portion of our common stock and thus can influence certain of our corporate actions, and its interests may conflict with ours or yours in the future. As of December 31, 2023, Vista beneficially owned approximately 42.8% of our common stock.
Risks Related to Ownership of Our Common Stock Vista owns a large portion of our common stock and thus can influence certain of our corporate actions, and its interests may conflict with ours or yours in the future. As of December 31, 2024, Vista beneficially owned approximately 35.1% of our common stock.
Our renewal and expansion rates may decline or fluctuate as a result of a number of factors, including customer spending levels, customer dissatisfaction with our products, decreases in the number of users at our customers, changes in the type and size of our customers, pricing changes, competitive conditions, the acquisition of our customers by other companies, and general economic conditions.
Our renewal and expansion rates have fluctuated as a result of a number of factors, including customer spending levels, customer dissatisfaction with our products, decreases in the number of users at our customers, changes in the type and size of our customers, pricing changes, competitive conditions, the acquisition of our customers by other companies, and general economic conditions.
We previously identified material weaknesses in our internal control over financial reporting and, if we fail to maintain an effective system of internal controls, disclosure controls, and procedures, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
If we fail to maintain an effective system of internal controls, disclosure controls, and procedures, we may not be able to accurately or timely report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
These factors have resulted in, and could continue to result in, reductions in hiring and IT spending by our existing and prospective customers, increased price sensitivity, and customers delaying or canceling IT projects, choosing to focus on in-house development efforts, or seeking to lower their costs by requesting us to renegotiate existing contracts and renewals on less advantageous terms (such as shifting to annual billing of multi-year contracts), defaulting on payments due on existing contracts, reducing the scope of their Jamf deployments, or not renewing at the end of existing contract terms.
Recent macroeconomic conditions have resulted in, and could continue to result in, reductions in hiring and IT spending by our existing and prospective customers, increased price sensitivity, and customers delaying or canceling IT projects, choosing to focus on in-house development efforts, reducing device growth, and overall software vendor needs, or seeking to lower their costs by requesting us to renegotiate existing contracts and renewals on less advantageous terms (such as shifting to annual billing of multi-year contracts), defaulting on payments due on existing contracts, reducing the scope of their Jamf deployments, or not renewing at the end of existing contract terms.
In addition, as of December 31, 2023, we had $149.0 million of additional borrowing capacity under our 2020 Revolving Credit Facility. Our indebtedness, or any additional indebtedness we may incur, could require us to divert funds identified for other purposes for debt service and impair our liquidity position.
In addition, as of December 31, 2024, we had $173.9 million of additional borrowing capacity under our 2024 Revolving Credit Facility. Our indebtedness, or any additional indebtedness we may incur, could require us to divert funds identified for other purposes for debt service and impair our liquidity position.
While we have security measures in place designed to protect our and our customers’ confidential and sensitive information and prevent data loss, these measures cannot provide absolute security and may not be effective to prevent a security breach, including as a result of employee error, theft, misuse, or malfeasance, third-party actions, unintentional events, or deliberate attacks by cyber criminals, any of which may result in someone obtaining unauthorized access to our customers’ data, our data, our intellectual property, and/or our other confidential or sensitive business information.
While we have cybersecurity risk management and strategy processes in place that are designed to protect our and our customers’ confidential and sensitive information and prevent data loss, these measures cannot provide absolute security and may not be 32 Table of Contents effective to prevent a security breach, including as a result of employee error, theft, misuse, or malfeasance, third-party actions, unintentional events, or deliberate attacks by cyber criminals, any of which may result in system and business interruptions and/or someone obtaining unauthorized access to our customers’ data, our data, our intellectual property, and/or our other confidential or sensitive business information.
These practices could, over time, significantly constrain the prices that we can charge for certain of our products. If we do not adapt our pricing models to reflect changes in customer use of our products or changes in customer demand, our revenue could decrease.
These practices could, over time, significantly constrain the prices that we can charge for certain of our products. If we do not adapt our pricing models to reflect changes in customer use of our products or changes in customer demand, our revenue could decrease. We provide service-level commitments under our subscription agreements.
Further, some of our partners are or may become competitive with certain of our products and may elect to no longer integrate with our products.
Further, some of our partners are or may become competitive with certain of our products and may elect to no longer integrate with our products. Many of our customers are also customers of our hyperscaler partners.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeMembers of the Audit Committee receive quarterly updates from management regarding matters of cybersecurity. This includes existing and new cybersecurity risks, status on how management is addressing and/or mitigating those risks, cybersecurity and data privacy incidents (if any), and status on key information security initiatives.
Biggest changeThis includes existing and new cybersecurity risks, status on how management is addressing and/or mitigating those risks, cybersecurity and data privacy incidents (if any), and status on key information security initiatives. Our Board members also engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy officers.
To protect, detect, and respond to cybersecurity threats, we conduct the following activities at various intervals during the year, which vary in maturity across our business: • Regular network and endpoint monitoring; • 24x7 security operations monitoring of our systems, networks and services to detect and act on weaknesses and potential intrusions; • Role-based access controls to identify, authenticate and authorize individuals to access systems based on their job responsibilities; 51 Table of Contents • Business resiliency planning with disaster recovery and business continuity testing; • Testing of new products and services and major changes to existing products and services to identify potential security vulnerabilities before release; • Protection, including encryption, for the secure communication of sensitive data; • Regular, proactive privacy and cybersecurity reviews of systems and applications, including third-party security practices; • Auditing of applicable data policies; • Regular internal and external security audits and penetration tests by third-party security vendors, as well as internal offensive team penetration testing; • At least annual security awareness training and testing of our employees; and • Monitoring emerging laws and regulations related to data protection and information security and implementing appropriate changes.
To protect, detect, and respond to cybersecurity threats, we aim to conduct the following activities at various intervals during the year, which vary in maturity across our business: • Regular network and endpoint monitoring; • 24x7 security operations monitoring of our systems, networks, and services to detect and act on weaknesses and potential intrusions; • Role-based access controls to identify, authenticate, and authorize individuals to access systems based on their job responsibilities; • Business resiliency planning with disaster recovery and business continuity testing; • Testing of new products and services and major changes to existing products and services to identify potential security vulnerabilities before release; • Protection, including encryption, for the secure communication of sensitive data; • Regular, proactive privacy and cybersecurity reviews of systems and applications, including third-party security practices; • Auditing of applicable data policies; • Regular internal and external security audits and penetration tests by third-party security vendors, as well as internal offensive team penetration testing; • At least annual security awareness training and testing of our employees; and • Monitoring emerging laws and regulations related to data protection and information security and implementing appropriate changes.
These individuals are informed about, and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy 52 Table of Contents processes described above, including the operation of our incident response plan, and report to the Audit Committee on any appropriate items.
These individuals are informed about, and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan, and report to the Audit Committee on any appropriate items.
We have devoted significant financial and personnel resources to implement and maintain security measures to mitigate these risks and meet regulatory requirements and customer expectations, and we intend to continue to make significant investments to maintain the security of our data and cybersecurity infrastructure.
We have devoted significant financial and personnel resources to implement and maintain security measures, which are designed to mitigate these risks and meet regulatory requirements and customer expectations, and we intend to continue to make significant investments to maintain the security of our data and cybersecurity infrastructure.
Incidents are evaluated to determine operational and business impact, as well as privacy considerations. We also conduct tabletop exercises to simulate responses to cybersecurity incidents and evaluate the effectiveness of our incident response systems.
Incidents are evaluated to determine operational and business impact, as well as privacy considerations. We also conduct tabletop exercises to simulate 52 Table of Contents responses to cybersecurity incidents and evaluate the effectiveness of our incident response systems.
Our cybersecurity policies, standards, processes, and practices are regularly assessed by consultants and external auditors. These assessments include a variety of activities including information security maturity assessments, audits, and independent reviews of our information security control environment and operating effectiveness.
Our cybersecurity policies, standards, processes, and practices are regularly assessed by consultants and external auditors. These assessments include a variety of activities including information security maturity assessments, audits, and independent reviews of our information security control environment and operating effectiveness. We have also obtained industry certifications and attestations.
Such individuals have extensive prior work experience in various roles involving information technology, including security, auditing, compliance, systems, and programming.
Our cybersecurity risk management and strategy processes are overseen by leaders from our enterprise operations, compliance, and legal teams, including our Chief Information Officer, Chief Information Security Officer, and Chief Legal Officer. Such individuals have extensive prior work experience in various roles involving information technology, including security, auditing, compliance, systems, and programming.
We have also obtained industry certifications and attestations that demonstrate our dedication to protecting our systems and the data entrusted to us. Governance and Oversight Cybersecurity is an important part of our risk management processes and an area of focus for our Board and management. Our Audit Committee is responsible for the primary oversight of risks from cybersecurity threats.
Governance and Oversight Cybersecurity is an important part of our risk management processes and an area of focus for our Board and management. Our Audit Committee is responsible for the primary oversight of risks from cybersecurity threats. Members of the Audit Committee receive quarterly updates from management regarding matters of cybersecurity.
Removed
Our Board members also engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy officers. Our cybersecurity risk management and strategy processes are overseen by leaders from our enterprise operations, compliance, and legal teams, including our Chief Information Officer and Chief Legal Officer.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThese additional office locations in the U.S. include Eau Claire, WI; New York City, NY; and Austin, TX. Our international offices are located in Poland, the Netherlands, Australia, Japan, Hong Kong, Taiwan, the UK, the Czech Republic, India, and Israel. We believe that our facilities are adequate for our current needs.
