N-ABLE(NABL) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $116.4 million, reflecting an 8.3% year-over-year growth[2] - Subscription revenue reached $115.0 million, representing a 9.3% year-over-year increase[2] - Adjusted EBITDA for Q3 2024 was $44.8 million, up 22.7% year-over-year, with an adjusted EBITDA margin of 38.5%[2] - The full-year 2024 revenue outlook has been updated to a range of $461.2 to $462.7 million, indicating approximately 9% to 10% year-over-year growth[7] - The adjusted EBITDA for full-year 2024 is expected to be in the range of $169.3 to $169.8 million, representing approximately 37% of total revenue[7] - GAAP net income for Q3 2024 was $10,757, compared to $6,013 in Q3 2023, representing an increase of 78.5%[26] - Non-GAAP net income for Q3 2024 was $24,251, up from $17,160 in Q3 2023, reflecting a growth of 41.5%[27] - Adjusted EBITDA for Q3 2024 reached $44,832, compared to $36,552 in Q3 2023, indicating a rise of 22.6%[28] - Non-GAAP operating margin improved to 32.2% in Q3 2024, compared to 28.4% in Q3 2023[26] - GAAP operating income increased to $23,908 in Q3 2024, up from $18,350 in Q3 2023, marking a growth of 30.8%[26] Cash and Assets - As of September 30, 2024, total cash and cash equivalents were $174.4 million, while total debt was $333.6 million[4] - Total current assets increased to $282,277 thousand as of September 30, 2024, up from $224,791 thousand at December 31, 2023[23] - Cash and cash equivalents rose to $174,445 thousand from $153,048 thousand over the same period[23] - Stockholders' equity grew to $764,951 thousand as of September 30, 2024, compared to $711,360 thousand at the end of 2023[23] - The company reported a significant increase in recoverable taxes, rising to $21,907 thousand from $12,116 thousand[23] - Current liabilities totaled $93,778 thousand, an increase from $81,717 thousand[23] - Cash and cash equivalents at the end of the period were $174,445 thousand, up from $127,433 thousand at the end of the previous year[25] - The company reported a net increase in cash and cash equivalents of $16,936 thousand for the three months ended September 30, 2024[25] Revenue Breakdown - Subscription and other revenue for the three months ended September 30, 2023, was $107,567 thousand, an increase from $313,465 thousand for the nine months ended September 30, 2023[24] - Total GAAP subscription and other revenue for the nine months ended September 30, 2024, was $349,638, an increase of 11.5% from $313,465 in the same period of 2023[29] - GAAP subscription revenue for Q3 2024 was $114,998, representing a growth rate of 9.3% compared to $105,208 in Q3 2023[29] - Non-GAAP subscription revenue on a constant currency basis for Q3 2024 was $113,991, reflecting an 8.3% increase from $105,208 in Q3 2023[29] - GAAP other revenue decreased by 38.8% to $1,444 in Q3 2024 from $2,359 in Q3 2023[29] - Non-GAAP subscription and other revenue on a constant currency basis for Q3 2024 was $115,435, showing a 7.3% growth from $107,567 in Q3 2023[29] - Estimated foreign currency impact on GAAP subscription revenue for Q3 2024 was $(1,007), which negatively affected the growth rate by 1.0%[29] Expenses - Research and development expenses for Q3 2024 were $22,995, an increase from $19,752 in Q3 2023, representing a rise of 11.3%[26] - Sales and marketing expenses for Q3 2024 were $32,294, slightly down from $33,660 in Q3 2023, a decrease of 4.1%[26] - Total cost of revenue for Q3 2024 was $19,900, up from $17,356 in Q3 2023, reflecting an increase of 14.1%[26] Cash Flow - Net cash provided by operating activities for the three months ended September 30, 2024, was $21,989 thousand, compared to $27,512 thousand for the same period last year[25] - Net cash used in investing activities for the three months ended September 30, 2024, was $(5,314) thousand, compared to $(5,524) thousand for the same period last year[25] - Net cash used in financing activities for the three months ended September 30, 2024, was $(2,515) thousand, compared to $(2,757) thousand for the same period last year[25] - Free cash flow for Q3 2024 was $16,675, down from $21,988 in Q3 2023[30] - Unlevered free cash flow for Q3 2024 was $26,976, compared to $30,237 in Q3 2023[30] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $53,451, down from $58,869 in the same period of 2023[30] Corporate Initiatives - N-able launched global compliance initiatives to enhance cybersecurity resilience for partners[3] - The company expanded its Technology Alliance Program (TAP) to integrate solutions with new technology partners[3] - N-able was awarded a 2024 Stevie award for great employers, recognizing its commitment to creating a positive workplace[3] Non-GAAP Metrics - Non-GAAP gross margin and operating margin exclude stock-based compensation and other costs, providing a clearer view of operational performance[16] - Non-GAAP net income for the period is calculated by excluding adjustments to gross profit and operating income, enhancing understanding of past performance[17] - Adjusted EBITDA is monitored regularly, defined as net income excluding various costs, and is used to assess operating performance[18] - The company aims to provide non-GAAP revenue on a constant currency basis to facilitate performance assessment excluding foreign currency fluctuations[20]