On November 13, 2023, N-able Inc (NABL, Financial) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023. The company, a leading provider of IT solutions for service providers, reported a robust 15% increase in revenue year-over-year, amounting to $107.6 million, or a 13% increase on a constant currency basis. This growth was driven by a strong demand in the IT outsourcing market and the company's strategic initiatives to enhance its product offerings.
Financial Performance Overview
N-able Inc (NABL, Financial) demonstrated solid financial performance in Q3 2023, with subscription revenue growing by approximately 15.3% year-over-year to $105.2 million. The company's GAAP gross margin stood at 83.9%, while the non-GAAP gross margin was slightly higher at 84.6%. GAAP net income for the quarter was reported at $6.0 million, translating to $0.03 per diluted share, and non-GAAP net income reached $17.2 million, or $0.09 per diluted share.
Adjusted EBITDA saw a significant increase of approximately 27% compared to the same period last year, reaching $36.6 million, which represents an adjusted EBITDA margin of 34.0%. This growth is indicative of N-able Inc (NABL, Financial)'s ability to scale efficiently while investing in product innovation and maintaining cost discipline.
Balance Sheet and Cash Flow Highlights
As of September 30, 2023, N-able Inc (NABL, Financial) reported total cash and cash equivalents of $127.4 million and total debt, net of issuance costs, at $335.5 million. The company's balance sheet remains strong, providing a solid foundation for ongoing investments and operational activities.
Market Position and Outlook
President and CEO John Pagliuca commented on the company's market position, stating:
“As the Age of the MSP advances, the IT outsourcing market remains strong. Compelling market trends are driving MSP growth... We added new capabilities in the third quarter to meet these evolving market needs, including exciting developments to our security suite."
Executive Vice President and CFO Tim O’Brien added:
“Our third quarter results were strong, exceeding our guidance on the top and bottom lines... Looking ahead, we believe we are uniquely positioned to benefit from an appealing market opportunity."
N-able Inc (NABL, Financial) has raised its full-year 2023 adjusted EBITDA outlook to $139.2 - $139.7 million, with an expected adjusted EBITDA margin of 33%. The company maintains its full-year 2023 revenue growth outlook at 13% year-over-year, both on a reported and constant currency basis. For the fourth quarter of 2023, management expects total revenue in the range of $106.5 to $107.0 million and adjusted EBITDA in the range of $35.0 to $35.5 million.
Additional Highlights
The company was recognized as the #1 RMM provider for the third consecutive year in CRN’s 2023 annual report card awards and received accolades from Comparably for Best Employee Compensation, Happiest Employees, and Best Company Perks & Benefits. These recognitions underscore N-able Inc (NABL, Financial)'s commitment to product excellence and a positive workplace culture.
Investors and stakeholders are encouraged to review the detailed financial tables and reconciliations of GAAP to non-GAAP financial measures included in the earnings release for a more comprehensive understanding of the company's performance.
For further details on N-able Inc (NABL, Financial)'s financial results, including the full income statement, balance sheet, and cash flow statement, please refer to the company's 8-K filing.
Explore the complete 8-K earnings release (here) from N-able Inc for further details.
