Participants

Jennifer Gaumond; VP, Investor Relations; Jamf Holding Corp

John Strosahl; Chief Executive Officer; Jamf Holding Corp

Ian Goodkind; Chief Financial Officer; Jamf Holding Corp

Joshua Reilly; Analyst; Needham & Company LLC

Koji Ikeda; Analyst; Bank of America

Raimo Lenschow; Analyst; Barclays Capital

Dan Bergstrom; Analyst; RBC Capital Markets

Jake Roberts; Analyst; William Blair

Presentation

Operator

Thank you for standing by. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Jamf's first-quarter 2024 earnings call. (Operator Instructions) Thank you, and I would now like to turn the call over to Jennifer. Please go ahead.

Jennifer Gaumond

Good afternoon, and thank you for joining us on today's conference call to discuss Jamf's first-quarter 2024 financial results. With me on today's call are John Strosahl, Chief Executive Officer; and Ian Goodkind, Chief Financial Officer.
Before we begin, I'd like to remind you that shortly after the market closed today, we issued a press release announcing our first-quarter financial results. We also published a Q1 earnings presentation investor presentation and Excel file containing quarterly financial statements to assist with modeling, you may access this information on the Investor Relations section of jamf.com.
Today's discussion may include forward-looking statements. Please refer to our most recent SEC reports, including our most recent annual report on Form 10 K, where you will see a discussion of factors that could cause actual results to differ materially from these statements. I would also like to remind you that during the call, we will discuss some non-GAAP measures related to Jamf's performance. You could find a reconciliation of those measures to the nearest comparable GAAP measures in our earnings release. Additionally, to ensure we can address as many analyst questions as possible during the call, we ask that you please limit your questions to one initial question and one follow-up.
Now I'd like to turn the call over to John Strosahl.

