Jamf Follow-on

Jamf is a Bert recommendation growing somewhat below the threshold of this board. ARR grew 37% yoy for the most recent quarter.

After the close today the company announced a 8.5 million share non-dilutive follow-on offering. Even if the offering knocks the stock price down to the $34 area, the stock would still be up about 15% ytd…not bad for a SaaS company this year. After the offering, Vista will still own about 54% of JAMF. More non-dilutive offerings from Vista can be expected. Annoying in the short run? Yes. Important in the long run? No. I hope to hold JAMF for a long time because I believe Apple’s penetration of the enterprise is growing and I like the way JAMF is executing its business plan.

Page 26 of the of the below-linked investor presentation shows JAMF’s progress against its long-term business model.https://ir.jamf.com/static-files/c4f5b477-c1a9-41fd-ad67-902…

Side note: I have been loosely following Vista Equity Partners and Thoma Bravo Associates for three years because they are private-equity firms specializing in the software industry.
https://www.vistaequitypartners.com/
https://www.thomabravo.com/?gclid=Cj0KCQjwh_eFBhDZARIsALHjIK…

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There is no doubt that JAMF is the best device management for Apple in the enterprise. Nonetheless, it’s a MDM tool and this market is highly commoditized. The leaders are VMware (from the acquisition of AirWatch in 2014) and Microsoft Intune. JAMF still performs a legacy device management for the most part, while VMware approaches it with a more modern management perspective, like Windows 10. Lastly, JAMF can’t manage the other platforms (Android, Windows, Chromebooks, etc.), forcing the customer to have multiple tools to manage endpoints, which is inefficient and more expensive. For example, you can buy a user-based license from VMware and the same user can have an Android, an iOS, an iPad, and a Windows 10 managed. If the company is mostly Windows 10 based, and have a strong BYOD program, where inevitably you will have a lot of Android devices, you will need multiple tools and licenses.
In my opinion, other tools are closing in the gap on JAMF and its dominance is not guaranteed.

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