Latest news with #GAAPrevenue
Globe and Mail
07-08-2025
- Business
- Globe and Mail
Jamf (JAMF) Q2 Revenue Jumps 15%
Key Points Jamf posted $176.5 million in GAAP revenue, surpassing analyst estimates by $7.7 million (GAAP). Non-GAAP operating income rose 42.6% to $33.5 million, with record Security ARR up 40% year-over-year to $203 million. Net loss (GAAP) widened to $20.9 million despite improved operating results and strong cash generation. These 10 stocks could mint the next wave of millionaires › Jamf (NASDAQ:JAMF), a tech firm specializing in Apple device management and enterprise security, reported results on August 7, 2025. The company delivered $176.5 million in GAAP revenue, topping GAAP expectations of $168.8 million. Non-GAAP earnings per share (EPS) reached $0.18. Non-GAAP operating income jumped to $33.5 million, up from $23.5 million in non-GAAP operating income in Q2 2024. The most notable news was steady top-line growth, as Jamf reported GAAP revenue growth of 15% year-over-year. and a 40% year-over-year boost in Security annual recurring revenue (ARR) after the recent Identity Automation acquisition. However, GAAP net losses expanded, mainly due to higher integration and transformation costs. Overall, the period showed strong underlying growth. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.18 $0.17 $0.14 28.6% Revenue (GAAP) $176.5 million $168.8 million $153.0 million 15.4% Gross Profit (Non-GAAP) $141.6 million $124.9 million 13.4% Operating Income (Non-GAAP) $33.5 million $23.5 million 42.6% Adjusted EBITDA $35.3 million $25.3 million N/A Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q2 2025 earnings report. What Jamf Does and Where It's Focused Jamf provides cloud-based software to help businesses and schools manage, secure, and automate Apple devices. Its platform is designed to work seamlessly with Apple products such as iPads, iPhones, and Macs. Jamf's approach centers on providing IT departments with advanced controls for security and user experience in Apple-first environments. Jamf's current business strategy hinges on several key areas. The most important is its Apple-first approach. This means every product is built with Apple integration in mind, helping Jamf win customers who need advanced but easy-to-use management. Its main customers include large corporations, hospitals, and schools. Another focus is product innovation, especially investing in artificial intelligence (AI) and automation to stay ahead as Apple devices proliferate in the workplace. Building recurring revenue through its software-as-a-service (SaaS) model and keeping customer satisfaction high remain core to its long-term growth. Q2 2025: Revenue Growth, Security Shift, and Cost Pressures The second quarter marked a solid revenue performance as total sales (GAAP) climbed 15% year over year, surpassing management's outlook and Wall Street estimates. Subscription revenue, which makes up almost all of Jamf's sales, increased 15.6% year-over-year. International business delivered year-over-year revenue growth of 15%. Security products emerged as a key revenue engine, as Security ARR jumped 40% year-over-year to $203 million, now making up 29% of total ARR as of June 30, 2025. With the integration of Identity Automation—a recent acquisition focused on digital identity and cybersecurity—the company aims to address security and compliance needs more directly for its customers. This shift diversifies Jamf's revenue away from basic management tools toward a broader range of enterprise services. Margins improved on an operating basis, with non-GAAP gross margin at 80% and non-GAAP operating income up by $10.0 million year over year. However, some pressure appeared on non-GAAP gross margins (down from 82% in Q2 2024, now at 80%). The company also highlighted the launch of a new platform reinvestment plan designed to accelerate AI innovation and enhance go-to-market activities. Despite strong recurring revenue and higher profits before certain costs, the company's GAAP net loss widened to $20.9 million. Management cited heavier charges related to stock-based compensation totaling $27.8 million. No dividend is paid to shareholders. Looking Ahead: Guidance and Key Watch Points For Q3 2025, management is guiding for total revenue between $176.0 and $178.0 million. Non-GAAP operating income is expected in the range of $41.5 to $42.5 million, up from $33.5 million in non-GAAP operating income. For the full year, Jamf raised its outlook, projecting total revenue between $701.0 and $704.0 million and non-GAAP operating income between $153.5 and $155.5 million. The unlevered free cash flow (non-GAAP) is forecast to rise at least 75% year-over-year. Management has not provided guidance for GAAP earnings per share, citing volatility in items such as stock-based compensation and integration costs. Investors may focus on several trends going forward. First, the success of the Identity Automation integration and further expansion of security offerings could reshape Jamf's business mix. Second, continued investment in AI and automation are key to keeping Jamf's platform competitive as the enterprise software landscape shifts. Finally, monitoring net retention rates and margin trends will be important as costs rise and the company seeks to balance growth with profitability. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Globe and Mail
06-08-2025
- Business
- Globe and Mail
Astera Labs (ALAB) Q2 Revenue Soars 150%
Key Points Record GAAP revenue of $191.9 million, up 150% from the prior-year quarter and surpassing estimates by 11.3%. Non-GAAP earnings per share reached $0.44, beating analyst expectations. Continued rapid growth in both product portfolio and strategic partnerships, with a new revenue ramp from AI rack-level connectivity solutions. These 10 stocks could mint the next wave of millionaires › Astera Labs (NASDAQ:ALAB), a provider of connectivity solutions for cloud and artificial intelligence (AI) infrastructure, released its results for Q2 FY2025 on August 5, 2025. The report delivered record GAAP revenue of $191.9 million, outpacing analyst expectations of $172.49 million. Non-GAAP earnings per share (EPS) came in at $0.44, well above estimates of $0.32. The quarter marked a strong expansion in both sales and profitability, driven by surging demand for its PCIe 6 portfolio and expanding contributions from its Scorpio fabric switches. In summary, the quarter showcased robust momentum, supported by significant product ramps and deepening strategic partnerships, even as the company continues to focus on diversifying its customer base. