Exceeded Fourth Quarter Revenue Guidance,
Delivering 7% Year-Over-Year Growth
Full-Year 2025 Adjusted EBITDA Outlook of 27%
to 28%
Full-Year 2025 Constant Currency ARR Outlook of
7% to 9% Year-Over-Year Growth
N-able, Inc. (NYSE:NABL), a global software company helping IT
services providers deliver security, data protection as-a-service
and unified endpoint management, today reported results for its
fourth quarter and full year ended December 31, 2024.
“We closed 2024 in a position of strength and we believe we are
poised for even greater success in 2025,” said N-able president and
CEO John Pagliuca. “Businesses everywhere need cyber-resilience,
and we are investing to further our security leadership, deepen our
channel partnerships, and deliver the critical protection our
customers deserve. Our guide calls for over $500 million of ARR and
strong profit margins. We are executing at scale with a durable
business model.”
“N-able made considerable progress across the business in 2024,”
added N-able CFO Tim O’Brien. “Our product and go-to-market teams
executed critical initiatives, the strategic acquisition of Adlumin
expanded the aperture of our business, and we once again operated
above the Rule of 40. We firmly believe we have the right pieces in
place to win in our markets, and are investing to seize an
expanding market opportunity and scale N-able to new heights.”
Fourth quarter 2024 financial highlights:
- Total revenue of $116.5 million, representing 7.5%
year-over-year growth, or 7.5% year-over-year growth on a constant
currency basis.
- Subscription revenue of $115.0 million, representing 8.5%
year-over-year growth, or 8.5% year-over-year growth on a constant
currency basis.
- GAAP gross margin of 80.0% and non-GAAP gross margin of
82.3%.
- GAAP net income of $3.3 million, or $0.02 per diluted share,
and non-GAAP net income of $18.8 million, or $0.10 per diluted
share.
- Adjusted EBITDA of $38.1 million, representing an adjusted
EBITDA margin of 32.7%.
Full-year 2024 financial highlights:
- Total revenue of $466.1 million, representing 10.5%
year-over-year growth, or 10.2% year-over-year growth on a constant
currency basis.
- Subscription revenue of $459.0 million, representing 11.4%
year-over-year growth, or 11.1% year-over-year growth on a constant
currency basis.
- Total ARR of $482.5 million, representing 8.6% year-over-year
growth, or 10.3% year-over-year growth on a constant currency
basis.
- GAAP gross margin of 82.7% and non-GAAP gross margin of
83.8%.
- GAAP net income of $31.0 million, or $0.16 per diluted share,
and non-GAAP net income of $89.6 million, or $0.48 per diluted
share.
- Adjusted EBITDA of $169.4 million, representing an adjusted
EBITDA margin of 36.3%.
For a reconciliation of our GAAP to non-GAAP results, please see
the tables below.
Additional highlights for the fourth quarter of 2024
include:
- N‑able acquires existing strategic partner Adlumin, adding
cloud-native XDR and MDR capabilities to its end-to-end security
and IT management platform. The acquisition will allow N‑able to
incorporate Adlumin’s innovative technology with N‑able’s
industry-leading platform that combines security, data
protection-as-a-service and unified endpoint management. This
powerful combination positions N‑able to deliver deeper insights
and remediation across the entire IT environment—advancing the
evolution of N‑able’s cybersecurity portfolio.
- N-able adds key hires to further strengthen its Channel
strategy. The addition of Jonathan Bartholomew, Vice President of
Channel Sales; Paul Monaghan, Vice President of EMEA Sales; and
Andy Hudson, Vice President of International Marketing, underscore
the expanding support N‑able has for the rapidly growing IT
services market and its multi-layered channel with an active
presence in over 140 countries.
Balance Sheet
As of December 31, 2024, total cash and cash equivalents were
$85.2 million and total debt, net of debt issuance costs, was
$333.1 million.
The financial results included in this press release are
preliminary and pending final review by the company and its
external auditors. Financial results will not be final until N-able
files its annual report on Form 10-K for the period. Information
about N-able's use of non-GAAP financial measures is provided below
under “Non-GAAP Financial Measures.”
