Jamf Holding Corp. (NASDAQ:JAMF) Q1 2024 Earnings Name Transcript Could 8, 2024 4:30 PM ET
Firm Members
Jennifer Gaumond – IRJohn Strosahl – CEOIan Goodkind – CFO
Convention Name Members
Joshua Reilly – Needham & CompanyKoji Ikeda – Financial institution of AmericaDan Bergstrom – RBC Capital MarketsJake Roberge – William BlairVinod Srinivasaraghavan – Mizuho
Operator
Thanks for standing by. My identify is Rochelle, and I will probably be your convention operator right this moment. Right now, I wish to welcome everybody to the Jamf’s First Quarter 2024 Earnings Name. All traces have been positioned on mute to forestall any background noise. After the speaker’s remarks, there will probably be a question-and-answer session. [Operator Instructions] I’d now like to show the decision over to Jennifer. Please go forward.
Jennifer Gaumond
Good afternoon, and thanks for becoming a member of us on right this moment’s convention name to debate Jamf’s first quarter 2024 monetary outcomes. With me on right this moment’s name are John Strosahl, Chief Govt Officer, and Ian Goodkind, Chief Monetary Officer.
Earlier than we start, I would wish to remind you that shortly after the market closed right this moment, we issued a press launch saying our first quarter monetary outcomes. We additionally printed a Q1 earnings presentation, investor presentation and Excel file containing quarterly monetary statements to help with modeling. Chances are you’ll entry this info on the Investor Relations part of jamf.com.
At present’s dialogue might embrace forward-looking statements. Please check with our most up-to-date SEC reviews, together with our most up-to-date annual report on Kind 10-Ok, the place you will note a dialogue of things that would trigger precise outcomes to vary materially from these statements. I’d additionally wish to remind you that throughout the name, we’ll talk about some non-GAAP measures associated to Jamf’s efficiency. You could find the reconciliation of these measures to the closest comparable GAAP measures in our earnings launch.
Moreover, to make sure we are able to tackle as many analyst questions accountable throughout the name, we ask that you simply please restrict your questions to 1 preliminary query and one follow-up. Now I would like to show the decision over to John Strosahl. John?
John Strosahl
Thanks, Jen. Jamf began off the 12 months robust, reaching the milestone of $600 million of complete ARR. On the finish of Q1, ARR grew 14% year-over-year to $602.4 million. We’re delivering on the expectations we set for 2024. Each Q1 income and non-GAAP working revenue exceeded the excessive finish of our outlook. Q1 year-over-year income progress was 15% and non-GAAP working revenue was $22.1 million, with non-GAAP working revenue margin of 15%. This margin represents a 1,000 foundation level enchancment from Q1 of 2023.
We ended Q1 with 75,900 prospects and 32.8 million units on our platform. of those prospects, 41% run a Jamf administration and safety product. We proceed to drive cross-sell with 31% year-over-year progress in Safety ARR to $138 million or 23% of Jamf’s complete ARR. Our largest industries, tech and Ok-12 stay muted [Technical Difficulty] gadget growth. The remaining industries in our prime 5 proceed to see optimistic traits.
We’re additionally inspired by progress within the PC market in Q1 after two years of decline. In keeping with IDC, Q1 year-over-year worldwide PC shipments grew 1.5% to just about 60 million models, representing an analogous stage of shipments to pre-pandemic. Apple noticed the best year-over-year progress in shipments of any firm in Q1 at 14.6% and likewise elevated its market share. IDC stays optimistic relating to PC gross sales in 2024 as corporations start refreshing PCs that had been bought throughout the pandemic. Whereas we’re inspired by this Q1 knowledge, our outlook for 2024 doesn’t depend on a major uplift in gadget growth.
We proceed to innovate and ship options to assist organizations succeed with Apple. In April, we held a particular Jamf occasion to showcase a lot of new choices with a give attention to compliance. IT and safety groups are being requested to get extra concerned past conventional gadget administration capabilities to assist meet these numerous compliance requirements throughout their Apple units. Jamf is proud to ship instruments that assist prospects navigate the huge and diverse compliance panorama. Product updates highlighted on the occasion embrace a customizable compliance dashboard in Jamf Shield, permitting admins to view an combination baseline rating and detailed info to grasp and remediate compliance points, compliance editor instrument for Jamf Professional for iOS that generates deployable configurations to make endpoints compliant with a selected compliance benchmark, Jamf for Groups instrument for Jamf bundled options, which gives prospects new no-code automations and integrations to streamline administration and safety workflows whereas additionally offering seamless integration with Slack and Microsoft Groups to alert IT groups when units fall out of compliance, privilege elevation function that makes use of a company’s cloud id supplier and Jamf Hook up with quickly enable admin privileges for native Mac OS accounts primarily based on legitimate consumer authentication and authorization.