John Strosahl

John takes you through. You have started off the year strong, reaching the milestone of $600 million of total ARR at the end of Q1, ARR grew 14% year over year to $602.4 million were delivering on the expectations. We set for 2024. Both Q1 revenue and non-GAAP operating income exceeded the high end of our outlook. One year over year. Revenue growth was 15%, and non-GAAP operating income was 22.1 million, with non-GAAP operating income margin of 15%. This margin represents a 1,000 basis points improvement from Q1 of 2023. We ended Q1 with 75,900 customers and 32.8 million devices on our platform of these customers, 41% from AGF Management and Security products. We continue to drive cross-sell with 31% year over year growth in security ARR to $138 million or 23% of Jamf's total ARR. Our largest industries Tech & K through 12 remain muted in device expansion. The remaining industries in our top five continue to see positive trends. We're also encouraged by growth in the PC market in Q1 after two years of decline. According to IDC, Q1 year over year, worldwide PC shipments grew 1.5% to nearly 60 million units, representing a similar level of shipments to pre pandemic, Apple saw the highest year-over-year growth in shipments of any company in Q1 at 14.6% and also increased its market share. Idc remain optimistic regarding PC sales in 2024 as companies begin refreshing PCs that were purchased during the pandemic. While we are encouraged by this Q1 data, our outlook for 2024 does not rely on a significant uplift in device expansion. We continue to innovate and deliver solutions to help organizations succeed with Apple. In April, we held a special Jamf event to showcase a number of new offerings with a focus on compliance, IT and security teams are being asked to get more involved beyond traditional device management functions to help meet these various compliance standards across their Apple devices. Jamf is proud to deliver tools that help customers navigate the vast and varied compliance landscape. Product updates highlighted at the event include a customizable compliance dashboard and Jamf Protect, allowing admins to view an aggregate baseline score and detailed information to understand and remediate compliance issues, compliance editor tool for Jamf Pro for IOS that generates deployable configurations to make endpoints compliant with a chosen compliance benchmarks, camper teams tool for channel bundle solutions, which offers customers new no-code automation and integrations to streamline management and security workflows, while also providing seamless integration with Slack and Microsoft Teams to Alere i t teams when devices fall out of compliance, privileged elevation feature that utilizes an organization's cloud identity provider and Jamf Connect to temporarily allow admin privileges for local M ACOS. accounts based on valid user authentication and authorization. We also recast our recent announcement that support for Apple vision Pro is now available across the entire GM platform with CEM, Pro organizations can enroll and streamline deployment of enterprise apps and settings for Apple vision. Pro GAAP Connect allows Apple vision Pro to securely access enterprise resources for any of the Web and native apps that require secure identity-based access controls can protect, extends the same Mobile Threat Defense Network Protection and content filtering use cases to the Apple vision problem. We also announced the support for watch US management is coming later this year, including enrollment and inventory display. We're excited about the opportunities that watch list management provides, especially as it relates to desktop workflows across a number of industries. Enabling these new device types is a testament to GM's commitment to simplifying Apple at work and giving users the ability to be productive. However, they work best.
In addition to the spring event, we hosted another important event, our first Investor Day in mid-March. We outlined the next phase of Jamf's evolution, which is all about efficient scalability. If you hadn't had a chance to review the events yet I encourage you to do so. The replay and presentation can be found on our Investor Relations website.
During the event, we highlighted our differentiated position and competitive moat, our large and growing addressable market, our strategic growth drivers and our financial expectations through 2026.
I'd like to use the strategic growth drivers we discussed during this event and the framework for the remainder of my remarks, highlighting some of the specific successes we saw in Q1 first, in MAC leadership, we continue to demonstrate how Jamf's Apple first, Apple best solutions deliver the best outcomes for our customers. In Q1, a leading online travel company renewed, which account for three years. Key to this win was our ability to demonstrate how GM solution can help with the customer's current strategic initiative around process automation. We also delivered a long-term roadmap for expanding with GM, including Jamf Pro for IOS and Jamf Protect our ability to build multiple strong relationships with the customers at the management level was also beneficial, helping streamline the approval process and our suggestions utilize AWS marketplace to leverage their committed spend was a win-win, simplifying procurement for the customer and resulting in a timely renewal for GM. We're excited about continued growth through the AWS marketplace as customers can use committed spend towards their GM contract like Netlist, buy a cloud platform for front end teams to build deploy and scale modern web applications. And that mophie has now using channel with committed spend for AWS to manage as Apple devices and connect their end users to the resources they need.