Financial Outlook
As of March 3, 2025, N-able is providing its financial outlook
for the first quarter of 2025 and full-year 2025. The financial
information below represents forward-looking non-GAAP financial
information, including adjusted EBITDA. These non-GAAP financial
measures exclude, among other items mentioned below, amortization
of acquired intangible assets and developed technology,
depreciation expense, income tax expense, interest expense, net,
unrealized foreign currency (gains) losses, transaction related
costs, spin-off costs, stock-based compensation expense and related
employer-paid payroll taxes and restructuring and other costs. We
have not reconciled our estimates of these non-GAAP financial
measures to their most directly comparable GAAP measure as a result
of uncertainty regarding, and the potential variability of, these
excluded items in future periods. Accordingly, reconciliation is
not available without unreasonable effort, although it is important
to note that these excluded items could be material to our results
computed in accordance with GAAP in future periods. Our reported
results provide reconciliations of non-GAAP financial measures to
their nearest GAAP equivalents.
The financial outlook provided below reflects N-able's
expectations, as of the date of this release, regarding the impact
on its business of changing foreign exchange rates and current
macroeconomic dynamics.
Financial Outlook for the First Quarter of 2025
N-able management currently expects to achieve the following
results for the first quarter of 2025:
- Total revenue in the range of $115.0 to $116.0 million,
representing approximately 1% to 2% year-over-year growth, or
approximately 3% to 4% growth on a constant currency basis.
- Adjusted EBITDA in the range of $27.5 to $28.5 million,
representing approximately 24% to 25% of total revenue.
Financial Outlook for Full-Year 2025
N-able management currently expects to achieve the following
results for the full-year 2025:
- Total ARR in the range of $514.0 to $522.0 million,
representing 7% to 8% year-over-year growth, or approximately 7% to
9% growth on a constant currency basis.
- Total revenue in the range of $486.5 to $492.5 million,
representing approximately 4% to 6% year-over-year growth, or
approximately 6% to 8% growth on a constant currency basis.
- Adjusted EBITDA in the range of $132.0 to $138.0 million,
representing approximately 27% to 28% of total revenue.
Additional details on the company's outlook will be provided on
the conference call.
Conference Call and Webcast
In conjunction with this announcement, N-able will host a
conference call today to discuss its financial results, business
and business outlook at 8:30 a.m. ET on March 3, 2025. A live
webcast of the call will be available on the N-able Investor
Relations website at http://investors.n-able.com. A replay of the
webcast will be available on a temporary basis shortly after the
event on the N-able Investor Relations website.
Forward-Looking Statements
This press release contains “forward-looking” statements, which
are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, including statements regarding our
financial outlook for the fourth quarter and full-year 2024 and the
impact of macroeconomic conditions on our business. These
forward-looking statements are based on management's beliefs and
assumptions and on information currently available to management.
Forward-looking statements include all statements that are not
historical facts and may be signified by terms such as “aim,”
“anticipate,” “believe,” “continue,” “expect,” “feel,” “intend,”
“estimate,” “seek,” “plan,” “may,” “can,” “could,” “should,”
“will,” “would” or similar expressions and the negatives of those
terms. Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially and adversely
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Factors
that could cause or contribute to such differences include, but are
not limited to, the following: (a) the impact of adverse economic
conditions; (b) our ability to sell subscriptions to new customers,
to sell additional solutions to our existing customers and to
increase the usage of our solutions by our existing customers, as
well as our ability to generate and maintain customer loyalty; (c)
any decline in our renewal or net retention rates; (d) the
possibility that general economic, political, legal and regulatory
conditions and uncertainty may cause information technology
spending to be reduced or purchasing decisions to be delayed,
including as a result of inflation, actions taken by central banks
to counter inflation, rising interest rates, war and political
unrest, military conflict (including between Russia and Ukraine and
in the Middle East), terrorism, sanctions, trade or other issues in
the U.S. and internationally, including increased tariffs or trade
wars, or other geopolitical events globally, or that such factors
may otherwise harm our business, financial condition or results of
operations; (e) any inability to generate significant volumes of
high-quality sales leads from our digital marketing initiatives and
convert such leads into new business at acceptable conversion
rates; (f) any inability to successfully identify, complete and
integrate acquisitions and manage our growth effectively; (g) any
inability to resell third-party software or integrate third-party
software into our solutions, or find suitable replacements for such
third-party software; (h) risks associated with our international
operations; (i) foreign exchange gains and losses related to
expenses and sales denominated in currencies other than the
functional currency of an associated entity; (j) risks that
cyberattacks, including the cyberattack on SolarWinds’ Orion
Software Platform and internal systems announced by SolarWinds in
December 2020 (the “Cyber Incident”), and other security incidents
may result in compromises or breaches of our, our customers’, or