We additionally recapped our latest announcement that assist for Apple Imaginative and prescient Professional is now out there throughout the whole Jamf platform. With Jamf Professional, organizations can enroll and streamline deployment of enterprise apps and settings for Apple Imaginative and prescient Professional. Jamf Join permits Apple Imaginative and prescient Professional to securely entry enterprise sources for any of the online and native apps that require safe identity-based entry controls. Jamf Shield extends the identical cell menace protection, community safety and content material filtering use circumstances to the Apple Imaginative and prescient Professional.
We additionally introduced that assist for watchOS administration is coming later this 12 months, together with enrollment and stock show. We’re excited concerning the alternatives that watchOS administration gives, particularly because it pertains to desktop workflows throughout a lot of industries. Enabling these new gadget varieties is a testomony to Jamf’s dedication to simplifying Apple at work and giving customers the power to be productive nevertheless they work greatest.
Along with the spring occasion, we hosted one other essential occasion, our first Investor Day in mid-March. We outlined the following part of Jamf’s evolution, which is all about environment friendly scalability. If you have not had an opportunity to evaluate the occasions but, I encourage you to take action. The replay and presentation will be discovered on our Investor Relations web site. Through the occasion, we highlighted our differentiated place in aggressive moat, our giant and rising addressable market, our strategic progress drivers and our monetary expectations by means of 2026. I would like to make use of the strategic progress drivers we mentioned throughout this occasion because the framework for the rest of my remarks, highlighting a number of the particular successes we noticed in Q1.
First, in Mac management, we proceed to exhibit how Jamf’s Apple-first, Apple-best options to ship the most effective outcomes for our prospects. In Q1, a number one on-line journey firm renewed with Jamf for 3 years. Key to this win was our potential to exhibit how Jamf’s options can assist with the shopper’s present strategic initiative round course of automation. We additionally delivered a long-term roadmap for increasing with Jamf, together with Jamf Professional for iOS and Jamf Shield. Our potential to construct a number of robust relationships with the purchasers on the administration stage was additionally helpful, serving to streamline the approval course of. And our suggestion to make the most of AWS market to leverage their dedicated spend was a win-win, simplifying procurement for the shopper and leading to a well timed renewal for Jamf.
We’re enthusiastic about continued progress by means of the AWS market as prospects can use dedicated spend in the direction of their Jamf contract like Netlify, a cloud platform for front-end groups to construct, deploy and scale trendy internet purposes. Netlify is now utilizing Jamf with dedicated spend for AWS to handle its Apple units and join their finish customers to the sources they want. Second, with respect to increasing with cell, we proceed to see prospects using Jamf throughout their cell fleets, particularly for deskless workflows. In Q1, one main specialty retailer expanded with Jamf past Mac by including Jamf Professional for 15,000 iOS units used throughout almost 1,500 retail places. This was an incredible win for Jamf towards the legacy OEM supplier, a testomony to Jamf’s continued dedication to innovating on the tempo of Apple to securely handle a number of gadget varieties throughout a number of use circumstances.
We’re strongly inspired by our progress within the retail area, which represents considered one of our prime 5 largest industries. Retail, together with monetary providers {and professional} providers proceed to see robust progress, serving to steadiness the softness we’re seeing in tech and Ok-12 training. Tech is seeing muted hiring and decrease IT investments whereas Ok-12 skilled a little bit of a COVID overhang with report gadget deployments in 2020 and 2021.
The third progress driver, administration and safety, are what we check with as delivering our trusted entry imaginative and prescient is an space of alternative we count on to develop into a bigger a part of our complete ARR over time. Our potential to ship each administration and safety on one platform is a key differentiator for Jamf. Each legacy UEM suppliers and Apple particular administration suppliers lack the whole platform requiring prospects to make the most of a lot of third-party distributors to ship administration, connection and safety capabilities. Smaller organizations usually do not have the bandwidth, finances or the need to interact a number of third events, making Jamf’s trusted entry platform an interesting answer. We proceed to see an elevated variety of offers with each the administration and a safety part. We see this by continued robust progress of Jamf’s bundled business options, which grew 63% year-over-year in Q1. And at the moment, 45% of Jamf’s new buyer business pipeline is made up of safety alternatives.