Biggest changeThese additional office locations in the U.S. include Eau Claire, WI and Austin, TX. We sublease approximately 17,000 square feet of office space in the U.S. to third parties. Our international offices are located in Poland, the Netherlands, Australia, Japan, Hong Kong, Taiwan, the UK, the Czech Republic, Sweden, India, and Israel.
Item 2. Properties Our corporate headquarters are in Minneapolis, MN, where we lease 102,937 square feet of office space under a lease that expires in February of 2030. We have additional office locations in the U.S. and in various international countries where we lease a total of 178,884 square feet.
Item 2. Properties Our corporate headquarters are in Minneapolis, MN, where we lease 102,937 square feet of office space under a lease that expires in February of 2030. We have additional office locations in the U.S. and in various international countries where we lease a total of 172,047 square feet.
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We believe that our facilities are adequate for our current needs.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

3 edited+0 added−1 removed2 unchanged
Biggest changeFrom time to time, we may be subject to legal proceedings and claims that arise in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower, and other litigation and claims, as well as governmental and other regulatory investigations and proceedings.
Biggest changeFrom time to time, we are subject to legal proceedings and claims, including patent, commercial, product liability, employment, class action, whistleblower, and other litigation and claims, as well as governmental and other regulatory investigations and proceedings. In addition, third parties may from time to time assert claims against us in the form of letters and other communications.
The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Item 4. Mine Safety Disclosures Not applicable. 53 Table of Contents Part II.
The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors. Item 4. Mine Safety Disclosures Not applicable. 54 Table of Contents Part II.
Our evaluation of any current matters may change in the future as the legal proceedings and claims and events related thereto unfold. Future litigation may be necessary to defend ourselves, our partners, and our customers by determining the scope, enforceability, and validity of third-party proprietary rights, or to establish our proprietary rights.
Our evaluation of any current matters may change in the future as the legal proceedings and claims and events related thereto unfold. Future litigation may be necessary to defend ourselves, our partners, and our customers by determining the scope, enforceability, and validity of third-party proprietary rights, or to 53 Table of Contents establish our proprietary rights.
Removed
In addition, third parties may from time to time assert claims against us in the form of letters and other communications.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAny future determination to pay dividends is at the discretion of our Board, subject to compliance with covenants in current and future agreements governing our and our subsidiaries’ indebtedness, and will depend on our results of operations, financial condition, capital requirements, and other factors that our Board may deem relevant. 54 Table of Contents Stock Performance Graph The following performance graph and related information shall not be deemed to be “soliciting material” or to be “filed” for purposes of Section 18 of the Exchange Act, and shall not be incorporated by reference into any document filed by us with the SEC under the Exchange Act or the Securities Act, whether made before or after the date of this Annual Report on Form 10-K, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
Biggest changeStock Performance Graph The following performance graph and related information shall not be deemed to be “soliciting material” or to be “filed” for purposes of Section 18 of the Exchange Act, and shall not be incorporated by reference into any document filed by us with the SEC under the Exchange Act or the Securities Act, whether made before or after the date of this Annual Report on Form 10-K, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.
The following performance graph and related information shows a comparison of the cumulative total return for our common stock, the S&P 500 Index, and the S&P 500 Information Technology Index between July 22, 2020 (the date our common stock commenced trading on NASDAQ) through December 31, 2023. All values assume an initial investment of $100 and reinvestment of any dividends.
The following performance graph and related information shows a comparison of the cumulative total return for our common stock, the S&P 500 Index, and the S&P 500 Information Technology Index between July 22, 2020 (the date our common stock commenced trading on NASDAQ) through December 31, 2024. All values assume an initial investment of $100 and reinvestment of any dividends.
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Market Information for Our Common Stock Our common stock trades on the NASDAQ under the symbol “JAMF.” Holders of Record As of December 31, 2023, there were 28 holders of record of our common stock, including Cede & Co, a nominee for DTC, which holds shares of our common stock on behalf of an indeterminate number of beneficial owners.
Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Market Information for Our Common Stock Our common stock trades on the NASDAQ under the symbol “JAMF.” Holders of Record As of December 31, 2024, there were 22 holders of record of our common stock, including Cede & Co, a nominee for DTC, which holds shares of our common stock on behalf of an indeterminate number of beneficial owners.
The comparisons are based on historical data and are not indicative of, nor intended to forecast, the future performance of our common stock. The closing price of our common stock on December 29, 2023, the last trading day of our 2023 fiscal year, was $18.06. *$100 invested on 7/22/20 in stock or 6/30/20 in index, including reinvestment of dividends.
The closing price of our common stock on December 31, 2024, the last trading day of our 2024 fiscal year, was $14.05. 55 Table of Contents *$100 invested on 7/22/20 in stock or 6/30/20 in index, including reinvestment of dividends. Fiscal year ending December 31. Unregistered Sales of Equity Securities None. Issuer Purchases of Equity Securities None.
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Fiscal year ending December 31. Unregistered Sales of Equity Securities We had no sales of unregistered equity securities during the period covered by this Annual Report on Form 10-K that were not previously reported in a Current Report on Form 8-K or Quarterly Report on Form 10-Q.
Added
Any future determination to pay dividends is at the discretion of our Board, subject to compliance with covenants in current and future agreements governing our and our subsidiaries’ indebtedness, and will depend on our results of operations, financial condition, capital requirements, and other factors that our Board may deem relevant.
Removed
Issuer Purchases of Equity Securities None. 55 Table of Contents Item 6. [Reserved] 56 Table of Contents
Added
The comparisons are based on historical data and are not indicative of, nor intended to forecast, the future performance of our common stock.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

76 edited+14 added−24 removed56 unchanged
Biggest changeIncome Tax (Provision) Benefit Income tax (provision) benefit consists primarily of income taxes related to U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. 61 Table of Contents Results of Operations The following table sets forth our consolidated statements of operations data for the periods indicated: Years Ended December 31, 2023 2022 2021 (in thousands) Revenue: Subscription $ 543,019 $ 455,007 $ 344,243 Services 16,325 19,025 16,122 License 1,227 4,744 6,023 Total revenue 560,571 478,776 366,388 Cost of revenue: Cost of subscription (1)(2)(3)(4)(5) (exclusive of amortization expense shown below) 98,554 85,479 63,441 Cost of services (1)(2)(3)(4) (exclusive of amortization expense shown below) 13,976 13,816 10,898 Amortization expense 13,529 19,932 16,018 Total cost of revenue 126,059 119,227 90,357 Gross profit 434,512 359,549 276,031 Operating expenses: Sales and marketing (1)(2)(3)(4)(5) 250,757 217,728 148,192 Research and development (1)(2)(3)(4)(5) 134,422 119,906 82,541 General and administrative (1)(2)(3)(4)(5)(6) 135,233 132,562 96,206 Amortization expense 29,349 28,227 25,294 Total operating expenses 549,761 498,423 352,233 Loss from operations (115,249) (138,874) (76,202) Interest income (expense), net 6,526 (538) (2,478) Loss on extinguishment of debt — — (449) Foreign currency transaction gain (loss) 916 (2,802) (849) Loss before income tax (provision) benefit (107,807) (142,214) (79,978) Income tax (provision) benefit (2,279) 913 4,789 Net loss $ (110,086) $ (141,301) $ (75,189) (1) Includes stock-based compensation as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: Subscription $ 10,229 $ 8,854 $ 3,755 Services 1,386 1,299 594 Sales and marketing 33,127 33,559 10,938 Research and development 23,719 24,392 10,512 General and administrative 32,539 41,066 10,006 $ 101,000 $ 109,170 $ 35,805 62 Table of Contents (2) Includes payroll taxes related to stock-based compensation as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: Subscription $ 318 $ 293 $ 122 Services 57 54 24 Sales and marketing 1,162 810 431 Research and development 581 429 335 General and administrative 490 428 615 $ 2,608 $ 2,014 $ 1,527 (3) Includes depreciation expense as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: Subscription $ 1,219 $ 1,201 $ 1,134 Services 168 170 169 Sales and marketing 3,155 2,725 2,342 Research and development 1,814 1,610 1,277 General and administrative 1,064 965 835 $ 7,420 $ 6,671 $ 5,757 (4) Includes acquisition-related expense as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: Subscription $ — $ 61 $ 88 Services 50 — — Sales and marketing 371 7 180 Research and development 807 912 1,088 General and administrative 6,133 3,663 5,032 $ 7,361 $ 4,643 $ 6,388 (5) Includes system transformation costs as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: Subscription $ 51 $ — $ — Sales and marketing 174 — — Research and development 12 — — General and administrative 4,596 — — $ 4,833 $ — $ — 63 Table of Contents (6) General and administrative also includes the following: Years Ended December 31, 2023 2022 2021 (in thousands) Acquisition-related earnout $ — $ 694 $ 6,037 Offering costs — 124 594 Restructuring charges 1,393 — — Legal settlements and other non-recurring litigation costs 559 — 5,000 The following table sets forth our consolidated statements of operations data expressed as a percentage of total revenue for the periods indicated: Years Ended December 31, 2023 2022 2021 (as a percentage of total revenue) Revenue: Subscription 97 % 95 % 94 % Services 3 4 4 License — 1 2 Total revenue 100 100 100 Cost of revenue: Cost of subscription (exclusive of amortization expense shown below) 18 18 17 Cost of services (exclusive of amortization expense shown below) 2 3 3 Amortization expense 2 4 5 Total cost of revenue 22 25 25 Gross profit 78 75 75 Operating expenses: Sales and marketing 45 45 40 Research and development 24 25 23 General and administrative 24 28 26 Amortization expense 6 6 7 Total operating expenses 99 104 96 Loss from operations (21) (29) (21) Interest income (expense), net 1 — (1) Loss on extinguishment of debt — — — Foreign currency transaction gain (loss) — (1) — Loss before income tax (provision) benefit (20) (30) (22) Income tax (provision) benefit — — 1 Net loss (20) % (30) % (21) % A discussion regarding our results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022 is presented below.