their SMB and mid-market customers’ systems, the insertion of
malicious code, malware, ransomware or other vulnerabilities into
our, our customers’, or their SMB and mid-market customers’
environments, the exploitation of vulnerabilities in our, our
customers’, or their SMB and mid-market customers’ security, the
theft or misappropriation of our, our customers’, or their SMB and
mid-market customers’ proprietary and confidential information, and
interference with our, our customers’, or their SMB and mid-market
customers’ operations, exposure to legal and other liabilities,
higher customer and employee attrition and the loss of key
personnel, negative impacts to our sales, renewals and upgrades and
reputational harm and other serious negative consequences, any or
all of which could materially harm our business; (k) our status as
a controlled company; (l) our ability to attract and retain
qualified employees and key personnel; (m) the timing and success
of new product introductions and product upgrades by us or our
competitors; (n) our ability to maintain or grow our brands,
including the Adlumin brand; (o) our ability to protect and defend
our intellectual property and not infringe upon others’
intellectual property; (p) the possibility that our operating
income could fluctuate and may decline as a percentage of revenue
as we make further expenditures to expand our operations in order
to support growth in our business; (q) our indebtedness, including
increased borrowing costs resulting from rising interest rates,
potential restrictions on our operations and the impact of events
of default; (r) our ability to operate our business internationally
and increase sales of our solutions to our customers located
outside of the United States; (s) risks related to our spin-off
from SolarWinds into a newly created and separately-traded public
company, including that the spin-off may not achieve some or all of
any anticipated benefits with respect to our business; that the
distribution, together with certain related transactions, may not
qualify as a transaction that is generally tax-free for U.S.
federal income tax purposes, which could result in N-able incurring
significant tax liabilities, and, in certain circumstances,
requiring us to indemnify SolarWinds for material taxes and other
related amounts pursuant to indemnification obligations under the
tax matters agreement; and (t) such other risks and uncertainties
described more fully in documents filed with or furnished to the
Securities and Exchange Commission, including the risk factors
described in N-able’s Annual Report on Form 10-K for the year ended
December 31, 2023, that N-able filed with the SEC on February 29,
2024, and those that will be described in N-able’s Annual Report on
Form 10-K for the year ended December 31, 2024, that N-able
anticipates filing on or about March 3, 2025. All information
provided in this release is as of the date hereof and N-able
undertakes no duty to update this information except as required by
law.
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
GAAP, we use certain non-GAAP financial measures to clarify and
enhance our understanding, and aid in the period-to-period
comparison, of our performance. We believe that these non-GAAP
financial measures provide supplemental information that is
meaningful when assessing our operating performance because they
exclude the impact of certain amounts that our management and board
of directors do not consider part of core operating results when
assessing our operational performance, allocating resources,
preparing annual budgets and determining compensation. Accordingly,
these non-GAAP financial measures may provide insight to investors
into the motivation and decision-making of management in operating
the business.
N-able also believes that these non-GAAP financial measures are
used by investors and securities analysts to (a) compare and
evaluate its performance from period to period and (b) compare its
performance to those of its competitors. These non-GAAP measures
exclude certain items that can vary substantially from company to
company depending upon their financing and accounting methods, the
book value of their assets, their capital structures and the method
by which their assets were acquired.
As a result, these non-GAAP financial measures have limitations
and should not be considered in isolation from, or as a substitute
for, their most comparable GAAP measures. These non-GAAP financial
measures are not prepared in accordance with GAAP, do not reflect a
comprehensive system of accounting and may not be completely
comparable to similarly titled measures of other companies due to
potential differences in the exact method of calculation between
companies. Certain items that are excluded from these non-GAAP
financial measures can have a material impact on operating and net
income.
N-able's management and board of directors compensate for these
limitations by using these non-GAAP financial measures as
supplements to GAAP financial measures and by reviewing the
reconciliations of the non-GAAP financial measures to their most
comparable GAAP financial measure. Set forth in the tables below
are the corresponding GAAP financial measures for each non-GAAP
financial measure presented. Investors are encouraged to review the
reconciliations of these non-GAAP financial measures to their most
comparable GAAP financial measures that are set forth in the tables
below.
Definitions of Non-GAAP and Other Metrics
Annual Recurring Revenue (ARR). We calculate ARR by
annualizing the recurring revenue and related usage revenue
inclusive of discounts, excluding the impacts of credits and
reserves, recognized during the last day of the reporting period
from both long-term and month-to-month subscriptions. We believe
ARR enhances the understanding of our business performance and the
growth of our relationships with our customers.