Moreover, when a buyer consolidates administration and safety with Jamf, we see diminished churn in comparison with prospects with only a administration answer or only a safety answer. In Q1, a precision drugs firm grew to become a Jamf marketing strategy buyer for his or her 1,200 units. This firm selected to maneuver away from the legacy UEM supplier and selected Jamf because of the worth of trusted entry brings to their group and the energy of our capabilities for a combined gadget setting. The client’s gadget setting consists of Mac, PCs, Chromebook and Android. Additionally in Q1, considered one of our largest airline prospects, a mainline American provider expanded past administration, including Jamf Join and Jamf Shield to fifteen,000 different iOS units, that are utilized globally. We had been capable of exhibit our trade management in managing and securing mission-critical cell use circumstances and distant work conditions, which had been key to this win. Our options enable the shopper to have an outlined follow for constantly securing cell units, one thing the shopper solely had beforehand for PCs. This success will function the blueprint for additional growth with prospects in different areas of their enterprise.
In Clarion Housing Group, the most important housing affiliation in the UK with 125,000 properties throughout greater than 170 native authorities, just lately grew to become a Jamf buyer utilizing Jamf Professional and Jamf’s Join for his or her Mac and iOS fleets. These three wins showcase the energy and management of Jamf’s administration and safety platform, which is ready to ship the appropriate answer for every group, whether or not that’s buying each administration and safety on the onset or increasing past administration on the proper time.
And lastly, with respect to worldwide growth, Jamf continues to put money into strategic geographies the place we’re seeing rising adoption for Apple. Revenues outdoors of the US proceed to develop at a quicker price than US revenues. In Q1, we noticed a lot of worldwide wins for our Jamf Govt Menace Safety product with authorities companies within the Center East and India. The win in India represented our first authorities company win within the nation. The company has launched into a journey to curb cybercrime and Jamf’s Govt Menace Safety, together with different merchandise will probably be utilized by forensic groups to research and for incident response. Jamf’s Govt Menace Safety was chosen on account of its potential to determine subtle digital threats and lengthen visibility into assaults that focus on high-value customers. Wins like these assist our footprint in these areas and provide a blueprint for comparable organizations within the space to make the most of Jamf. We have seen success with this technique prior to now in international locations like Japan. We’ll proceed to leverage the success in choose geographies the place we’re seeing probably the most potential.
I am going to now flip it over to Ian to evaluate our outcomes and supply our Q2 and 2024 outlook.
Ian Goodkind
Thanks, John. We ended Q1 with year-over-year income progress of 15%, exceeding the excessive finish of our income outlook by $2.1 million. Complete ARR reached $602.4 million, representing year-over-year progress of 14%, exceeding expectations. We proceed to imagine that Jamf’s business enterprise and particularly business safety will probably be a key progress driver, each now and sooner or later. The strategic core of Jamf’s enterprise, SaaS recurring income remained robust in Q1, rising 18%. Much less strategic income sources like licenses, providers and on-premise revenues proceed to expertise year-over-year declines however got here in barely higher than anticipated. Our internet retention price decreased barely as anticipated to 107% in Q1 when in comparison with This fall 2023.
The rest of my remarks on margins, expense objects and profitability will probably be on a non-GAAP foundation. Our GAAP monetary outcomes, together with the reconciliation between GAAP and non-GAAP are present in our earnings launch.
Q1 non-GAAP gross revenue margin was 81% and inside our expectations. We proceed to anticipate gross margins within the low 80% vary and count on slight fluctuations every quarter. Non-GAAP working revenue exceeded the excessive finish of our This fall outlook at $22.1 million or 15% margin on account of cost-saving initiatives and elevated revenues, representing an approximate 1,000 foundation level enchancment over Q1 2023. Our trailing 12-month unlevered free money move margin was 13% in comparison with 14% within the prior 12 months.
Our efficient tax price for Q1 was damaging 5.4%, in line with our expectations. As a reminder, for our non-GAAP metrics, we use a home statutory charges for calculating tax impacts, which is at the moment 24%. Please word that we pay a negligible amount of money taxes on a US federal foundation and pay an immaterial amount of money taxes outdoors the US.
Throughout our Investor Day, we outlined some key milestones that may provide help to monitor our progress towards our targets. One, meet our quarterly monetary outlook. In Q1, we exceeded the excessive finish of each our income and non-GAAP working revenue steering ranges. Two, obtain a minimum of 25% progress in safety ARR. Q1 year-over-year progress of safety ARR was 31%. Three, decreased common and administrative expense as a proportion of complete income. Q1 non-GAAP G&A margin was 14%, an approximate 100 foundation level discount from This fall 2023. 4, decreased gross sales and advertising and marketing expense as a proportion of complete income. Q1 non-GAAP gross sales and advertising and marketing margin was 34%, an approximate 200 foundation level discount from This fall 2023.
