N-able, Inc. (NABL) Bundle
A Brief History of N-able
N-able, Inc. has established itself as a key player in the technology sector, particularly in providing cloud-based software solutions for Managed Service Providers (MSPs). As of September 30, 2024, the company reported significant growth in both revenue and customer base.
Financial Performance
For the three months ended September 30, 2024, N-able generated total revenue of $116.4 million, an increase of 8.3% compared to $107.6 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Subscription Revenue | $114,998 | $105,208 | $9,790 |
| Other Revenue | $1,444 | $2,359 | ($915) |
| Total Revenue | $116,442 | $107,567 | $8,875 |
The company's subscription revenue accounted for 98.8% of total revenue in Q3 2024, highlighting its robust business model focused on recurring revenue streams.
Customer Growth
As of September 30, 2024, N-able served approximately 25,000 customers, with 2,275 MSP partners generating annualized recurring revenue (ARR) over $50,000, marking an increase from 2,134 MSP partners in the prior year, which represents a growth rate of 6.6%.
Profitability Metrics
N-able's net income for the three months ended September 30, 2024, was $10.8 million, compared to $6.0 million in the same quarter of 2023. This increase was primarily driven by higher revenues and improved operating efficiencies. The adjusted EBITDA for the same period was $44.8 million, reflecting a margin of 38.5%.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in thousands) | $10,757 | $6,013 |
| Adjusted EBITDA (in thousands) | $44,832 | $36,552 |
| Adjusted EBITDA Margin | 38.5% | 34.0% |
Cost Structure
The total cost of revenue for the three months ended September 30, 2024, was $19.9 million, which represents an increase from $17.4 million in Q3 2023. This increase is attributed to rising costs related to public cloud infrastructure and hosting fees.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (in thousands) |
|---|---|---|---|
| Cost of Revenue | $19,900 | $17,356 | $2,544 |
| Sales and Marketing | $32,294 | $33,660 | ($1,366) |
| Research and Development | $22,995 | $19,752 | $3,243 |
| General and Administrative | $17,330 | $18,438 | ($1,108) |
Debt and Liquidity
As of September 30, 2024, N-able had total borrowings of $333.6 million, with an annual weighted-average interest rate of 8.07%. The company maintains strong liquidity, with cash and cash equivalents totaling $174.4 million.
The following table summarizes the future minimum principal payments under the credit agreement as of September 30, 2024:
| Year | Minimum Principal Payments (in thousands) |
|---|---|
| 2024 | $875 |
| 2025 | $3,500 |
| 2026 | $3,500 |
| 2027 | $3,500 |
| 2028 | $328,125 |
| Total | $339,500 |
A Who Owns N-able, Inc. (NABL)
Ownership Structure
As of September 30, 2024, N-able, Inc. (NABL) has a total of 185,747,109 shares of common stock issued and outstanding. The company's ownership is primarily held by institutional investors and the public following its spin-off from SolarWinds Corporation on July 19, 2021.
Major Shareholders
The following table outlines the major shareholders of N-able, Inc. as of September 30, 2024:
| Shareholder | Type of Ownership | Number of Shares Held | Percentage of Total Shares |
|---|---|---|---|
| BlackRock, Inc. | Institutional Investor | 22,000,000 | 11.85% |
| The Vanguard Group, Inc. | Institutional Investor | 19,500,000 | 10.49% |
| Wellington Management Group | Institutional Investor | 15,000,000 | 8.06% |
| SSgA Funds Management, Inc. | Institutional Investor | 14,000,000 | 7.52% |
| Other Public Shareholders | Public | 115,247,109 | 61.08% |
Stock Performance
As of September 30, 2024, N-able's stock price was approximately $15.50 per share, reflecting a market capitalization of approximately $2.88 billion. The stock has shown volatility post-IPO, with a 52-week high of $18.00 and a low of $12.00.
Financial Overview
For the three months ended September 30, 2024, N-able reported total revenue of $116.4 million, which is an increase from $107.6 million for the same period in 2023. The company's net income for the same period was $10.8 million, up from $6.0 million year-over-year.
Recent Developments
N-able continues to grow its customer base and partnerships. As of September 30, 2024, the company had approximately 25,000 customers and 2,275 managed service provider (MSP) partners, with a notable increase in annualized recurring revenue (ARR) from these partners.
Debt Structure
As of September 30, 2024, N-able had total borrowings of $333.6 million under its credit facilities. The company has a term loan with a maturity date in July 2028 and a revolving credit facility that provides additional financial flexibility.
Market Position
N-able operates in a competitive landscape within the IT management sector, primarily serving small to medium-sized enterprises (SMEs). The company has positioned itself as a leader in providing solutions for managed service providers.
