Jamf Holding Corp. (NASDAQ:JAMF) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Jamf Holding Corp. offers a cloud software platform for Apple infrastructure and security platform worldwide. The US$4.3b market-cap company announced a latest loss of US$23m on 31 December 2020 for its most recent financial year result. Many investors are wondering about the rate at which Jamf Holding will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Jamf Holding

Consensus from 9 of the American Software analysts is that Jamf Holding is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$11m in 2023. So, the company is predicted to breakeven approximately 2 years from today. 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.

Underlying developments driving Jamf Holding's growth isn’t the focus of this broad overview, though, take into account that generally 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 quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Jamf Holding, so if you are interested in understanding the company at a deeper level, take a look at Jamf Holding's company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. 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.

2. 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.

3. 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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