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $0.44 $0.32 $0.13 238.5% Revenue (GAAP) $191.9 million $172.49 million $76.9 million 149.6% Operating Income (GAAP) $39.8 million ($24.3 million) NM Operating Margin (Non-GAAP) 39.2% 24.4% 14.8 pp Operating Cash Flow $135.0 million N/A N/A Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Company Overview and Strategic Priorities Astera Labs is known for its high-speed connectivity semiconductors and system solutions designed for data centers and cloud infrastructure. The core of its business is the Intelligent Connectivity Platform—a combination of hardware products and the COSMOS software suite that enables efficient, low-latency data movement inside AI and hyperscale data centers. This platform includes a growing set of products focused on enabling the transition between new generations of CPUs, GPUs, and memory technologies. The business's recent focus has centered on technological innovation, strategic partnerships, and expanding its reach across leading AI platforms with diversified product offerings. Key success factors include the ability to rapidly develop products compatible with changing industry standards, alliances with major technology suppliers, and close collaboration with hyperscale cloud customers. Managing customer concentration remains an ongoing priority, with the company taking steps to broaden its end-market exposure while maintaining its reputation as a trusted provider. Quarter Highlights: Growth Drivers and Key Developments Astera Labs delivered record-breaking financial results, driven primarily by surging demand for its PCIe 6 (Peripheral Component Interconnect Express, a high-speed interface for connecting components in data centers) connectivity portfolio. Sales of both Aries and Taurus product lines rose as AI and customized rack-scale systems ramped up, reflecting widespread adoption among leading cloud providers and a new set of custom AI accelerator platforms. The Scorpio fabric switch family—semiconductor switches designed for high-speed interconnect in server racks—notched new design wins and entered wider production. The P-Series switches saw shipments to customers building out modular rack applications, while the X-Series began initial revenue shipments and are expected to contribute materially starting in 2026. The COSMOS software suite, which provides visibility and manageability across interconnected hardware, continued to act as a differentiator, allowing for advanced diagnostics and system-level fleet management. Astera Labs expanded its ecosystem in the AI and cloud infrastructure space through deepening relationships with major industry partners. Extended collaboration with NVIDIA solidified its place in the NVLink Fusion ecosystem, while a new partnership with AMD enabled further progress around open connectivity standards through the Ultra Accelerator Link (UALink) Consortium. These collaborations not only enhance product interoperability but also position Astera Labs as a leading contributor to next-generation open standard efforts in memory and compute interconnects. Financially, the company reported a significant improvement in margins and profitability. Non-GAAP operating margin increased by 14.8 percentage points versus the prior-year period, reflecting the impact of higher sales volumes and improved product mix. The business generated $135 million in operating cash flow—its highest ever—building its cash and securities position to over $1 billion. Customer concentration continued to pose a risk, as most revenue still came from a small number of hyperscale data center customers, though management noted progress diversifying across ASIC- and GPU-based platforms. Geopolitical and regulatory pressures—including evolving export restrictions affecting less than 10% of revenues from China—were flagged as ongoing but manageable at present. Product Portfolio Expansion and Segment Performance The Aries product family comprises PCIe/CXL retimers and, more recently, gearbox products. Retimers ensure signal integrity in high-speed data transfers between CPUs and GPUs, while gearbox devices connect components running on different generations of industry standards—currently, PCIe 5 and PCIe 6—bridging speed and compatibility gaps as data center technology evolves. The Taurus product line features Ethernet smart cable modules, which enable reliable, high-speed copper connections in AI and general computing systems. Continued momentum was reported, with expansion into more customers expected as the market shifts toward 100G-capable AI infrastructure. The Scorpio product line covers smart fabric switches—a type of networking switch designed for connecting many GPUs or AI accelerators in a single rack. The P-Series is focused on modular, customizable rack designs, while the X-Series (which began shipping in preproduction volumes late in the quarter) is positioned for broader adoption in AI racks and is expected to carry higher average selling prices. The Leo product family, which consists of CXL (Compute Express Link) memory connectivity controllers, is currently shipping in preproduction, with volume qualification and ramp anticipated in the second half of 2025. Strategically, the company's product breadth now allows it to address a larger part of a data center AI rack, serving both merchant GPU systems such as those from NVIDIA and custom AI accelerator-based systems. The business noted material progress in partnerships with ecosystem providers like Alchip Technologies, enhancing its product validation process and opening new opportunities in hyperscaler markets. These moves reflect the company's intent to strengthen its position both as an innovator and a critical supplier for next-generation AI infrastructure. Outlook and What to Watch Next Management guided for GAAP revenue between $203 million and $210 million for Q3 FY2025. Gross margin (GAAP and non-GAAP) is expected to remain near 75%. Non-GAAP diluted earnings per share was guided between $0.38 and $0.39. Non-GAAP operating expenses are set to increase further, reaching between $76 million and $80 million as the company continues to push on new product development and market expansion. Management reiterated that long-term gross margin targets remain around 70%, though the near-term outlook may fluctuate as the product mix evolves. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
