Q3 2024 N-Able Inc Earnings Call Transcript
Key Points
- N-able Inc (NABL) reported a revenue of $116.4 million for Q3 2024, representing an 8% year-over-year growth.
- The company achieved an adjusted EBITDA of $44.8 million, with an approximately 39% adjusted EBITDA margin, exceeding quarterly guidance.
- N-able Inc (NABL)'s Cove product is the fastest-growing and largest recurring revenue product group, indicating strong market demand.
- The company has seen steady demand for its security suite, which includes comprehensive offerings like EDR, email protection, and managed detection and response services.
- N-able Inc (NABL) has over 50% of its monthly recurring revenue under long-term contracts, which is expected to drive higher retention and expansion over time.
- The company faces short-term financial pressure due to customers optimizing their estates before entering long-term contracts.
- Pricing headwinds from 2023's inflationary environment are expected to persist into the first half of 2025.
- N-able Inc (NABL) experienced a decline in gross margin to 83.7% from 84.6% in the same period last year.
- The transition of existing customers to long-term contracts, particularly those on-premise, is lower than expected, impacting revenue.
- The company anticipates a slight negative impact on revenue and adjusted EBITDA in Q4 2024 due to changes in revenue recognition under ASC 606.
Thank you for your patience. Hello everyone and Welcome to the N-Able third quarter, 2024 earnings call.
(Operator Instructions)
I'd now like to hand over to your host, Griffin Gyr, Investor Relations Manager to begin. Please go ahead.
Thanks, operator and Welcome everyone to N-Able's third 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 on our business. These statements are based on currently available
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