Biggest changeIncome Tax (Provision) Benefit Income tax (provision) benefit consists primarily of income taxes related to U.S. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business. 61 Table of Contents Results of Operations The following table sets forth our consolidated statements of operations data for the periods indicated: Years Ended December 31, 2024 2023 2022 (in thousands) Revenue: Subscription $ 613,591 $ 543,019 $ 455,007 Services 13,562 16,325 19,025 License 246 1,227 4,744 Total revenue 627,399 560,571 478,776 Cost of revenue: Cost of subscription (1)(2)(3)(4)(5)(6) (exclusive of amortization expense shown below) 114,260 98,554 85,479 Cost of services (1)(2)(3)(4)(5) (exclusive of amortization expense shown below) 14,557 13,976 13,816 Amortization expense 12,511 13,529 19,932 Total cost of revenue 141,328 126,059 119,227 Gross profit 486,071 434,512 359,549 Operating expenses: Sales and marketing (1)(2)(3)(4)(5)(6) 252,128 250,757 217,728 Research and development (1)(2)(3)(4)(5)(6) 138,961 134,422 119,906 General and administrative (1)(2)(3)(4)(5)(6)(7) 136,567 135,233 132,562 Amortization expense 27,511 29,349 28,227 Total operating expenses 555,167 549,761 498,423 Loss from operations (69,096) (115,249) (138,874) Interest income (expense), net 6,615 6,526 (538) Foreign currency transaction (loss) gain (2,277) 916 (2,802) Loss before income tax (provision) benefit (64,758) (107,807) (142,214) Income tax (provision) benefit (3,697) (2,279) 913 Net loss $ (68,455) $ (110,086) $ (141,301) (1) Includes stock-based compensation as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue: Subscription $ 11,518 $ 10,229 $ 8,854 Services 1,674 1,386 1,299 Sales and marketing 30,299 33,127 33,559 Research and development 25,324 23,719 24,392 General and administrative 28,575 32,539 41,066 $ 97,390 $ 101,000 $ 109,170 62 Table of Contents (2) Includes payroll taxes related to stock-based compensation as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue: Subscription $ 393 $ 318 $ 293 Services 87 57 54 Sales and marketing 1,146 1,162 810 Research and development 649 581 429 General and administrative 672 490 428 $ 2,947 $ 2,608 $ 2,014 (3) Includes depreciation expense as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue: Subscription $ 1,248 $ 1,219 $ 1,201 Services 178 168 170 Sales and marketing 2,715 3,155 2,725 Research and development 1,758 1,814 1,610 General and administrative 1,027 1,064 965 $ 6,926 $ 7,420 $ 6,671 (4) Includes acquisition-related expense as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue: Subscription $ — $ — $ 61 Services 194 50 — Sales and marketing — 371 7 Research and development 538 807 912 General and administrative 4,530 6,133 3,663 $ 5,262 $ 7,361 $ 4,643 (5) Includes system transformation costs as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue: Subscription $ 283 $ 51 $ — Services 22 — — Sales and marketing 888 174 — Research and development 295 12 — General and administrative 14,561 4,596 — $ 16,049 $ 4,833 $ — 63 Table of Contents (6) Includes restructuring charges as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Cost of revenue: Subscription $ 7 $ — $ — Sales and marketing 7,304 — — Research and development 709 — — General and administrative 1,722 1,393 — $ 9,742 $ 1,393 $ — (7) General and administrative also includes the following: Years Ended December 31, 2024 2023 2022 (in thousands) Acquisition-related earnout $ — $ — $ 694 Offering costs 872 — 124 Extraordinary legal settlements and non-recurring litigation costs (122) 559 — The following table sets forth our consolidated statements of operations data expressed as a percentage of total revenue for the periods indicated: Years Ended December 31, 2024 2023 2022 (as a percentage of total revenue) Revenue: Subscription 98 % 97 % 95 % Services 2 3 4 License — — 1 Total revenue 100 100 100 Cost of revenue: Cost of subscription (exclusive of amortization expense shown below) 18 18 18 Cost of services (exclusive of amortization expense shown below) 2 2 3 Amortization expense 3 2 4 Total cost of revenue 23 22 25 Gross profit 77 78 75 Operating expenses: Sales and marketing 40 45 45 Research and development 22 24 25 General and administrative 22 24 28 Amortization expense 4 6 6 Total operating expenses 88 99 104 Loss from operations (11) (21) (29) Interest income (expense), net 1 1 — Foreign currency transaction (loss) gain — — (1) Loss before income tax (provision) benefit (10) (20) (30) Income tax (provision) benefit (1) — — Net loss (11) % (20) % (30) % A discussion regarding our results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023 is presented below.
We have built our company through a primary focus on being the leading solution for Apple in the enterprise because we believe that due to Apple’s broad range of devices, combined with the changing demographics of today’s workforce and their strong preference for Apple, that Apple will become the number one device ecosystem in the enterprise by the end of this decade.
We have built our company through a primary focus on being the leading solution for Apple in the enterprise because we believe that due to Apple’s broad range of devices, combined with the changing demographics of today’s workforce and their strong preference for Apple, Apple will become the number one device ecosystem in the enterprise by the end of this decade.
Cost of subscription revenue consists primarily of employee compensation costs for employees associated with supporting our subscription and support and maintenance arrangements, our customer success function, and third-party hosting fees related to our cloud services. Employee compensation and related costs include cash compensation and benefits to employees and associated overhead costs.
Cost of Revenue Cost of subscription. Cost of subscription revenue consists primarily of employee compensation costs for employees associated with supporting our subscription and support and maintenance arrangements, our customer success function, and third-party hosting fees related to our cloud services. Employee compensation and related costs include cash compensation and benefits to employees and associated overhead costs. Cost of services.
Interest Income (Expense), Net Interest income (expense), net primarily consists of interest charges and amortization of capitalized issuance costs related to our 2026 Notes, as well as interest income earned on our cash and cash equivalents.
Interest Income (Expense), Net Interest income (expense), net primarily consists of interest income earned on our cash and cash equivalents as well as interest charges and amortization of capitalized issuance costs related to our 2026 Notes.
Foreign Currency Transaction Gain (Loss) Foreign currency transaction gain (loss) includes gains and losses from transactions denominated in a currency other than the Company’s functional currency, the U.S. dollar.
Foreign Currency Transaction (Loss) Gain Foreign currency transaction (loss) gain includes gains and losses from transactions denominated in a currency other than the Company’s functional currency, the U.S. dollar.
Investing Activities During the year ended December 31, 2023, net cash used in investing activities was $22.5 million, a decrease of $12.3 million compared to the year ended December 31, 2022.
During the year ended December 31, 2023, net cash used in investing activities was $22.5 million, a decrease of $12.3 million compared to the year ended December 31, 2022.
The estimates, as applicable to the intangible assets acquired at the acquisition date, may include: • future expected cash flows from subscription contracts and acquired developed technologies; • historical and expected customer attrition rates and anticipated growth in revenue; • royalty rates applied to acquired developed technology platforms; 73 Table of Contents • obsolescence curves and other useful life assumptions, such as the period of time and intended use of acquired intangible assets in the Company’s product offerings; • discount rates; and • uncertain tax positions and tax-related valuation allowances.
The estimates, as applicable to the intangible assets acquired at the acquisition date, may include: • future expected cash flows from subscription contracts and acquired developed technologies; • historical and expected customer attrition rates and anticipated growth in revenue; 73 Table of Contents • royalty rates applied to acquired developed technology platforms; • obsolescence curves and other useful life assumptions, such as the period of time and intended use of acquired intangible assets in the Company’s product offerings; • discount rates; and • uncertain tax positions and tax-related valuation allowances.
See “Risk Factors — We have indemnity provisions under our contracts with our customers, channel partners, and other third parties, which could have a material adverse effect on our business.” In addition, we have entered into indemnification agreements with our directors and certain officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees.
See “Risk Factors — We have indemnity provisions under our contracts with our customers, partners, and other third parties, which could have a material adverse effect on our business.” In addition, we have entered into indemnification agreements with our directors and certain officers that will require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers, or employees.
We help IT and security teams confidently protect the devices, data, and applications used by their workforce, while providing employees with the powerful and intended Apple experience. With Jamf’s software, devices can be deployed to employees brand new in the shrink-wrapped box, set up automatically and personalized at first power-on and administered continuously throughout the lifecycle of the device.
