Apple Software Company Set to Go Public
At the beginning of July, Jamf, an Apple Enterprise Management company, filed to go public. You probably haven’t heard of the company, but that’s okay. It’s a cloud software platform that allows you to connect and manage Apple (NASDAQ: AAPL) devices. Jamf also provides security software to Apple users.
The company plans on selling 16 million shares at an expected $17 to $19, which means the company would raise around $272 to $304 million with its IPO. It has applied to list on the Nasdaq under the ticker symbol “JAMF.” There are 12 banks underwriting its IPO, led by Goldman Sachs, JPMorgan, Bank of America Securities, and Barclays. Jamf plans to use its IPO proceeds to repay a term loan and for other corporate purposes.
When asked to explain what the company does, it said:
We help organizations, including businesses, hospitals, schools and government agencies, connect, manage and protect Apple products, apps and corporate resources in the cloud without ever having to touch the devices.
With Jamf’s software, Apple 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 life of the device.
So basically, the company provides its customers and their devices convenience and security. The company was founded back in 2002 and is headquartered in Minneapolis, Minnesota. The company explained its relationship with Apple in its prospectus:
We are the only vertically focused Apple infrastructure and security platform of scale in the world, and we have built our company through a singular focus on being the primary solution for Apple in the enterprise.
We have a collaborative relationship with Apple which, combined with our accumulated technical experience and expertise, enables us to fully support new Apple innovations and OS releases the moment they are made available by Apple.
The company emphasizes that it has a relationship with one of the most popular tech brands in the world. Since Apple depends on it for a product, other tech companies and enterprises could depend on Jamf, too.
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In 2019, Jamf reported $204 million in revenue, an increase from the $146.6 million in revenue it reported in 2018. One important thing to note is that the company has been able to decrease its net losses by about 10% — from $36.3 million in 2018 to $32.6 million in 2019. Hopefully, this decrease continues. Jamf isn’t profitable right now, but it’s always good to see revenue growth along with shrinking net losses.
As of March 31, 2020, the company’s recurring revenue was $224.9 million — up from $160.6 million as of March 31, 2019. Some of the risk factors Jamf listed in its prospectus were:
Concern over the impact of COVID-19 has delayed the purchasing decisions of certain prospective Jamf customers and/or caused them to consider purchases in smaller volumes than originally anticipated.
The COVID-19 pandemic has taken a toll on a lot of businesses, and there are still so many uncertainties. So it’s somewhat understandable that 2020 wasn’t business as usual, and Jamf and its investors will see results from this year’s pandemic. Jamf has more than 40,000 customers and more than 100,000 Jamf Nation community members. It’s growing its business, and right now, there is strong support from public market investors for these kinds of tech startups. Jamf is expected to go public Thursday, July 23.
Next week will be Jamf’s moment of truth, and we’ll see if the IPO market still has an appetite for companies like it.
Until next time,