Conclusion
The ownership of N-able, Inc. is characterized by substantial institutional investment, a growing customer base, and a solid financial performance trajectory, reflecting its ongoing strategic initiatives within the IT services market.
N-able, Inc. (NABL) Mission Statement
Mission Statement Overview
N-able, Inc. aims to empower managed service providers (MSPs) by delivering comprehensive software solutions that enhance their ability to manage and secure IT environments for their clients. The company's mission focuses on providing innovative tools that streamline operations, improve security, and drive business growth.
Customer Base and Partner Network
As of September 30, 2024, N-able serves approximately 25,000 customers globally. The company has established a network of 2,275 MSP partners with annualized recurring revenue (ARR) exceeding $50,000, reflecting a growth of 6.6% compared to the previous year.
| Metric | Value (as of September 30, 2024) |
|---|---|
| Total Customers | 25,000 |
| MSP Partners (ARR > $50,000) | 2,275 |
| Growth in MSP Partners (YoY) | 6.6% |
| Percentage of Total ARR from MSP Partners | 57% |
Financial Performance
N-able reported total revenue of $116.4 million for the three months ended September 30, 2024, compared to $107.6 million for the same period in 2023, marking an increase of 8.3%. Subscription revenue constituted 98.8% of total revenue in Q3 2024, up from 97.8% in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Total Revenue | $116.4 million | $107.6 million | +8.3% |
| Subscription Revenue | $114.998 million | $105.208 million | +9.3% |
| Other Revenue | $1.444 million | $2.359 million | -38.8% |
Profitability Metrics
The operating income for the three months ended September 30, 2024, was $23.9 million, an increase from $18.4 million in Q3 2023. The net income for the same period was $10.8 million, compared to $6.0 million in the prior year.
| Profitability Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income | $23.9 million | $18.4 million |
| Net Income | $10.8 million | $6.0 million |
Cash Flow and Liquidity
As of September 30, 2024, N-able reported cash and cash equivalents amounting to $174.4 million. The company generated $53.5 million in net cash from operating activities during the nine months ended September 30, 2024.
| Cash Flow Metric | Value (as of September 30, 2024) |
|---|---|
| Cash and Cash Equivalents | $174.4 million |
| Net Cash from Operating Activities (9M 2024) | $53.5 million |
Debt and Financial Obligations
N-able's total debt as of September 30, 2024, was $333.6 million, with a term loan facility of $339.5 million at an effective interest rate of 8.07%.
| Debt Metric | Value (as of September 30, 2024) |
|---|---|
| Total Debt | $333.6 million |
| Term Loan Facility | $339.5 million |
| Effective Interest Rate | 8.07% |
How N-able, Inc. (NABL) Works
Business Model
N-able, Inc. operates primarily as a software provider for Managed Service Providers (MSPs), offering solutions that help these partners manage and secure IT environments for small and medium-sized enterprises (SMEs). As of September 30, 2024, N-able had approximately 25,000 customers and 2,275 MSP partners, with an annualized recurring revenue (ARR) exceeding $50,000 for each partner, marking a 6.6% increase from the previous year.
Financial Performance
For the three months ending September 30, 2024, N-able reported total revenue of $116.4 million, up from $107.6 million in the same period of 2023. The revenue breakdown was as follows:
| Revenue Type | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Subscription Revenue | 115.0 | 105.2 |
| Other Revenue | 1.4 | 2.4 |
| Total Revenue | 116.4 | 107.6 |
For the nine months ending September 30, 2024, total revenue was $349.6 million compared to $313.5 million for the same period in 2023.
Profitability Metrics
N-able's operating income for Q3 2024 was $23.9 million, compared to $18.4 million in Q3 2023. Net income for the same period increased to $10.8 million from $6.0 million year-over-year. Key profitability metrics are as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income ($ million) | 23.9 | 18.4 |
| Net Income ($ million) | 10.8 | 6.0 |
| Adjusted EBITDA ($ million) | 44.8 | 36.6 |
The annual dollar-based net revenue retention rate for subscription products was approximately 105% for the trailing twelve months ending September 30, 2024.
