N-Able (NABL) Q4 2024 earnings summary

Executive summary

• Ended 2024 with strong momentum, achieving up to 10.5% year-over-year revenue growth and 10% ARR growth in constant currency, driven by security, data protection, and the strategic acquisition of Adlumin, which expanded the product suite and reseller channel.

• Transitioned to over 50% of revenue from annual contracts, expected to drive improved growth and net retention.

• N-able operates in a large and growing market, with a $2.6T SMB and mid-market IT spend and a $65B TAM projected for 2028, leveraging a high recurring revenue, cross-selling, and land-and-expand strategy.

• Investments in innovation, customer experience, and channel expansion, including key leadership hires, set the stage for continued growth in 2025.

Financial highlights

• Q4 2024 revenue: $116.5M, up 7–7.5% year-over-year; full-year revenue: $466.1M, up 10–10.5% year-over-year.

• Q4 Adjusted EBITDA: $38.1M (32.7–33% margin); full-year Adjusted EBITDA: $169.4M (36.3% margin).

• Q4 gross margin: 82.3% (non-GAAP); full-year gross margin: 83.8% (non-GAAP).

• ARR at year-end: $482.5M, up 8.6–10% year-over-year in constant currency.

• Unlevered free cash flow for 2024: $98.7M–$99M; $29M in Q4.

• Non-GAAP EPS: $0.10 in Q4; $0.48 for the year.

Outlook and guidance

• 2025 revenue guidance: $486.5M–$492.5M (4–6% YoY growth; 6–8% constant currency).

• 2025 ARR guidance: $514M–$522M (7–8% YoY growth; 7–9% constant currency).

• 2025 Adjusted EBITDA: $132M–$138M (27–28% margin); margin expected to dip in 2025 due to Adlumin integration and investments, returning above 30% in 2026.

• Q1 2025 revenue: $115M–$116M (1–2% YoY growth; 3–4% constant currency); Q1 Adjusted EBITDA: $27.5M–$28.5M (24–25% margin).

• CapEx for 2025 expected at ~6% of revenue; interest expense ~$27M at 7.5% rate.