•
Sep 30, 2024

N-able Q3 2024 Earnings Report

N-able's Q3 2024 performance reflected revenue growth and strong adjusted EBITDA margin.

Key Takeaways

N-able reported total revenue of $116.4 million, an 8.3% year-over-year increase, with subscription revenue reaching $115.0 million, a 9.3% year-over-year increase. GAAP net income was $10.8 million, or $0.06 per diluted share, while non-GAAP net income was $24.3 million, or $0.13 per diluted share. The adjusted EBITDA stood at $44.8 million, representing a 38.5% margin.

Total revenue reached $116.4 million, representing an 8.3% year-over-year growth.

Subscription revenue amounted to $115.0 million, reflecting a 9.3% year-over-year increase.

GAAP net income was reported at $10.8 million, or $0.06 per diluted share.

Adjusted EBITDA was $44.8 million, representing an adjusted EBITDA margin of 38.5%.

Total Revenue
$116M
Previous year: $108M
+8.3%
EPS
$0.13
Previous year: $0.09
+44.4%
GAAP Gross Margin
82.9%
Previous year: 83.9%
-1.2%
Non-GAAP Gross Margin
83.7%
Previous year: 84.6%
-1.1%
Adjusted EBITDA
$44.8M
Previous year: $36.6M
+22.6%
Gross Profit
$96.5M
Previous year: $90.2M
+7.0%
Cash and Equivalents
$174M
Previous year: $127M
+36.9%
Free Cash Flow
$18.2M
Previous year: $24M
-23.9%
Total Assets
$1.22B
Previous year: $1.12B
+9.0%

N-able

N-able

N-able Revenue by Segment

Forward Guidance

N-able provided its financial outlook for the fourth quarter and full year 2024, expecting total revenue between $111.5 to $113.0 million for Q4 and between $461.2 to $462.7 million for the full year. Adjusted EBITDA is projected to be in the range of $38.0 to $38.5 million for Q4 and $169.3 to $169.8 million for the full year.

Positive Outlook

  • Expected total revenue growth of 3% to 4% year-over-year for Q4 2024.
  • Q4 2024 Adjusted EBITDA is expected to be approximately 34% of total revenue.
  • Full-year 2024 total revenue is expected to grow by approximately 9% to 10% year-over-year.
  • Full-year 2024 Adjusted EBITDA is expected to be approximately 37% of total revenue.
  • Company is confident in delivering resiliency and efficiency to customers.

Challenges Ahead

  • Uncertainty regarding the potential variability of excluded items in future periods.
  • Changing foreign exchange rates could impact business.
  • Current macroeconomic dynamics could impact business.
  • Potential for reduced information technology spending due to economic conditions.
  • Purchasing decisions may be delayed as a result of inflation and rising interest rates.