Non-GAAP Gross Margin, Non-GAAP Operating Income and Non-GAAP
Operating Margin. We provide non-GAAP total cost of revenue,
non-GAAP gross margin, non-GAAP operating expense and non-GAAP
operating income and related non-GAAP gross and operating margins
excluding such items as stock-based compensation expense and
related employer-paid payroll taxes, amortization of acquired
intangible assets, transaction related costs, spin-off costs and
restructuring costs and other. We define non-GAAP gross and
operating margins as non-GAAP gross profit and operating income
divided by total revenue. Management believes these measures are
useful for the following reasons:
- Stock-Based Compensation Expense and Related Employer-Paid
Payroll Taxes. We provide non-GAAP information that excludes
expenses related to stock-based compensation and related
employer-paid payroll taxes associated with our employees’
participation in N-able's stock-based incentive compensation plans.
We believe that the exclusion of stock-based compensation expense
provides for a better comparison of our operating results to prior
periods and to our peer companies as the calculations of
stock-based compensation vary from period to period and company to
company due to different valuation methodologies, subjective
assumptions and the variety of award types. Employer-paid payroll
taxes on stock-based compensation is dependent on our stock price
and the timing of the taxable events related to the equity awards,
over which our management has little control, and does not
necessarily correlate to the core operation of our business.
Because of these unique characteristics of stock-based compensation
and related employer-paid payroll taxes, management excludes these
expenses when analyzing the organization’s business
performance.
- Amortization of Acquired Technologies and Intangible Assets. We
provide non-GAAP information that excludes expenses related to
purchased technologies and intangible assets associated with our
acquisitions. We believe that eliminating this expense from our
non-GAAP measures is useful to investors because the amortization
of acquired technologies and intangible assets can be inconsistent
in amount and frequency and is significantly impacted by the timing
and magnitude of our acquisition transactions, which also vary in
frequency from period to period. Accordingly, we analyze the
performance of our operations in each period without regard to such
expenses.
- Transaction Related Costs. We exclude certain expense items
resulting from proposed and completed acquisitions, dispositions
and similar transactions, such as legal, accounting and advisory
fees, changes in fair value of contingent consideration, costs
related to integrating the acquired businesses, deferred
compensation, severance and retention expense. We consider these
adjustments, to some extent, to be unpredictable and dependent on a
significant number of factors that are outside of our control.
Furthermore, such proposed and completed transactions result in
operating expenses that would not otherwise have been incurred by
us in the normal course of our organic business operations. We
believe that providing non-GAAP measures that exclude transaction
related costs allows investors to better review and understand the
historical and current results of our continuing operations and
also facilitates comparisons to our historical results and results
of peer companies with different transaction related activities,
both with and without such adjustments.
- Spin-off Costs. We exclude certain expense items resulting from
the spin-off into a newly created and separately traded public
company. These costs include legal, accounting and advisory fees,
system implementation costs and other incremental costs incurred by
us related to the separation from SolarWinds. The spin-off
transaction results in operating expenses that would not otherwise
have been incurred by us in the normal course of our organic
business operations. We believe that providing non-GAAP measures
that exclude these costs facilitates a more meaningful evaluation
of our operating performance and comparisons to our past operating
performance.
- Restructuring Costs and Other. We provide non-GAAP information
that excludes restructuring costs such as severance, certain
employee relocation costs, and the estimated costs of exiting and
terminating facility lease commitments, as they relate to our
corporate restructuring and exit activities. These costs are
inconsistent in amount and are significantly impacted by the timing
and nature of these events. Therefore, although we may incur these
types of expenses in the future, we believe that eliminating these
costs for purposes of calculating the non-GAAP financial measures
facilitates a more meaningful evaluation of our operating
performance and comparisons to our past operating performance.
Non-GAAP Net Income and Non-GAAP Net Income Per Diluted
Share. We believe that the use of non-GAAP net income and
non-GAAP net income per diluted share is helpful to our investors
to clarify and enhance their understanding of past performance and
future prospects. Non-GAAP net income is calculated as net income
excluding the adjustments to non-GAAP gross profit and non-GAAP
operating income and the income tax effect of the non-GAAP
exclusions. We define non-GAAP net income per diluted share as
non-GAAP net income divided by the weighted average outstanding
common shares.
