•
Mar 31, 2024

N-able Q1 2024 Earnings Report

N-able's Q1 2024 performance was strong, with revenue exceeding guidance and adjusted EBITDA margin outlook raised.

Key Takeaways

N-able reported a strong start to 2024, exceeding guidance on both revenue and adjusted EBITDA. Total revenue reached $113.7 million, a 14% year-over-year increase. The company raised its full-year constant currency revenue and adjusted EBITDA margin outlooks.

Total revenue increased by 14% year-over-year to $113.7 million.

Subscription revenue grew by 14.4% year-over-year to $111.5 million.

GAAP net income was $7.5 million, or $0.04 per diluted share; non-GAAP net income was $19.8 million, or $0.11 per diluted share.

Adjusted EBITDA increased by 21% year-over-year to $39.6 million, representing a 34.8% adjusted EBITDA margin.

Total Revenue
$114M
Previous year: $99.8M
+14.0%
EPS
$0.11
Previous year: $0.08
+37.5%
GAAP Gross Margin
83.9%
Previous year: 83.8%
+0.1%
Non-GAAP Gross Margin
84.7%
Previous year: 84.6%
+0.1%
Adjusted EBITDA
$39.6M
Previous year: $32.7M
+20.9%
Gross Profit
$95.5M
Previous year: $83.6M
+14.2%
Cash and Equivalents
$139M
Previous year: $98.1M
+42.0%
Free Cash Flow
$746K
Previous year: $7.23M
-89.7%
Total Assets
$1.15B
Previous year: $1.09B
+5.2%

N-able

N-able

N-able Revenue by Segment

Forward Guidance

N-able provided financial outlook for the second quarter and full year 2024. For Q2 2024, they expect total revenue between $116.5 to $117.0 million and adjusted EBITDA between $41.0 to $41.5 million. For full year 2024, they expect total revenue between $462.0 to $465.0 million and adjusted EBITDA between $162.0 to $165.0 million.

Positive Outlook

  • Total revenue in the range of $116.5 to $117.0 million for Q2 2024, representing approximately 10% year-over-year growth, or 10% to 11% growth on a constant currency basis.
  • Adjusted EBITDA in the range of $41.0 to $41.5 million for Q2 2024, representing approximately 35% of total revenue.
  • Total revenue in the range of $462.0 to $465.0 million for full year 2024, representing approximately 10% year-over-year growth, or 10% to 11% growth on a constant currency basis.
  • Adjusted EBITDA in the range of $162.0 to $165.0 million for full year 2024, representing approximately 35% of total revenue.
  • Expectations reflect the impact on its business of changing foreign exchange rates and current macroeconomic dynamics.

Challenges Ahead

  • Forward-looking non-GAAP financial information excludes items such as amortization of acquired intangible assets and developed technology.
  • Depreciation expense is excluded from forward-looking non-GAAP financial information.
  • Income tax expense is excluded from forward-looking non-GAAP financial information.
  • Interest expense, net, is excluded from forward-looking non-GAAP financial information.
  • Unrealized foreign currency (gains) losses are excluded from forward-looking non-GAAP financial information.