With respect to gross sales and advertising and marketing expense, on condition that we anticipate the most important portion of price financial savings coming from this space, we’re offering extra particulars on present effectivity and scalability initiatives. First, earlier this 12 months, we adjusted our workforce with a give attention to greater productiveness. Second, we’re adjusting our gross sales incentive construction to additional drive cross-sell safety and cell and worth seize. Third, we’re enacting program to drive enhanced worth from our channel companions. Fourth, we proceed to give attention to educating prospects on the worth we offer with our trusted entry final result. And fifth, we’re aligning sources to geographies with the best progress potential just like the Asia Pacific area.
Now, turning to our outlook for Q2 and full 12 months 2024. With respect to income progress, we count on continued strain on gadget upsell by means of 2024. We are going to proceed to give attention to the strategic progress drivers as John outlined, constructing on the successes we achieved in Q1. We are going to put money into progress and scalability with a give attention to scalable go-to-market group, platform optimization and again workplace automation. Our scalability initiatives will set Jamf up for worthwhile progress sooner or later and return Jamf to the Rule of 40 as outlined at our Investor Day.
Many of those initiatives are in course of with some themed advantages in 2024 and others with advantages anticipated all through the following few years. Based mostly on these components, for the second quarter of 2024, we count on complete income of $150.5 million to $152.5 million, representing year-over-year progress of 11% to 13%. Non-GAAP working revenue of $21.5 million to $22.5 million, representing a non-GAAP working revenue margin of 15% on the midpoint.
Given our robust efficiency in Q1, we’re rising our expectations for the total 12 months 2024. Complete income of $618.5 million to $622.5 million, representing year-over-year progress of 11% on the midpoint. This displays a rise of $3.5 million on the midpoint. Non-GAAP working revenue of $92.5 million to $95.5 million, representing a non-GAAP working revenue margin of 15% on the midpoint and an approximate 700 foundation level enchancment over fiscal 12 months 2023. This displays a rise of $3 million on the midpoint.
Whereas we do not present an outlook for ARR, we might count on to finish fiscal 12 months 2024 with ARR progress just like full 12 months income progress. With respect to unlevered free money flows, for full 12 months 2024, we count on unlevered free money move margin to be just like non-GAAP working revenue margin.
We additionally present estimates for amortization, stock-based compensation-related payroll taxes and different metrics to help with modeling within the earnings presentation as a part of the webcast and likewise posted on our Investor Relations web site. With respect to the longer-term monetary outlook we offered as a part of our Investor Day, we stay dedicated to the targets we outlined throughout the occasion.
And now, John and I’ll take your questions. Operator?
Query-and-Reply Session
Operator
[Operator Instructions] And your first query comes from the road of Joshua Reilly of Needham & Firm. Your line is open.
Joshua Reilly
All proper. Good job on the quarter right here. I suppose the start line most likely persons are concerned about right here is the ARR progress was a bit higher than what we anticipated and type of what you laid out on the Analyst Day. Are you able to simply give us a way of what are a number of the places and takes for the remainder of the 12 months by way of how a lot is pricing profit ARR progress right here in Q1 relative to your expectations? And has there actually been any change within the macro with a little bit little bit of a chat up within the ARR progress, it seems like it will be nearer to 11% exiting the 12 months?
Ian Goodkind
Yeah. So, hey Josh, good to listen to from you once more. I am going to soar in there. So, you are proper, and I respect the best way you requested your query. ARR got here out of usually how we anticipated and what we outlined at our Investor Day. We did come off a powerful This fall. And there, we did pull ahead some offers from Q1. Q1 is seasonally low, however we did, within the first quarter, have our first discount in workforce, and we did not assign quotas after that. And tech continues to be muted from the macro, and training continues to have the COVID overhang. We did see a little bit bit extra churn in January from a particular competitor, however that normalized inside February and March. In order we march ahead all year long, we do see some extra brilliant spots. We have seen some energy in skilled providers, monetary providers, wholesale and retail. And people non-leaning tech industries which have been leaning extra into it, in Q1, we really noticed the next rep productiveness and so they name it the double-digit enchancment from the prior 12 months. We additionally noticed a little bit little bit of an upsell on a number of the offers, to not the degrees we have seen traditionally, however we noticed that as nicely. We noticed our bundles proceed to be robust. It was a 63% year-over-year. After which what we’re persevering with ahead with, we have been persevering with to tweak our incentive plans, which is boding nicely that we have seen our pipeline begin to construct inside the safety area. We see our new native business pipeline characterize 45%, which is sweet. And we have additionally simply seen a couple of inexperienced shoots in EU. In order a reminder, our 2024 outlook was primarily based on the identical economics we noticed in 2023. So many issues bode nicely and will assist us overachieve on 2024. And we be ok with what we have stated and guided.
