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Sep 30, 2022

N-able Q3 2022 Earnings Report

Reported third quarter results, exceeding revenue and profit outlook, and raised full-year adjusted EBITDA outlook to 30% while maintaining full-year revenue outlook of 7% year-over-year growth.

Key Takeaways

N-able announced strong third-quarter results, exceeding expectations for both revenue and profit. The company's strategy is on track, with offerings in RMM, data protection, and security leading the market. N-able is focused on helping partners manage and secure their businesses while accelerating growth.

Total revenue reached $93.5 million, a 6% year-over-year increase (13% in constant currency).

Subscription revenue was $91.2 million, also a 6% year-over-year increase (13% in constant currency).

GAAP gross margin was 83.9%, and non-GAAP gross margin was 84.8%.

Adjusted EBITDA was $28.8 million, representing a 30.9% adjusted EBITDA margin.

Total Revenue
$93.5M
Previous year: $88.4M
+5.8%
EPS
$0.07
Previous year: $0.1
-30.0%
GAAP Gross Margin
83.9%
Previous year: 86.1%
-2.6%
Non-GAAP Gross Margin
84.8%
Previous year: 87.7%
-3.3%
Adjusted EBITDA
$28.8M
Previous year: $29.7M
-3.0%
Gross Profit
$78.4M
Previous year: $76.1M
+3.0%
Cash and Equivalents
$87.7M
Previous year: $61.6M
+42.4%
Total Assets
$1.03B
Previous year: $1.06B
-2.9%

N-able

N-able

N-able Revenue by Segment

Forward Guidance

N-able provided its financial outlook for the fourth quarter and full year 2022. Total revenue for Q4 2022 is expected to be in the range of $93.3 to $93.8 million, representing approximately 5% year-over-year growth, or approximately 11% to 12% growth on a constant currency basis. Adjusted EBITDA for Q4 2022 is expected to be in the range of $27.5 to $28.0 million, representing approximately 30% of total revenue. Total revenue for full year 2022 is expected to be in the range of $369.3 to $369.8 million, representing 7% year-over-year growth, or 12% to 13% year-over-year growth on a constant currency basis. Adjusted EBITDA for full year 2022 is expected to be in the range of $111.0 to $111.5 million, representing approximately 30% of total revenue.

Positive Outlook

  • Total revenue in the range of $93.3 to $93.8 million for Q4 2022, representing approximately 5% year-over-year growth.
  • Total revenue is expected to grow approximately 11% to 12% on a constant currency basis.
  • Adjusted EBITDA in the range of $27.5 to $28.0 million for Q4 2022, representing approximately 30% of total revenue.
  • Total revenue in the range of $369.3 to $369.8 million for full year 2022, representing 7% year-over-year growth.
  • Total revenue is expected to grow 12% to 13% year-over-year growth on a constant currency basis for full year 2022.