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N-able (NABL)
NYSE:NABL
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N-able
(NYSE:NABL)
68Neutral
Positive Factors
Earnings
NABL reported revenue growth of 7.5% y/y CC, and total revenue of about $117 million, which exceeded consensus of $114 million.
Market Opportunity
The company has a base of 800 customers and taps into up-market relationships versus N-able's ~25,000 MSPs; enhancing the company's addressable market opportunity.
Negative Factors
Contract Initiatives
The ongoing transition to annual contracts is expected to continue to negatively impact revenue growth for the next few years.
Revenue Guidance
Management’s FY25 revenue and adjusted EBITDA margin guide, inclusive of Adlumin, is weaker than expected.
N-able (NABL) vs. S&P 500 (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)1.00M
Price to Earnings (P/E)43.3
Beta (1Y)0.88
Revenue Growth10.49%
EPS Growth30.42%
CountryUS
Employees1,584
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)0.17
Shares Outstanding188,950,620
10 Day Avg. Volume1,645,491
30 Day Avg. Volume1,001,596
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)N/A
Price to Sales (P/S)2.89
Price to Cash Flow (P/CF)12.90
P/FCF Ratio18.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$9.25Price Target Upside29.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
N-able Business Overview & Revenue Model
Company DescriptionN-able, Inc. (NABL) is a leading provider of cloud-based software solutions designed to empower managed service providers (MSPs) in delivering IT services to small and medium-sized enterprises. The company's comprehensive suite of tools includes remote monitoring and management, network and device management, and security solutions, which are essential for MSPs to efficiently manage IT infrastructures and provide high-quality service to their clients. By focusing on innovation and customer-centric solutions, N-able aims to enhance the capabilities of MSPs and help them drive business growth.
How the Company Makes MoneyN-able generates revenue primarily through a subscription-based model for its software solutions. The company's key revenue streams include selling licenses for its cloud-based IT management and security software platforms, which are typically sold on a recurring subscription basis. This model provides a steady and predictable revenue stream as clients pay for ongoing access to N-able's services. Additionally, N-able may offer professional services and training to complement its software offerings, which can also contribute to its revenue. Strategic partnerships with technology vendors and service providers can further enhance its market reach and customer base, thus supporting its financial performance.
N-able Financial Statement Overview
Summary
N-able demonstrates a strong financial position with consistent revenue growth, robust profitability margins, and efficient cash flow generation. The company has low leverage and a strong equity base, enhancing its financial stability.Income Statement
N-able shows strong revenue growth with a 10.01% increase in TTM (Trailing-Twelve-Months) revenue compared to the previous year. The Gross Profit Margin for the TTM is 83.07%, indicating efficient cost management. The Net Profit Margin improved to 6.67%, reflecting increased profitability. EBIT and EBITDA margins are healthy at 16.48% and 22.38% respectively, showcasing robust operational performance.85
Very Positive
Balance Sheet
The Debt-to-Equity Ratio in TTM stands at 0.05, indicating low leverage, which is positive for financial stability. The Return on Equity (ROE) is 4.08%, showing a modest return to shareholders. The Equity Ratio is solid at 56.69%, suggesting a well-capitalized company with a strong equity base.75
Positive
Cash Flow
Free Cash Flow for TTM grew by 6.52% compared to the previous year, demonstrating strong cash generation capability. The Operating Cash Flow to Net Income Ratio is 2.57, highlighting efficient cash conversion. The Free Cash Flow to Net Income Ratio is 2.00, indicating solid free cash flow generation relative to net income.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 462.63M | 421.88M | 371.77M | 346.46M | 302.87M | Gross Profit |
| 385.47M | 353.67M | 313.16M | 294.02M | 239.70M | EBIT |
| 82.37M | 70.32M | 47.40M | 33.33M | 33.77M | EBITDA |
| 82.37M | 94.65M | 72.55M | 65.09M | 89.44M | Net Income Common Stockholders |
| 30.96M | 23.41M | 16.71M | 113.00K | -7.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 85.20M | 153.05M | 98.85M | 66.74M | 99.79M | Total Assets |
| 1.34B | 1.16B | 1.08B | 1.06B | 1.08B | Total Debt |
| 39.59M | 374.52M | 375.87M | 381.53M | 390.15M | Net Debt |
| -45.61M | 221.47M | 277.02M | 314.80M | 290.36M | Total Liabilities |
| 579.56M | 451.43M | 436.79M | 437.34M | 448.54M | Stockholders Equity |
| 759.29M | 711.36M | 642.07M | 618.36M | 631.20M |
| Cash Flow | Free Cash Flow | |||
| 61.87M | 67.75M | 50.40M | 10.51M | 69.53M | Operating Cash Flow |
| 79.44M | 90.09M | 71.41M | 45.34M | 85.67M | Investing Cash Flow |
| -122.42M | -22.34M | -30.21M | -34.83M | -16.14M | Financing Cash Flow |
| -22.59M | -15.17M | -10.40M | -50.62M | -10.56M |
N-able Technical Analysis
Negative
7.15
Price Trends
9.29
Negative
10.16
Negative
11.81
Negative
Market Momentum
-0.74
Positive
25.00
Positive
9.05
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NABL, the sentiment is Negative. The current price of 7.15 is below the 20-day moving average (MA) of 8.94, below the 50-day MA of 9.29, and below the 200-day MA of 11.81, indicating a bearish trend. The MACD of -0.74 indicates Positive momentum. The RSI at 25.00 is Positive, neither overbought nor oversold. The STOCH value of 9.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NABL.