We help IT and security teams confidently protect the devices, data, and applications used by their workforce, while providing employees with the powerful and intended Apple experience. With Jamf’s solution, devices can be deployed to employees brand new in the shrink-wrapped box, set up automatically and personalized at first power-on and administered continuously throughout the lifecycle of the device.
Sustaining our growth requires continued adoption of our platform by new customers. We intend to continue to invest in building brand awareness as we further penetrate our addressable markets.
Our growth requires continued adoption of our platform by new customers. We intend to continue to invest in building brand awareness as we further penetrate our addressable markets.
Gross Profit Gross profit, or revenue less cost of revenue, has been and will continue to be affected by various factors, including the mix of cloud-based subscription customers, the costs associated with supporting our cloud solution, the extent to which we expand our customer support team, and the extent to which we can increase the efficiency of our technology and infrastructure though technological improvements.
Gross Profit Gross profit, or revenue less cost of revenue, has been and will continue to be affected by various factors, including the mix of cloud-based subscription customers, the costs associated with supporting our cloud solution, the extent to which we expand our customer support team, and the extent to which we can increase the efficiency of our technology and infrastructure through technological improvements.
Future Liquidity and Capital Resource Requirements We believe our cash and cash equivalents, the 2020 Revolving Credit Facility, and cash provided by sales of our software solutions and services will be sufficient to meet our working capital and capital expenditure needs, debt service requirements for at least the next 12 months, as well as other known long-term cash requirements.
Future Liquidity and Capital Resource Requirements We believe our cash and cash equivalents, the 2024 Revolving Credit Facility, and cash provided by sales of our software solutions and services will be sufficient to meet our working capital and capital expenditure needs, debt service requirements for at least the next 12 months, as well as other known long-term cash requirements.
Often our customers will begin with a small deployment and then later expand their usage more broadly within the enterprise as they realize the benefits of our platform. We believe that our “land and expand” business model allows us to efficiently increase revenue from our existing customer base.
Often our customers will begin with a small deployment and then later expand their usage more broadly within the organization as they realize the benefits of our platform. We believe that our “land and expand” business model allows us to efficiently increase revenue from our existing customer base.
Our ability to attract new customers is dependent upon a number of factors, including the effectiveness of our pricing and solutions, the features and pricing of our competitors’ offerings, the effectiveness of our marketing efforts, the effectiveness of our channel partners in selling, marketing, and deploying our software solutions, and the growth of the market for devices and services for SMBs and enterprises.
Our ability to attract new customers is dependent upon a number of factors, including the effectiveness of our pricing and solutions, the features and pricing of our competitors’ offerings, the effectiveness of our marketing efforts, the effectiveness of our channel partners in selling, marketing, and deploying our software solutions, and the growth of the market for devices and services for SMBs, enterprises, and other organizations.
With a focus on the user and being the bridge between critical technologies — with Apple, Microsoft, AWS, Google, and Okta as examples — we feel we can help other market participants deliver more to enterprise users with the power of Jamf.
With a focus on the user and being the bridge between critical technologies — with Apple, Microsoft, AWS, Google, and Okta as examples — we believe we can help other market participants deliver more to enterprise users with the power of Jamf.
Our international growth in any region will depend on our ability to effectively implement our business processes and go-to-market strategy, our ability to adapt to market or cultural differences, the general competitive landscape, our ability to invest in our sales and marketing channels, the maturity and growth trajectory of devices and services by region, and our brand awareness and perception.
Our international growth in any region depends on our ability to effectively implement our business processes and go-to-market strategy, our ability to adapt to market or cultural differences, the general competitive landscape, our ability to invest in our sales and marketing channels, the maturity and growth trajectory of devices and services by region, and our brand awareness and perception.
We define non-GAAP gross profit as gross profit, adjusted for amortization expense, stock-based compensation expense, acquisition-related expense, payroll taxes related to stock-based compensation, and system transformation costs.
We define non-GAAP gross profit as gross profit, adjusted for amortization expense, stock-based compensation expense, acquisition-related expense, payroll taxes related to stock-based compensation, system transformation costs, and restructuring charges.
While we believe global demand for our platform will increase as international market awareness of Jamf grows, our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems (including with respect to data transfer and privacy), alternative dispute systems, commercial markets, and geopolitical challenges.
While we believe global demand for our platform will increase as international adoption of Apple products and market awareness of Jamf grows, our ability to conduct our operations internationally requires considerable management attention and resources and is subject to the particular challenges of supporting a growing business in an environment of multiple languages, cultures, customs, legal and regulatory systems (including with respect to data transfer and privacy), alternative dispute systems, commercial markets, and geopolitical challenges.
We define non-GAAP net income as net loss, adjusted for income tax (provision) benefit, amortization expense, stock-based compensation expense, foreign currency transaction (gain) loss, loss on extinguishment of debt, amortization of debt issuance costs, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and extraordinary legal settlements and other non-recurring litigation costs, and adjustment to income tax expense based on the non-GAAP measure of profitability using our blended U.S. statutory tax rate.
We define non-GAAP net income as net loss, adjusted for income tax (provision) benefit, amortization expense, stock-based compensation expense, foreign currency transaction loss (gain), amortization of debt issuance costs, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, 68 Table of Contents system transformation costs, restructuring charges, and extraordinary legal settlements and non-recurring litigation costs, and adjustment to income tax expense based on the non-GAAP measure of profitability using our blended U.S. statutory tax rate.
Our ability to effectively invest for growth is dependent upon a number of factors, including our ability to offset anticipated increases in operating expenses with revenue growth, our ability to spend our research and development budget efficiently or effectively on compelling innovation and technologies, our ability to accurately predict costs, and our ability to maintain our corporate culture as our headcount expands.
Our ability to effectively invest for growth is dependent upon a number of factors, including our ability to offset anticipated increases in operating expenses with revenue growth, our ability to spend our research and development budget efficiently or effectively on compelling innovation and technologies, our ability to accurately predict costs, and our ability to maintain our corporate culture as our business evolves.
We define non-GAAP income before income taxes as loss before income taxes adjusted for amortization expense, stock-based compensation expense, foreign currency transaction (gain) loss, loss on extinguishment of debt, amortization of debt issuance costs, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and legal settlements and other non-recurring litigation costs.
We define non-GAAP income before income taxes as loss before income taxes adjusted for amortization expense, stock-based compensation expense, foreign currency transaction loss (gain), amortization of debt issuance costs, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and extraordinary legal settlements and non-recurring litigation costs.
Our success is dependent not only on our independent efforts to innovate, scale, and reach more customers directly but also on the success of our partners to continue to gain share in the enterprise.
Partner network development. Our success is dependent not only on our independent efforts to innovate, scale, and reach more customers directly but also on the success of our partners to continue to gain share in the enterprise.
Subscription revenue accounted for 97% of total revenue for the year ended December 31, 2023 compared to 95% for the year ended December 31, 2022. The increase in subscription revenue was driven by device expansion, cross-selling, and the addition of new customers. The decrease in professional services revenue was driven by lower demand from customers.
Subscription revenue accounted for 98% of total revenue for the year ended December 31, 2024 compared to 97% for the year ended December 31, 2023. The increase in subscription revenue was driven by device expansion, cross-selling, and the addition of new customers. The decrease in professional services revenue was driven by lower demand from customers.
While sales of subscriptions to our Jamf Pro product account for most of our revenue, we intend to continue to invest in building additional products, features, and functionality that expand our capabilities and facilitate the extension of our platform to new use cases.
While sales of subscriptions to our Jamf Pro product account for a substantial portion of our revenue, we intend to continue to invest in building additional products, features, and functionality that expand our capabilities and facilitate the extension of our platform to new use cases.
The decrease was primarily attributable to an increase in cash paid for employee compensation costs, an increase in cash paid for third-party hosting costs, a $12.5 million increase in cash paid for system transformation costs, and a $6.0 million payment for contingent consideration in 2023, partially offset by an increase in cash received from our customers and an $8.3 million increase in cash received from interest income.
The decrease was primarily attributable to an increase in cash paid for employee compensation costs, an increase in cash paid for third-party hosting costs, a $12.5 million increase in cash paid for system transformation costs, and $6.0 million we paid for contingent consideration in 2023 related to the Digita acquisition, partially offset by an increase in cash received from our customers and an $8.3 million increase in cash received from interest income.
A single customer may have multiple Jamf products on a single device, but we still would only count that as one device. The number of devices on our software platform was 32.3 million and 30.0 million as of December 31, 2023 and 2022, respectively, representing a 8% year-over-year growth rate.
A single customer may have multiple Jamf products on a single device, but we still would only count that as one device. The number of devices on our software platform was 33.2 million and 32.3 million as of December 31, 2024 and 2023, respectively, representing a 3% year-over-year growth rate.
For the year ended December 31, 2023, foreign currency transaction gain increased primarily due to the impact of changes in foreign currency exchange rates, primarily the GBP and EUR.
For the year ended December 31, 2024, foreign currency transaction loss increased primarily due to the impact of changes in foreign currency exchange rates, primarily the GBP and EUR.
Our ARR was $588.6 million and $512.5 million as of December 31, 2023 and 2022, respectively, which is an increase of 15% year-over-year. The growth in our ARR is primarily driven by device expansion, cross-selling additional solutions to our installed customer base, and the addition of new customers.