Joshua Reilly
Bought it. That is tremendous useful. After which simply following up on the SMB section of the market. A number of the different friends in SaaS world have been seeing some challenges from SMB prospects. I do know that is a smaller mixture of your online business relative to a few of these different areas. However are you seeing the upper for longer rate of interest dynamics starting to influence these prospects as nicely? Thanks.
John Strosahl
Hey, Josh, I can — that is John. I can reply that query. And fascinating, I used to be simply speaking to a number of the gross sales guys about this notably. And we nonetheless are a quantity enterprise. And we have seen the longer rates of interest being greater, have an effect on a few of these companies. We sometimes see a little bit of a canary within the coal mine with our SMB enterprise and that once we see them begin to buy greater than enterprise usually follows. And we have had some very constant new brand progress, however we have additionally seen a few of these smaller corporations fall out on account of the longer-than-expected rates of interest. However we do really feel fairly good about our year-over-year bundle gross sales, which usually goes to the SMB market, and Ian talked about, it is over 60% year-over-year. And we proceed to see extra curiosity, though gross sales cycles have remained elongated, however we’re beginning to get extra curiosity from each the SMB and the enterprise.
Operator
Your subsequent query comes from the road of Koji Ikeda of Financial institution of America. Your line is open.
Koji Ikeda
Yeah. Thanks guys. Thanks for taking the questions. A number of good commentary within the ready remarks. Thanks for that. I simply needed to ask you a query on how you are feeling concerning the three-year mannequin and really particularly concerning the income progress and ARR progress, that you simply guys laid out on the Investor Day, which is accelerating and the expansion is accelerating in 2025 to 2026. In fact, that setup could be very, very enticing. However once I have a look at a number of the progress metrics in 1Q, a number of them decel. So I used to be questioning possibly what you are seeing out of your finish that’s providing you with that elevated price. Possibly there was one thing this quarter that is rising your convention to be so dedicated to these three-year progress targets?
Ian Goodkind
Yeah. I am going to soar in on that one, and thanks for the query, Koji. I believe the primary brief reply, and I am going to develop on the reply is sure, we nonetheless have conviction over our three-year mannequin. We laid it out in a fashion the place this 12 months, we laid out a ten%, now a ten.7% progress price on revenues, and we have overachieved that. And we knew, once more, it could be a little bit little bit of a slower begin from the standpoint of the objects that I simply talked about from the very fact we knew we’re taking some steps with the workforce adjustment, we knew we had been making some changes to comp plans. We knew a number of it. And we have additionally — what we centered on in Investor Day, in the event you keep in mind, we confirmed you NRR type of traditionally and what it seems to be like going ahead and that it would not have an enormous macro return, and that is nonetheless what we’re factoring in. We do imagine that is going to come back in some unspecified time in the future. So there’s that. After which I talked about just a bit bit in the past concerning the safety pipeline, and we’re beginning to see that construct. And prospects are having curiosity. And once I have a look at our bundles, once more, that continues to have a number of curiosity with prospects. And one factor on our bundles that you must know, we proceed so as to add worth there. We simply launched Jamf for Groups. And Jamf for Groups is one thing you solely discover inside our bundle, and it automates sure workflows and integrates with sure collaboration instruments and it does assist with a number of buyer points. So these are the sorts of issues you may count on. And we additionally — final remark I would make on this, we simply — in my ready remarks, I talked concerning the 5 areas that we had been centered on from a gross sales and advertising and marketing perspective. And also you see now we have a transparent plan of how we’ll verify by means of these issues. We have met the issues we have outlined on our guidelines from Investor Day thus far this 12 months. So while you take all these issues collectively, sure, now we have conviction round that plan.
Koji Ikeda
Bought it, Ian. Thanks a lot. And possibly a follow-up for you, sir. I observed the Q simply got here out, and I punched into our little spreadsheet right here, the remaining efficiency obligations. And I did discover that on the RPO entrance, it declined sequentially only a tick. And I did discover that it occurred final 12 months within the first quarter, too. Simply needed to grasp something particularly concerning the dynamics of the primary quarter in RPO that we have to perceive. Thanks.
