The following is a summary of the N-able, Inc. (NABL) Q3 2024 Earnings Call Transcript:
Financial Performance:
N-able reported Q3 2024 revenue of $116.4 million, an 8% year-over-year growth reported and 7% on a constant currency basis.
Subscription revenue was $115 million, showing roughly 9% year-over-year growth reported and 8% on a constant currency basis.
Adjusted EBITDA was $44.8 million, up approximately 23% year-over-year, and represented a 39% adjusted EBITDA margin.Unlevered free cash flow was $27 million in the quarter, while gross margin was 83.7% compared to 84.6% in the same period in 2023.
Business Progress:
N-able enhanced its Cove Data Protection offering and expanded its Ecoverse vision with a new unified agent on over 1 million devices.
The company reached over 15 million API calls across 25% of its N-central SaaS customers and expanded API and data analytics capabilities.
Achieved a cybersecurity maturity model certification and passed a SOC2 audit.
Maintained a strong channel presence with positive feedback on Ecoverse vision and connection with channel partners at the major distributor conference in Dubai.
Opportunities:
Strong market growth in data protection and security sectors with projected double-digit growth rates for cloud backup.
Emerging demand for managed services among SMEs, further emphasized by robust tailwinds in the cybersecurity resilience sector.
Expansion strategies include entering natural adjacencies, leveraging high demand for services such as IT management and backup systems for SMEs through managed service providers.
Risks:
Short-term financial pressure from customers optimizing estates before entering long-term contracts.
Trend of high inflation affecting pricing resulting in temporary financial headwinds.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