Our ARR was $646.0 million and $588.6 million as of December 31, 2024 and 2023, respectively, which is an increase of 10% year-over-year. The growth in our ARR was primarily driven by device expansion, cross-selling additional solutions to our installed customer base, and the addition of new customers.
Our dollar-based net retention rates were 108% and 113% for the trailing twelve months ended December 31, 2023 and 2022, respectively.
Our dollar-based net retention rates were 104% and 108% for the trailing twelve months ended December 31, 2024 and 2023, respectively.
Our primary use of cash from operating activities is employee-related expenditures, marketing expenses, and third-party hosting costs. During the year ended December 31, 2023, net cash provided by operating activities was $36.0 million, a decrease of $54.0 million compared to the year ended December 31, 2022.
Our primary use of cash from operating activities is employee-related expenditures, marketing expenses, and third-party hosting costs. During the year ended December 31, 2024, net cash provided by operating activities was $31.2 million, a decrease of $4.8 million compared to the year ended December 31, 2023.
We also have a variable purchase obligation of $17.5 million over the term of a three-year contract for third-party hosting services that is not reflected in the table above. 71 Table of Contents Cash Flows The following table presents a summary of our consolidated cash flows from operating, investing, and financing activities: Years Ended December 31, 2023 2022 2021 (in thousands) Net cash provided by operating activities $ 35,964 $ 90,005 $ 65,165 Net cash used in investing activities (22,476) (34,782) (387,418) Net cash provided by financing activities 5,321 261 305,528 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 79 (713) (993) Net increase (decrease) in cash, cash equivalents, and restricted cash 18,888 54,771 (17,718) Cash, cash equivalents, and restricted cash, beginning of period 231,921 177,150 194,868 Cash, cash equivalents, and restricted cash, end of period $ 250,809 $ 231,921 $ 177,150 Cash paid for interest $ 784 $ 763 $ 967 Cash paid for purchases of equipment and leasehold improvements 2,934 7,727 9,755 Operating Activities Our largest source of operating cash is cash collections from our subscription customers.
We also have a variable purchase obligation of $17.5 million over the term of a three-year contract for third-party hosting services that is not reflected in the table above. 71 Table of Contents Cash Flows The following table presents a summary of our consolidated cash flows from operating, investing, and financing activities: Years Ended December 31, 2024 2023 2022 (in thousands) Net cash provided by operating activities $ 31,192 $ 35,964 $ 90,005 Net cash used in investing activities (11,801) (22,476) (34,782) Net cash (used in) provided by financing activities (41,604) 5,321 261 Effect of exchange rate changes on cash, cash equivalents, and restricted cash (252) 79 (713) Net (decrease) increase in cash, cash equivalents, and restricted cash (22,465) 18,888 54,771 Cash, cash equivalents, and restricted cash, beginning of period 250,809 231,921 177,150 Cash, cash equivalents, and restricted cash, end of period $ 228,344 $ 250,809 $ 231,921 Cash paid for interest $ 842 $ 784 $ 763 Cash paid for purchases of equipment and leasehold improvements 9,009 2,934 7,727 Operating Activities Our largest source of operating cash is cash collections from our subscription customers.
For the year ended December 31, 2023, general and administrative expenses increased primarily due to a $4.6 million increase related to system transformation costs, a $4.0 million increase in employee compensation costs, a $2.4 million increase in acquisition-related expenses, a $1.5 million increase in charitable contributions, and restructuring charges of $1.4 million primarily related to lease impairments, partially offset by an $8.5 million decrease in stock-based compensation expense and related payroll taxes and a $2.4 million decrease in the annual premium for directors and officers insurance due to improved market conditions for such insurance.
For the year ended December 31, 2024, general and administrative expenses increased primarily due to a $10.0 million increase in system transformation costs and offering costs of $0.9 million, partially offset by a $3.8 million decrease in stock-based compensation expense and related payroll taxes, a $2.4 million decrease in charitable contributions, a $1.6 million decrease in acquisition-related expense, and a $1.3 million decrease in premium for directors and officers insurance due to improved market conditions for such insurance.
As of December 31, 2023, we had deferred revenue of $373.4 million, of which $317.5 million was recorded as a current liability and is expected to be recognized as revenue in the next 12 months, provided all other revenue recognition criteria have been met.
As of December 31, 2024, we had deferred revenue of $385.7 million, of which $333.6 million was recorded as a current liability and is expected to be recognized as revenue in the next 12 months, provided all other revenue recognition criteria have been met.
A reconciliation of non-GAAP gross profit to gross profit and non-GAAP gross profit margin to gross profit margin, the most directly comparable GAAP measures, are as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Gross profit $ 434,512 $ 359,549 $ 276,031 Amortization expense 13,529 19,932 16,018 Stock-based compensation 11,615 10,153 4,349 Acquisition-related expense 50 61 88 Payroll taxes related to stock-based compensation 375 347 146 System transformation costs 51 — — Non-GAAP gross profit $ 460,132 $ 390,042 $ 296,632 Gross profit margin 78% 75% 75% Non-GAAP gross profit margin 82% 81% 81% 67 Table of Contents Non-GAAP Operating Income and Non-GAAP Operating Income Margin We use non-GAAP operating income and non-GAAP operating income margin, and believe it is useful for our investors, to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operating plans.
We define non-GAAP gross profit margin as non-GAAP gross profit as a percentage of total revenue. 67 Table of Contents A reconciliation of non-GAAP gross profit to gross profit and non-GAAP gross profit margin to gross profit margin, the most directly comparable GAAP measures, are as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Gross profit $ 486,071 $ 434,512 $ 359,549 Amortization expense 12,511 13,529 19,932 Stock-based compensation 13,192 11,615 10,153 Acquisition-related expense 194 50 61 Payroll taxes related to stock-based compensation 480 375 347 System transformation costs 305 51 — Restructuring charges 7 — — Non-GAAP gross profit $ 512,760 $ 460,132 $ 390,042 Gross profit margin 77% 78% 75% Non-GAAP gross profit margin 82% 82% 81% Non-GAAP Operating Income and Non-GAAP Operating Income Margin We use non-GAAP operating income and non-GAAP operating income margin, and believe it is useful for our investors, to understand and evaluate our operating performance and trends, to prepare and approve our annual budget, and to develop short-term and long-term operating plans.
The increase in number of devices reflects our growth across industries, products, and geographies. Annual Recurring Revenue ARR represents the annualized value of all subscription and support and maintenance contracts as of the end of the period. ARR mitigates fluctuations due to seasonality, contract term, and the sales mix of subscriptions for term-based licenses and SaaS.
Annual Recurring Revenue ARR represents the annualized value of all subscription and support and maintenance contracts as of the end of the period. ARR mitigates fluctuations due to seasonality, contract term, and the sales mix of subscriptions for term-based licenses and SaaS.
A reconciliation of non-GAAP operating income to operating loss and non-GAAP operating income margin to operating loss margin, the most directly comparable GAAP measures, are as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Operating loss $ (115,249) $ (138,874) $ (76,202) Amortization expense 42,878 48,159 41,312 Stock-based compensation 101,000 109,170 35,805 Acquisition-related expense 7,361 4,643 6,388 Acquisition-related earnout — 694 6,037 Offering costs — 124 594 Payroll taxes related to stock-based compensation 2,608 2,014 1,527 System transformation costs 4,833 — — Restructuring charges 1,393 — — Legal settlements and other non-recurring litigation costs 559 — 5,000 Non-GAAP operating income $ 45,383 $ 25,930 $ 20,461 Operating loss margin (21)% (29)% (21)% Non-GAAP operating income margin 8% 5% 6% Non-GAAP Net Income We use non-GAAP net income, and believe it is useful for our investors, to understand and evaluate our operating performance and trends.
A reconciliation of non-GAAP operating income to operating loss and non-GAAP operating income margin to operating loss margin, the most directly comparable GAAP measures, are as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Operating loss $ (69,096) $ (115,249) $ (138,874) Amortization expense 40,022 42,878 48,159 Stock-based compensation 97,390 101,000 109,170 Acquisition-related expense 5,262 7,361 4,643 Acquisition-related earnout — — 694 Offering costs 872 — 124 Payroll taxes related to stock-based compensation 2,947 2,608 2,014 System transformation costs 16,049 4,833 — Restructuring charges 9,742 1,393 — Extraordinary legal settlements and non-recurring litigation costs (122) 559 — Non-GAAP operating income $ 103,066 $ 45,383 $ 25,930 Operating loss margin (11)% (21)% (29)% Non-GAAP operating income margin 16% 8% 5% Non-GAAP Net Income We use non-GAAP net income, and believe it is useful for our investors, to understand and evaluate our operating performance and trends.
Key Business Metrics In addition to our GAAP financial information, we review several operating and financial metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.
See Note 16 of our consolidated financial statements for additional information. 58 Table of Contents Key Business Metrics In addition to our GAAP financial information, we review several operating and financial metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.
Sales commissions as well as associated payroll taxes and retirement plan contributions (together, contract costs) that are incremental to the acquisition of customer contracts are capitalized and amortized over the period of benefit, which is estimated to be generally five years.
Sales commissions as well as associated payroll taxes and retirement plan contributions (together, “contract costs”) that are incremental to the acquisition of customer contracts are capitalized and amortized over the period of benefit, which is estimated to be generally five years. Research and development. Research and development expenses consist primarily of personnel costs, restructuring charges, and allocated overhead.