Second, with respect to expanding with mobile, we continue to see customers utilizing channels across their mobile fleets, especially for desktop workflows. In Q1, one leading specialty retailer expanded with channel beyond MAC by adding Jamf Pro for 15,000 IOS devices use across nearly 1,500 retail locations. This was a great win for count against the legacy UEM provider, a testament to our continued commitment to innovating at the pace of Apple to securely manage multiple device types across multiple use cases. We're strongly encouraged by our progress in the retail space, which represents one of our top five largest industries. Retail, along with financial services and professional services, continue to see strong growth, helping balance the softness we are seeing at Tech & K through 12 education tech is seeing muted hiring and lower IT investments, while K through 12 experienced a bit of a COVID overhang with record device deployments in 2020 and 2021.
Third, growth driver management and security are what we refer to as delivering our trusted access station in an area of opportunity. We expect to become a larger part of our total ARR over time. Our ability to deliver both management and security on one platform is a key differentiator for Jamf, both legacy UEM providers and Apple specific management providers, lack the complete platform requiring customers to utilize a number of third-party vendors to deliver management connection and protection capabilities. Smaller organizations often don't have the bandwidth BUDGET or the desire to engage multiple third parties making GM's trusted access platform, an appealing solution. We continue to see an increased number of deals with both the management and the security component. We see this by continued strong growth of Jamf's bundles. Commercial Solutions, which grew 63% year over year in Q1. And currently 45% of Jamf's new customer commercial pipeline is made up of security opportunities. Additionally, when a customer consolidate management and security with channel, we see reduced churn compared to customers with just a management solution for just a security solution in Q1 a precision medicine company became a Jamf business plan customer for their 1,200 devices. This company chose to move away from the legacy UEM provider and chose Jeff due to the value of trusted access brings to their organization and the strength of our capabilities for a mixed device environment. The customer's device environment includes Mac PCs, Chromebook and Android. Also in Q1 one of our largest airline customers on mainline American carrier expanded beyond management at AGF Connect and Jamf Protect to 15,000 of their IOS devices, which are utilized globally. We were able to demonstrate our industry leadership in managing and securing mission critical mobile use cases and remote work situations which were key to this win. Our solutions allow the customer to have a defined practice for continuously securing mobile devices, something the customer only had previously for PCs, the successful service, the blueprint for further expansion with customers and other areas of their business and Clarion Housing Group, the largest housing association in the United Kingdom with 125,000 properties across more than 170 local authorities recently became a channel customer using Jamf Pro Jamf Connect for their Mac and IOS fleets. These three wins showcase the strength and leadership of Jamf's management and security platform, which enabled to deliver the right solution for each organization, whether that is purchasing both management and security at the onset or expanding beyond management at the right time.
And lastly, with respect to international expansion, Jim, continues to invest in strategic geographies where we're seeing growing adoption for Apple revenues outside of the US continued to grow at a faster rate than US revenues. In Q1, we saw a number of international wins for our Jamf executive threat protection product with government agencies in the Middle East and India. The wind and India represented our first government agency win in the country. The agency has embarked on a journey to curb cybercrime and Jamf's executive threat protection, along with other products, will be used by forensic team to investigate and for incident response, Janssen executive threat protection was chosen due to its ability to identify sophisticated digital threats and extend visibility into attacks that target high value users wins like these help our footprint in these regions and offer a blueprint for similar organizations in the area to utilize GM. We've seen success with this strategy in the past and countries like Japan will continue to leverage this success in select geographies where we're seeing the most potential.
I'll now turn it over to Ian to review our results and provide our Q2 and 2024 outlook Thanks, John.

