We feel now is a pretty good time to analyse Jamf Holding Corp.'s (NASDAQ:JAMF) business as it appears the company may be on the cusp of a considerable accomplishment. Jamf Holding Corp. offers a cloud software platform for Apple infrastructure and security platform worldwide. On 31 December 2020, the US$4.1b market-cap company posted a loss of US$23m for its most recent financial year. The most pressing concern for investors is Jamf Holding's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Jamf Holding is bordering on breakeven, according to the 9 American Software analysts. They expect the company to post a final loss in 2022, before turning a profit of US$11m in 2023. Therefore, the company is expected to breakeven roughly 2 years from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 52%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Jamf Holding given that this is a high-level summary, but, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Jamf Holding currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
There are key fundamentals of Jamf Holding which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Jamf Holding, take a look at Jamf Holding's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:
- Valuation: What is Jamf Holding worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Jamf Holding is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Jamf Holding’s board and the CEO’s background.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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