Adjusted EBITDA and Adjusted EBITDA Margin. We regularly
monitor adjusted EBITDA and adjusted EBITDA margin, as they are
measures we use to assess our operating performance. We define
adjusted EBITDA as net income or loss, excluding amortization of
acquired intangible assets and developed technology, depreciation
expense, income tax expense, interest expense, net, unrealized
foreign currency (gains) losses, transaction related costs,
spin-off costs, stock-based compensation expense and related
employer-paid payroll taxes and restructuring and other costs. We
define adjusted EBITDA margin as adjusted EBITDA divided by total
revenue. Adjusted EBITDA has limitations as an analytical tool, and
you should not consider it in isolation or as a substitute for
analysis of our results as reported under GAAP. Some of these
limitations include: although depreciation and amortization are
non-cash charges, the assets being depreciated and amortized may
have to be replaced in the future, and adjusted EBITDA does not
reflect cash capital expenditure requirements for such replacements
or for new capital expenditure requirements; adjusted EBITDA does
not reflect changes in, or cash requirements for, our working
capital needs; adjusted EBITDA does not reflect the significant
interest expense, or the cash requirements necessary to service
interest or principal payments, on our related party debt; adjusted
EBITDA does not reflect tax payments that may represent a reduction
in cash available to us; and other companies, including companies
in our industry, may calculate adjusted EBITDA differently, which
reduces its usefulness as a comparative measure.
Non-GAAP Revenue on a Constant Currency Basis. We provide
non-GAAP revenue on a constant currency basis to provide a
framework for assessing our performance excluding the effect of
foreign currency rate fluctuations. To present this information,
current period results for revenue contracts denominated in
currencies other than U.S. Dollars are converted into U.S. Dollars
at the average exchange rates in effect during the corresponding
prior period presented. We believe that providing non-GAAP revenue
on a constant currency basis facilitates the comparison of non-GAAP
revenue to prior periods.
Unlevered Free Cash Flow. Unlevered free cash flow is a
measure of our liquidity used by management to evaluate cash flow
from operations, after the deduction of capital expenditures and
prior to the impact of our capital structure, transaction related
costs, restructuring costs, spin-off costs, employer-paid payroll
taxes on stock awards and other one-time items, that can be used by
us for strategic opportunities and strengthening our balance sheet.
However, given our debt obligations, unlevered free cash flow does
not represent residual cash flow available for discretionary
expenses.
About N-able
N-able fuels IT services providers with powerful software
solutions to monitor, manage, and secure their customers’ systems,
data, and networks. Built on a scalable platform, we offer secure
infrastructure and tools to simplify complex ecosystems, as well as
resources to navigate evolving IT needs. We help partners excel at
every stage of growth, protect their customers, and expand their
offerings with an ever-increasing, flexible portfolio of
integrations from leading technology providers. n-able.com
© 2025 N-able, Inc. All rights reserved.
Category: Financial
N-able, Inc.
Consolidated Balance
Sheets
(In thousands)
(Unaudited)
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
85,196
$
153,048
Accounts receivable, net of allowances of
$886 and $1,171 as of December 31, 2024 and 2023, respectively
44,909
40,013
Income tax receivable
3,563
8,001
Recoverable taxes
24,157
12,116
Current contract assets
12,786
1,124
Prepaid and other current assets
13,312
10,489
Total current assets
183,923
224,791
Property and equipment, net
36,162
36,838
Operating lease right-of-use assets
27,998
32,067
Deferred taxes
2,026
1,087
Goodwill
977,013
838,497
Intangible assets, net
83,150
6,717
Other assets, net
28,575
22,794
Total assets
$
1,338,847
$
1,162,791
Liabilities and stockholders' equity
Current liabilities:
Accounts payable
$
6,290
$
5,239
Accrued liabilities and other
56,557
49,366
Current deferred consideration
44,023
—
Current operating lease liabilities
6,018
6,443
Income taxes payable
9,733
4,523
Current portion of deferred revenue
23,977
12,646
Current debt obligation
3,500
3,500
Total current liabilities
150,098
81,717
Long-term liabilities:
Deferred revenue, net of current
portion
2,996
167
Non-current deferred taxes
3,448
1,820
Non-current operating lease
liabilities
30,069
33,064
Long-term debt, net of current portion
329,606
331,509
Non-current deferred consideration
54,089
—
Other long-term liabilities
9,253
3,154
Total liabilities
579,559
451,431
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.001 par value:
550,000,000 shares authorized and 187,528,505 and 183,220,689
shares issued and outstanding as of December 31, 2024 and 2023,
respectively
187
183
Preferred stock, $0.001 par value:
50,000,000 shares authorized and no shares issued and outstanding
as of December 31, 2024 and 2023, respectively
—
—
Additional paid-in capital
708,992
666,522
Accumulated other comprehensive (loss)
income
(21,095
)
4,409
Retained earnings
71,204
40,246
Total stockholders' equity
759,288
711,360
Total liabilities and stockholders'
equity
$
1,338,847
$
1,162,791
N-able, Inc.