Ian Goodkind

We ended Q1 with year-over-year revenue growth of 15%, exceeding the high end of our revenue outlook by 2.1 million. Total ARR reached 602.4 million, representing year-over-year growth of 14% exceeding expectations. We continue to believe that Champs commercial business and specifically commercial security will be a key growth driver both now and in the future.
Strategic core of Jamf's business. Saas recurring revenue remained strong in Q1, growing 18% less strategic revenue. Sources like licenses, services and on-premise revenues continued to experience year-over-year declines, but came in slightly better than expected. Our net retention rate decreased slightly as expected to 107% in Q1 when compared to Q4 2023. The remainder of my remarks on margins, expense items and profitability will be on a non-GAAP basis. Our GAAP financial results, along with the reconciliation between GAAP and non-GAAP, are found in our earnings release. Q1 non-GAAP gross profit margin was 81%. And within our expectations, we continue to anticipate gross margins in the low 80% range and expect slight fluctuation each quarter. Non-gaap operating income exceeded the high end of our Q4 outlook at $22.1 million or 15% margins due to cost saving initiatives and increased revenues representing an approximate 20 basis point improvement over Q1 2023. Our trailing 12 months unlevered free cash flow margin was 13% compared to 14% in the prior year. Our effective tax rate for Q1 was negative 5.4%, consistent with our expectations. As a reminder, for our non-GAAP metrics, we use domestic statutory rates for calculating tax impact, which is currently 24%. Please note that we pay a negligible amount of cash taxes on a US federal basis and pay an immaterial amount of cash taxes outside the U.S. during our Investor Day, we outlined some key milestones that will help you track our progress against our goal. One, meet our quarterly financial outlook in Q1, we exceeded the high end of both our revenue and non-GAAP operating income guidance ranges to achieve at least 25% growth in security ARR to one year over year. Growth of security AFRR. was 31%, three decrease, general and administrative expense as a percentage of total revenue, Q1 non-GAAP G&A margin was 14%, an approximate 100 basis point reduction from Q4 2023 four decreased sales and marketing expense. As a percentage of total revenue, Q1 non-GAAP sales and marketing margin was 34%, an approximate 200 basis point reduction from Q4 2023 with respect to sales and marketing expense. Given that we anticipate the largest portion of cost savings coming from this area, we are providing additional details on our current efficiency and scalability initiatives. First, earlier this year, we adjusted our workforce with a focus on higher productivity. Second, we are adjusting our sales incentive structure to further drive cross-sell, security and mobiles and price capture.
Third, we are enacting program to drive enhanced value from our channel partners for us. We continue to focus on educating customers on the value we provide with our trusted access outcome. And fifth, we are aligning resources to geographies with the highest growth potential like the Asia Pacific region.
Now turning to our outlook for Q2 and full year 2024.
With respect to revenue growth, we expect continued pressure on device upsell through 2024. We will continue to focus on the strategic growth drivers John outlined building on the successes we achieved in Q1, we will invest in growth and scalability with a focus on scalable go-to-market organization, platform optimization and back-office automation. Our scalability initiatives will set jam up for profitable growth in the future and return Jeff to the Rule of 40 as outlined at our Investor Day, many of these initiatives are in process with some team benefits in 2024 and others with benefits expected throughout the next few years. Based on these factors, for the second quarter of 2024, we expect total revenue of 150.5 to 152.5 million, representing year-over-year growth of 11% to 13%. Non-gaap operating income of 21.5 to 22.5 million, representing a non-GAAP operating income margins of 15% at the midpoint. Given our strong performance in Q1, we are increasing our expectations for the full year 2024, total revenue of 618.5 to $622.5 million, representing year-over-year growth of 11% at the midpoint. This reflects an increase of 3.5 million at the midpoint, non-GAAP operating income of 92.5 to 95.5 million, representing a non-GAAP operating income margin of 15% at the midpoint and an approximate 700 basis point improvement over fiscal year 2023. This reflects an increase of 3 million at the midpoint. While we don't provide an outlook for air arm. We would expect to end fiscal year 2024 with ARR growth similar to full year revenue.
With respect to unlevered free cash flows. For full year 2024, we expect unlevered free cash flow margin to be similar to non-GAAP operating income margin. We also provide estimates for amortization, stock-based compensation related payroll taxes and other metrics to assist with modeling in the earnings presentation as part of the webcast and also posted on our Investor Relations website.
With respect to the longer term financial outlook we present as part of our Investor Day. We remain committed to the goals we outlined during the event. And now John and I will take your questions.
Operator?

Question and Answer Session

Operator

(Operator Instructions) Joshua Reilly, Needham & Company.

Joshua Reilly

Our a nice job on the quarter here, and thanks for taking my questions. I guess the starting point, probably people are interested in here, ARR growth was a bit better than what we expected and kind of what you laid out at the Analyst Day. Can you just give us a sense of what are some of the puts and takes for the rest of the year in terms of how much pricing benefited ARR growth here in Q1 relative to your expectations? And has there really been a change in the macro. It's a little bit of a tick-up in the ARR growth. It sounds like it's going to be closer to 11% for engineer.

Ian Goodkind

Yes, so a Josh, good to hear from me, and I'll jump in there. So you're right, and I appreciate the way you asked your question on ARR came out generally, how we expected and what we outlined at our Investor Day, we did come off a strong Q4 and there we did pull forward some deals from Q1. Q1 is our seasonally low, but we did have in the first quarter of our first reduction in workforce, and we didn't assign quotas as well after that. And high continues to be muted from the macro and education continues to have the COVID overhang. We did see a little bit more churn in January from a specific competitor, but does that normalize within February-March. So as we march forward throughout the year. We do see some additional bright spots. We've seen some strength in professional services, financial services and wholesale and retail. And those not only in tech industries have been leaning more into IT. And in Q1, we actually saw higher rep productivity in the call it the double digit improvement from the prior year. We also saw a little bit about upsell on some of the deals, not to the levels we've seen historically, but we saw that as well with our bundles continue to be strong with a 63% year over year. And then we're continuing forward with we've been continuing to tweak our incentive plans, which is boding well that we've seen our pipeline start to build within the securities base we see our new logo commercial pipeline represents 45%, which is good. And we've also just seen a few green shoots in EDU. So as a reminder, our 2024 outlook was based on the on the same economics we saw in 2023, saving bode well and could help us overachieve on 2024. We feel good about what we said is gone.

