N-able: Fiscal 1Q22 Financial Results

N-able, Inc. reported results for its first quarter ended March 31, 2022.

“Our 1FQ22 came in above the high-end of our expectations, which is a testament not only to the hard work of our N-able team, but to expanding awareness of our brand and our growing reputation as the partner of choice for MSPs around the world,” said president and CEO. “Our call-to-action in 2022 is ‘Earn More Fans,’ and to us that implies that we must execute well on every aspect of N-able’s value proposition. Our technology is being recognized as some of the top-rated offerings on the market as we continue to help our partners grow their businesses, and we are tuning our culture to ensure we are continuously improving to serve our mission.”

“We delivered strong revenue growth for the first quarter driven by robust demand for our security and data protection solutions,” added EVP and CFO Tim O’Brien. “The industry tailwinds of increased IT complexity, labor scarcity, and rising cyber threats continue to compel MSPs to seek better solutions and providers who can help them grow. Our increased investments in brand, product, and go-to-market activities are focused on helping MSPs capitalize on these trends, and we are on track to drive revenue acceleration and margin improvement into the back half of 2022 on a constant currency basis.“

1FQ22 financial highlights:
• Total revenue of $90.9 million, representing approximately 9% Y/Y growth, or approximately 12% Y/Y growth on a constant currency basis.
• Subscription revenue of $88.6 million, representing approximately 10% Y/Y growth, or approximately 13% Y/Y growth on a constant currency basis.
• GAAP gross margin of 84.3% and non-GAAP gross margin of 85.7%.
• GAAP net income of $5.1 million, or $0.03 per diluted share, and non-GAAP net income of $15.6 million, or $0.09 per diluted share.
• Adjusted EBITDA of $27.0 million, representing an adjusted EBITDA margin of 29.7%.

At March 31, 2022, total cash and cash equivalents were $70.4 million and total debt was $338.4 million.

Outlook for 2FQ22
• Total revenue in the range of $91.0 to $91.5 million, representing approximately 7% Y/Y growth, or approximately 13% growth on a constant currency basis.
• Adjusted EBITDA in the range of $26.0 to $26.5 million, representing approximately 29% of total revenue.

Outlook for FY22
• Total revenue in the range of $376 to $379 million, representing 9% Y/Y growth, or 13% to 14% Y/Y growth on a constant currency basis.
• Adjusted EBITDA in the range of $112.5 to $115.5 million, representing approximately 30% of total revenue.