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Dec 31, 2024

N-able Q4 2024 Earnings Report

Exceeded Q4 revenue guidance with strong subscription growth.

Key Takeaways

N-able delivered solid Q4-24 results, surpassing revenue expectations. Subscription revenue growth and the Adlumin acquisition strengthened its cybersecurity offerings. Profitability was stable, with strong margins.

Total revenue reached $116,509,000, growing 7.5% YoY.

Subscription revenue grew 8.5% YoY to $115,033,000.

GAAP net income was $3,290,000, with non-GAAP net income of $18,838,000.

The acquisition of Adlumin expanded N-able’s security capabilities.

Total Revenue
$117M
Previous year: $108M
+7.5%
EPS
$0.1
Previous year: $0.11
-9.1%
GAAP Gross Margin
80%
Previous year: 83.7%
-4.4%
Non-GAAP Gross Margin
82.3%
Previous year: 84.5%
-2.6%
Adjusted EBITDA
$38.1M
Previous year: $39.2M
-2.7%
Gross Profit
$93.2M
Previous year: $90.8M
+2.6%
Cash and Equivalents
$85.2M
Previous year: $153M
-44.3%
Free Cash Flow
$17.8M
Previous year: $27.9M
-36.1%
Total Assets
$1.34B
Previous year: $1.16B
+15.1%

N-able

N-able

N-able Revenue by Segment

Forward Guidance

N-able expects moderate revenue growth in Q1-25, with investments in cybersecurity and strategic acquisitions driving long-term expansion.

Positive Outlook

  • Total revenue projected between $115M-$116M, up 1%-2% YoY.
  • Subscription revenue expected to continue growing.
  • Adjusted EBITDA margin guidance at 24%-25%.
  • ARR projected to surpass $500M in FY25.
  • Continued investment in security solutions to expand market reach.

Challenges Ahead

  • Revenue growth slowing compared to prior quarters.
  • Adjusted EBITDA margin expected to decline YoY.
  • Foreign currency fluctuations could impact revenue.
  • Integration of Adlumin acquisition may present challenges.
  • Rising costs related to R&D and go-to-market strategies.