During the year ended December 31, 2022, net cash provided by financing activities was $0.3 million, a decrease of $305.3 million compared to the year ended December 31, 2021.
During the year ended December 31, 2023, net cash provided by operating activities was $36.0 million, a decrease of $54.0 million compared to the year ended December 31, 2022.
Adjusted EBITDA We define adjusted EBITDA as net loss, adjusted for interest (income) expense, net, provision (benefit) for income taxes, depreciation expense, amortization expense, stock-based compensation expense, foreign currency transaction (gain) loss, loss on extinguishment of debt, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and extraordinary legal settlements and other non-recurring litigation costs. 69 Table of Contents A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP measure, is as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Net loss $ (110,086) $ (141,301) $ (75,189) Interest (income) expense, net (6,526) 538 2,478 Provision (benefit) for income taxes 2,279 (913) (4,789) Depreciation expense 7,420 6,671 5,757 Amortization expense 42,878 48,159 41,312 Stock-based compensation 101,000 109,170 35,805 Foreign currency transaction (gain) loss (916) 2,802 849 Loss on extinguishment of debt — — 449 Acquisition-related expense 7,361 4,643 6,388 Acquisition-related earnout — 694 6,037 Offering costs — 124 594 Payroll taxes related to stock-based compensation 2,608 2,014 1,527 System transformation costs 4,833 — — Restructuring charges 1,393 — — Legal settlements and other non-recurring litigation costs 559 — 5,000 Adjusted EBITDA $ 52,803 $ 32,601 $ 26,218 Liquidity and Capital Resources General As of December 31, 2023, our principal sources of liquidity were cash and cash equivalents totaling $243.6 million, which were held for general corporate purposes, which may include working capital, capital expenditures, and potential acquisitions and strategic transactions, as well as the available balance of the 2020 Revolving Credit Facility of $149.0 million, which matures on July 27, 2025.
Adjusted EBITDA We define adjusted EBITDA as net loss, adjusted for interest (income) expense, net, provision (benefit) for income taxes, depreciation expense, amortization expense, stock-based compensation expense, foreign currency transaction loss (gain), acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and extraordinary legal settlements and non-recurring litigation costs. 69 Table of Contents A reconciliation of adjusted EBITDA to net loss, the most directly comparable GAAP measure, is as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Net loss $ (68,455) $ (110,086) $ (141,301) Interest (income) expense, net (6,615) (6,526) 538 Provision (benefit) for income taxes 3,697 2,279 (913) Depreciation expense 6,926 7,420 6,671 Amortization expense 40,022 42,878 48,159 Stock-based compensation 97,390 101,000 109,170 Foreign currency transaction loss (gain) 2,277 (916) 2,802 Acquisition-related expense 5,262 7,361 4,643 Acquisition-related earnout — — 694 Offering costs 872 — 124 Payroll taxes related to stock-based compensation 2,947 2,608 2,014 System transformation costs 16,049 4,833 — Restructuring charges 9,742 1,393 — Extraordinary legal settlements and non-recurring litigation costs (122) 559 — Adjusted EBITDA $ 109,992 $ 52,803 $ 32,601 Liquidity and Capital Resources General As of December 31, 2024, our principal sources of liquidity were cash and cash equivalents totaling $224.7 million, which were held for general corporate purposes, which may include working capital, capital expenditures, and potential acquisitions and strategic transactions, as well as the available balance of the 2024 Revolving Credit Facility of $173.9 million.
General and administrative expenses also include system transformation costs, which are primarily associated with the implementation of sales software and software supporting our business including enterprise resource planning, as well as other systems to provide best-in-class processes, governance, and systems. General and administrative expenses may also include restructuring charges including severance and lease impairments.
General and administrative expenses also include system transformation costs, which are primarily associated with the implementation of sales software and software supporting our business including enterprise resource planning, as well as the implementation of other systems to upgrade processes, governance, and systems. General and administrative expenses also include restructuring charges. Amortization. Amortization expense consists of amortization of acquired intangible assets.
As a result, our cash flow is dependent on the performance of our subsidiaries and the ability of those entities to distribute funds to us.
We are a holding company, and we derive all of our operating income from our subsidiaries. As a result, our cash flow is dependent on the performance of our subsidiaries and the ability of those entities to distribute funds to us.
In addition, general and administrative expenses include acquisition and integration-related expenses which primarily consist of third-party expenses, such as legal and accounting fees, and adjustments to contingent consideration.
In addition, general and administrative expenses include acquisition and integration- 60 Table of Contents related expenses, which primarily consist of third-party expenses, such as legal and accounting fees, as well as adjustments to contingent consideration and expense recognized for deferred compensation related to the acquisition of dataJAR.
We define non-GAAP provision for income taxes as the current and deferred income tax expense commensurate with the non-GAAP measure of profitability using our blended U.S. statutory tax rate. 68 Table of Contents A reconciliation of non-GAAP net income to net loss, the most directly comparable GAAP measure, is as follows: Years Ended December 31, 2023 2022 2021 (in thousands) Net loss $ (110,086) $ (141,301) $ (75,189) Exclude: income tax (provision) benefit (2,279) 913 4,789 Loss before income tax (provision) benefit (107,807) (142,214) (79,978) Amortization expense 42,878 48,159 41,312 Stock-based compensation 101,000 109,170 35,805 Foreign currency transaction (gain) loss (916) 2,802 849 Loss on extinguishment of debt — — 449 Amortization of debt issuance costs 2,742 2,722 1,002 Acquisition-related expense 7,361 4,643 6,388 Acquisition-related earnout — 694 6,037 Offering costs — 124 594 Payroll taxes related to stock-based compensation 2,608 2,014 1,527 System transformation costs 4,833 — — Restructuring charges 1,393 — — Legal settlements and other non-recurring litigation costs 559 — 5,000 Non-GAAP income before income taxes 54,651 28,114 18,985 Non-GAAP provision for income taxes (1) (13,116) (6,747) (4,556) Non-GAAP net income $ 41,535 $ 21,367 $ 14,429 (1) In accordance with the SEC’s Non-GAAP Financial Measures Compliance and Disclosure Interpretation, the Company’s blended U.S. statutory rate of 24% is used as an estimate for the current and deferred income tax expense associated with our non-GAAP income before income taxes.
A reconciliation of non-GAAP net income to net loss, the most directly comparable GAAP measure, is as follows: Years Ended December 31, 2024 2023 2022 (in thousands) Net loss $ (68,455) $ (110,086) $ (141,301) Exclude: income tax (provision) benefit (3,697) (2,279) 913 Loss before income tax (provision) benefit (64,758) (107,807) (142,214) Amortization expense 40,022 42,878 48,159 Stock-based compensation 97,390 101,000 109,170 Foreign currency transaction loss (gain) 2,277 (916) 2,802 Amortization of debt issuance costs 2,842 2,742 2,722 Acquisition-related expense 5,262 7,361 4,643 Acquisition-related earnout — — 694 Offering costs 872 — 124 Payroll taxes related to stock-based compensation 2,947 2,608 2,014 System transformation costs 16,049 4,833 — Restructuring charges 9,742 1,393 — Extraordinary legal settlements and non-recurring litigation costs (122) 559 — Non-GAAP income before income taxes 112,523 54,651 28,114 Non-GAAP provision for income taxes (1) (27,006) (13,116) (6,747) Non-GAAP net income $ 85,517 $ 41,535 $ 21,367 (1) In accordance with the SEC’s Non-GAAP Financial Measures Compliance and Disclosure Interpretation, the Company’s blended U.S. statutory rate of 24% is used as an estimate for the current and deferred income tax expense associated with our non-GAAP income before income taxes.
A majority of our customers pay in advance for subscriptions and support and maintenance contracts, a portion of which is recorded as deferred revenue. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is later recognized as revenue in accordance with our revenue recognition policy.
Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is later recognized as revenue in accordance with our revenue recognition policy.
During the year ended December 31, 2022, net cash used in investing activities was $34.8 million, a decrease of $352.6 million compared to the year ended December 31, 2021.
Investing Activities During the year ended December 31, 2024, net cash used in investing activities was $11.8 million, a decrease of $10.7 million compared to the year ended December 31, 2023.
We define non-GAAP operating income as operating loss, adjusted for amortization expense, stock-based compensation expense, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and extraordinary legal settlements and other non-recurring litigation costs. Restructuring charges for the year ended December 31, 2023 primarily include lease impairments.
We define non-GAAP operating income as operating loss, adjusted for amortization expense, stock-based compensation expense, acquisition-related expense, acquisition-related earnout, offering costs, payroll taxes related to stock-based compensation, system transformation costs, restructuring charges, and extraordinary legal settlements and non-recurring litigation costs. We define non-GAAP operating income margin as non-GAAP operating income as a percentage of total revenue.
We also intend to continue to invest in our research and development team to develop new and improved products, features, and functionality. Although these investments may increase our operating expenses and, as a result, adversely affect our operating results in the near term, we believe they will contribute to our long-term growth. International expansion.
Although these investments may increase our operating expenses in certain periods and, as a result, adversely affect our operating results in the near term, we believe they will contribute to our long-term growth. International expansion.
This expertise enables us to fully support new innovations and operating system releases the moment they are made available by Apple. This focus has allowed us to create a best-in-class user experience in the enterprise. We sell our SaaS solutions via a subscription model, through a direct sales force, online, and indirectly via our channel partners, including Apple.
