Behind Jamf Holding's Numbers (JAMF)

Warning signs on revenue quality and stock option dependence

Jamf Holdings (JAMF) provides software security solutions tailored for Apple devices, serving primarily small to medium-sized businesses. However, weakening revenue growth and declining customer retention have contributed to a stock price drop of over 40% year-to-date. This is especially troubling for a company that relies heavily on its stock—both to compensate employees and to service its debt.

The table below summarizes JAMF's revenue and earnings performance versus expectations over the past five quarters:

The consistently small revenue beats and frequent EPS in-line results raise concerns—especially given the possibility that minor accounting adjustments could have prevented misses. More importantly, we have identified several red flags in how JAMF recognizes revenue and expenses, which cast doubt on the quality of its recent growth.

Some investors may see the stock's sharp decline as a potential value opportunity. But before jumping in, it is essential to understand what has been driving recent results. Let's take a closer look at what's behind the numbers…

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