Ian Goodkind
Yeah. Good query. So on RPO and truly each first quarter, in the event you return traditionally on all our first quarters, it is really seasonality. It is at all times our slowest quarter. And so simply as a reminder, Q1 is our slowest quarter. Q2 and Q3 are supported by our training enterprise. After which Q3 and This fall are heavier business enterprise. As I talked about, we had a reasonably good This fall, which pulled some offers ahead. So I would not learn into that any additional than that. It’s alongside — it’s what we usually anticipated.
Koji Ikeda
Bought it. Thanks very a lot.
Operator
Your subsequent query comes from the road of Raimo Lenschow of Barclays. Your line is open.
Unidentified Analyst
Hey, that is Isaac on for Raimo. Thanks for taking the questions. Safety ARR got here in fairly robust once more this quarter. And I do know you guys guided to 25% on the Analyst Day. How a lot upside do you see to that quantity versus what you initially guided? And the way ought to we take into consideration the form of internet new ARR there as we undergo the rest of the 12 months?
Ian Goodkind
I can soar in there. So a few issues. Yeah, I imply we stated we had been going to realize a minimum of 25%, so we’re above that. What we confirmed on our Analyst Day slide that there was saying here is the issues you must monitor all year long to point out our success. We had 33% progress in This fall, 31% now. So it continues to bode nicely for us. And as we talked about at Investor Day, we’re very centered on cross-sell. And that is available in three kinds. That comes within the type of business safety, training safety after which there’s cell. And cell has been good. Simply speaking about safety. I imply, a few of our — the best way we’re serious about our incentive plan focuses on the cross-sell, focuses on the safety. And we’re seeing prospects ask an increasing number of about that. It has simply develop into a very good alternative when prospects see which you can consolidate on one platform, each your administration and safety. In order that has been boding nicely for us. And within the SMB aspect, since there’s one financial purchaser, that is been boding nicely. And we have been working with enterprises, and we acquired a few these — we get these from time to time right here. And people are issues that I believe might speed up if we see extra of these come by means of. And I believe simply, once more, consumers are sitting a little bit bit on the sideline simply nervous to make adjustments, however we’re seeing this achieve success on this economic system when you may consolidate. So these are the issues I believe might bode nicely for us and can assist us proceed alongside this path. John, something so as to add?
John Strosahl
Sure, I am going to simply add that on the enterprise aspect, now we have seen the safety achieve success and notably on the iOS aspect. And while you have a look at the retail and wholesale markets because the deskless workflows have develop into an increasing number of prevalent in these industries, we’re seeing much more cell safety on that aspect as nicely. So we’re getting — we’re seeing some actually good traction there, and we’re persevering with to double down on it. As Ian stated, actually incentivizing our gross sales groups to advertise that cross-sell and actually lead with our trusted entry alternative, which our prospects have actually taken kindly to.
Ian Goodkind
Yeah. One different factor I talked about was training too. We — within the first quarter, we did really see a couple of additional offers within the training safety piece. So now we have seen some success from inexperienced shoots there as nicely.
Unidentified Analyst
Nice. That’s tremendous useful. Thanks. Nice. That is tremendous useful. After which, Ian, possibly yet one more for you. If I take into consideration the margin steering, Q1 got here in forward of expectations and it looks like Q2 can be barely forward. However the full 12 months information on margin stayed constant. Is there something we want to consider in Q3 and This fall that possibly are causes for that margin information not transferring incrementally up by means of the rest of the 12 months?
Ian Goodkind
Yeah. I believe you are speaking concerning the margin proportion versus the {dollars}, proper? And so the {dollars} did go up with constant and truly barely greater than what our overachievement within the first quarter was. So we did go that by means of, and we really introduced it up. I believe what you are asking is, hey each are getting shut to fifteen%, you’re guiding 15% for the 12 months. And what I’d take into consideration there’s a few issues. What we talked about at Investor Day is 2 issues. We will nonetheless proceed to put money into progress and scalability. And people are persevering with all year long. I listed in my ready remarks right this moment across the initiatives that we’re spending on, on the go-to-market aspect. We additionally nonetheless have the platform capabilities the place we’re persevering with to optimize our platform, and we’re centered on back-office automation. So I would not alter the spending for these long-term initiatives that make us extra scalable.
Unidentified Analyst
Nice. That’s tremendous useful. Thanks.
