N-able Inc (NABL) Q1 2024 Earnings: Solid Revenue Growth and Raised Full-Year Outlook
Revenue: $113.7 million, marking a 14% increase year-over-year, slightly *below* estimates of $115.33 million.
Net Income: GAAP net income of $7.5 million, significantly *above* the non-GAAP net income of $19.8 million which surpassed estimates of $18.66 million.
Earnings Per Share (EPS): Non-GAAP EPS of $0.11 per diluted share, exceeding the estimated $0.10.
Adjusted EBITDA: Rose to $39.6 million, up 21% year-over-year, with an adjusted EBITDA margin of 34.8%.
Gross Margin: Non-GAAP gross margin improved to 84.7%, reflecting efficient cost management.
Subscription Revenue: Grew by 14.4% to $111.5 million, demonstrating strong recurring revenue streams.
Full-Year Outlook: Raised revenue forecast to $462.0 to $465.0 million and adjusted EBITDA outlook to $162.0 to $165.0 million, indicating confidence in sustained growth.
N-able Inc (NYSE:NABL), a leading provider of cloud-based software solutions for managed service providers (MSPs), announced its financial results for the first quarter ended March 31, 2024. The company released its findings in an 8-K filing on May 9, 2024, showcasing a year-over-year revenue increase of 14% and a significant raise in its full-year 2024 outlook.
N-able Inc is renowned for its comprehensive suite of software solutions designed to support MSPs in managing and securing IT systems for small and medium-sized enterprises. Primarily operating in the United States, with additional presence in the United Kingdom and other international markets, N-able leverages its technology platform to facilitate digital transformation and growth across diverse IT environments.
Financial Highlights and Strategic Achievements
The company reported a robust first-quarter revenue of $113.7 million, slightly missing the analyst estimate of $115.33 million but still demonstrating strong growth. Subscription revenue, which forms the core of N-able's business model, grew by 14.4% year-over-year to $111.5 million. This growth underscores the increasing reliance of MSPs on N-ables solutions amid growing complexities in IT management.
The adjusted EBITDA for the quarter stood at $39.6 million, marking a 21% increase from the previous year and reflecting an adjusted EBITDA margin of 34.8%. This profitability metric is crucial as it illustrates the company's efficiency in managing its operating costs while scaling its revenue.
N-able also reported a GAAP net income of $7.5 million, translating to $0.04 per diluted share, and a non-GAAP net income of $19.8 million, or $0.11 per diluted share, which aligns with the estimated earnings per share of $0.10.
Operational and Market Developments
During the quarter, N-able was recognized with a 5-Star rating by CRN, a testament to its excellence in fostering strong, profitable channel partnerships. The company also hosted its annual Empower customer conference, unveiling its Ecoverse vision aimed at harmonizing IT management through a unified ecosystem.
In addition, N-able launched the Coves Master of Disaster Recovery Class to prepare MSPs for disaster scenarios, reflecting its commitment to empowering partners with critical skills and knowledge.
Financial Outlook and Analyst Perspectives
Looking ahead, N-able has raised its full-year 2024 revenue outlook to a range of $462.0 to $465.0 million, representing approximately 10% to 11% year-over-year growth. This updated guidance indicates managements confidence in the companys growth trajectory and operational efficiency.
The company's forward-looking statements also project an adjusted EBITDA ranging from $162.0 to $165.0 million for the full year, emphasizing an expected continuation of robust profit margins.
Conclusion
N-able Inc's first-quarter results not only demonstrate a strong start to 2024 but also highlight the company's strategic initiatives that are resonating well with its customer base. With a raised outlook and continuous innovation, N-able is well-positioned to maintain its leadership in providing critical IT management solutions to MSPs globally.
Investors and stakeholders can anticipate further developments and detailed discussions during N-ables conference call, scheduled for today at 8:30 a.m. ET. The call will be accessible via a live webcast on the N-able Investor Relations website.
Explore the complete 8-K earnings release (here) from N-able Inc for further details.
This article first appeared on GuruFocus.
