N-able Inc · Q3 2022 earnings

Briefing

Reported third quarter results, exceeding revenue and profit outlook, and raised full-year adjusted EBITDA outlook to 30% while maintaining full-year revenue outlook of 7% year-over-year growth.

N-able announced strong third-quarter results, exceeding expectations for both revenue and profit. The company's strategy is on track, with offerings in RMM, data protection, and security leading the market. N-able is focused on helping partners manage and secure their businesses while accelerating growth.

• Total revenue reached $93.5 million, a 6% year-over-year increase (13% in constant currency).
• Subscription revenue was $91.2 million, also a 6% year-over-year increase (13% in constant currency).
• GAAP gross margin was 83.9%, and non-GAAP gross margin was 84.8%.
• Adjusted EBITDA was $28.8 million, representing a 30.9% adjusted EBITDA margin.

Headline financials

Revenue & EPS history

N-able provided its financial outlook for the fourth quarter and full year 2022. Total revenue for Q4 2022 is expected to be in the range of $93.3 to $93.8 million, representing approximately 5% year-over-year growth, or approximately 11% to 12% growth on a constant currency basis. Adjusted EBITDA for Q4 2022 is expected to be in the range of $27.5 to $28.0 million, representing approximately 30% of total revenue. Total revenue for full year 2022 is expected to be in the range of $369.3 to $369.8 million, representing 7% year-over-year growth, or 12% to 13% year-over-year growth on a constant currency basis. Adjusted EBITDA for full year 2022 is expected to be in the range of $111.0 to $111.5 million, representing approximately 30% of total revenue.