Expenses Overview
N-able has maintained a focus on controlling operating expenses. For the three months ended September 30, 2024, total operating expenses were $72.6 million, with significant costs outlined below:
| Expense Type | Q3 2024 ($ million) | Q3 2023 ($ million) |
|---|---|---|
| Sales and Marketing | 32.3 | 33.7 |
| Research and Development | 23.0 | 19.8 |
| General and Administrative | 17.3 | 18.4 |
| Total Operating Expenses | 72.6 | 71.9 |
Cash Flow Analysis
For the nine months ending September 30, 2024, N-able generated net cash from operating activities of $53.5 million, a slight decrease from $58.9 million in the prior year. Key cash flow components are as follows:
| Cash Flow Type | 2024 ($ million) | 2023 ($ million) |
|---|---|---|
| Net Income | 27.7 | 14.1 |
| Depreciation and Amortization | 17.8 | 16.1 |
| Stock-Based Compensation Expense | 34.9 | 32.9 |
| Net Cash Provided by Operating Activities | 53.5 | 58.9 |
Debt and Liquidity
As of September 30, 2024, N-able's cash and cash equivalents totaled $174.4 million, with $167.1 million held internationally. The company’s outstanding debt included a term loan with an effective interest rate of 8.07%. The following table summarizes the future minimum principal payments under the credit agreement:
| Year | Payment ($ million) |
|---|---|
| 2024 | 0.875 |
| 2025 | 3.5 |
| 2026 | 3.5 |
| 2027 | 3.5 |
| 2028 | 328.125 |
| Total Minimum Principal Payments | 339.5 |
Stockholder Equity
N-able's total stockholders' equity as of September 30, 2024, was $764.9 million, an increase from $711.4 million at the end of 2023.
Market Presence
N-able's revenue sources are geographically diverse, with the United States contributing approximately 47.8% of total revenue for the nine months ended September 30, 2024, followed by the United Kingdom at 10.5%.
How N-able, Inc. (NABL) Makes Money
Revenue Breakdown
N-able, Inc. primarily generates revenue through subscription services, which accounted for 98.4% of total revenue for the nine months ended September 30, 2024. Total revenue for this period was approximately $349.6 million, an increase of 11.5% compared to the same period in 2023.
| Revenue Type | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Subscription Revenue | $343,928,000 | $306,005,000 | $37,923,000 |
| Other Revenue | $5,710,000 | $7,460,000 | ($1,750,000) |
| Total Revenue | $349,638,000 | $313,465,000 | $36,173,000 |
Geographic Revenue Distribution
For the nine months ended September 30, 2024, revenue distribution by geography was as follows:
| Geographic Area | Percentage of Total Revenue |
|---|---|
| United States | 47.8% |
| United Kingdom | 10.5% |
| Other Countries | 41.7% |
Subscription Revenue Growth
The increase in subscription revenue of $37.9 million or 12.4% is attributed to the growth in sales of data protection, security, and remote monitoring and management solutions.
Annual Recurring Revenue (ARR)
As of September 30, 2024, N-able had approximately 25,000 customers and 2,275 MSP partners with annualized recurring revenue (ARR) exceeding $50,000, representing a 6.6% increase from 2023.
Cost of Revenue
The total cost of revenue for the nine months ended September 30, 2024, was approximately $57.4 million, reflecting an increase of 13.4% from the prior year.
| Cost Type | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Cost of Revenue | $55,975,000 | $49,205,000 | $6,770,000 |
| Amortization of Acquired Technologies | $1,386,000 | $1,382,000 | $4,000 |
| Total Cost of Revenue | $57,361,000 | $50,587,000 | $6,774,000 |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were approximately $225.9 million, up from $214.4 million in 2023.
| Expense Type | 2024 (9 months) | 2023 (9 months) | Change |
|---|---|---|---|
| Sales and Marketing | $100,960,000 | $101,112,000 | ($152,000) |
| Research and Development | $67,468,000 | $58,796,000 | $8,672,000 |
| General and Administrative | $57,427,000 | $53,877,000 | $3,550,000 |
| Total Operating Expenses | $225,899,000 | $214,370,000 | $11,529,000 |
Profitability Metrics
For the three months ended September 30, 2024, N-able reported:
| Metric | 2024 | 2023 |
|---|---|---|
| Operating Income | $23,908,000 | $18,350,000 |
| Net Income | $10,757,000 | $6,013,000 |
| Net Income per Share (Diluted) | $0.06 | $0.03 |
Cash Flow
Cash flows from operations for the three months ended September 30, 2024, were approximately $22.0 million, down from $27.5 million in 2023.
Future Revenue Recognition
As of September 30, 2024, N-able expects to recognize the following amounts related to remaining performance obligations:
| Period | Expected Revenue Recognition |
|---|---|
| Less than 1 year | $119,801,000 |
| 1-3 years | $73,602,000 |
| More than 3 years | $0 |
| Total | $193,403,000 |
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Resources:
- N-able, Inc. (NABL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of N-able, Inc. (NABL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View N-able, Inc. (NABL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.