Consolidated Statements of
Operations
(In thousands, except per
share information)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Revenue:
Subscription and other revenue
$
116,509
$
108,415
$
466,147
$
421,880
Cost of revenue:
Cost of revenue
21,184
17,164
77,159
66,369
Amortization of acquired technologies
2,134
457
3,520
1,839
Total cost of revenue
23,318
17,621
80,679
68,208
Gross profit
93,191
90,794
385,468
353,672
Operating expenses:
Sales and marketing
34,632
33,579
135,592
134,691
Research and development
23,246
19,384
90,714
78,180
General and administrative
19,087
16,008
76,514
69,885
Amortization of acquired intangibles
234
12
278
597
Total operating expenses
77,199
68,983
303,098
283,353
Operating income
15,992
21,811
82,370
70,319
Other expense:
Interest expense, net
(7,269
)
(7,720
)
(30,031
)
(30,252
)
Other (expense) income, net
(1,765
)
2,690
1,931
4,259
Total other expense, net
(9,034
)
(5,030
)
(28,100
)
(25,993
)
Income before income taxes
6,958
16,781
54,270
44,326
Income tax expense
3,668
7,430
23,312
20,914
Net income
$
3,290
$
9,351
$
30,958
$
23,412
Net income per share:
Basic earnings per share
$
0.02
$
0.05
$
0.17
$
0.13
Diluted earnings per share
$
0.02
$
0.05
$
0.16
$
0.13
Weighted-average shares used to compute
net income per share:
Shares used in computation of basic
earnings per share
186,571
183,072
185,277
182,371
Shares used in computation of diluted
earnings per share
188,349
186,495
188,426
185,980
N-able, Inc.
Consolidated Statements of
Cash Flows
(In thousands)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31, 2024
2024
2023
2024
2023
Cash flows from operating activities
Net income
$
3,290
$
9,351
$
30,958
$
23,412
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
7,948
5,481
25,725
21,623
Benefit from doubtful accounts
(213
)
(546
)
(285
)
(159
)
Stock-based compensation expense
10,488
10,677
45,351
43,570
Deferred taxes
(2,041
)
350
(1,952
)
330
Amortization of debt issuance costs
400
404
1,598
1,601
Operating lease right-of-use assets,
net
386
(500
)
438
(1,550
)
Loss (gain) on foreign currency exchange
rates
2,009
(1,779
)
2,702
358
Gain on contingent consideration
(2,570
)
(485
)
(6,281
)
(1,443
)
Deferred consideration expense
1,843
—
1,843
—
Loss on lease modification
4
—
1,063
—
Other non-cash expenses
(247
)
92
(263
)
220
Changes in operating assets and
liabilities, net of assets acquired and liabilities assumed in
business combinations:
Accounts receivable
(1,290
)
(939
)
(2,131
)
(7,060
)
Income tax receivable
11,573
8,700
4,685
(174
)
Recoverable taxes
(3,227
)
(4,633
)
(12,965
)
(11,392
)
Current contract assets
3,466
(417
)
(11,430
)
(894
)
Prepaid expenses and other assets
3,478
2,248
(1,253
)
1,463
Accounts payable
(1,612
)
1,451
(461
)
1,833
Accrued liabilities and other
2,437
7,381
630
16,065
Income taxes payable
(11,012
)
(6,525
)
4,881
2,966
Deferred revenue
3,903
1,127
2,261
684
Other long-term assets
(3,103
)
(68
)
(5,721
)
(1,274
)
Other long-term liabilities
76
(150
)
44
(90
)
Net cash provided by operating
activities
25,986
31,220
79,437
90,089
Cash flows from investing activities
Purchases of property and equipment
(7,150
)
(3,293
)
(17,570
)
(13,780
)
Purchases of intangible assets
(991
)
(1,881
)
(6,157
)
(8,556
)
Acquisitions, net of cash acquired
(98,694
)
—
(98,694
)
—
Net cash used in investing activities
(106,835
)
(5,174
)
(122,421
)
(22,336
)
Cash flows from financing activities
Payments of tax withholding obligations
related to restricted stock units
(2,324
)
(1,748
)
(20,489
)
(11,976
)
Exercise of stock options
—
—
12
72
Proceeds from issuance of common stock
under employee stock purchase plan
—
—
2,382
1,681
Deferred acquisition payments
—
(600
)
(1,000
)
(1,450
)
Repayments of borrowings from Credit
Agreement
(875
)
(875
)
(3,500
)
(3,500
)
Net cash used in financing activities
(3,199
)
(3,223
)
(22,595
)
(15,173
)
Effect of exchange rate changes on cash
and cash equivalents
(5,201
)
2,792
(2,273
)
1,621
Net (decrease) increase in cash and cash
equivalents
(89,249
)
25,615
(67,852
)
54,201
Cash and cash equivalents
Beginning of period
174,445
127,433
153,048
98,847
End of period
$
85,196
$
153,048