This expertise enables us to fully support new innovations and operating system releases the moment they are made available by Apple. This focus has allowed us to create a best-in-class user experience in the enterprise.
The following table presents the Company’s known short-term and long-term contractual obligations and commitments as of December 31, 2023: 2024 Thereafter Total (in thousands) 2026 Notes: (1) Principal payments $ — $ 373,750 $ 373,750 Interest payments 467 934 1,401 Purchase obligations (2) 42,017 24,767 66,784 Operating leases (3) 6,554 17,779 24,333 Total $ 49,038 $ 417,230 $ 466,268 (1) See Note 9 to our consolidated financial statements for more information.
The following table presents the Company’s known short-term and long-term contractual obligations and commitments as of December 31, 2024: 2025 Thereafter Total (in thousands) 2026 Notes: (1) Principal payments $ — $ 373,750 $ 373,750 Interest payments 467 467 934 Purchase obligations (2) 31,897 36,741 68,638 Operating leases (3) 6,226 17,784 24,010 Total $ 38,590 $ 428,742 $ 467,332 (1) See Note 9 to our consolidated financial statements for more information.
We plan to continue making investments in our international sales and marketing channels to take advantage of this market opportunity while refining our go-to-market approach based on local market dynamics.
In addition, global demand for our platform and the growth of our international operations is dependent upon the rate of market adoption of Apple products in international markets. We plan to continue making investments in our international sales and marketing channels to take advantage of this market opportunity while refining our go-to-market approach based on local market dynamics.
We will continue to invest in innovation so that we can offer our customers new solutions and enhance our existing 60 Table of Contents solutions. See “Business — Research and Development” for more information. We expect such investment to increase on an absolute dollar basis as our business grows. General and administrative.
We will continue to invest in innovation so that we can offer our customers new solutions and enhance our existing solutions. See “Business — Research and Development” for more information. General and administrative.
Financing Activities During the year ended December 31, 2023, net cash provided by financing activities was $5.3 million, an increase of $5.1 million compared to the year ended December 31, 2022. The increase was primarily attributable to a $4.6 million payment for contingent consideration in 2022.
Financing Activities During the year ended December 31, 2024, net cash used in financing activities was $41.6 million compared to net cash provided by financing activities of $5.3 million for the year ended December 31, 2023.
We expect our gross profit to increase in absolute dollars. Operating Expenses Sales and marketing. Sales and marketing expenses consist primarily of employee compensation costs, sales commissions, costs of general marketing and promotional activities, travel-related expenses, and allocated overhead.
Operating Expenses Sales and marketing. Sales and marketing expenses consist primarily of employee compensation costs, sales commissions, costs of general marketing and promotional activities, travel-related expenses, restructuring charges, and allocated overhead.
Income Tax (Provision) Benefit Years Ended December 31, Change 2023 2022 $ % (in thousands, except percentages) Income tax (provision) benefit $ (2,279) $ 913 $ (3,192) NM Effective tax rate (2.1) % 0.6 % NM Not Meaningful. 66 Table of Contents The change in the effective tax rate for the year ended December 31, 2023 compared to the prior year was primarily due to international growth.
Income Tax Provision Years Ended December 31, Change 2024 2023 $ % (in thousands, except percentages) Income tax provision $ (3,697) $ (2,279) $ (1,418) 62 % Effective tax rate (5.7) % (2.1) % The change in the effective tax rate for the year ended December 31, 2024 compared to the prior year was primarily due to international growth.
We expect that our operating cash flows, in addition to our cash and cash equivalents, will enable us to make continued investments in supporting the growth of our business in the future. We are a holding company, and we derive all of our operating income from our subsidiaries.
Our cash and cash equivalents are held at a diversified portfolio of investment grade global banks and money market investments. We expect that our operating cash flows, in addition to our cash and cash equivalents, will enable us to make continued investments in supporting the growth of our business in the future.
Our multi-dimensional go-to-market model and cloud-deployed offering enable us to reach all organizations around the world, large and small, with our software solutions. Key Factors Affecting Our Performance New customer growth.
We sell our SaaS solutions via a subscription model, through a direct sales force, online, and indirectly via our channel and other strategic partners, including Apple. Our multi-dimensional go-to-market model and primarily cloud-deployed offering enable us to reach organizations around the world, large and small, with our software solutions. Key Factors Affecting Our Performance New customer growth.
Foreign Currency Transaction Gain (Loss) Years Ended December 31, Change 2023 2022 $ % (in thousands, except percentages) Foreign currency transaction gain (loss) $ 916 $ (2,802) $ 3,718 NM NM Not Meaningful.
Interest Income, Net Years Ended December 31, Change 2024 2023 $ % (in thousands, except percentages) Interest income, net $ 6,615 $ 6,526 $ 89 1 % Foreign Currency Transaction (Loss) Gain Years Ended December 31, Change 2024 2023 $ % (in thousands, except percentages) Foreign currency transaction (loss) gain $ (2,277) $ 916 $ (3,193) NM NM Not Meaningful.
The decrease was primarily attributable to a $328.9 million decrease in payments for acquisitions, net of cash acquired, a $25.0 million payment for deferred consideration associated with the Wandera acquisition in 2021, and a $2.0 million decrease in purchases of equipment and leasehold improvements, partially offset by a $3.1 million increase in purchases of investments.
The decrease was primarily attributable to an $18.8 million decrease in payments for acquisitions, net of cash acquired, partially offset by a $6.1 million increase in purchases of equipment and leasehold improvements and a $1.8 million increase in purchases of investments.
We plan to continue investing in our business so we can capitalize on our market opportunity. We intend to grow our sales team to target expansion within our midmarket and enterprise customers and to attract new customers. We expect to continue to make focused investments in marketing to drive brand awareness and enhance the effectiveness of our customer acquisition model.
We plan to continue strategically investing in our business so we can capitalize on our market opportunity. We intend to invest in our sales team to target expansion within our midmarket and enterprise customers and to attract new customers.
Our cash and cash equivalents are comprised of cash, money market deposit accounts, and money market funds with original maturities at the time of purchase of three months or less.
The 2024 Credit Agreement is subject to a springing maturity date on or after June 2, 2026 subject to the terms of the 2024 Credit Agreement. Our cash and cash equivalents are comprised of cash, money market deposit accounts, and money market funds with original maturities at the time of purchase of three months or less.
We also announced Jamf Executive Threat Protection in April 2023, as an advanced detection and response tool designed for mobile devices that provides organizations with an efficient, remote method to monitor devices and respond to advanced attacks. Investment in growth.
Our future success is dependent on our ability to successfully develop, market, and sell additional products to both new and existing customers. For example, we announced Jamf Executive Threat Protection in April 2023, as an ADR tool designed for mobile devices that provides organizations with an efficient, remote method to monitor devices and respond to advanced attacks. Investment in growth.
System transformation costs are primarily associated with the implementation of updated sales software and software supporting our business including enterprise resource planning, as well as other systems to provide best-in-class processes, governance, and systems. The transformation includes a comprehensive redesign in our systems, including the quoting, contracting, fulfilling, and invoicing processes, and the systems and tools we use.
System transformation costs are primarily associated with the implementation of updated sales software and software supporting our business including enterprise resource planning, as well as the implementation of other systems to upgrade processes, governance, and systems. System transformation costs include costs that were expensed as incurred and the amortization of capitalized costs.
Cost of Revenue and Gross Margin Years Ended December 31, Change 2023 2022 $ % (in thousands, except percentages) Cost of revenue: Cost of subscription (exclusive of amortization expense shown below) $ 98,554 $ 85,479 $ 13,075 15 % Cost of services (exclusive of amortization expense show below) 13,976 13,816 160 1 Amortization expense 13,529 19,932 (6,403) (32) Total cost of revenue $ 126,059 $ 119,227 $ 6,832 6 % Gross margin 78% 75% For the year ended December 31, 2023, cost of revenue increased primarily due to an increase in cost of subscription revenue, partially offset by a decrease in amortization expense.
Cost of Revenue and Gross Margin Years Ended December 31, Change 2024 2023 $ % (in thousands, except percentages) Cost of revenue: Cost of subscription (exclusive of amortization expense shown below) $ 114,260 $ 98,554 $ 15,706 16 % Cost of services (exclusive of amortization expense show below) 14,557 13,976 581 4 Amortization expense 12,511 13,529 (1,018) (8) Total cost of revenue $ 141,328 $ 126,059 $ 15,269 12 % Gross margin 77% 78% For the year ended December 31, 2024, cost of revenue increased primarily due to an increase in cost of subscription revenue.
Our revenue, results of operations, and cash flows depend on the overall demand for our products. Currently, the U.S. and other key international economies are impacted by high levels of inflation, elevated interest rates, financial instability and concerns about volatility in credit, equity, and foreign exchange markets, and overall uncertainty with respect to the economy.
The U.S. and other key international economies continue to be impacted, although to a lesser extent, by high levels of inflation, elevated interest rates, financial instability and concerns about trade relations and volatility in credit, equity, and foreign exchange markets, the Russia-Ukraine war, and overall economic uncertainty.
These factors could result in reductions in IT spending by our existing and prospective customers or in requests to renegotiate existing contracts, defaults on payments due on existing contracts, or non-renewals. As result of macroeconomic uncertainty, some of our customers have taken a more moderate outlook when planning their future hiring and device growth needs.
