Q2 2024 N-Able Inc Earnings Call Transcript
Key Points
- N-able Inc (NABL) exceeded the high end of their top and bottom-line guidance for the second quarter of 2024.
- Revenue grew approximately 13% year over year, reaching $119.4 million.
- The company achieved an adjusted EBITDA of $46.8 million, representing a margin of 39%.
- N-able Inc (NABL) has successfully transitioned approximately 40% of its revenue to long-term contracts, aiming for most revenue to be long-term committed by the end of the year.
- The company's security solutions, including MDR and EDR, are experiencing strong growth and adoption, with MDR being one of the fastest-growing SKUs.
- The shift to long-term contracts has resulted in some near-term negative financial impacts as customers optimize their estates before signing.
- The company faces headwinds from pricing and packaging changes, impacting net revenue retention.
- There is pressure from tight customer budgets and cost diligence among MSPs, affecting growth.
- The endpoint security space is maturing, which may weigh on future growth.
- Revenue recognition under ASC 606 has created lumpiness in revenue results, impacting future periods.
Thank you for your patience. The N-able second-quarter 2024 earnings call will begin shortly. (Operator Instructions)
Welcome to the N-able's second-quarter 2024 earnings call. My name is Sam, and I will be coordinating your call today. I will now hand you over to your host, Griffin Gyr, to begin. Griffin, please go ahead.
Thanks, operator, and welcome, everyone, to N-able's second-quarter 2024 earnings call. With me today are John Pagliuca, N-able's President and CEO; and Tim O'Brien, EVP and CFO.
Following our prepared remarks, we will open the line for a question-and-answer session. This call is being simultaneously webcast on our Investor Relations website at investors.n-able.com. There, you can also find our earnings press release, which is intended to supplement our prepared remarks during today's call.
Certain statements made during this call are forward-looking statements, including those concerning our financial outlook, our market opportunities, and the impact of the global economic environment
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