$
85,196
$
153,048
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
6,930
$
7,318
$
28,690
$
28,437
Cash paid for income taxes
$
4,610
$
3,888
$
12,772
$
14,934
Supplemental disclosure of non-cash
activities:
Change in purchases of property, equipment
and leasehold improvements included in accounts payable and accrued
expenses
$
22
$
175
$
24
$
(378
)
Right-of-use assets obtained in exchange
for operating lease liabilities
$
—
$
2,805
$
2,628
$
5,123
Non-cash consideration exchanged in
business combinations
$
14,678
$
—
$
14,678
$
—
N-able, Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(In thousands, except per
share information)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
GAAP cost of revenue
$
23,318
$
17,621
$
80,679
$
68,208
Stock-based compensation expense and
related employer-paid payroll taxes
(411
)
(363
)
(1,715
)
(1,434
)
Amortization of acquired technologies
(2,134
)
(457
)
(3,520
)
(1,839
)
Transaction related costs
(28
)
—
(28
)
—
Restructuring costs and other
(76
)
(36
)
(76
)
(74
)
Non-GAAP cost of revenue
$
20,669
$
16,765
$
75,340
$
64,861
GAAP gross profit
$
93,191
$
90,794
$
385,468
$
353,672
Stock-based compensation expense and
related employer-paid payroll taxes
411
363
1,715
1,434
Amortization of acquired technologies
2,134
457
3,520
1,839
Transaction related costs
28
—
28
—
Restructuring costs and other
76
36
76
74
Non-GAAP gross profit
$
95,840
$
91,650
$
390,807
$
357,019
GAAP sales and marketing expense
$
34,632
$
33,579
$
135,592
$
134,691
Stock-based compensation expense and
related employer-paid payroll taxes
(3,689
)
(3,715
)
(15,836
)
(15,287
)
Transaction related costs
(154
)
4
(213
)
(24
)
Restructuring costs and other
(165
)
(263
)
(583
)
(290
)
Non-GAAP sales and marketing expense
$
30,624
$
29,605
$
118,960
$
119,090
GAAP research and development expense
$
23,246
$
19,384
$
90,714
$
78,180
Stock-based compensation expense and
related employer-paid payroll taxes
(2,634
)
(2,225
)
(10,886
)
(8,995
)
Transaction related costs
(285
)
—
(330
)
(8
)
Restructuring costs and other
(348
)
(87
)
(442
)
(926
)
Non-GAAP research and development
expense
$
19,979
$
17,072
$
79,056
$
68,251
GAAP general and administrative
expense
$
19,087
$
16,008
$
76,514
$
69,885
Stock-based compensation expense and
related employer-paid payroll taxes
(4,058
)
(4,565
)
(19,304
)
(19,377
)
Transaction related costs
(1,967
)
474
(3,575
)
1,128
Restructuring costs and other
(147
)
(109
)
(3,660
)
(823
)
Spin-off costs
—
(112
)
(51
)
(735
)
Non-GAAP general and administrative
expense
$
12,915
$
11,696
$
49,924
$
50,078
GAAP operating income
$
15,992
$
21,811
$
82,370
$
70,319
Amortization of acquired technologies
2,134
457
3,520
1,839
Amortization of acquired intangibles
234
12
278
597
Stock-based compensation expense and
related employer-paid payroll taxes
10,791
10,868
47,741
45,093
Transaction related costs
2,434
(478
)
4,146
(1,096
)
Restructuring costs and other
736
495
4,761
2,113
Spin-off costs
—
112
51
735
Non-GAAP operating income
$
32,321
$
33,277
$
142,867
$
119,600
GAAP operating margin
13.7
%
20.1
%
17.7
%
16.7
%
Non-GAAP operating margin
27.7
%
30.7
%
30.6
%
28.3
%
GAAP net income
$
3,290
$
9,351
$
30,958
$
23,412
Amortization of acquired technologies
2,134
457
3,520
1,839
Amortization of acquired intangibles
234
12
278
597
Stock-based compensation expense and
related employer-paid payroll taxes
10,791
10,868
47,741
45,093
Transaction related costs
2,434
(478
)
4,146
(1,096
)
Restructuring costs and other
736
495
4,761
2,113
Spin-off costs
—
112
51
735
Tax benefits associated with above
adjustments (1)
(781
)
(992
)
(1,885
)
(4,472
)
Non-GAAP net income
$
18,838
$
19,825
$
89,570
$
68,221
GAAP diluted earnings per share
$
0.02
$
0.05
$
0.16
$
0.13
Non-GAAP diluted earnings per share
$
0.10
$
0.11
$
0.48
$
0.37
Shares used in computation of diluted
earnings per share:
188,349
186,495
188,426
185,980
_________________
(1) The tax benefits associated with
non-GAAP adjustments for the three and twelve months ended December
31 2024, and 2023, respectively, is calculated utilizing the
Company's individual statutory tax rates for each impacted
subsidiary.