Joshua Reilly

Got it. That's super helpful. And then just following up on the SMB segment of the market on some of the other peers in SaaS of world have been seeing some challenges from SMB customers. I know that's a smaller mix of your business relative to some of these other areas, but are you seeing the higher for longer interest rate dynamics beginning to impact these customers as well?

John Strosahl

Thank you, Josh. I can this is John. I can answer that question.
Yes, it is interesting. I was just talking to some of the sales guys about this, particularly and we still are a volume business and we've seen them. We've seen the longer interest rates being higher, affects some of these businesses we typically see a bit of a canary in the coal mine with our SMB business, and that's when we see them start to start to purchase more than enterprise generally follows and we've had some some very consistent new logo growth, but we've also seen some of those smaller companies fall out as a result of the longer than expected interest rates. But we do feel pretty good about our year over year bundled sales, which typically goes to the SMB market. And Ian mentioned, is over 60% year over year, and we continue to see have more interest, although sales cycles have remained elongated, but we're starting to get more interest from both the SMB and the enterprise.

Operator

Koji Ikeda, Bank of America.

Koji Ikeda

Yes. No, thanks, guys. Thanks for taking the questions on lots of good commentary in the prepared remarks.
Thank you for that I just wanted to ask you a question on how you're feeling about the three year model and very specifically about the revenue growth and ARR growth you guys laid out at the Investor Day, which is accelerating and the growth is accelerating in 2025 and 2020. Of course, that setup is very, very attractive.
But when I look at some of the growth metrics and ones do a lot of them did. So I was wondering maybe what you're seeing from your end that is giving you that increased comp, maybe there was something this quarter that's increasing your confidence to be so committed to the three three-year growth target?

Ian Goodkind

Yes, I'll jump in on that one. And then two other quick question, Koji.
I think the first short answer and I'll expand on the answer is yes, we still have conviction over a three year model and we laid it out in a manner where this year we laid out a 10% now 10.7% growth rate on revenues. And we've overachieved that and we knew again, it would be a little bit of a slower start from the standpoint of items I just talked about from the fact we knew we were taking some steps with workforce adjustment. We knew we were making some adjustments to combine. We knew a lot of it. And we've also what we focused on Investor Day. If you remember, we showed you our Arkona historically and what it looks like going forward and that it doesn't have a huge macro return. And that's still what we're factoring in. We do believe that's going to come at some point. So there's that and then I talked about just a little about the security pipeline, and we're starting to see that build and customers are heavy interest. When I look at and our bundles again, that continues to have a lot of interest with customers. And one thing on our bundles, as you know, we continue to add value there. We just released Jamf routines and Jamf routines and something you only find within their bundle and it that it automates certain workflows and integrates with certain collaboration tools. And it does help with a lot of customer issues. So those are the types of things you can expect.
And we also our last comment I'd make on this. We just in my prepared remarks, I talked about the five areas that we were focused on from a sales and marketing perspective. You see we have a clear plan of how we're going to check through those things. We've met that. I think we've outlined on our checklist from Investor Day so far this year. When you take all those things together, yes, we have conviction around that plan.

Koji Ikeda

Got it, Ian, thank you so much.
And maybe a follow-up for you, sir. I noticed the Q just came out and I punched into our little spreadsheet here, the remaining performance obligations. And I did notice that on the RPO front, it declined sequentially just to tick, and I did notice that it happened last year in the first quarter to just it wanted to understand anything particular about the dynamics of the first quarter in RPO that we need to understand.

Ian Goodkind

Thank you. Yes, good question. So on on our appeal and actually every first quarter, if you go back historically, on all our first quarters is actually seasonality. It's always our slowest quarter. And so just as a reminder, Q1 to Q3, Q2 and Q3 are supported by our education business and then Q3 and Q4 heavier commercial businesses that I talked about. We had a pretty good Q4, which pulled some deals forward. So I wouldn't read into that any further than that it is along what we generally expected.
Thank you very much.

