N-ABLE(US:NABL)2025-03-03 18:44Financial Data and Key Metrics Changes - Fourth quarter revenue grew 7% year-over-year in constant currency, with full year 2024 revenue growing 10% at constant currency [8][39] - Adjusted EBITDA for the fourth quarter was $38.1 million, reflecting a 32.7% margin, while full year adjusted EBITDA was $169.4 million, reflecting a 36.3% margin [9][43] - Annual recurring revenue (ARR) as of December 31, 2024, was $482 million, growing 10% at constant currency [8][42] Business Line Data and Key Metrics Changes - Cove Data Protection remains the largest revenue-generating product, protecting over 180,000 businesses and outpacing total company growth [17][30] - The acquisition of Adlumin has positioned it as one of the two highest booking products since its acquisition [15][16] Market Data and Key Metrics Changes - Approximately 45% of revenue was generated outside of North America in the fourth quarter, and 46% for the full year [46] - The company is focusing on expanding its presence in the North American reseller channel and international markets such as the U.K., DACH, and Australia [33][34] Company Strategy and Development Direction - The company aims to expand its security leadership, scale its go-to-market strategy, and elevate customer experience in 2025 [22][34] - The strategic acquisition of Adlumin is expected to enhance the product suite and create new growth avenues in the high-demand security market [38][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for growth in 2025, citing strong demand in the market and a robust business model [58][61] - The company anticipates some headwinds in the first half of 2025 due to long-term contract commitments but expects acceleration in the second half [108][110] Other Important Information - The company transitioned from less than 10% of revenue from annual contracts to over 50% in 2024, which is expected to improve customer retention [19][20] - The company is investing in technology and partnerships to enhance its serviceable addressable market and unlock significant growth potential [21][22] Q&A Session Summary Question: What was the revenue contribution from Adlumin in Q4? - The revenue contribution from Adlumin in Q4 was approximately $2.5 million from the acquisition date of November 20 through the end of the year [65] Question: Is there an expected headwind or benefit from moving customers to annual contracts? - The initiative will continue, with expectations for a natural blend up over time, but no significant uptick like in 2024 is anticipated [68] Question: How has engagement been on the partner side for Adlumin? - Resellers have been enthusiastic about the acquisition, seeing it as a partnership that provides a one-stop shop for various offerings [74] Question: What competitive landscape does Adlumin face? - Adlumin is seen as a strong competitor due to its cloud-native, AI-driven technology and endpoint-agnostic capabilities, which differentiate it from larger competitors [80][82] Question: What is the expected organic growth rate for 2025? - The company expects higher single-digit growth rates, with a focus on scaling new customer acquisition motions and leveraging the Adlumin acquisition [112] Question: How is the company exposed to the U.S. federal government market? - The company does not have direct visibility into the end customers of MSPs but expects to remain diversified and not significantly impacted by government market dynamics [127][128]