N-able Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.77B | 16.05 | 8.42% | 1.28% | 1.56% | 18.79% | |
70 Outperform | $3.14B | 28.55 | 7.87% | ― | 5.03% | ― | |
69 Neutral | $22.00B | 20.83 | 49.04% | 1.50% | -1.77% | -1.82% | |
69 Neutral | $17.73B | ― | 6.85% | ― | 14.82% | 14.06% | |
68 Neutral | $1.35B | 43.33 | 4.21% | ― | 10.49% | 30.42% | |
68 Neutral | $4.15B | 13.60 | 6.45% | 2.67% | -12.21% | -51.31% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% |
* Technology Sector Average
Performance Comparison
NABL
N-able
7.15
-6.01
-45.67%
AVT
Avnet
46.90
0.58
1.25%
SNX
SYNNEX
127.77
25.96
25.50%
CDW
CDW
166.66
-76.84
-31.56%
NTNX
Nutanix
67.77
3.94
6.17%
SWI
SolarWinds
18.29
7.22
65.22%
N-able Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -28.71% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
N-able demonstrated strong revenue and ARR growth, strategic acquisitions, and successful product innovation. However, challenges related to revenue recognition timing and net revenue retention, along with anticipated pressures on EBITDA margin in 2025, present significant headwinds.Highlights
Revenue and ARR Growth
Fourth quarter revenue grew 7% year-over-year in constant currency, and full year 2024 revenue grew 10% at constant currency. Annualized Recurring Revenue (ARR) reached $482 million, growing 10% at constant currency.
Strategic Acquisition of Adlumin
Acquired Adlumin, which expands N-able's capabilities in the XDR and MDR markets. Adlumin's cloud-native AI-powered XDR platform became a significant contributor, joining Cove Data Protection as one of the top booking products.
Successful Product Innovation
Launched immutable backups and enhanced restore through AI, achieving over 95% restore accuracy. Recognized as a 2024 RMM champion by Canalys for the second year in a row.
Strong Adjusted EBITDA
Fourth quarter adjusted EBITDA was $38.1 million, reflecting a 32.7% margin, and $169.4 million for the full year, reflecting a 36.3% margin.
Growth in Reseller and Channel Partnerships
Expanded routes to market by leveraging Adlumin's North American reseller channels and planning international expansion in markets such as the U.K., DACH, and Australia.
Lowlights
Revenue Growth Constraints
Revenue growth for the first quarter of 2025 is expected to be 1% to 2% year-over-year, with a 5% headwind due to ASC 606-related revenue recognition timing.
Net Revenue Retention Challenges
Dollar-based net revenue retention was approximately 103%, facing challenges due to the timing of long-term contract initiatives.
Impact of ASC 606 on Financials
The timing of long-term contract initiatives is expected to cause transitory lumpiness in revenue, creating growth rate headwinds throughout 2025.
Pressure on Adjusted EBITDA Margin
Expect adjusted EBITDA margin to be below target model in 2025 due to integration of Adlumin, investment in India, and ASC 606 timing impacts.
Company Guidance
During the N-able Fourth Quarter 2024 Earnings Call, the company provided guidance for fiscal year 2025, highlighting several key metrics and strategic initiatives. The company reported a Q4 revenue growth of 7% year-over-year in constant currency and an annual revenue growth of 10% at constant currency, with an ARR of $482 million, reflecting a 10% growth at constant currency. Adjusted EBITDA for Q4 was $38.1 million, representing a 32.7% margin, and for the full year, it was $169.4 million, with a 36.3% margin. N-able set strategic objectives to expand security leadership, scale go-to-market strategies, and enhance customer experiences, driven by the recent acquisition of Adlumin. For 2025, the company expects total revenue to be between $486.5 million and $492.5 million, indicating a 4% to 6% year-over-year growth or 6% to 8% in constant currency. The full year ARR is projected to be between $514 million and $522 million, reflecting a 7% to 9% growth in constant currency, with adjusted EBITDA margins anticipated to be around 27% to 28%. The company aims to leverage Adlumin's capabilities and reseller channels to drive growth, expecting margins to surpass 30% by 2026.N-able Corporate Events
M&A Transactions
N-able Expands Cybersecurity with Adlumin Acquisition
Positive
Nov 20, 2024
N-able has acquired Adlumin to enhance its security and IT management platform with Adlumin’s cloud-native XDR and MDR capabilities. The merger, valued at $250 million in cash and stock, aims to strengthen N-able’s cybersecurity portfolio and boost its annual recurring revenue. This acquisition promises to deliver deeper security insights and advanced protection for managed service providers and IT teams, addressing the growing overlap between IT operations and security operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.