N-able, Inc.
Reconciliation of GAAP Net
Income to Adjusted EBITDA
(In thousands)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Net income
$
3,290
$
9,351
$
30,958
$
23,412
Amortization
3,929
1,571
9,769
6,396
Depreciation
4,018
3,910
15,956
15,227
Income tax expense
3,668
7,430
23,312
20,914
Interest expense, net
7,269
7,720
30,031
30,252
Unrealized foreign currency losses
(gains)
2,009
(1,779
)
2,702
358
Transaction related costs
2,434
(478
)
4,146
(1,096
)
Spin-off costs
—
112
51
735
Stock-based compensation expense and
related employer-paid payroll taxes
10,791
10,868
47,741
45,093
Restructuring costs and other
736
495
4,761
2,113
Adjusted EBITDA
$
38,144
$
39,200
$
169,427
$
143,404
Adjusted EBITDA margin
32.7
%
36.2
%
36.3
%
34.0
%
N-able, Inc.
Reconciliation of GAAP Revenue
to Non-GAAP Revenue on a Constant Currency Basis
(In thousands, except
percentages)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
Growth Rate
2024
2023
Growth Rate
GAAP subscription revenue
$
115,033
$
106,067
8.5
%
$
458,961
$
412,072
11.4
%
Estimated foreign currency impact (1)
17
—
—
(1,048
)
—
(0.3
)
Non-GAAP subscription revenue on a
constant currency basis
$
115,050
$
106,067
8.5
%
$
457,913
$
412,072
11.1
%
GAAP other revenue
$
1,476
$
2,348
(37.1
)%
$
7,186
$
9,808
(26.7
)%
Estimated foreign currency impact (1)
(1
)
—
—
6
—
—
Non-GAAP other revenue on a constant
currency basis
$
1,475
$
2,348
(37.2
)%
$
7,192
$
9,808
(26.7
)%
GAAP subscription and other revenue
$
116,509
$
108,415
7.5
%
$
466,147
$
421,880
10.5
%
Estimated foreign currency impact (1)
16
—
—
(1,042
)
—
(0.3
)
Non-GAAP subscription and other revenue on
a constant currency basis
$
116,525
$
108,415
7.5
%
$
465,105
$
421,880
10.2
%
_________________
(1) The estimated foreign currency impact
is calculated using the average foreign currency exchange rates in
the comparable prior year monthly periods and applying those rates
to foreign-denominated revenue in the corresponding monthly periods
for the three and twelve months ended December 31, 2024.
N-able, Inc.
Reconciliation of Unlevered
Free Cash Flow
(In thousands)
(Unaudited)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
25,986
$
31,220
$
79,437
$
90,089
Purchases of property and equipment
(7,150
)
(3,293
)
(17,570
)
(13,780
)
Purchases of intangible assets
(991
)
(1,881
)
(6,157
)
(8,556
)
Free cash flow
17,845
26,046
55,710
67,753
Cash paid for interest, net of cash
interest received
6,930
7,318
28,690
28,437
Cash paid for transaction related costs,
restructuring costs, spin-off costs, employer-paid payroll taxes on
stock awards and other one-time items
4,196
1,243
14,280
6,128
Unlevered free cash flow
$
28,971
$
34,607
$
98,680
$
102,318
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250302816735/en/
Investors: Griffin Gyr ir@n-able.com Media: Kim
Cecchini Phone: 202.391.5205 pr@n-able.com
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