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Sep 30, 2023

N-able Q3 2023 Earnings Report

N-able's Q3 2023 results were strong, exceeding guidance on the top and bottom lines.

Key Takeaways

N-able reported strong third-quarter results, with total revenue of $107.6 million, representing approximately 15.0% year-over-year growth. The company's adjusted EBITDA was $36.6 million, up approximately 27% year-over-year, representing an adjusted EBITDA margin of 34.0%. N-able is maintaining its full-year 2023 revenue growth outlook of 13% year-over-year and raised its full-year 2023 adjusted EBITDA outlook to $139.2 - $139.7 Million with Adjusted EBITDA Margin of 33%.

Total revenue of $107.6 million, representing approximately 15.0% year-over-year growth.

Subscription revenue of $105.2 million, representing approximately 15.3% year-over-year growth.

GAAP gross margin of 83.9% and non-GAAP gross margin of 84.6%.

Adjusted EBITDA of $36.6 million, up approximately 27% year-over-year, representing an adjusted EBITDA margin of 34.0%.

Total Revenue
$108M
Previous year: $93.5M
+15.0%
EPS
$0.09
Previous year: $0.07
+28.6%
GAAP Gross Margin
83.9%
Previous year: 83.9%
+0.0%
Non-GAAP Gross Margin
84.6%
Previous year: 84.8%
-0.2%
Adjusted EBITDA
$36.6M
Previous year: $28.8M
+26.9%
Gross Profit
$90.2M
Previous year: $78.4M
+15.0%
Cash and Equivalents
$127M
Previous year: $87.7M
+45.3%
Free Cash Flow
$24M
Total Assets
$1.12B
Previous year: $1.03B
+8.8%

N-able

N-able

N-able Revenue by Segment

Forward Guidance

N-able provided its financial outlook for the fourth quarter of 2023 and full-year 2023.

Positive Outlook

  • Total revenue in the range of $106.5 to $107.0 million for Q4 2023, representing approximately 11% to 12% year-over-year growth.
  • Total revenue in the range of $106.5 to $107.0 million for Q4 2023, representing approximately 10% to 11% growth on a constant currency basis.
  • Adjusted EBITDA in the range of $35.0 to $35.5 million for Q4 2023, representing approximately 33% of total revenue.
  • Total revenue in the range of $420.0 to $420.5 million for full year 2023, representing approximately 13% year-over-year growth on both a reported and constant currency basis.
  • Adjusted EBITDA in the range of $139.2 to $139.7 million for full year 2023, representing approximately 33% of total revenue.