NYSE$NABL

N-able Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

N-able's Q3 2023 results were strong, exceeding guidance on the top and bottom lines.

N-able reported strong third-quarter results, with total revenue of $107.6 million, representing approximately 15.0% year-over-year growth. The company's adjusted EBITDA was $36.6 million, up approximately 27% year-over-year, representing an adjusted EBITDA margin of 34.0%. N-able is maintaining its full-year 2023 revenue growth outlook of 13% year-over-year and raised its full-year 2023 adjusted EBITDA outlook to $139.2 - $139.7 Million with Adjusted EBITDA Margin of 33%.

  • Total revenue of $107.6 million, representing approximately 15.0% year-over-year growth.
  • Subscription revenue of $105.2 million, representing approximately 15.3% year-over-year growth.
  • GAAP gross margin of 83.9% and non-GAAP gross margin of 84.6%.
  • Adjusted EBITDA of $36.6 million, up approximately 27% year-over-year, representing an adjusted EBITDA margin of 34.0%.

Headline financials

Total Revenue

$108M

Previous: $93.5M+15.0%
EPS (adj)

$0.09

Previous: $0.07+28.6%
GAAP Gross Margin

83.9%

Previous: 83.9%+0.0%
Non-GAAP Gross Margin

84.6%

Previous: 84.8%-0.2%
Adjusted EBITDA

$36.6M

Previous: $28.8M+26.9%
Adjusted EBITDA Margin

34.0%

Previous: 30.9%+10.0%
Capital Expenditures

-$10.5M

Previous: -$9.69M-8.2%
Free Cash Flow

-$4.47M

Previous: -$9.4M+52.4%
Net Income

$6.01M

Previous: $294K+1945.2%
Operating Income

$18.4M

Previous: $11.7M+56.5%
Gross Profit

$90.2M

Previous: $78.4M+15.0%
Cash & Equivalents

$127M

Previous: $87.7M+45.3%
Total Assets

$1.12B

Previous: $1.03B+8.8%
R&D Expense

$19.7M

No prior period
Stock-Based Comp

$11.3M

No prior period

Revenue & EPS history

N-able · Revenue · Quarterly

$108M

Q3 2023+15%vs Q3 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

N-able · $108M total across 2 segments · Q3 2023

  • Subscription Revenue
    $105M+15.4%
  • Other Revenue
    $2.36M+1.9%

Forward guidance

N-able provided its financial outlook for the fourth quarter of 2023 and full-year 2023.

Tailwinds

  • Total revenue in the range of $106.5 to $107.0 million for Q4 2023, representing approximately 11% to 12% year-over-year growth.
  • Total revenue in the range of $106.5 to $107.0 million for Q4 2023, representing approximately 10% to 11% growth on a constant currency basis.
  • Adjusted EBITDA in the range of $35.0 to $35.5 million for Q4 2023, representing approximately 33% of total revenue.
  • Total revenue in the range of $420.0 to $420.5 million for full year 2023, representing approximately 13% year-over-year growth on both a reported and constant currency basis.
  • Adjusted EBITDA in the range of $139.2 to $139.7 million for full year 2023, representing approximately 33% of total revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.4%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-0.4%

Avg return

30 days after

48%

11 / 23 earnings

Positive

+20.1%

Q3 2022

Best reaction

-28.2%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-26.6%-28.4%
Q4 2025-10.8%-15.4%-5.6%
Q3 2025+9.1%+2.2%-3.6%
Q1 2025+5.2%+14.7%+14.0%
Q4 2024-28.2%-26.7%-25.7%
Q3 2024-11.7%-13.4%-18.9%
Q2 2024-1.4%-2.9%-5.4%
Q1 2024-0.2%+0.0%+11.8%
Q4 2023+5.9%+3.0%+2.1%
Q3 2023-11.6%-13.8%-8.0%
Q2 2023+1.3%+0.1%+0.4%
Q1 2023+8.0%+10.4%+14.2%
Q4 2022+19.5%+15.4%+16.8%
Q3 2022+20.1%+19.5%+15.2%
Q2 2022-2.1%+0.2%-2.1%
Q1 2022+6.1%+9.2%+20.2%
Q1 2021+6.1%+9.2%+20.2%
Q4 2019+4.6%-3.3%-16.3%
Q4 2021+2.3%+2.4%-13.9%
Q3 2021-3.9%-4.9%-12.3%
Q2 2020-1.6%-1.5%+6.6%
Q2 2021-1.6%-0.4%+4.9%
Q4 2020-1.6%-0.4%+4.9%
Q3 2020
Q1 2020

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