Jamf Holding Corp. (NASDAQ:JAMF) Q1 2024 Earnings Call Transcript

John Strosahl: Yeah, Dan, this is John. I can take the question. Just ancillary discussions with our customer and the sales team as well, we have seen a bit of elongated refresh cycle. I mean, the uncertainty in the market has caused some of that. Like I said before, we have seen some more interest and some more engagement, although sales cycles have still remained elongated. We also noted that, it was a Wall Street Journal article that came out, IDC and both Gartner had identified that Apple’s growth had been over 14% — about 14.5% year-over-year in shipments. And while that bodes well for us, we don’t track that on a quarter-by-quarter basis, but several quarters in a row certainly have an impact on the installed base. And so your assumption is right. We have seen a bit of elongated refresh cycles, both in the enterprise as well as in education. But we are seeing some of that loosen a bit.

Dan Bergstrom: Thanks. And then, appreciate the additional color so far around security in the Q&A here. I guess on security and the go-to-market, where is the sales force here around security versus, say, a year ago? It sounds like there have been some adjustments on incentives, more focused on cross-sell. Maybe any more color here or anything you’re leaning into from a security perspective to start the year?

John Strosahl: Yeah. Well, the sales teams have become much better versed in our security opportunity, our security offering. Remember, we had the management first and then our customers asked us to extending the security, and we did that. And we have a pretty decent sales force, pretty sizable sales force and they don’t necessarily turn on a dime, but we’re really seeing the traction that they’re getting, especially when they lead with trusted access and that being that management and security together really being able to identify those things and then actually go ahead and remediate them through the device management product. And so those — having the sales team better well versed and leading with trusted access is gaining traction.

And we’ve also taken more recent sales hires from the security space. So they bring a wealth of knowledge into the company and has helped cross-pollinate that to our other sales teams. We did adjust the compensation plan early in the year and really to focus on ARR to make sure that those customers that were — that we’re making sure that we’re retaining the customers that we have in an environment that we don’t know when the PC shipments and all that will return. And in the process of that, we really — what we needed to do more of is focus on the cross-sell. And we saw that in Q1 towards the end of Q1. We adjusted compensation. We’re continuing that through Q2 and the rest of the year. And so that had also some green shoots. And when Ian talked about our security pipeline, I think a lot of that is also a direct result of some of those changes that we made.

Dan Bergstrom: That’s great. Thanks.

Operator: The next question comes from the line of Jake Roberge of William Blair. Your line is open.

Jake Roberge: Hey, thanks for taking the questions and congrats on the great results. Now — I’m curious now that you’ve had a quarter or two following the acquisition and then subsequent divestiture of Workspace ONE, have you started to see any incremental opportunities get presented from customers that might be frustrated from the change of control? Just curious if there’s any incremental opportunities or pipeline that’s building from that — those deals this year?

John Strosahl: Absolutely, Jake. This is John again. I’ll take this question. We certainly have. And the issue with that is because of the acquisition went through of that competitor to a financial sponsor, we’re not expecting, and we’ve said this before, we don’t expect all of those deals to come in one quarter. They all have renewal cycles. And so we’re engaged with a lot of those — pretty much all of those customers and when that renewal cycle is coming up and promoting our products. We’ve replaced tens of thousands of devices every quarter in that — with that competitor. And we have a pretty healthy pipeline directed at that. And our advantage here is that we innovate at the pace of Apple and our competitors have had some difficulty with that, especially when they’re cross-platform.

And then you kind of dilute the user experience down to the lowest common denominator. And so that’s where we’ve really excelled and then you top that — you put that on top of having the perception of not innovating at the pace of Apple, given the ownership structure, that is something that we’ve really taken advantage of and our salespeople have leaned into heavily.

Jake Roberge: Okay. Very helpful. And then, obviously, great to see the 31% security ARR growth. You’ve had some really solid comments on the call about pipeline and then the go-to-market tweaks you’re making there. But given RSA this week, I’m curious if there are any areas on the product side that you’re looking to dig deeper into throughout the year and maybe opportunities that could be more upsell throughout the 2025 and 2026 time frame that you’re really digging into this year?

John Strosahl: We certainly are in all aspects. We’ve got a lot of opportunity in front of us with the security products that we have. But we also know there’s other areas of security that we’re leading into as well. And we continue to be very acquisitive in looking at companies, particularly in the tech and talent side, that are Apple-first and Apple-best. And that’s something that we’ll continue to do to enhance the feature set of our security products. But we’re seeing that from our customers, and we’re listening to our customers. The reason we went into security in the first place is because that’s what our customers ask us to do, and we’re following their lead and adding functionality to those security products. The other one I might mention, and I mentioned in the prepared remarks is the Jamf Executive Threat Protection, that has done really, really well in that it becomes — it’s kind of a halo effect in that when you’re speaking to a CISO, very high level in the organization about securing high-value targets, you’re talking to the same person that can make decisions on Jamf Protect and Jamf Connect, so the connectivity other parts of the organization.

And so once they see the value of Jamf Executive Threat Protection, we have an opportunity to discuss other security products, and we’ve done that over and over again. So those — there again, we’re seeing some nice green shoots.

Jake Roberge: Great. Thanks for taking my questions, and congrats again on the results.

John Strosahl: Thanks.

Operator: Your next question comes from the line of Vinod Srinivasaraghavan from Mizuho. Your line is open.

Vinod Srinivasaraghavan: Hey, guys. Thanks for taking my question. Just wanted to dig into NRR a little bit. Can you give us a sense of what the mix of upsells versus down cells versus churn was this quarter? And is this much different than what you saw in Q1 last year?