Jamf Holding Corp. (NASDAQ:JAMF) Q3 2023 Earnings Call Transcript

Ian Goodkind: Yes. Thanks for the question on NRR. Yes. So just a couple things. Overall, obviously we’re seeing the same economic – macroeconomics are impacting our upsell. To give you a little color stats around that. When I compare this – our NRR this year compared to last year, I’ll say like 80% of that related to upsell. And so when I look at that, like, 80% is truly macro and the next 15% is down-sell and the rest is lost logo. So it’s not a huge percentage that relates to customers leaving, and even when it looked sequentially, it’s all lower upsell. So the macro has really been waiting on that. And if you remember, and rewind the clock to last quarter, what I talked about is that, we had seen, I’ll call it a 200 basis point decline each quarter, and that this quarter we thought it would decline about a 100 basis points.

That’s where we’re at. And I’ve said that’s probably going to be about the same thing in Q4 because at the trailing 12-month and we’re lapping these times. I see that similar trend for Q4 and what I would say, overall for the rate, that’s going to come back as the macro improves. And just one other further point on education versus commercial, our cross-sell is really helping strengthen that in commercial. And so I think that’s seeing a slightly different dynamic than what we’re seeing in education. Education has just got that post-COVID hangover. But the growth of our business in the mix and where more of our ARR is coming from the commercial in the future.

Nicholas Mattiacci: Got it. Appreciate the answers.

Operator: [Operator Instructions] And our final question for today comes from the line of Pat Walravens from JMP Securities. Your question, please.

Unidentified Analyst: Hi. Thanks for taking my question. This is Oliver on for Pat. So a bit of a follow-up from some previous questions, but you’ve spoken a lot about getting a growth from your cross-sell as a future driver. So in terms of cross-selling your security solutions and particularly protect to existing commercial customers. How are those conversations going upon renewal? And are there more situations now where protect maybe heavily discounted or even essentially free for some larger customers for one year, things along those lines to get the products to stick?

Ian Goodkind: Yes. Hey. This is Ian. I can take that one. When protect coming up for renewal, it’s actually I would say the other direction. So we’re seeing really good traction with the business plan. They’re like, hey, we see the full suite and we’re seeing the value of this, again, that’s up 87% year-over-year, and whereas our second largest add within that new ARR for the quarter. I think the other thing to recognize is, and we pointed this out in the prepared remarks, we were just recognized by Frost & Sullivan for endpoint protection and that bodes well and people are understanding to have a product that both – and John said, this has two sides of the same coin, management and security go hand in hand. And that’s what we’re seeing resonate with our customers.

Unidentified Analyst: Great.

John Strosahl: And maybe I’ll just add to that, Oliver. Is that not only – so we’re seeing that uplift in the business plan, but that – this is on the security side, but this is absent of device expansion. And so what we expect is when the market does return that because we’ve been able to successfully cross-sell those security products into our existing install base, when that device expansion does return, we’ll be able to have both management and security on those expanded devices. And that’s really what we’re anticipating at some point.

Unidentified Analyst: Okay. And then maybe one follow-up, something you focused on a bit at JNUC was self-directed selling. So just wondering how your progress has been on that goal of more self-directed selling?

Ian Goodkind: Just to clarify, I think you’re talking about maybe like portals or customers buying…

Unidentified Analyst: Yes.