N-ABLE(NABL)2025-03-07 21:07Financial Performance - Revenue for the year ended December 31, 2024, was 421.9 million in 2023 and a 13.5% increase from 31.0 million, up from 16.7 million in 2022[25]. - Adjusted EBITDA for the year ended December 31, 2024, was 143.4 million in 2023 and 466.1 million, 371.8 million for the years ended December 31, 2024, 2023, and 2022, respectively, indicating a growth trend[140]. - Revenue from customers outside of the United States represented 51.8% of total revenue for the fiscal year ended December 31, 2024[148]. Market Opportunity and Growth - The global market opportunity for the company's solutions is estimated at 65 billion by 2028[36]. - IT spending by businesses with fewer than 2,500 employees is projected to increase from 2.6 trillion by 2028[26]. - The company supports over 500,000 businesses worldwide with its cloud-based software solutions[35]. - The company achieved a dollar-based net revenue retention rate of 103%, 110%, and 103% for the trailing twelve-month periods ended December 31, 2024, 2023, and 2022, respectively, indicating strong customer loyalty and expansion[44]. - The company is focused on expanding its IT services provider footprint by adding new customers that can grow their businesses alongside the company[44]. Product and Service Offerings - The platform offers over 100 out-of-the-box automated tasks to enhance service efficacy and capacity for IT service providers[41]. - The platform includes integrated solutions for unified endpoint management, data protection as-a-service, and security, addressing a wide range of IT service provider needs[45]. - The platform supports thousands of device types across major categories, including Windows, macOS, and Linux, enabling comprehensive management of IT environments[49]. - The platform's automation capabilities enable customers to scale their operations with fewer technical support personnel, enhancing operational efficiency[44]. - The platform is built on a multi-tier, multi-tenant architecture, enabling centralized control over distributed IT environments[39]. Customer and Employee Metrics - As of December 31, 2024, the company had 2,349 customers with Annual Recurring Revenue (ARR) over 50,000 accounted for approximately 57% of the company's total ARR as of December 31, 2024, up from 56% the previous year[70]. - The company employs 1,773 individuals globally, with 447 in the United States and 1,326 outside the U.S., including 131 employees from the acquisition of Adlumin, Inc.[90]. - Approximately 75% of the company's employees were located outside of the United States as of December 31, 2024[148]. Strategic Initiatives - The company employs a differentiated go-to-market approach that allows it to grow alongside its customers as they expand their services and customer bases[42]. - The company has established strategic technology partnerships to enhance its platform's extensibility and provide integrated solutions to customers[64][65]. - The company plans to continue investing in research and development, particularly in international markets, to enhance its platform's functionalities[147]. - The company has made several acquisitions, including the acquisition of Adlumin, Inc. in November 2024, as part of its growth strategy[142]. - The company may pursue additional acquisitions to expand its market presence, but identifying suitable candidates and securing financing could pose challenges[145]. Risks and Challenges - The company faces significant competition in the IT services market, with competitors having advantages such as greater brand awareness and larger sales budgets[131]. - The company may face adverse effects from economic conditions, including inflation and potential recession, impacting customer spending on IT services[182]. - The company acknowledges that its financial outlook is speculative and subject to significant uncertainties, which may lead to material variations from actual results[190]. - The company has experienced a tightening labor market, which could lead to increased costs and negatively affect operational efficiency[179]. - The company may face significant expenses and resource allocation issues related to monitoring and protecting its intellectual property rights[209]. Cybersecurity and Compliance - The company has invested heavily in security, adhering to compliance standards such as HIPAA, ISO/IEC 27001, and PCI DSS, ensuring robust protection for its solutions[61]. - The company has experienced increased cybersecurity threats, including sophisticated supply-chain attacks, which may impact its ability to protect its systems and data[215]. - Cybersecurity incidents have resulted in compromises of proprietary information and could materially harm the business, leading to significant financial and reputational damage[212]. - The Cyber Incident has adversely affected SolarWinds' business, reputation, customer relations, and financial condition[218]. - Significant costs related to the Cyber Incident include investigations, remediation efforts, and ongoing cybersecurity initiatives, which may negatively impact financial condition[220]. Corporate Culture and Employee Engagement - N-able achieved Great Place to Work certification and received multiple awards, including three Stevie Awards for diversity and employee engagement[101]. - The company provides resources for employee wellness, including comprehensive benefits and specialized wellness programming[99]. - N-able's learning and development program supports career growth through various training and development initiatives[100]. - The company has a strong focus on diversity, equity, and belonging, with employee-driven Communities of Interest supporting various groups[95]. - The company is focused on maintaining its corporate culture as it expands, which is vital for recruiting and retaining talent[180].