Operator
Your subsequent query comes from the road of Dan Bergstrom of RBC Capital Markets. Your line is now open.
Dan Bergstrom
Hey, it is Dan Bergstrom for Matt Hedberg. Thanks for taking our questions. It is good to see the PC shipments return to progress following a few years of declines and the positive aspects for Apple. I suppose are there any extra observations you’ve got from conversations with prospects round refresh or something in any other case right here? I suppose they continue to be prudent round hiring and expense nonetheless.
John Strosahl
Yeah, Dan, that is John. I can take the query. Simply ancillary discussions with our buyer and the gross sales staff as nicely, now we have seen a little bit of elongated refresh cycle. I imply, the uncertainty available in the market has precipitated a few of that. Like I stated earlier than, now we have seen some extra curiosity and a few extra engagement, though gross sales cycles have nonetheless remained elongated. We additionally famous that, it was a Wall Avenue Journal article that got here out, IDC and each Gartner had recognized that Apple’s progress had been over 14% — about 14.5% year-over-year in shipments. And whereas that bodes nicely for us, we do not monitor that on a quarter-by-quarter foundation, however a number of quarters in a row definitely have an effect on the put in base. And so your assumption is correct. We’ve seen a little bit of elongated refresh cycles, each within the enterprise in addition to in training. However we’re seeing a few of that loosen a bit.
Dan Bergstrom
Thanks. After which, respect the extra coloration thus far round safety within the Q&A right here. I suppose on safety and the go-to-market, the place is the gross sales pressure right here round safety versus, say, a 12 months in the past? It seems like there have been some changes on incentives, extra centered on cross-sell. Possibly any extra coloration right here or something you are leaning into from a safety perspective to begin the 12 months?
John Strosahl
Yeah. Nicely, the gross sales groups have develop into significantly better versed in our safety alternative, our safety providing. Keep in mind, we had the administration first after which our prospects requested us to extending the safety, and we did that. And now we have a reasonably respectable gross sales pressure, fairly sizable gross sales pressure and so they do not essentially activate a dime, however we’re actually seeing the traction that they are getting, particularly after they lead with trusted entry and that being that administration and safety collectively actually with the ability to determine these issues after which really go forward and remediate them by means of the gadget administration product. And so these — having the gross sales staff higher nicely versed and main with trusted entry is gaining traction. And we have additionally taken more moderen gross sales hires from the safety area. So they create a wealth of data into the corporate and has helped cross-pollinate that to our different gross sales groups. We did alter the compensation plan early within the 12 months and actually to give attention to ARR to guarantee that these prospects that had been — that we’re ensuring that we’re retaining the purchasers that now we have in an setting that we do not know when the PC shipments and all that may return. And within the strategy of that, we actually — what we wanted to do extra of is give attention to the cross-sell. And we noticed that in Q1 in the direction of the top of Q1. We adjusted compensation. We’re persevering with that by means of Q2 and the remainder of the 12 months. And in order that had additionally some inexperienced shoots. And when Ian talked about our safety pipeline, I believe a number of that can be a direct results of a few of these adjustments that we made.
Dan Bergstrom
That’s nice. Thanks.
Operator
The following query comes from the road of Jake Roberge of William Blair. Your line is open.
Jake Roberge
Hey, thanks for taking the questions and congrats on the nice outcomes. Now — I am curious now that you have had 1 / 4 or two following the acquisition after which subsequent divestiture of Workspace ONE, have you ever began to see any incremental alternatives get offered from prospects that could be annoyed from the change of management? Simply curious if there’s any incremental alternatives or pipeline that is constructing from that — these offers this 12 months?
John Strosahl
Completely, Jake. That is John once more. I am going to take this query. We definitely have. And the problem with that’s due to the acquisition went by means of of that competitor to a monetary sponsor, we’re not anticipating, and we have stated this earlier than, we do not count on all of these offers to come back in a single quarter. All of them have renewal cycles. And so we’re engaged with a number of these — just about all of these prospects and when that renewal cycle is arising and selling our merchandise. We have changed tens of 1000’s of units each quarter in that — with that competitor. And now we have a reasonably wholesome pipeline directed at that. And our benefit right here is that we innovate on the tempo of Apple and our opponents have had some issue with that, particularly after they’re cross-platform. And you then type of dilute the consumer expertise right down to the bottom frequent denominator. And in order that’s the place we have actually excelled and you then prime that — you set that on prime of getting the notion of not innovating on the tempo of Apple, given the possession construction, that’s one thing that we have actually taken benefit of and our salespeople have leaned into closely.