Operator

Raimo Lenschow, Barclays.

Raimo Lenschow

Hey, this is Rick on for Raimo, thanks for taking the question. Security ARR came in pretty strong again this quarter, and I know you guys guided to 25% at the Analyst Day.
How much upside do you see to that number versus what you initially guided and how should we think about the shape?

Ian Goodkind

We have net new ARR there as we go through the remainder of the year, and I can jump in there. So a couple of things. Yes, I mean, we said we were going to achieve at least 25% or above that what we showed on around this slide that there is an old saying here's the things you should monitor throughout the year to show our success. We had 33% growth in Q4 31% now. So it continues to bode well for us. And as we talked about at Investor Day, we are very focused on cross-sell and that comes in three forms that comes in the form of commercial security, education security. And then there's mobile and mobile has been good. He's talking about security. And in some of our the way we're thinking about our incentive plan, focuses on the cross-sell focuses on the security, and we are seeing customers ask more and more about that. It's just become a really good opportunity when customers see that you can consolidate on lot one platform, both your management and security. And that has been boding well for us. And in the SMB side, since there's one economic buyer that then boding well for. And we've been working with enterprises and we got a couple we get one of those once in a while. Here I know there are things that I think could accelerate if we see more of those come through. And I think you know, just again, your buyers are sitting a little bit on the sideline just nervous to make changes, but we are seeing this be successful in this economy when you can consolidate. So those are the things I think it bodes well for us and could help us continue on this path. John?

John Strosahl

Yes, I'll just add that on the enterprise side, we have seen the security be successful and particularly on the iOS side. And when you look at the retail and wholesale markets as the desktops workflows become more and more prevalent in those industries, we're seeing a lot more and mobile security on that side as well. So we're getting we're seeing some really good traction traction there, and we're continuing to double down on it, as Ian said, really incentivizing our sales teams to promote that cross-sell and really lead with our trusted access and of opportunity, which our customers have really taken kindly to.
Yes, one other thing I thought about was education to we in the first quarter, we did actually see a few extra deals in the education security piece. So we have seen some success in the mid-range of that as well.

Raimo Lenschow

Great. That's super helpful. Thanks. And then Ian, maybe one more for you. If I think about the margin guidance, Q1 came in ahead of expectations and seems like Q2 is also slightly ahead and but the full year guide on margin stayed consistent. Is there anything we need to think about in Q3 and Q4 that maybe are reasons for that margin guide not moving incrementally up through the remainder of the year.

Ian Goodkind

Yes, because you're a you're talking about margin percentage versus the dollars. Right. And so the dollars did go up with consistent and actually slightly more than what our overachievement in the first quarter was. So we did pass that through and we actually brought it up. I think what you're asking you cables are being close to 15%, you're guiding 15% for the year. And what I would think about there's a couple of things. What we talked about at Investor Day is two things we're going to still continue to invest in growth and scalability, and those are continuing throughout the year. I listed in my prepared remarks, say around the initiatives that we're spending on on the go-to-market side. We also still have the platform capabilities where we're continuing to optimize our platform and we are focused on back office automation. So I wouldn't adjust the spending for those long-term initiatives that make us more payables.

Raimo Lenschow

Great. That's super helpful. Thank you.

Operator

Dan Bergstrom, RBC Capital Markets.

Dan Bergstrom

Dan Bergstrom on for Matt Hedberg. Thanks for taking our questions. It's nice to see the PC shipments returned to growth following a couple of years of declines and the gains for Apple I guess, are there any additional observations you have from conversations with customers around refresher, anything otherwise here, my guess, but I guess they remain prudent around hiring and Fahnestock?

John Strosahl

Yes, Dan, this is John. I can I can take the question on 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 was has caused some of that. Like I said before, we have seen some more interest and some more engagement, although sales cycles still remain elongated. We also noted that on the Wall Street Journal article that came out IDC and Gartner had had identified that Apple's growth had been over 14, about 14.5% year over year in shipments and well, but 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 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 and as well as in education, but we are seeing seeing some of that loosen a bit.

