N-able: Fiscal 2Q22 Financial Results

N-able, Inc. reported results for its second quarter ended June 30, 2022.

“As we celebrate N-able’s one-year anniversary as an independent public company, our second quarter results once again beat our expectations, and our reputation as the software provider who helps solve the challenges our partners face continues to strengthen,” said president and CEO John Pagliuca. “We are beginning to see the benefit of the strategic initiatives we set in place, and we are getting an enthusiastic reception across the market to the power of our platform and the differentiation of our services and partner success resources. As we enter 2H22, we will continue to work closely with our MSP partners to help them standardize on our holistic suite of tools and the exciting new products yet to come.“

“Our results for 2FQ22 reflect the success of our multi-product sales approach, with particularly strong growth in our security and data protection offerings,” added EVP and CFO Tim O’Brien. “We believe we have a winning business model that creates value for our stakeholders and is adaptable to, and built to capitalize on, shifting trends in the market. We intend to continue to balance investment in our business and our people, execute on our strategy, and monitor the current macro dynamics so we can continue to drive growth and deliver the products and services on which our partners rely.“

2FQ22 financial highlights:
• Revenue of $91.6 million, representing approximately 7% Y/Y growth, or approximately 13% Y/Y growth on a constant currency basis.
• Subscription revenue of $89.4 million, representing approximately 8% Y/Y growth, or approximately 14% Y/Y growth on a constant currency basis.
• GAAP gross margin of 84.5% and non-GAAP gross margin of 85.5%.
• GAAP net income of $4.3 million, or $0.02 per diluted share, and non-GAAP net income of $16.0 million, or $0.09 per diluted share.
• Adjusted EBITDA of $27.6 million, representing an adjusted EBITDA margin of 30.1%.

At June 30, 2022, total cash and cash equivalents were $86.6 million and total debt was $337.9 million.

Financial Outlook for 3FQ22
• Revenue in the range of $92.5 to $93.0 million, representing approximately 5% Y/Y growth, or approximately 11% to 12% growth on a constant currency basis.
• Adjusted EBITDA in the range of $26.5 to $27.0 million, representing approximately 29% of total revenue.

Financial Outlook for FY22
• Revenue in the range of $370 to $372 million, representing 7% Y/Y growth, or 12% to 13% Y/Y growth on a constant currency basis.
• Adjusted EBITDA in the range of $107.0 to $109.0 million, representing approximately 29% of total revenue.