Jake Roberge
Okay. Very useful. After which, clearly, nice to see the 31% safety ARR progress. You’ve got had some actually strong feedback on the decision about pipeline after which the go-to-market tweaks you make there. However given RSA this week, I am curious if there are any areas on the product aspect that you are looking to dig deeper into all year long and possibly alternatives that might be extra upsell all through the 2025 and 2026 timeframe that you simply’re actually digging into this 12 months?
John Strosahl
We definitely are in all elements. We have got a number of alternative in entrance of us with the safety merchandise that now we have. However we additionally know there’s different areas of safety that we’re main into as nicely. And we proceed to be very acquisitive in taking a look at corporations, notably within the tech and expertise aspect, which might be Apple-first and Apple-best. And that is one thing that we’ll proceed to do to boost the function set of our safety merchandise. However we’re seeing that from our prospects, and we’re listening to our prospects. The rationale we went into safety within the first place is as a result of that is what our prospects ask us to do, and we’re following their lead and including performance to these safety merchandise. The opposite one I would point out, and I discussed within the ready remarks is the Jamf Govt Menace Safety, that has finished actually, rather well in that it turns into — it is type of a halo impact in that while you’re chatting with a CISO, very excessive stage within the group about securing high-value targets, you are speaking to the identical individual that may make choices on Jamf Shield and Jamf Join, so the connectivity different elements of the group. And so as soon as they see the worth of Jamf Govt Menace Safety, now we have a chance to debate different safety merchandise, and we have finished that again and again. So these — there once more, we’re seeing some good inexperienced shoots.
Jake Roberge
Nice. Thanks for taking my questions, and congrats once more on the outcomes.
John Strosahl
Thanks.
Operator
Your subsequent query comes from the road of Vinod Srinivasaraghavan from Mizuho. Your line is open.
Vinod Srinivasaraghavan
Hey, guys. Thanks for taking my query. Simply needed to dig into NRR a little bit bit. Are you able to give us a way of what the combination of upsells versus down cells versus churn was this quarter? And is that this a lot completely different than what you noticed in Q1 final 12 months?
Ian Goodkind
Yeah. Thanks for the query. So it did decline from 108% to 107%. And so once I have a look at This fall to Q1, about 75% of that decline associated to upsell. So it continues the identical macro buyer spending results proceed to influence that. On this quarter, we noticed — within the trailing 12-month metric — or sorry, once we seemed from This fall to Q1, different 25% did relate to misplaced logos. That did relate to that January additional churn that we noticed. However once more, February and March got here again and truly was higher than what we anticipated. And only a comparability level since you requested Q1 of final 12 months, once I have a look at that and the decline, 81% of that associated to upsell, 14% associated to down promote after which 5% associated to misplaced logos. So in a trailing 12 months, misplaced logos isn’t actually that huge of an influence. And our opponents come and go, however we have seen them go a while being, and we’re excited concerning the issues we’re seeing in our pipeline and in our second quarter.
Vinod Srinivasaraghavan
Okay. Nice. That is useful. After which simply usually, how did your marketing strategy do that quarter? And are you seeing simply extra momentum now as that is been out for some time now?
Ian Goodkind
Yeah. We’ve acquired 63% year-over-year with the expansion in our enterprise plans, which incorporates enterprise plan. So it continues to achieve success. It has been one thing our prospects have been asking for. They see the advantages while you mix administration and safety collectively, not simply from a value perspective, however they know that issues simply work collectively. And I did point out Routines a little bit bit earlier. That is simply one thing — we had our spring launch and we introduced all of the various things associated to compliance. After which we additionally introduced Routines. Routines is a very fascinating piece that is simply out there in marketing strategy. And it’s one thing that’s going to — or helps automate workflows and helps with collaborative instruments. So for instance, in the event you see a tool that it is advisable reset, nicely, this really has an automatic workflow for that and it really tells you thru no matter instrument you are utilizing from a collaboration standpoint. So we see a number of success there, and we’re actually enthusiastic about that. And once more, when prospects have each administration and safety, we see our churn enhance on these prospects as a result of the shopper well being is stronger.
Vinod Srinivasaraghavan
Thanks, guys. Recognize it.
Operator
There are not any additional questions from the road right now. I’ll now flip the convention again over to Jennifer for the closing remarks.
Jennifer Gaumond
Thanks all for becoming a member of us right this moment. That is the top of the decision. Have an excellent remainder of your day. Thanks.
Operator
Thanks. That concludes right this moment’s convention name. Thanks all for becoming a member of. Chances are you’ll now disconnect.