Dan Bergstrom

Thanks and appreciate the additional color so far around security in the Q&A here. I guess on security and the go-to market, whereas the sales force here around security versus a year ago, it sounds like there have been some adjustments, some incentives, more focus on cross-sell. Maybe any more color here or anything you're leaning into from a security perspective to start the year yet whether the sales teams have become much better versed in our security opportunity or as a security offering.

Ian Goodkind

You remember we had the management first and then we our customers asked us to extend into security and we did that and we have a pretty 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 that are 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 to help help 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. But we're making sure that we're retaining the customers that we have in an environment that we don't know when we win the of 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 or 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 Winnie and 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

Jake Roberts, William Blair.

Jake Roberts

Hey, thanks for taking the questions and congrats on the great results. And 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?

Ian Goodkind

Yes, absolutely, Jay, this is John again. I'll take this question. We certainly have and the issue with that is because the of the acquisition went through of that competitor on 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 they all have renewal cycles. And so we're engaged with a lot of those and pretty much all of those customers are when that renewal cycle is coming up and promoting our products. We've replaced tens of thousands of devices every quarter and in that with 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 really excelled.
And then you top that on you put that on top of and you know, having that 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.

Dan Bergstrom

Okay.

Koji Ikeda

Very helpful.

Jake Roberts

And obviously, great to see that the 31% security ARR growth, you've had some some really solid comments on the call about pipeline and then the go-to-market tweaks you're making there. But given the 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 add throughout the 2025 and 2026 timeframe that you're really digging into this year?

Ian Goodkind

We certainly are in all aspect. We've got 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 leaning 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 to security in the first place is because that's what our customers asked us to do, and we're following their lead in 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 C so 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 NGF 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 Roberts

Great. Thanks for taking my questions and congrats again on the results.

Operator

(inaudible)

Koji Ikeda

Hey, guys.

Thanks for taking my question. I'm just wanted to dig into our a little bit. Can you give us a sense of what the mix of upsells for stem cells? First churn was this quarter and up? Is this much different than what you saw in that Q1 last year?

John Strosahl

Yes. Thanks for the question on. So it did decline from one way to one of seven. And so when I look at Q4 to Q1, about 75% of that decline related to upsell. It can do the same macro customer spending effects continue to impact that in this quarter, we saw in the trailing 12-month metric or sorry, when I look from Q4 to Q1, the other 25% did relate to lost logos that did relate to that January extra churn that we saw. But again, February and March came back and actually was better than what we expected.
And just a comparison point, because you asked Q1 last year, when I look at that and the decline, 81% of that related to upsell, 14% related to down-sell and then 5% related to less logo. So in our trailing 12 months of it isn't really that big of an impact. And there are some our competitors come and go, but we've seen them go for the time being, and we're excited about the things we're seeing in our pipeline and in our second quarter.

Okay, great. That's helpful. And then just in general, how did GM business plan do this quarter? And are you seeing just more momentum now, as you know, that's been out for a while now?

John Strosahl

Yes, it was at 63% year over year was the growth in our business plans, which includes Enterprise Plan. And so it continues to be successful. It has been something our customers have been asking for. They see the benefits when you combine management and security together, not just from a cost perspective, but they know that things just work together. And I did mention routine a little bit earlier and that system then we had our spring release and we announced all the different things related to compliance. And then we also announced routines and routines is a really interesting piece that's just available in business plan, and it is something that is going to or helps automate workflow and health collaborative tools. So for example, if you see a device that you need a reset, all of this actually has an automated workflow for that and actually tells you through whatever tool you're using from a collaboration standpoint. So we see a lot of success there, and we're really excited about that. And again, when customers have both management and security, we see our churn improve on those customers because customer help it out is strong.

Thanks, guys. Appreciate it.

Operator

There are no further questions from the line at this time. I will now turn the conference back over to Jennifer for the closing remarks.

Jennifer Gaumond

Thank you all for joining us today. This is the end of the call and have a good rest of your day, and thank you.

Operator

Thank you. That concludes today's conference call and thank you all for joining. You may now disconnect.