These factors could continue to pose the risk of reductions in IT spending by our existing and prospective customers or in requests to renegotiate existing contracts, defaults on payments due on existing contracts, or non-renewals.
The increase was primarily attributable to an increase in cash received from our customers and a $5.0 million legal settlement paid in 2021, partially offset by an increase in cash paid for employee compensation costs and an increase in cash paid for third-party hosting costs.
The decrease was primarily attributable to a $16.9 million increase in cash paid for system transformation costs, $9.5 million of restructuring charges paid, $8.4 million paid in deferred consideration related to the dataJAR acquisition, and an increase in cash paid for third-party hosting costs, partially offset by an increase in cash received from our customers and $6.0 million we paid for contingent consideration in 2023 related to the Digita acquisition.
The license portion of on-premise subscription revenue is recognized upfront, assuming all revenue recognition criteria are satisfied. See “Critical Accounting Estimates” for more information. We expect subscription revenue to increase over time as we expand our customer base because sales to new customers are expected to be primarily SaaS subscriptions. Services.
The license portion of on-premise subscription revenue is recognized upfront, assuming all revenue recognition criteria are satisfied. See “Critical Accounting Estimates” for more information. Services. Services revenue consists primarily of professional services provided to our customers to configure and optimize the use of our software solutions, as well as training services related to the operation of our software solutions.
Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance.
In addition, the effective tax rate for the year ended December 31, 2023 included a discrete benefit related to the acquisition of dataJAR. 66 Table of Contents Non-GAAP Financial Measures In addition to our results determined in accordance with GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance.
See Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities — Dividend Policy ” for a discussion of our dividend policy, including restrictions on our ability to pay dividends and distributions.
See Item 5, “Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities — Dividend Policy ” for a discussion of our dividend policy. A majority of our customers pay in advance for subscriptions and support and maintenance contracts, a portion of which is recorded as deferred revenue.
License revenue consists of revenue from on-premise perpetual licenses of our Jamf Pro product sold primarily to existing customers. We recognize license revenue upfront, assuming all revenue recognition criteria are satisfied. We expect license revenue to decrease because sales to new customers are primarily cloud-based subscription arrangements and therefore reflected in subscription revenue. Cost of Revenue Cost of subscription.
Our services are priced on a fixed fee basis and generally invoiced in advance of the service being delivered. Revenue is recognized as the services are performed. License. License revenue consists of revenue from on-premise perpetual licenses of our Jamf Pro product sold primarily to existing customers. We recognize license revenue upfront, assuming all revenue recognition criteria are satisfied.
For the year ended December 31, 2023, research and development expenses increased primarily due to a $15.1 million increase in employee compensation costs, partially offset by a $1.3 million decrease in outside services.
For the year ended December 31, 2024, research and development expenses increased primarily due to a $2.6 million increase in employee compensation costs, a $1.7 million increase in stock-based compensation and related payroll taxes, and restructuring charges of $0.7 million.
As of December 31, 2023, there were no amounts outstanding under the 2020 Credit Agreement, other than $1.0 million in outstanding letters of credit. Effective April 7, 2023, we entered into the Credit Agreement Amendment No. 2, which amended certain provisions of the 2020 Credit Agreement.
As of December 31, 2024, there were no amounts outstanding under the 2024 Credit Agreement, other than $1.1 million in outstanding letters of credit. As of December 31, 2024, there was $369.5 million outstanding on our 2026 Notes, which mature on September 1, 2026.
We expect these conditions to continue in 2024. In addition on January 25, 2024, the Company announced a workforce reduction plan intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth in light of current macroeconomic conditions. The workforce reduction plan is expected to impact approximately 6% of the Company’s full-time employees.
As result of macroeconomic uncertainty, some of our customers have continued to take a more moderate outlook when planning their future hiring and device growth needs. In addition, in 2024, the Company executed a workforce reduction plan intended to reduce operating costs, improve operating margins, and continue advancing the Company’s ongoing commitment to profitable growth in light of macroeconomic conditions.
A discussion regarding our results of operations for the year ended December 31, 2022 compared to the year ended December 31, 2021 can be found under Part II, Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on March 1, 2023, which is available free of charge on the SEC’s website at www.sec.gov and our investor relations website at ir.jamf.com. 64 Table of Contents Comparison of the Years Ended December 31, 2023 and 2022 Revenue Years Ended December 31, Change 2023 2022 $ % (in thousands, except percentages) SaaS subscription and support and maintenance $ 521,269 $ 430,613 $ 90,656 21 % On‑premise subscription 21,750 24,394 (2,644) (11) Subscription revenue 543,019 455,007 88,012 19 Professional services 16,325 19,025 (2,700) (14) Perpetual licenses 1,227 4,744 (3,517) (74) Non-subscription revenue 17,552 23,769 (6,217) (26) Total revenue $ 560,571 $ 478,776 $ 81,795 17 % For the year ended December 31, 2023, overall revenue increased due to higher subscription revenue, partially offset by a decrease in perpetual licenses revenue and professional services revenue.
A discussion regarding our results of operations for the year ended December 31, 2023 64 Table of Contents compared to the year ended December 31, 2022 can be found under Part II, Item 7 in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 27, 2024, which is available free of charge on the SEC’s website at www.sec.gov and our investor relations website at ir.jamf.com.
For the year ended December 31, 2023, total gross margin increased as our revenue expanded faster than the costs required to deliver the revenue and amortization expense decreased. 65 Table of Contents Operating Expenses Years Ended December 31, Change 2023 2022 $ % (in thousands, except percentages) Operating expenses: Sales and marketing $ 250,757 $ 217,728 $ 33,029 15 % Research and development 134,422 119,906 14,516 12 General and administrative 135,233 132,562 2,671 2 Amortization expense 29,349 28,227 1,122 4 Operating expenses $ 549,761 $ 498,423 $ 51,338 10 % For the year ended December 31, 2023, sales and marketing expenses increased primarily due to a $28.1 million increase in employee compensation costs and a $3.8 million increase in marketing costs.
Cost of subscription revenue increased primarily due to a $6.0 million increase in employee compensation costs, a $5.7 million increase in third-party hosting fees as we increased capacity to support our growth, a $1.4 million increase in stock-based compensation expense and related payroll taxes, and a $1.3 million increase in computer hardware and software costs. 65 Table of Contents Operating Expenses Years Ended December 31, Change 2024 2023 $ % (in thousands, except percentages) Operating expenses: Sales and marketing $ 252,128 $ 250,757 $ 1,371 1 % Research and development 138,961 134,422 4,539 3 General and administrative 136,567 135,233 1,334 1 Amortization expense 27,511 29,349 (1,838) (6) Operating expenses $ 555,167 $ 549,761 $ 5,406 1 % For the year ended December 31, 2024, sales and marketing expenses increased primarily due to restructuring charges of $7.3 million, a $1.1 million increase in marketing costs, and a $0.7 million increase in system transformation costs, partially offset by a $3.2 million decrease in employee compensation costs, a $2.8 million decrease in stock-based compensation and related payroll taxes, a $0.9 million decrease in travel-related expenses, and a $0.4 million decrease in acquisition-related expense.
Removed
Our future success is dependent on our ability to successfully develop, market, and sell additional products to both new and existing customers. For example, we announced our BYOD solution in March 2022 to help organizations manage and secure personally owned devices that employees bring to work, while upholding employee personal privacy.
Added
We expect to continue to make strategically focused investments in marketing to drive brand awareness and enhance the effectiveness of our customer acquisition model. We also intend to continue to invest in our research and development team to develop new and improved products, features, and functionality.
Removed
In addition, global demand for our platform and the growth of our international operations is dependent upon the rate of market adoption of Apple products in international markets. Partner network development.
Added
Our revenue, results of operations, and cash flows depend on the overall demand for our products.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDuring the year ended December 31, 2023, a hypothetical 10% change in foreign currency exchange rates applicable to our business would have an impact of $15.5 million on our operating loss. Interest Rate Risk As of December 31, 2023, we had $243.6 million of cash and cash equivalents, which were held for working capital purposes.
Biggest changeDuring the year ended December 31, 2024, a hypothetical 10% change in foreign currency exchange rates applicable to our business would have an impact of approximately $14.7 million on our operating loss. Interest Rate Risk As of December 31, 2024, we had $224.7 million of cash and cash equivalents, which were held for working capital purposes.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of exposure due to potential changes in foreign currency exchange rates or interest rates.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk Market risk represents the risk of loss that may impact our financial position due to adverse changes in financial market prices and rates. Our market risk exposure is primarily a result of exposure due to potential changes in foreign currency exchange rates and interest rates.
Additionally, the fair value of the 2026 Notes fluctuates when the market price of our common stock fluctuates. The 2026 Notes are carried at face value less unamortized debt issuance costs on our consolidated balance sheets, and the fair value of the 2026 Notes is presented for disclosure purposes only. 74 Table of Contents
Additionally, the fair value of the 2026 Notes fluctuates when the market price of our common stock fluctuates. The 2026 Notes are carried at face value less unamortized debt issuance costs on our consolidated balance sheets, and the fair value of the 2026 Notes is presented for disclosure purposes only.
Added
We also do not believe we have significant interest exposure with respect to our 2024 Credit Agreement. 74 Table of Contents

Other JAMF 10-K year-over-year comparisons